EKI Energy Services Limited (EKIESL), a leading player in the climate change and sustainability advisory sector, has released its financial results for the second quarter, revealing a mixed performance amidst ongoing corporate restructuring efforts.

Revenue and Profitability

For Q2, EKIESL reported a standalone revenue from operations of ₹1,473.05 lakhs, marking a significant decline from ₹3,435.42 lakhs in Q1. Despite the quarter-on-quarter decrease, the company managed to post a standalone profit of ₹408.92 lakhs for Q2, a notable improvement from the loss of ₹1.75 lakhs in the previous quarter.

On a half-yearly basis, EKIESL's revenue reached ₹4,908.47 lakhs, showing a modest increase compared to ₹4,595.42 lakhs in the same period of the previous year.

Consolidated Performance

The consolidated financial results paint a more challenging picture. EKIESL reported a consolidated net loss of ₹128.45 lakhs for Q2.

Segment Performance

EKIESL operates in two primary segments:

1. Trading Segment: Involves purchasing and selling carbon credits
2. Generation Segment: Focuses on credits from company-owned projects

For Q2, the Trading Segment reported revenue of ₹1,295.11 lakhs, while the Generation Segment contributed ₹2,110.58 lakhs.

Corporate Developments

A significant development announced alongside the financial results is the Board's approval of a demerger scheme. The plan involves separating the Generation Business Segment into EKI One Community Projects Limited, subject to necessary regulatory approvals. This strategic move aims to streamline operations and potentially unlock value for shareholders.

Other Notable Activities

During the quarter, EKIESL demonstrated its commitment to employee retention and motivation by allotting 40,000 equity shares under its Employee Stock Option Plan. Additionally, the company incorporated a wholly-owned subsidiary, EKI Greengas Solutions Private Limited, signaling its intent to expand into new areas of the green energy sector.

Balance Sheet Highlights

As of September 30, EKIESL maintained a strong balance sheet with total assets of ₹61,172.48 lakhs. The company's cash and cash equivalents stood at ₹8,201.52 lakhs, providing a solid liquidity position to navigate market uncertainties and fund growth initiatives.

Outlook

While the quarter-on-quarter revenue decline is a concern, EKIESL's ability to return to profitability on a standalone basis is a positive sign. The ongoing demerger process and the establishment of new subsidiaries suggest that the company is actively repositioning itself in the evolving climate and sustainability market.

Investors and stakeholders will likely keep a close eye on how these strategic moves impact EKIESL's performance in the coming quarters, particularly as the global focus on climate change and sustainability continues to intensify.

Note: All figures are based on the unaudited financial results for the quarter and half-year ended September 30, as reported by EKI Energy Services Limited.

EKI Energy Services Limited (EKIESL), a prominent player in the renewable energy sector, has announced the incorporation of a new wholly owned subsidiary, EKI Greengas Solutions Private Limited. This strategic move marks EKIESL's expansion into the biogas and related renewable energy products market.

Subsidiary Details

EKI Greengas Solutions Private Limited was incorporated with the following key details:

• Corporate Identity Number (CIN): U74900MP2025PTC079196
• Authorized Share Capital: Rs. 15.00 lakhs
• Paid-up Share Capital: Rs. 10.00 lakhs

EKIESL has acquired 100% shareholding in the new subsidiary through a cash subscription, subscribing to 1,00,000 equity shares at a face value of Rs. 10.00 each.

Business Focus

The newly formed subsidiary will operate in the renewable energy industry, focusing on:

1. Manufacturing, trading, and distribution of biogas and related renewable energy products and technologies
2. Providing consulting, research, and services related to:
   • Biomass
   • Biochar
   • Carbon capture
   • Operation of biogas plants and infrastructure

Regulatory Compliance

In compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, EKIESL has duly informed the BSE Limited about this development. The company's Company Secretary & Compliance Officer, Itisha Sahu, submitted the required disclosures.

Shareholding Structure

EKIESL has subscribed to 99,999 equity shares at the face value of Rs. 10.00 each, totaling Rs. 9,99,990.00. Additionally, Mr. Mohit Kumar Agarwal has subscribed to 1 (One) equity share as a Nominee Shareholder on behalf of EKI Energy Services Limited, maintaining the 100% ownership structure.

Future Prospects

While EKI Greengas Solutions Private Limited is yet to commence business operations, this strategic incorporation aligns with the growing focus on renewable energy solutions. The subsidiary's diverse portfolio, ranging from biogas production to carbon capture technologies, positions EKIESL to capitalize on the expanding green energy market.

As the renewable energy sector continues to evolve, EKIESL's expansion into biogas and related technologies through this new subsidiary could potentially open up new revenue streams and strengthen its position in the sustainable energy landscape.