Energy Development Company Limited has announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, marking a significant recovery in financial performance.

Standalone Financial Performance

The company demonstrated a remarkable turnaround in its standalone operations during Q3FY26. Net profit reached ₹40.62 crores compared to a substantial loss of ₹5,697.98 crores in the corresponding quarter of the previous year.

For the nine-month period ended December 31, 2025, the company achieved a net profit of ₹478.05 crores against a loss of ₹5,483.37 crores in the previous year, representing a significant improvement in operational efficiency.

Power Generation and Sales

The company's core business of electricity generation showed seasonal performance patterns typical of hydel and wind power projects. During Q3FY26, total generation reached 10.82 million units with sale value of ₹441.34 crores.

Consolidated Results

On a consolidated basis, the company reported net profit of ₹129.88 crores for Q3FY26 compared to a loss of ₹7,638.76 crores in Q3FY25. Consolidated revenue from operations stood at ₹1,113.77 crores for the quarter and ₹4,208.81 crores for nine months.

Exceptional Items and Provisions

During the nine months ended December 31, 2025, the company made exceptional provisions of ₹122.59 crores against investments and outstanding balances related to its wholly-owned subsidiary EDCL Arunachal Hydro Project Private Limited, considering recoverability concerns.

Auditor Observations

The statutory auditors issued a modified conclusion highlighting several areas of concern:

• Outstanding loans of ₹2,932.08 crores to subsidiary companies with undetermined repayment terms
• Potential impairment of ₹5,600.00 crores in investments in wholly-owned subsidiaries
• Trade receivables of ₹656.10 crores outstanding for considerable periods
• Pending income tax demands aggregating ₹18,817.47 crores for assessment years 2011-2012 to 2020-2021

Business Segments

The company operates through three main divisions: generating division (electricity generation and sales), contract division (project construction and consultancy), and trading division (power equipment and metals trading). The generating division remains the primary revenue contributor.

Regulatory Compliance

The Board of Directors approved these results in their meeting held on February 13, 2026, with the meeting commencing at 2:00 PM and concluding at 5:25 PM. The results were signed by Whole-time Director Satyendra Pal Singh as authorized by the Board.

Energy Development Company Limited (EDCL) has reported a turnaround in its financial performance for the first quarter, posting a consolidated profit despite ongoing challenges and auditor concerns.

Financial Highlights

• Consolidated Profit: EDCL reported a consolidated profit of ₹164.68 lakhs, compared to a loss of ₹45.81 lakhs in the same period last year.
• Revenue Growth: The company's revenue from operations surged to ₹1,028.55 lakhs, up from ₹677.67 lakhs year-on-year.
• Power Generation: Total power generation increased significantly to 27.89 million units, compared to 19.30 million units in the corresponding quarter of the previous year.

Operational Performance

The company's generating division showed a marked improvement, with segment results (profit before tax and finance costs) of ₹490.85 lakhs, compared to ₹266.48 lakhs in the corresponding quarter last year. This improvement can be attributed to increased power generation and sales.

Standalone Results

On a standalone basis, EDCL reported:

• A net loss of ₹172.61 lakhs, an improvement from the loss of ₹197.11 lakhs in the same quarter of the previous year.
• Revenue from operations increased to ₹298.64 lakhs from ₹43.58 lakhs year-on-year.
• Exceptional items of ₹122.59 lakhs related to provision for impairment against investments and outstanding balances from a subsidiary.

Auditor Concerns

The company's auditors have raised several concerns in their review report, including:

• Non-consolidation of financial results of two subsidiary companies and one associate company.
• Doubtful recovery of trade receivables, loans, and security deposits.
• Non-provision of interest on a loan taken by a subsidiary company.
• Pending income tax demands and appeals.

Management's Response

The company's management has stated that necessary appeals have been filed against the income tax demands, and based on legal and professional advice, they believe no liability is expected to arise in this respect.

Outlook

While Energy Development Company has shown improvement in its operational performance, particularly in power generation, the company continues to face challenges related to financial management and regulatory compliance. The resolution of auditor concerns and pending tax matters will be crucial for the company's long-term financial stability and investor confidence.

Investors and stakeholders should closely monitor the company's progress in addressing these issues and its ability to maintain the positive momentum in its core operations.