IRM Energy Limited held its inaugural earnings conference call on February 05, 2026, to discuss the financial and operational performance for the quarter and nine months ended December 31, 2025. The company, a subsidiary of Cadila Pharmaceuticals Limited, operates city gas distribution networks across multiple states including Gujarat, Punjab, Tamil Nadu, and the Union Territory of Daman and Diu.

Financial Performance Highlights

The company demonstrated strong financial performance during the reporting period. For Q3 FY26, IRM Energy reported revenue of INR 265 crore, representing a 6% year-over-year growth. The company's EBITDA for the quarter reached INR 30 crore, showing impressive 34% YoY growth compared to Q3 FY25.

For the nine months ended December 31, 2025, the company achieved revenue of INR 787 crore with 11% YoY growth and EBITDA of INR 82 crore, reflecting 4% YoY growth. The nine-month EBITDA margin stood at 10.4%.

Operational Infrastructure and Customer Base

IRM Energy operates an extensive network across six geographical areas (GAs): Banaskantha in Gujarat, Fatehgarh Sahib in Punjab, Diu and Gir Somnath in the Union Territory of Daman and Diu and Gujarat, and Namakkal and Trichy in Tamil Nadu. As of December 31, 2025, the company's supply network consists of approximately 6,354 inch-km of pipeline with 3,047 km of pipeline length.

The company serves a diverse customer base including:

• Over 80,000 domestic customers
• 221 industrial units
• 463 commercial establishments
• 127 CNG stations with 466 dispensing points

Segment-wise Performance

CNG Operations

CNG business remains the primary revenue driver, contributing approximately 61% of total operating revenue. The segment delivered strong double-digit volume growth of 21% YoY, supported by robust performance in Banaskantha, Diu and Gir Somnath (DGS), and Namakkal-Trichy (NT) geographical areas.

During Q3 FY26, the company commissioned 11 new CNG stations and took over 5 CNG stations from Indian Oil Corporation Limited under a collaboration agreement. The company also entered an MOU with IOCL for CNG dispensing in NT and FS areas under the full DODO (Dealer Owned Dealer Operated) model.

PNG Segment Performance

The PNG (Piped Natural Gas) segment showed mixed results across different categories:

During Q3 FY26, the company added 2,773 domestic connections, 18 commercial connections, and 4 industrial customers. The Diu and Gir Somnath GA surpassed the 10,000 domestic connection milestone.

Gas Sourcing Strategy

The company maintains a diversified gas sourcing portfolio to manage cost volatility. For the nine-month period, the sourcing mix comprised:

• APM (Administered Price Mechanism) gas: 41%
• HPHT (High Pressure High Temperature) gas: 38.4%
• Newell Gas: 10.5%
• Long-term contracts and other sources: Remaining portion

The company has entered into competitive long-term contracts with GSPC and Shell, maintaining an 85% committed contracts to 15% open market ratio to optimize sourcing costs while taking advantage of market opportunities.

Capital Expenditure and Expansion Plans

IRM Energy incurred capex of INR 35.51 crore in Q3 FY26, bringing the total nine-month capex to INR 103 crore. The company has ambitious expansion plans, particularly for the Namakkal and Trichy geographical areas, with planned investments of over INR 250 crore over the next 15-18 months.

The company maintains a strong balance sheet with term loans of only INR 54 crore and cash and bank balances exceeding INR 255 crore, providing adequate financial flexibility for growth initiatives.

Future Outlook

Management expressed confidence in achieving 12-15% volume growth for FY27, with expectations of reaching 150+ CNG stations by March 31, 2026, compared to 111 stations at the end of the previous financial year. The company targets EBITDA guidance of INR 5.25 to INR 5.50 per SCM for the current year, with continued focus on operational efficiency and network expansion.

IRM Energy Limited has officially announced its unaudited financial results for the quarter ended December 31, 2025, under Regulation 33 of the SEBI Listing Regulations. The Board of Directors approved the results during their meeting held on February 03, 2026, demonstrating robust operational performance with consolidated net profit reaching ₹139.78 million compared to ₹100.98 million in the corresponding quarter of the previous year, representing a strong 38.42% year-on-year growth. The company's quarterly revenue reached ₹2,886.93 million compared to ₹2,733.16 million in the previous year.

Investor Presentation Submission

Pursuant to Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations 2015, IRM Energy Limited submitted its investor presentation on February 04, 2026, to both National Stock Exchange of India Limited and BSE Limited. The presentation covers comprehensive details of the unaudited financial results for the quarter and nine months ended December 31, 2025, providing stakeholders with detailed insights into the company's operational and financial performance.

Financial Performance Highlights

The company delivered exceptional financial results across key metrics, with substantial improvements in profitability driven by operational efficiency and volume growth. The EBITDA performance showed remarkable improvement with ₹296.30 million compared to ₹222.00 million in the corresponding quarter, while EBITDA margin expanded significantly to 11.18% from 8.85% year-on-year.

Operational Performance and Volume Growth

IRM Energy achieved strong operational performance during Q3FY26 with significant improvements across business segments. The company continues to expand its city gas distribution network with substantial additions in customer base and infrastructure development.

Nine-Month Performance

For the nine months ended December 31, 2025, IRM Energy maintained strong performance with revenue from operations of ₹7,869.80 million compared to ₹7,076.20 million in the corresponding period of the previous year, representing an 11.22% growth.

Board Appointments and Corporate Governance

The Board of Directors approved the appointment of Mr. Vivek Vishwas Wathodkar as Additional Independent Director with effect from February 03, 2026. Mr. Wathodkar brings over 32 years of extensive experience in the energy sector, including natural gas pipeline construction, city gas distribution, and LNG infrastructure.

IPO Proceeds Utilization

The company continues to deploy its IPO proceeds strategically, with ₹2,773.45 million utilized out of the total ₹4,957.59 million as of December 31, 2025. The major allocation includes ₹893.20 million for CGD network development in Tamil Nadu and complete repayment of ₹1,350.00 million in outstanding borrowings.

Investment Recovery Initiatives

IRM Energy is actively pursuing recovery of investments in joint ventures and associate companies. The company has ₹37.35 million invested in Venuka Polymers Private Limited, with ₹22.35 million due for redemption, and ₹44.50 million in Farm Gas Private Limited, along with business advances of ₹122.82 million under recovery.