Premier Limited announced its unaudited financial results for the quarter ended December 31, 2025, revealing continued losses amid ongoing Corporate Insolvency Resolution Process (CIRP). The company, which has been under CIRP since January 29, 2021, reported a net loss of Rs 175 lakhs for Q3 FY26.

Financial Performance Overview

The company's financial performance for the quarter showed mixed signals compared to the previous year:

The company's total income for the quarter remained flat at Rs 29 lakhs, entirely comprising other income as revenue from operations remained nil. For the nine-month period, total income increased significantly to Rs 250 lakhs from Rs 78 lakhs in the previous year, primarily due to compensation received for land acquisition.

Operational Challenges Continue

Manufacturing activities at the company's Chakan plant have remained suspended since March 3, 2020, due to lack of working capital. The company's operations continue to be affected by its inability to function normally, with production remaining suspended throughout the reporting period.

CIRP Status and Resolution Plan

Premier Limited has been undergoing CIRP under order C.P. (IB) 1224/MB/2020 pronounced by the Hon'ble National Company Law Tribunal (NCLT), Mumbai Bench. The powers of the Board of Directors remain suspended, with Resolution Professional Ms. Kanak Jani managing the company's affairs.

The Committee of Creditors (CoC) approved a resolution plan submitted by Fab Metals Pvt. Ltd. with 92.47% assent in its 17th meeting held on January 22, 2022. The approval from NCLT Mumbai Bench for this resolution plan is currently in progress.

Land Compensation Boosts Income

During the quarter ended September 30, 2025, the company received Rs 164 lakhs as compensation for land acquisition by Dedicated Freight Corridor Corporation (DFCC). This land, originally sold to Horizon Limited in 2012, was later acquired for a railway project, with the compensation being credited to Premier Limited as per the written understanding between the parties.

Auditor's Qualified Opinion

The statutory auditors, Jayesh Dadia & Associates LLP, issued a qualified review report highlighting several concerns including the company's eroded net worth, suspended operations, and material uncertainty about the entity's ability to continue as a going concern. The auditors noted that the company's net worth has been completely eroded as of December 31, 2025.

Premier Energies has outlined its strategic approach to maintain profitability by implementing a cost-transfer mechanism that will pass increased operational expenses to customers through pricing adjustments.

Strategic Margin Protection

The company's management has indicated plans to preserve profit margins by transferring rising costs directly to customers. This approach represents a proactive strategy to maintain financial performance despite facing increased operational expenses.

Business Impact

The cost-transfer strategy demonstrates Premier Energies' focus on maintaining financial stability while navigating challenging cost environments. This approach allows the company to preserve its margin structure by adjusting customer pricing in response to operational cost increases.

The implementation of this strategy reflects the company's commitment to sustaining profitability levels despite external cost pressures affecting the energy sector.