IRM Energy Limited conducted its Q1 FY27 earnings conference call on August 07, 2026, at 16:30 IST. The call was moderated by Akash from EY, with participation from the full management team including CEO Mr. M. K. Sharma, CFO Mr. Arun Kumar Saluru, and other key executives.

Financial Performance Highlights

Record Quarterly Performance: The company achieved its highest-ever quarterly revenue, EBITDA, and profitability in Q1 FY27.

Revenue: Stood at INR 326 crore, registering 24% YoY growth and 17% QoQ growth.

EBITDA: Excluding other income, increased sharply to INR 62 crore, reflecting 139% YoY growth. EBITDA margin expanded to 19%.

PAT: Profit after tax stood at INR 34 crore, up 140% YoY, with PAT margin improving to 10.5%.

Volume: Reached an all-time high of 50.9 MMSCM, growing 8% YoY. CNG volumes grew 22% YoY while commercial CNG volumes grew 75% YoY. CNG contributed 67% of total volume while PNG contributed 33%.

Operational Metrics

CNG Stations: Operated 153 CNG stations as of June 30, 2026, representing 37% YoY growth, supported by 564 dispensing points.

PNG Connections: Domestic PNG customers increased to 86,590 (13% YoY growth), commercial customers to 589 (36% YoY growth), and industrial customers stood at 228 (5% YoY growth).

Geographical Distribution: Banaskantha contributed 48% of Q1 FY27 volume, while Diu & Gir Somnath and Namakkal & Tiruchirappalli together contributed 20%.

Business Developments

New Partnerships: Commenced CNG sales to TNSTC (Tamil Nadu State Transport Corporation) with more than 80 buses operational in Namakkal, with expectations of exceeding 200 buses in the near future.

Diu Conversion: Successfully converted the entire commercial segment of PNG in Diu, making the territory LPG-free for commercial establishments.

Infrastructure Integration: Signed hookup arrangements with Indian Oil, GAIL, and GSPL pipeline in Diu & Gir Somnath GA for integration with the national network.

MOU Signed: Executed MOU with Somnath government, Sanskrit University, and Trident Industries for PNG supply.

Capital Expenditure and IPO Proceeds

Q1 FY27 Capex: INR 67 crore, taking cumulative Capex to approximately INR 1,090 crore.

IPO Proceeds Utilization: Utilized INR 337 crores out of total net proceeds of INR 496 crores as of June 30, 2026 (68% utilization). The balance is primarily earmarked for City Gas Distribution Network development at Namakkal and Trichy GA.

Management Updates

Strengthened professional management team with appointments of seasoned industry leaders to key positions including Director of Finance and Chief Operating Officer.

Guidance and Outlook

Revenue Growth: Targeting 20-25% revenue growth CAGR over the next five years. For FY27, expecting approximately 25% YoY revenue growth.

Volume Growth: Expecting 10-12% volume growth in FY27, targeting 250 MMSCM by year-end (from 224 MMSCM in FY26).

EBITDA per SCM: Guidance of INR 7-8 per SCM for the next three quarters (compared to INR 10 in Q1 FY27).

FY27 Capex Plan: INR 250 crore allocated across geographical areas - INR 150 crore for Namakkal & Trichy, INR 50 crore each for Banaskantha and Diu & Gir Somnath.

CNG Station Expansion: Planning 10-15 stations in Banaskantha, 15-17 in Namakkal & Trichy, 5 in Diu & Gir Somnath, and 2 in Fatehgarh Sahib.

Gas Sourcing Strategy

Q1 FY27 Sourcing Mix: APM and NWG: 32%, HPHT: 35%, RLNG and LNG: 33%

Comparative Q1 FY26: APM: 27%, Long-term sourcing: 27%, HPHT gas: 38%

The company has long-term contracts with GSPC and Shell until 2030, providing price stability. HPHT sourcing is expected to continue until January 2027.

Regulatory and Market Challenges

Supply Disruption: PNG industrial volumes were impacted following government notification dated March 9, 2026, which resulted in approximately 80% gas allocation reduction due to West Asia conflict supply disruptions. This affected only industrial supplies, not CNG or PNG domestic/commercial areas.

NGT Order in Fatehgarh Sahib: The National Green Tribunal order from February 2026 is expected to drive industrial conversion to natural gas, though implementation has been delayed due to elections and supply constraints.

Regional Performance Expectations

Namakkal & Trichy: Q1 volume of 6 MMSCM (102% YoY growth). FY27 target of 25-30 MMSCM (compared to 14.2 MMSCM in FY26).

Banaskantha: Expecting double-digit volume growth.

Diu: Complete commercial PNG conversion achieved, expected to drive volume growth.

Financial Discipline

The company emphasized maintaining financial discipline, prudent capital allocation, and operational excellence across all four geographical areas. The performance was driven by favorable pricing environment, sustained volume growth, optimized gas sourcing, and operational cost management.