IRM Energy Ltd(IRMENERGY)

NSE: IRMENERGYBSE: 544004

₹ 230-0.88%refreshed 26 Oct, 03:29 pm ISTMarket cap: ₹ 944 crWebsite: www.irmenergy.comUpdated: 24 Oct 2026

About

IRM Energy Limited is a city gas distribution (CGD) company operating across four authorised geographical areas (GAs) in Gujarat, Tamil Nadu, and Punjab, supplying CNG, PNG and LNG to automotive, commercial, industrial and domestic customers. In FY26 the company delivered revenue of ₹1,159.96 crore and total gas volumes of 223.67 MMSCM. India Ratings affirmed its bank facilities at IND AA-/Stable as of October 2026.^[1][2][3]

Business segments

CNG contributed ~61% of total operating revenue in FY26, with volumes of 133.53 MMSCM (+21% YoY), making it the primary revenue driver.^[2][4]
PNG domestic, PNG commercial and PNG industrial make up the remainder of volumes; industrial fell sharply in Q1FY27 after a government notification on 9 March 2026 cut APM gas allocation for industrial use by ~80%.^[5]
Total volumes reached an all-time high of 58.93 MMSCM in Q1FY27 (+8% YoY), led by CNG (+22% YoY) and PNG commercial (+75% YoY).^[5]

CGD network and geographic areas

IRM operates across four GAs: Banaskantha (Gujarat), Diu & Gir Somnath (Gujarat), Namakkal & Trichy (Tamil Nadu), and Fatehgarh Sahib (Punjab).^[2][6]
Banaskantha accounted for ~48% of Q1FY27 volumes, down from ~59% in FY23, as newer GAs scale up and reduce single-GA concentration.^[5]
Namakkal & Trichy GA delivered 6 MMSCM in Q1FY27 vs 2.84 MMSCM in Q1FY26, a 102% YoY jump, with infrastructure rollout at an advanced stage.^[5]
The entire commercial customer base in Diu has been converted to PNG, making Diu fully LPG-free in the commercial segment as of Q1FY27.^[5]

CNG infrastructure

153 CNG stations (including 2 LCNG stations) with 564 dispensing points were operational as of 30 June 2026, a 37% YoY rise in station count.^[5]
CNG stations grew from 111 at end-FY25 to 150 at end-FY26 (+35% YoY); dispensing points rose 37% YoY to 552 over the same period.^[2]
IRM signed agreements with Nayara Energy for co-located CNG stations and took over IOCL CBG stations for CNG dispensing in NT and FS GAs.^[6][4]

PNG connections and customers

Cumulative domestic PNG customers reached 86,590 as of Q1FY27, up 13% YoY.^[5]
Cumulative domestic PNG customers stood at 77,935 as of 30 September 2025, with 1,657 additions in Q2FY26.^[6]
In NT GA, actual domestic PNG connections were 1,066 against an MWP target of 88,700 as of September 2025, indicating significant execution runway.^[6]
Grasim Industries MoU signed to supply PNG to 700+ residential quarters in the Diu & Gir Somnath GA, adding incremental domestic volume.^[4]

Key operating metrics

EBITDA per SCM reached ~₹10.5/SCM in Q1FY27, up sharply from >₹5/SCM in FY26, driven by the long-term HPHT gas sourcing advantage.^[5][2]
EBITDA margin expanded to 18.96% (+913 bps YoY) in Q1FY27, versus 10.52% (+65 bps YoY) for full-year FY26.^[5][2]
FY26 total volumes were 223.67 MMSCM (+9% YoY); CNG volumes were 133.53 MMSCM (+21% YoY) in FY26.^[2]

Gas sourcing

HPHT gas (contracted with GSPC and Shell in April 2025 for five years to 2030) accounts for ~35% of the sourcing mix at ~USD 9/MMBTU versus spot prices of USD 14 - 20.^[5]
APM+NWG accounts for 32% of supply, long-term RLNG 32%, and spot dependency is ~1% as of Q1FY27.^[5]
APM gas allocation share was 41% of volumes in 9MFY26.^[4]
CBG tripartite agreements between IRM, GAIL and CBG producers were signed across all four GAs under the GAIL CBG-CGD Synchronization Scheme.^[2]
IRM has gas supply partnerships with GAIL, IOCL and RIL-BP and collaborates with India Gas Exchange for competitive pricing.^[7]

Customers and distribution

Tamil Nadu State Transport Corporation (TNSTC) is a bulk CNG offtake customer in NT GA; 80+ buses were operational as of Q1FY27, with the fleet targeted to grow to 200+ buses.^[5][2]
TNSTC buses contributed ~17% of total CNG volume in the Namakkal & Trichy GA as of Q4FY26.^[2]
First LNG dispensing facility commissioned at Rasipuram in the NT GA; agreement signed with Ultra Gas Trading Company with additional transporter hubs being lined up.^[2]

Expansion and capex

Cumulative capex reached ~₹1,090 crore by Q1FY27, with ₹67 crore deployed in Q1FY27 alone.^[5]
FY27 total capex planned at ₹250 crore: ₹150 crore for NT GA, ₹50 crore each for Banaskantha, DGS and Fatehgarh Sahib.^[5]
32 - 39 new CNG stations planned for FY27 across all four GAs (10 - 15 in Banaskantha, 15 - 17 in NT, ~5 in DGS, ~2 in Fatehgarh Sahib).^[5]
DGS GA is to be connected to the GSPL national pipeline grid via a GTL hookup, replacing LNG supply; estimated to be ~9 months away as of Q1FY27.^[5]
IPO proceeds of ₹337 crore (68%) had been utilised as of Q1FY27, with the bulk of NT GA CGD capex still to be deployed.^[5]

Recent developments

India Ratings affirmed bank loan facilities of INR 7,000 million at IND AA-/Stable/IND A1+ on 7 October 2026.^[3]
FY26 final dividend of ₹1.50 per share (15%) declared with record date 11 September 2026; 11th AGM held on 29 September 2026.^[8]
Dr. Rakiv I. Modi re-appointed as Non-Executive Independent Director for a second five-year term at the FY26 AGM.^[8]
New statutory auditor M/s. Sorab S. Engineer & Co. appointed for five consecutive years from the conclusion of the 11th AGM.^[8]
Promoter group increased equity stake by 0.67% during Q1FY27.^[5]
Solar group captive arrangements reduced electricity cost from ₹8.5 - 9/unit to ₹3 - 4.5/unit, lowering operating expenditure.^[4]

Market Cap

₹944 Cr

High / Low

₹367 / 166

Stock P/E

13.0

Price / Book

0.9

Book Value

₹243

EPS

₹13.0

No. of Shares

4.11 Cr

ROCE

8.2%

ROE

5.5%

OPM

7.9%

Debt / Equity

0.05

Sales

₹1,160 Cr

Net Profit

₹53 Cr

Promoter holding

50.7%

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