IRM Energy share price jumps 9% after reporting 39% YoY increase in net profit

Synopsis: Shares of this small-cap gas stock jumped 9% after Q3FY26 results, as net profit rose 38% YoY to Rs. 14 crore and EBITDA grew 34% to Rs. 29.6 crore with modest 6% revenue growth to Rs. 265 crore.

The shares of this company which is a leading City Gas Distribution (CGD) company with an experience of more than 8 years in developing robust city gas distribution networks and connecting different customer segments are in the spotlight after it jumped 9% in today’s market following its Q3 results with a 38 percent jump in net profits.

With a market capitalisation of Rs. 1,008 cr, the shares of IRM Energy Ltd were trading at Rs. 245.70 per share, jumping 9% in today’s market session, making a high of Rs. 260.25, up from its previous close of Rs. 238.15 per share. The stock has fallen 20% over the past year, is down 15% on a year-to-date basis, declined 15% over the last six months, and dropped 14% in the past month.

Q3FY26 Results 

QoQ performance

IRM Energy delivered steady sequential growth in the December 2025 quarter. Revenue increased to Rs. 265 crore from Rs. 259 crore, reflecting a 2% QoQ rise. Operating performance improved with EBITDA growing 11% QoQ to Rs. 29.6 crore from Rs. 26.7 crore. Net profit rose 11% to Rs. 14.0 crore from Rs. 12.6 crore, while EPS improved to Rs. 3.40 from Rs. 3.06, supported by stronger operating profitability.

YoY performance

On a year-on-year basis, the company reported strong growth across all key metrics. Sales increased by 6% from Rs. 251 crore to Rs. 265 crore. EBITDA surged 34% to Rs. 29.6 crore from Rs. 22.2 crore, highlighting a significant improvement in cost efficiency and margins. Net profit rose sharply by 38% to Rs. 14.0 crore from Rs. 10.1 crore, with EPS also up 38% to Rs. 3.40, underscoring strong earnings momentum despite moderate top-line growth.

As of December 31, 2025, the company had total IPO net proceeds of about Rs. 495.76 crore, of which Rs. 277.35 crore had been utilized and Rs. 218.41 crore remained unutilized. 

Of the total, Rs. 307.26 crore was earmarked for capital expenditure on city gas distribution projects, with Rs. 89.32 crore utilized so far, while Rs. 135 crore allocated for debt repayment has been fully utilized. Additionally, Rs. 53.50 crore was designated for general corporate purposes, with Rs. 53.03 crore already spent.

Segment-wise volumes 

For the Q3FY26, IRM Energy reported total gas volumes of 56.07 mmscm, up 5% YoY. CNG volumes rose strongly by 21% to 34.07 mmscm, while PNG–Domestic grew 14% to 2.53 mmscm. However, PNG–I&C volumes declined 14%. During the quarter, the company added 2,773 domestic, 18 commercial, and 4 industrial customers and commissioned 11 new CNG stations.

IRM Energy Ltd (a group Company of Cadila Pharmaceuticals Ltd.) is an integrated value-driven energy enterprise developing Natural Gas distribution projects across various districts in the country for industrial, commercial, domestic, and automobile customers. The company is committed to contributing to the energy needs of its consumers.

The company reports a ROCE of 8.26% and ROE of 4.68%. It maintains a low debt-to-equity ratio of 0.08, reflecting a strong balance sheet, and has successfully reduced its debt levels, improving overall financial stability.

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