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Urja Global Board Approves In-Principle Incorporation of 100% Subsidiary in UK
Urja Global's Board has granted in-principle approval to establish a wholly-owned foreign subsidiary, Urja Resources Limited, in London, United Kingdom. The new entity is intended to focus on renewable and green energy solutions, including electric vehicles (EV), charging infrastructure, and solar panels. As of February 4, 2026, the incorporation process is yet to be initiated, and the capital structure remains to be determined. This move signals the company's strategic intent to expand its sustainable energy footprint into international markets.
Key Highlights
Proposed 100% Wholly Owned Subsidiary (WOS) to be named Urja Resources Limited in London, UK.
Business scope covers EV charging infrastructure, solar panels, and green energy solutions.
Board approval for the expansion was granted on February 2, 2026.
No immediate financial impact reported as the entity is yet to be incorporated.
Capital structure and turnover details are currently not applicable at this early stage.
💼 Action for Investors
Investors should monitor the progress of the UK incorporation and the subsequent capital commitment required for this international expansion. While the move into the UK green energy market is a growth signal, the company's execution capability in a foreign jurisdiction needs to be assessed.
Urja Global Q3 Results: Auditor Flags Missing Docs and Massive ₹88 Cr GST Penalties
Urja Global's Q3 FY26 results are overshadowed by a highly critical auditor's report highlighting missing documentation for ₹46.35 crore in mine project investments. The company is embroiled in severe legal trouble, including a recent GST demand order of ₹44.15 crore in tax plus an equivalent ₹44.15 crore penalty for alleged fake ITC. Additionally, the auditor raised concerns over ₹67.15 crore in aging receivables (over 180 days) and the lack of interest accrual on a ₹24.02 crore promoter loan. While the company plans to expand with a UK subsidiary, the financial red flags are significant.
Key Highlights
Auditor flagged missing documentary evidence for ₹46.35 crore in Mine Projects and capital work-in-progress.
Received a massive GST demand order for ₹44.15 crore tax and ₹44.15 crore penalty for alleged fake ITC and short payment.
Receivables worth ₹67.15 crore and payables of ₹36.03 crore have been outstanding for more than 180 days without ledger confirmations.
Failure to accrue interest on a ₹24.02 crore loan from promoter company Nandanvan Commercial Pvt Ltd since inception.
SEBI imposed a ₹90 lakh penalty on the company and 15 related entities for disclosure non-compliance.
💼 Action for Investors
Investors should exercise extreme caution due to the high volume of auditor qualifications, missing financial records, and massive contingent liabilities. The lack of documentation for core investments and significant tax penalties suggest high governance risk.
Urja Global Q3 Results: Auditor Flags ₹46Cr Missing Docs & ₹88Cr GST Penalty
Urja Global's Q3 FY26 board meeting approved financial results alongside a highly critical auditor's report highlighting severe financial irregularities. The auditor flagged a lack of documentation for ₹46.35 crore in mine project investments and ₹67.15 crore in receivables aged over 180 days without ledger confirmations. Most critically, the company faces massive GST demands and penalties, including a recent order for ₹88.3 crore related to alleged fake ITC. Despite these issues, the board approved the incorporation of a new subsidiary in London, UK.
Key Highlights
Auditor reported no documentary evidence for ₹46.35 crore invested in Mines Projects and Capital Work-in-Progress.
Company received a GST demand and penalty order totaling ₹88.3 crore for alleged fake ITC and short tax payments.
Receivables worth ₹67.15 crore and payables of ₹36.03 crore are aged over 180 days with no ledger confirmations available.
SEBI imposed a ₹90 lakh penalty on the company and 15 related entities for disclosure non-compliance.
Board approved the incorporation of a foreign wholly-owned subsidiary in London, UK.
💼 Action for Investors
Investors should exercise extreme caution as the auditor's report suggests significant governance issues, lack of internal controls, and massive contingent liabilities. The potential impact of tax penalties and unrecoverable receivables poses a severe risk to the company's net worth.
Urja Global's Issuer Rating Reaffirmed at 'CARE BB-; Stable' by CARE Ratings
CARE Ratings has reaffirmed Urja Global Limited's issuer rating at 'CARE BB-; Stable', reflecting a mix of growth and operational challenges. While the company's total operating income grew by 51% to ₹67.25 crore in FY25, its PAT margin significantly declined to 2.06% from 4.58% in the previous year. The company faces a severely stretched operating cycle of 412 days, with approximately ₹65 crore in receivables outstanding for over two years. Despite these pressures, the capital structure remains comfortable with a low overall gearing of 0.31x.
Key Highlights
Total Operating Income increased 51% YoY to ₹67.25 crore in FY25, primarily from e-scooters and batteries.
Profit After Tax (PAT) margin dropped to 2.06% in FY25 compared to 4.58% in FY24.
Operating cycle remains highly elongated at 412 days, with significant legacy receivables from the solar segment.
Liquidity is classified as 'Stretched' with a low free cash balance of ₹0.40 crore as of September 2025.
Overall gearing remains healthy at 0.31x, supported by a low debt-to-equity profile.
💼 Action for Investors
Investors should remain cautious given the 'Stretched' liquidity and high working capital intensity, despite the company's presence in the high-growth EV sector. Key monitorables include the recovery of long-pending receivables and stabilization of operating margins.