💰 Financial Performance

Revenue Growth by Segment

Generation Division revenue grew 20.55% to INR 1,149.71 Lakhs in FY25 from INR 953.72 Lakhs in FY24. Contract and Trading divisions reported 0% revenue (Nil) for both FY25 and FY24.

Geographic Revenue Split

Not disclosed in available documents, though operations are focused on hilly and Himalayan regions of India for hydro potential.

Profitability Margins

Operating Profit Margin improved to (5.10)% in FY25 from (11.52)% in FY24 due to increased turnover. Net Profit Margin was reported at 6.18% in FY25 vs (0.19)% in FY24, despite a massive Net Loss before tax of INR 5,889.99 Lakhs.

EBITDA Margin

The company earned a PBILDT of INR 4.43 crores in FY23 on an operating income of INR 12.82 crores, representing a margin of approximately 34.56%.

Credit Rating & Borrowing

Credit rating was downgraded to CARE C; Stable in February 2025 from CARE B-; Stable, reflecting 'Issuer Not Cooperating' status for INR 11.00 Cr in bank facilities.

⚙️ Operational Drivers

Raw Materials

Water (Hydro) and Wind represent the primary natural inputs, accounting for 0% direct procurement cost but 100% of the operational risk due to natural variability.

Import Sources

Not applicable as raw materials are natural resources sourced locally at project sites in India.

Key Suppliers

Not applicable; raw materials are natural resources (Water/Wind).

Capacity Expansion

Current installed capacity is approximately 31 MW, including the 9 MW Harangi Hydro, 7 MW Ullunkal Hydro, and 15 MW Karikkayam Hydro projects. Planned expansion involves adding capacity in the Small Hydro Power (SHP) sector, targeting India's 21,000 MW potential.

Raw Material Costs

Direct raw material costs are 0% of revenue; however, variability in natural resource availability (vagaries of nature) directly impacts revenue generation by up to 2% (as seen in FY23 generation moderation).

Manufacturing Efficiency

Ullunkal Hydro (7 MW) generation increased 23.2% to 20.38 MU in FY25; Karikkayam Hydro (15 MW) generation increased 6.9% to 42.05 MU in FY25.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company aims to achieve growth by tapping into India's 21,000 MW Small Hydro Power (SHP) potential, specifically in Himalayan states and irrigation canals. This will be achieved through capacity expansion in hydro power, leveraging its experience in remote terrain execution and forming strategic alliances with financial investment partners to mitigate logistical and technological challenges.

Products & Services

Electricity generated from hydro and wind sources; contract management in construction (bridges, roads, power plants); and consultancy services for hydro power plant engineering and design.

Brand Portfolio

EDCL (Energy Development Company Limited).

Market Expansion

Focusing on Himalayan States and irrigation canals for Small Hydro Power (SHP) projects up to 25 MW capacity.

Strategic Alliances

Yearly contracts with Customized Energy Solutions India Pvt Ltd (CESIPL) for the Harangi project and partnerships with financial investment partners for remote area developments.

🌍 External Factors

Industry Trends

The industry is shifting toward non-fossil fuel generation, expected to reach 44.7% of total gross electricity generation by 2029-30, supported by a 21,000 MW SHP potential.

Competitive Landscape

Increasing private sector interest in SHP projects; competition from other renewable sources like solar and wind.

Competitive Moat

Moat is based on extensive experience in executing SHP projects in challenging terrains and long-term PPAs with state utilities, providing revenue visibility for its 31 MW capacity.

Macro Economic Sensitivity

Highly sensitive to government renewable energy policies and state government demands for higher free power shares, which can lead to higher tariffs and impact project viability.

Consumer Behavior

Increasing demand for peak hour power and renewable energy sources to address shortages and frequency variations.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by stringent environmental and forest clearance norms, pollution standards, and state-level water resource subjects.

Taxation Policy Impact

Not disclosed, though an income tax assessment order and demand notice have been issued to the company.

Legal Contingencies

Pending income tax assessment order and demand notice; litigation risks related to land acquisition for project submergence areas.

⚠️ Risk Analysis

Key Uncertainties

Hydrological risks (vagaries of nature) impacting generation; 'Issuer Not Cooperating' status with credit agencies; and elongated working capital cycles.

Geographic Concentration Risk

100% of operations are India-based, with a specific concentration in hilly and Himalayan regions for hydro projects.

Third Party Dependencies

High dependency on State Utilities for revenue collection under long-term PPAs and on CESIPL for the 9 MW Harangi project.

Credit & Counterparty Risk

Receivables quality is a concern as evidenced by the impairment that drove Debtors Turnover to 1.61 in FY25 from 0.25 in FY24; adjusted gearing ratio of 0.17x reflects long-pending receivables (>180 days).