💰 Financial Performance

Revenue Growth by Segment

Revenue from operations grew by 194.09% YoY, reaching INR 1.57 Cr (157.75 Lakhs) in FY 2024-25 compared to INR 0.53 Cr (53.64 Lakhs) in FY 2023-24. Total business income increased by 195.18% to INR 2.03 Cr (203.05 Lakhs).

Geographic Revenue Split

Not disclosed in available documents, though operations are focused on onshore assets in India, specifically the Jharia CBM block and 5370 sq km of exploration area.

Profitability Margins

Operating Profit Margin improved from -276.21% to -160.88% YoY, a 41.75% improvement due to higher sales volume. Net Profit Margin improved from -106.46% to -77.06% YoY, representing a 27.61% reduction in net loss margins.

EBITDA Margin

Not explicitly disclosed as EBITDA, but Operating Profit Margin stands at -160.88% for FY 2024-25, reflecting a loss-making development phase despite a 41.75% improvement in margin efficiency YoY.

Capital Expenditure

Not disclosed in absolute INR Cr, but the company is funding ongoing projects through additional debt, resulting in a 62.27% increase in the Debt-Equity ratio to 0.29. Planned capex includes infield pipelines, Gas Gathering Stations (GGS), and processing facilities over the next 2 years.

Credit Rating & Borrowing

The company has not been assigned any credit ratings by any agencies. Borrowing costs are reflected in an Interest Coverage Ratio of -4.73%, which declined from -25.30% due to increased loan intake for projects.

⚙️ Operational Drivers

Raw Materials

The business is an E&P company where the primary 'inputs' are skilled manpower, specialized machinery, and third-party contractor services. Watering costs in gas exploration represent a significant operational expense.

Import Sources

Not disclosed in available documents; however, technical talent is sourced from reputed Indian technical and petroleum institutes.

Key Suppliers

Not disclosed in available documents, though the company relies heavily on third-party contractors for quality control and operational execution.

Capacity Expansion

Current assets include 11 onshore blocks (4 in development, 4 in exploration) covering 5370 sq km with 460 MMBOE of prognostic hydrocarbon resource. Expansion includes connecting the Jharia CBM block to the Urja Ganga pipeline via a new authorized pipeline.

Raw Material Costs

Not disclosed as a % of revenue, but watering costs are identified as a high-cost activity that adversely affects financials during the gas extraction phase.

Manufacturing Efficiency

Not applicable as an E&P firm; however, Debtors Turnover Ratio improved by 538.64% to 22.09 times, indicating significantly faster collection of trade receivables.

Logistics & Distribution

The company is authorized by PNGRB to lay a pipeline to connect the Jharia CBM block to the National Gas Grid, which will reduce future distribution costs and provide market access.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth will be achieved through the monetization of CBM gas assets, leveraging a recent merger with Deep Energy Resources and Savla Oil & Gas to simplify structure, and utilizing the Urja Ganga pipeline for nationwide market access. The company is transitioning into a phase of rapid growth led by these CBM assets.

Products & Services

Natural Gas, Coal Bed Methane (CBM), and Crude Oil from conventional and unconventional onshore assets.

Brand Portfolio

Prabha Energy Limited (PEL).

New Products/Services

Development of CBM gas assets is expected to be the primary new revenue contributor as assets move from exploration to production phase.

Market Expansion

Targeting the nationwide gas market through the National Gas Grid connection via the Urja Ganga pipeline within the next 2 years.

Strategic Alliances

Maintains robust partnerships with Public Sector Undertakings (PSUs) to strengthen its position in the energy sector.

🌍 External Factors

Industry Trends

The industry is shifting toward unconventional hydrocarbons. The Indian government plans to double exploration area to 0.5 million sq km by 2025 and 1 million sq km by 2030. The separation of Oil/Gas from mining in the 2024 Bill is a major regulatory shift.

Competitive Landscape

Operates in a high-risk, capital-intensive industry alongside PSUs and other private E&P players.

Competitive Moat

Moat is based on a large acreage of 5370 sq km and 460 MMBOE of prognostic resources. Sustainability depends on the successful execution of development plans and monetization of CBM assets.

Macro Economic Sensitivity

Highly sensitive to global gas prices and the stability of the domestic pricing regime. Global growth is projected at 3.1% in 2024, impacting energy demand.

Consumer Behavior

Increasing demand for Natural Gas as it is the cleanest fossil fuel, supporting the company's focus on CBM.

Geopolitical Risks

Not disclosed, though the company is subject to Indian regulatory shifts such as the Oilfields (Regulations and Development) Amendment Bill 2024.

⚖️ Regulatory & Governance

Industry Regulations

Governed by the Oilfields (Regulations and Development) Amendment Bill 2024, which replaces 'mining leases' with 'petroleum leases' for exploration and production.

Environmental Compliance

Ensures compliance with all rules regarding Health, Safety, and Environment (HSE) protection, including regular MVT and firefighting training.

Legal Contingencies

No penalties or strictures were imposed on the company by Stock Exchanges, SEBI, or any statutory authority related to capital markets during the last three years.

⚠️ Risk Analysis

Key Uncertainties

Estimates on reserves and resources are based on simulations; actual outcomes may be lower than the 460 MMBOE estimate. Extraction is highly risky with significant uncertainties.

Geographic Concentration Risk

100% of operations are onshore in India, with significant concentration in the Jharia CBM block.

Third Party Dependencies

High dependency on third-party contractors for critical operations and quality control.

Technology Obsolescence Risk

The company must continuously harness new technology to maintain the viability of unconventional gas extraction.

Credit & Counterparty Risk

Debtors Turnover Ratio of 22.09 indicates low current credit risk from customers, though the company itself lacks a formal credit rating.