OF FINANCIAL CONDITION AND RESULTS OF OPERATION
The following discussion is intended to convey managements perspective on our financial condition and results of operations for the years ended March 31, 2026, March 31, 2025 and March 31, 2024. One should read the following discussion and analysis of our financial condition and results of operations in conjunction with the section titled "Restated Financial Information" on page 180 of this Red Herring Prospectus. This discussion contains forward-looking statements and reflects our current views with respect to future events and our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled "Risk Factors" on page 22 of this Red Herring Prospectus. Actual results could differ materially from those contained in any forward-looking statements and for further details regarding forward-looking statements, kindly refer to the chapter titled "Forward-Looking Statements" of this Red Herring Prospectus. Unless otherwise stated, the Restated Financial Information of our Company used in this section has been derived from the Restated Financial Information. Our financial year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular financial year are to the 12-month period ended March 31 of that year.
In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Axiom Gas Engineering Limited, on a standalone basis as on the date of this Red Herring Prospectus. Unless otherwise indicated, Restated Financial Information included herein are based on our Restated Standalone Financial Statements for the years ended 31st March 2026, 31st March 2025 and 31st March 2024 included in this Red Herring Prospectus.
Business Overview
The Company is engaged in the business of distribution and retailing of Auto Liquefied Petroleum Gas. The operations are carried out through a network of Auto LPG Dispensing Stations owned and operated by the Company. In addition to retail outlets, the Company has developed storage and allied infrastructure facilities to support the distribution and supply of Auto LPG.
The Companys network is presently spread across the states of Telangana, Karnataka, and Maharashtra. The retail operations are structured to cater to the requirements of the transport sector, with Auto LPG being marketed as an alternative automotive fuel. The Companys infrastructure includes storage, handling, and dispensing facilities designed to meet regulatory standards applicable to Auto LPG distribution.
The business model of the Company is based on the sale of Auto LPG to end consumers through its ALDS network. The Company procures Auto LPG from suppliers and undertakes storage, transportation, and distribution to its dispensing stations. The revenues are primarily derived from the retail sale of Auto LPG at its outlets. With a strong foundation of infrastructure, technical expertise, and regulatory compliance, we are strategically positioned to capitalize on the rising demand for green and efficient fuel solutions. Our growth trajectory is supported by:
- Expanding ALDS network across multiple states
- Emphasis on safety, sustainability, and compliance
- Diversified service offerings that complement the core retail LPG business
- Strategic collaborations and third-party partnerships for specialized manufacturing and engineering solutions
Material Developments after Last financial Period that may affect the future results of operations
Except as stated below and elsewhere in this Red Herring Prospectus, in the opinion of our Board of Directors, there have been no circumstances that have arisen since the date of the last financial statements, i.e. March 31, 2026, as disclosed in this Red Herring Prospectus, which materially and adversely affect or are likely to affect our operations, profitability, or the value of our assets or our ability to pay our liabilities within the next 12 months.
Commissioning of new Auto LPG Dispensing Stations: Subsequent to March 31, 2026, our Company has commissioned two additional Auto LPG Dispensing Stations, namely the Shastripuram outlet and the Babanagar outlet. These outlets have commenced retail dispensing operations and form part of our ongoing strategy of expanding our ALDS network in our existing operating geographies. The commissioning of these two outlets is expected to contribute incremental throughput volumes and, correspondingly, incremental revenue from operations in Fiscal 2027. The outlets have been funded out of internal accruals and existing borrowings, and are also expected to result in incremental outlet-level operating costs, principally outlet rent, operator commission, power and fuel and outlet/site maintenance expenses, together with a higher depreciation charge on the assets capitalised in respect of these outlets. As these outlets were commissioned after the end of Fiscal 2026, their financial effect is not reflected in the Restated Financial Information included in this Red Herring Prospectus.
Borrowings availed after March 31, 2026: Subsequent to March 31, 2026, our Company has availed a term loan of Rs75.89 lakhs from L&T Finance Limited on May 22, 2026 and a term loan of Rs125.00 lakhs from ICICI Bank Limited on May 26, 2026, the aggregate amount outstanding in respect of which was Rs193.99 lakhs as on August 25, 2026. Further, the overdraft facility availed from HDFC Bank Limited has increased from Rs207.50 lakhs as on March 31, 2026 to Rs237.16 lakhs as on August 25, 2026. Consequently, the total indebtedness of our Company has increased from Rs1,605.97 lakhs as on March 31, 2026 to Rs1,650.36 lakhs as on August 25, 2026. For details, see "Objects of the Issue" on page 78.
Other than as disclosed above, there are no material developments after the date of the last financial statements, i.e. March 31, 2026, that may affect our future results of operations.
Key Financial performance (In Lakhs)
| Particulars | 2026 | 2025 | 2024 |
| GAAP Financial Measures | |||
| Revenue from operations | 10,075.82 | 8,983.83 | 7,453.80 |
| PAT | 945.35 | 774.94 | 574.08 |
| PAT Margin (%) | 9.38% | 8.63% | 7.70% |
| Net Worth | 3,328.36 | 2,383.01 | 1,385.07 |
| Non-GAAP Financial Measures | |||
| EBITDA | 1,548.14 | 1,328.77 | 1,001.36 |
| EBITDA Margin (%) | 15.36% | 14.79% | 13.43% |
| ROE (%) | 28.40% | 32.52% | 41.45% |
| ROCE (%) | 28.90% | 30.50% | 27.01% |
Significant Accounting Policies
| Particulars | Description |
| Revenue Recognition | |
| Sr. No Particulars | Description |
| 1. Sale of Goods | Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. |
| 2. Sale of Services | Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. |
| 3. Profit Sharing Revenues | Not Applicable |
| 4. Licensing Agreements | Not Applicable |
| 5. Sales Returns | Not Applicable |
| 6. Other revenues – | Not Applicable |
| Other Income | |
| Sr. No Particulars | Description |
| 1. Interest Income | Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. |
| 2. Dividend Income | Not Applicable |
| 3. Gain or loss on derecognition of Financial Assets | Not Applicable |
| 4. Other revenues – | Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. |
| Property, plant and equipment | Property, Plant & Equipment are stated at cost net of GST and includes amounts added on revaluation, less accumulated depreciation and impairment loss if any. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the Property, Plant & Equipments are capitalized. Each part of an item of property, plant & equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. |
| Depreciation & useful asset life | Depreciation on Fixed Assets is provided to the extent of depreciable amount on the SLM method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on assets acquired/sold during the year is recognised on a pro-rata basis to the statement of profit and loss till the date of acquisition/sale. |
| Particulars | Useful life |
| Building | 60 |
| Plant & Equipment | 15 |
| Furniture & Fixtures | 10 |
| Electrical Equipment | 10 |
| Computers | 3 |
| Office equipment | 5 |
| Vehicles | 8 |
| Civil structures on ALDS | 10 |
| Goodwill & Intangible assets | |
| Sr. No Particulars | Description |
| 1. Research & Development | Not applicable |
| 2. Goodwill | Not Applicable. Our Company has not recognized any goodwill in its restated financial statements. |
| 3. Other revenues – please specify | Not Applicable |
| Financial Instruments | Not Applicable |
| Fair Value Measurement | Not Applicable |
| Leases | Leases under which substantially all the risks and rewards incidental to ownership are not transferred to our Company are classified as operating leases in accordance with Accounting Standard 19 – Leases. Lease payments under operating leases are recognized as an expense in the statement of profit and loss on a straight line basis over the lease term. Our Company operates its Auto LPG Dispensing Stations, corporate office and business centre from leased premises; outlet rent expenses aggregating Rs569.93 lakhs, Rs495.16 lakhs and Rs348.59 lakhs were charged to the statement of profit and loss for Fiscals 2026, 2025 and 2024 respectively. Our Company has not entered into any finance lease. |
| Income Tax | Income tax expense is accounted in accordance with Accounting Standard – 22 "Accounting for Taxes on Income" which includes current tax and deferred tax. Current tax The current charge for the income taxes is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred tax Deferred taxes reflect the impact of current year timing differences between the taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets are recognised only to the extent that there is reasonable/ virtual certainty that sufficient future taxable income will be available. |
| Impairment | The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life |
| Borrowing costs | Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss account. |
| Employee Benefits | Short Term Short term employee benefits are recognised as an expense as per the companys scheme based on expected obligations. Post Retirement Post retirement benefits comprise of provident fund and gratuity which are accounted as follows: Provident Fund This is a defined contribution plan. Contributions remitted to provident fund authorities in accordance with the relevant statute/rules are charged to statement of profit and loss as and when due. The company has no further obligations other than its monthly contributions. Gratuity This is a defined benefit plan. The liability is determined funded on actuarial valuation using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions, are recognized immediately in the statement of profit and loss. The company has provided for the provision as per AS-15 |
| Provisions | A provision is recognized when the company has a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on management estimate required to settle the obligation at the balance sheet date and are not discounted to present value. |
| Contingent Liabilities | Contingent Liabilities are not recognized but disclosed in Financial Statements. |
| Contingent Assets | Contingent Assets are neither recognized nor disclosed in the financial statements. |
| Foreign currencies | Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of transaction. Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and the rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract. Non-monetary foreign currency items are carried at cost. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of Property, Plant & Equipment, in which case they are adjusted to the carrying cost of such assets. |
| Cash and cash equivalent | Cash and cash equivalents comprise cash on hand, balances with banks in current accounts and deposits with banks with an original maturity of three months or less, which are readily convertible into known amounts of cash and are subject to an insignificant risk of change in value. |
| Earnings per share | Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shareholders. |
| Inventories | Inventories are valued as under:- 1. Inventories : Lower of cost or net realizable value 2. Scrap : At net realizable value. |
| Segment Reporting | Not Applicable |
| Cash Flow Statement | Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of non - cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. Cash flows from operating, investing and financing activities of the Company are segregated accordingly. |
| Events after reporting date | Events occurring after the balance sheet date which provide additional evidence of conditions existing at the balance sheet date, or which indicate that the fundamental accounting assumption of going concern is not appropriate, are adjusted in the restated financial statements in accordance with Accounting Standard 4 "Contingencies and Events Occurring After the Balance Sheet Date". Other significant events occurring after the balance sheet date which do not require adjustment are disclosed in the financial statements and, where material, in the section "Material Developments after Last financial Period that may affect the future results of operations" of this chapter. |
| Business Combinations | Not Applicable |
| Others (please specify) | - |
Key Components of Profit & Loss
| Particulars | Description |
| REVENUES | |
| Revenue from Operations | Revenue from operations comprises the sale of goods and the supply of services. The sale of goods primarily relates to LPG, while the supply of services includes signing amounts received against outlets and consultancy services. |
| Other Income | Other income comprises net gain on foreign exchange and interest earned on fixed deposits with banks. Signing amounts against outlets and consultancy services are classified as revenue from operations – supply of services, and do not form part of other income. |
| EXPENSES | |
| Cost of Material Consumed | Cost of material consumed comprises the cost of LPG purchased and utilized for sale during the reporting period, adjusted for opening and closing inventories. It represents the direct cost incurred for procurement of LPG. |
| Employee benefit expenses | Employee benefit expenses comprise salaries and wages, directors remuneration, contributions to provident and other funds, contribution to gratuity, and staff welfare expenses. |
| Finance costs | Finance costs comprise interest on term loans, interest on working capital borrowings, and interest on other borrowings. |
| Depreciation expenses | Depreciation is charged on computers and printers, office equipment, vehicles, plant and machinery, leasehold structures, electrical equipment, and buildings. |
| Other expenses | Other expenses comprise payment to auditor, advances written off, bad and doubtful debts, bank charges, commission expenses, communication cost, CSR expenditure, rates and taxes, insurance, power and fuel, professional charges, vehicle maintenance, vehicle weighment charges, office maintenance, outlet rent expenses, outlet/site maintenance and travelling and conveyance. Description of certain terms: Commission Expenses: Payments made as sales commission to operators for facilitating LPG sales. Power & Fuel: Electricity costs for operating Auto LPG Dispensing Stations (ALDS), company-owned transport, and DG sets. Vehicle Maintenance: Repair and upkeep expenses for the companys owned fleet of LPG tankers. Vehicle Weighment Charges: Charges incurred for LPG weighment at depots (supplied in kg, sold in liters) including opening and closing weighment at each ALDS. Outlet/Site Maintenance: Costs of maintaining and repairing company-operated Auto LPG Dispensing Stations (ALDS). |
| Tax expenses | Tax expense consists of current tax and deferred tax. |
Result of operations
The following table sets forth select financial data from our restated statement of profit and loss for Fiscals 2026, 2025 and 2024, the components which are also expressed as a percentage of total income for such years.
| Particulars | 2026 | % of total income | 2025 | % of total income | 2024 | % of total income |
| Income | ||||||
| Revenue from operations | 10,075.82 | 99.98% | 8,983.83 | 99.99% | 7,453.80 | 100.00% |
| Other income | 1.90 | 0.02% | 1.00 | 0.01% | 0.03 | 0.00% |
| Total Income | 10,077.72 | 100.00% | 8,984.82 | 100.00% | 7,453.83 | 100.00% |
| Expenses | ||||||
| Purchase of stock-in-trade and changes in inventories | 6,786.28 | 67.34% | 6,019.71 | 67.00% | 5,163.17 | 69.27% |
| Employee benefits expenses | 153.79 | 1.53% | 212.74 | 2.37% | 269.22 | 3.61% |
| Finance costs | 161.11 | 1.60% | 188.57 | 2.10% | 148.60 | 1.99% |
| Depreciation and amortization expenses | 123.98 | 1.23% | 105.87 | 1.18% | 83.80 | 1.12% |
| Other expenses | 1,587.60 | 15.75% | 1,422.61 | 15.83% | 1,020.05 | 13.68% |
| Total Expenses | 8,812.77 | 87.45% | 7,949.49 | 88.48% | 6,684.84 | 89.68% |
| Restated Profit/(Loss) before tax | 1,264.95 | 12.55% | 1,035.33 | 11.52% | 768.99 | 10.32% |
| Tax expense | ||||||
| Current tax | 313.68 | 3.11% | 254.43 | 2.83% | 190.58 | 2.56% |
| Deferred tax (benefit)/charge | 5.92 | 0.06% | 5.97 | 0.07% | 4.33 | 0.06% |
| MAT Credit Entitlement | - | - | - | - | - | - |
| Total tax expense | 319.60 | 3.17% | 260.40 | 2.90% | 194.91 | 2.61% |
| Share of minority in profit | - | - | - | - | - | - |
| Restated Profit/(Loss) after tax | 945.35 | 9.38% | 774.94 | 8.62% | 574.08 | 7.70% |
Liquidity and capital resources
Historically, our primary liquidity requirements have been to finance the working capital needs of our Auto LPG Dispensing Stations (ALDS) operations. These requirements have been met through cash flows generated from operations, equity infusions by shareholders, and borrowings. As of March 31, 2026, we had Rs417.33 lakhs in cash in hand, Rs171.63 lakhs as balances with banks, and Rs1,605.98 lakhs in outstanding loans. We believe that, after considering the expected cash flows from our ALDS operations, our borrowings, and the proceeds from the Issue, we will have sufficient liquidity to meet our current obligations as well as the anticipated requirements for capital expenditure and working capital over the next 12 months.
Looking ahead, our capital requirements will depend on various factors, including the pace of our growth, the expansion of our ALDS network in central and northern India, and investments to enhance our operational capacity. Accordingly, we may seek additional equity or debt financing in the future.
Cash Flows
| Particulars | 2026 | 2025 | 2024 |
| Net cash from operating activities | 1,079.51 | 816.77 | 470.58 |
| Net cash from investing activities | (538.90) | (518.33) | (1,276.11) |
| Net cash flows from financing activities | (184.94) | (347.44) | 1,022.74 |
| Net increase/ (decrease) in cash and bank balance | 355.67 | (49.00) | 217.21 |
| Cash and cash equivalents at the end of the year end | 588.96 | 233.29 | 282.30 |
Assessment of Cash Flow
a. Cash Flow from Operations
| Particulars | 2026 compared to 2025 | 2025 compared to 2024 |
| Profit before tax | Net Profit before tax increased by Rs229.62 lakhs in Fiscal 2026 (Rs1,264.95 lakhs) as compared to Rs1,035.33 lakhs in Fiscal 2025. | Net Profit before tax increased by Rs266.34 lakhs in Fiscal 2025 (Rs1,035.33 lakhs) as compared to Rs768.99 lakhs in Fiscal 2024. |
| Adjustments | ||
| Depreciation and amortization | Depreciation increased by Rs18.11 lakhs in Fiscal 2026 (Rs123.98 lakhs) as compared to Rs105.87 lakhs in Fiscal 2025. | Depreciation increased by Rs22.07 lakhs in Fiscal 2025 (Rs105.87 lakhs) as compared to Rs83.80 lakhs in Fiscal 2024. |
| Finance cost | Interest Expense decreased by Rs27.46 lakhs in Fiscal 2026 (Rs161.11 lakhs) as compared to Rs188.57 lakhs in Fiscal 2025. | Interest Expense increased by Rs39.97 lakhs in Fiscal 2025 (Rs188.57 lakhs) as compared to Rs148.60 lakhs in Fiscal 2024. |
| Interest Income | Interest Income increased by Rs1.29 lakhs in Fiscal 2026 (Rs1.90 lakhs) as compared to Rs0.61 lakhs in Fiscal 2025. | Interest Income increased by Rs0.58 lakhs in Fiscal 2025 (Rs0.61 lakhs) as compared to Rs0.03 lakhs in Fiscal 2024. |
| Other Income | - | - |
| Provision for Gratuity | Provision for Gratuity & Leave Encashment increased by Rs0.99 lakhs in Fiscal 2026 (Rs1.81 lakhs) as compared to Rs0.82 lakhs in Fiscal 2025. | Provision for Gratuity & Leave Encashment decreased by Rs1.62 lakhs in Fiscal 2025 (Rs0.82 lakhs) as compared to Rs2.44 lakhs in Fiscal 2024. |
| Foreign Exchange Fluctuation | - | - |
| Bad and Doubtful Debts | Bad and doubtful debts were Nil in Fiscal 2026 as compared to Rs1.25 lakhs in Fiscal 2025. | Bad and doubtful debts increased by Rs1.25 lakhs in Fiscal 2025 (Rs1.25 lakhs) as compared to Nil in Fiscal 2024. |
| Advances Written Off | Advances written off were Nil in Fiscal 2026 as compared to Rs0.70 lakhs in Fiscal 2025. | Advances written off increased by Rs0.70 lakhs in Fiscal 2025 (Rs0.70 lakhs) as compared to Nil in Fiscal 2024. |
| Operating profit before working capital changes | Operating profit before Working Capital Changes increased by Rs218.02 lakhs in Fiscal 2026 (Rs1,549.95 lakhs) as compared to Rs1,331.93 lakhs in Fiscal 2025. | Operating profit before Working Capital Changes increased by Rs328.14 lakhs in Fiscal 2025 (Rs1,331.93 lakhs) as compared to Rs1,003.79 lakhs in Fiscal 2024. |
| Working Capital changes | - | - |
| Increase / (Decrease) in provisions | Provisions decreased by Rs3.29 lakhs in Fiscal 2026 (outflow of Rs0.06 lakhs) as compared to an inflow of Rs3.23 lakhs in Fiscal 2025. | Provisions increased by Rs3.23 lakhs in Fiscal 2025 (Rs3.23 lakhs) as compared to Nil in Fiscal 2024. |
| Increase/ (Decrease) in trade payables | Trade payables improved by Rs104.56 lakhs in Fiscal 2026 (inflow of Rs36.73 lakhs) as compared to an outflow of Rs67.83 lakhs in Fiscal 2025. | Trade payables decreased by Rs304.98 lakhs in Fiscal 2025 (outflow of Rs67.83 lakhs) as compared to an inflow of Rs237.15 lakhs in Fiscal 2024. |
| Increase / (Decrease) in other financial liabilities | Dealers security deposits (included in long term liabilities) recorded a net cash outflow of Rs7.70 lakhs in Fiscal 2026 as compared to a net cash inflow of Rs88.00 lakhs in Fiscal 2025, a movement of Rs95.70 lakhs. These amounts represent the cash flow movement during the year and not the change in the closing balance of dealers security deposits, which was Rs1,180.30 lakhs as at March 31, 2026 as against Rs1,188.00 lakhs as at March 31, 2025. | Dealers security deposits recorded a net cash inflow of Rs88.00 lakhs in Fiscal 2025 as compared to a net cash inflow of Rs172.50 lakhs in Fiscal 2024, a movement of Rs84.50 lakhs. These amounts represent the cash flow movement during the year and not the change in the closing balance of dealers security deposits, which was Rs1,188.00 lakhs as at March 31, 2025 as against Rs1,100.00 lakhs as at March 31, 2024. |
| Increase / (Decrease) in other liabilities | Other current liabilities improved by Rs41.08 lakhs in Fiscal 2026 (inflow of Rs27.18 lakhs) as compared to an outflow of Rs13.90 lakhs in Fiscal 2025. | Other current liabilities decreased by Rs47.08 lakhs in Fiscal 2025 (outflow of Rs13.90 lakhs) as compared to an inflow of Rs33.18 lakhs in Fiscal 2024. |
| (Increase) / Decrease in inventories | Inventories improved by Rs365.58 lakhs in Fiscal 2026 (outflow of Rs146.50 lakhs) as compared to an outflow of Rs512.08 lakhs in Fiscal 2025. | Inventories improved by Rs75.12 lakhs in Fiscal 2025 (outflow of Rs512.08 lakhs) as compared to an outflow of Rs587.20 lakhs in Fiscal 2024. |
| (Increase) / Decrease in trade receivables | Trade receivables improved by Rs37.15 lakhs in Fiscal 2026 (inflow of Rs129.27 lakhs) as compared to an inflow of Rs92.12 lakhs in Fiscal 2025. | Trade receivables improved by Rs336.86 lakhs in Fiscal 2025 (inflow of Rs92.12 lakhs) as compared to an outflow of Rs244.74 lakhs in Fiscal 2024. |
| (Increase) / Decrease in other financial assets | - | - |
| (Increase) / Decrease in other assets | Short-term loans & advances/other current assets recorded an outflow of Rs64.68 lakhs in Fiscal 2026 as compared to an outflow of Rs63.98 lakhs in Fiscal 2025, an increase of Rs0.70 lakhs. | Short-term loans & advances/other current assets improved by Rs21.47 lakhs in Fiscal 2025 (outflow of Rs63.98 lakhs) as compared to an outflow of Rs85.45 lakhs in Fiscal 2024. |
| Cash (used in)/ generated from operations | Cash generated from operations increased by Rs666.72 lakhs in Fiscal 2026 (Rs1,524.20 lakhs) as compared to Rs857.48 lakhs in Fiscal 2025. | Cash generated from operations increased by Rs328.24 lakhs in Fiscal 2025 (Rs857.48 lakhs) as compared to Rs529.24 lakhs in Fiscal 2024. |
| Income tax paid (net of refund) | Income tax paid increased by Rs403.98 lakhs in Fiscal 2026 (Rs444.69 lakhs) as compared to Rs40.71 lakhs in Fiscal 2025. | Income tax paid decreased by Rs17.95 lakhs in Fiscal 2025 (Rs40.71 lakhs) as compared to Rs58.66 lakhs in Fiscal 2024. |
| Net cash flow (used in)/ generated from operating activities | Net cash flow from operating activities increased by Rs262.74 lakhs in Fiscal 2026 (Rs1,079.51 lakhs) as compared to Rs816.77 lakhs in Fiscal 2025. | Net cash flow from operating activities increased by Rs346.19 lakhs in Fiscal 2025 (Rs816.77 lakhs) as compared to Rs470.58 lakhs in Fiscal 2024. |
b. Cash Flow from Investments
| Particulars | 2026 compared to 2025 | 2025 compared to 2024 |
| Purchase of property, plant and equipment | Purchase of tangible assets decreased by Rs100.77 lakhs in Fiscal 2026 (Rs199.60 lakhs) as compared to Rs300.37 lakhs in Fiscal 2025. | Purchase of tangible assets decreased by Rs752.13 lakhs in Fiscal 2025 (Rs300.37 lakhs) as compared to Rs1,052.50 lakhs in Fiscal 2024. |
| Purchase of intangible assets | ||
| Purchase of capital work-in-progress | Capital work in progress increased by Rs28.22 lakhs in Fiscal 2026 (Rs175.85 lakhs) as compared to Rs147.63 lakhs in Fiscal 2025. | Capital work in progress decreased by Rs22.18 lakhs in Fiscal 2025 (Rs147.63 lakhs) as compared to Rs169.81 lakhs in Fiscal 2024. |
| Interest Income | Interest received increased by Rs1.29 lakhs in Fiscal 2026 (Rs1.90 lakhs) as compared to Rs0.61 lakhs in Fiscal 2025. | Interest received increased by Rs0.58 lakhs in Fiscal 2025 (Rs0.61 lakhs) as compared to Rs0.03 lakhs in Fiscal 2024. |
| Other Income | - | - |
| Proceeds from sale of property, plant and equipment | - | - |
| Investments in bank deposits | Investment in Fixed Deposits increased by Rs79.74 lakhs in Fiscal 2026 (Rs85.29 lakhs) as compared to Rs5.55 lakhs in Fiscal 2025. | Investment in Fixed Deposits increased by Rs5.95 lakhs in Fiscal 2025 (outflow of Rs5.55 lakhs) as compared to an inflow of Rs0.40 lakhs in Fiscal 2024. |
| Proceeds from bank deposits | - | - |
| Sale of investments | - | - |
| Purchase of Investments | - | - |
| Loans and advances received/(given) | Loans and advances (given) increased by Rs14.66 lakhs in Fiscal 2026 (Rs80.06 lakhs) as compared to Rs65.40 lakhs in Fiscal 2025. | Loans and advances (given) increased by Rs11.17 lakhs in Fiscal 2025 (Rs65.40 lakhs) as compared to Rs54.23 lakhs in Fiscal 2024. |
| Net cash flow (used in)/ generated from investing activities | Net Cash flow used in Investing Activities increased by Rs20.57 lakhs in Fiscal 2026 (Rs538.90 lakhs) as compared to Rs518.33 lakhs in Fiscal 2025. | Net Cash flow used in Investing Activities decreased by Rs757.78 lakhs in Fiscal 2025 (Rs518.33 lakhs) as compared to Rs1,276.11 lakhs in Fiscal 2024. |
c. Cash Flow from Financing
| Particulars | 2026 compared to 2025 | 2025 compared to 2024 |
| Interest paid on borrowings | Finance Cost decreased by Rs27.46 lakhs in Fiscal 2026 (Rs161.11 lakhs) as compared to Rs188.57 lakhs in Fiscal 2025. | Finance Cost increased by Rs39.97 lakhs in Fiscal 2025 (Rs188.57 lakhs) as compared to Rs148.60 lakhs in Fiscal 2024. |
| Interest paid on lease liability | - | - |
| Dividend paid | - | - |
| Net Repayment of long-term borrowings | Long term borrowings recorded a net cash inflow of Rs64.71 lakhs in Fiscal 2026 as compared to a net cash outflow of Rs452.55 lakhs in Fiscal 2025, a movement of Rs517.26 lakhs. These amounts represent the cash flows on long term borrowings during the year and not the change in the closing balance of long term borrowings. | Long term borrowings recorded a net cash outflow of Rs452.55 lakhs in Fiscal 2025 as compared to a net cash inflow of Rs898.01 lakhs in Fiscal 2024, a movement of Rs1,350.56 lakhs. These amounts represent the cash flows on long term borrowings during the year and not the change in the closing balance of long term borrowings. |
| Net Repayment of short-term borrowings | Short term borrowings recorded a net cash outflow of Rs88.54 lakhs in Fiscal 2026 as compared to a net cash inflow of Rs70.68 lakhs in Fiscal 2025, a movement of Rs159.22 lakhs. These amounts represent the cash flows on short term borrowings during the year and not the change in the closing balance of short term borrowings. | Short term borrowings recorded a net cash inflow of Rs70.68 lakhs in Fiscal 2025 as compared to a net cash inflow of Rs273.33 lakhs in Fiscal 2024, a decrease of Rs202.65 lakhs. These amounts represent the cash flows on short term borrowings during the year and not the change in the closing balance of short term borrowings. |
| Payment of principal portion of lease liabilities | - | - |
| Proceeds from Share Capital | Proceeds from share capital were Nil in Fiscal 2026 as compared to Rs223.00 lakhs in Fiscal 2025. | Proceeds from share capital amounted to Rs223.00 lakhs in Fiscal 2025 as compared to Nil in Fiscal 2024. |
| Net cash flow (used in)/ generated from financing activities | Net cash flow used in financing activities decreased by Rs162.50 lakhs in Fiscal 2026 (Rs184.94 lakhs used) as compared to Rs347.44 lakhs used in Fiscal 2025. | Net cash flow from/(used in) financing activities decreased by Rs1,370.18 lakhs in Fiscal 2025 (Rs347.44 lakhs used) as compared to Rs1,022.74 lakhs generated in Fiscal 2024. |
Contingent Liabilities and Off-Balance Sheet Arrangements
| Particulars | 2026 | 2025 | 2024 |
| Contingent Liabilities | |||
| - Standby Letter of Credit | - | - | - |
| - Bank Guarantee | - | - | - |
| TDS Defaults with respect to Delay filing fee, Short Deduction and Interest thereon | 5.67 | 7.00 | 6.20 |
| GST related matters | 24.79 | - | - |
| Commitments | |||
| - Borrowings | - | - | - |
| - Lease Liabilities | - | - | - |
| - Others (please specify) | - | - | - |
Related Party Transaction (In Lakhs)
| Particulars | 2026 | 2025 | 2024 |
| Related Party - Asset transactions | - | - | - |
| as a % of Total Assets | - | - | - |
| Related Party - borrowings – closing balance outstanding at the end of the year | 6.28 | 6.28 | 49.90 |
| Related Party - borrowings availed/(repai d) during the year (transaction value) | - | (19.72) | 49.90 |
| as a % of Total borrowings | 0.39% | 0.39% | 2.48% |
| Related Party - Revenue Transactions | - | - | - |
| as a % of Total Income | - | - | - |
| Related Party - Expense transactions | 500.59 | 668.92 | 787.20 |
| as a % of Total Expenses | 5.68% | 8.41% | 11.78% |
| Related Party - Issue of Equity | - | - | - |
| as a % of Total Equity | - | - | - |
Supplier Concentration
(Rs In Lakhs)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | In % | Amount | In % | Amount | In % | |
| Top 3 Suppliers | 6569.79 | 99.75 | 6143.38 | 99.42 | 5240.20 | 96.87 |
Auditors Observations
| Financial Year / Period | Nature of Adverse Observation (Reservations, qualifications, adverse remarks, matters of emphasis or Other Matter) | Details of Adverse Observations | Companys response to reservations, qualifications, adverse remarks or matters of emphasis, including any corrective measures | Impact on the financial statements and financial position of the Company |
| NA | ||||
Material Developments after Last Financial Period that may affect the future results of operations
| Date | Event | Impact on the Financials | Mitigation Factors | Future Liabilities arising due to the event |
| Subsequent to March 31, 2026, our Company has (i) commissioned two additional Auto LPG Dispensing Stations, namely the Shastripuram outlet and the Babanagar outlet, and (ii) availed two additional unsecured facilities, being Rs75.89 lakhs from L&T Finance Limited (sanctioned May 22, 2026) and Rs125.00 lakhs from ICICI Bank Limited (sanctioned May 26, 2026), for product purchases. For further details, see "Material Developments after Last financial Period that may affect the future results of operations" and "Objects of the Issue" in this Red Herring Prospectus. |
INFORMATION REQUIRED AS PER ITEM (II) (C) (I) OF PART A OF SCHEDULE VI TO THE SEBI REGULATIONS:
1. Unusual or infrequent events or transactions
Except as described in this Red Herring Prospectus, Our Company has not engaged in any transactions or events during the periods under review that, in our best judgment, would be considered unusual or infrequent.
2. Significant economic changes that materially affected or are likely to affect income from continuing operations
Other than as described in the "Risk Factors" beginning on page 22 of this Red Herring Prospectus, to our knowledge there are no known significant economic changes that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.
3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations
Other than as described in this Red Herring Prospectus, particularly in the sections "Risk Factors" on pages 22 , respectively, to our knowledge, there are no known trends or uncertainties that are expected to have a material adverse impact on our revenues or income from continuing operations.
4. Income and Sales on account of major product/main activities (Standalone):
(Rs In Lakhs)
| Particulars | March 31, 2026 | March 31, 2025 | March 31, 2024 | |||
| Amount | In % | Amount | In % | Amount | In % | |
| LPG Sale | 10,075.82 | 100.00 | 8,594.73 | 95.67 | 7,071.30 | 94.87 |
For a detailed breakdown of the revenue by major products and main activities, please refer to the "Our Business" chapter on page 123 of this Red Herring Prospectus.
5. Future relationship between Costs and Income
Our Companys future costs and revenues will be determined by the growth of the industry in which we operate.
6. Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or services or increased sales prices.
Increases in our revenues are by and large linked to increases in the volume of business.
7. Status of any publicly announced new products or business segments
Our Company has not announced any new products, services, or business segments that are separate from our ongoing operations, as detailed in the "Our Business" section on page 123 of this Red Herring Prospectus.
8. The extent to which the business is seasonal
Our business is not subject to seasonality. For a detailed understanding please refer to the "Risk Factor" on page 22 of this Red Herring Prospectus.
9. Any significant dependence on a single or few suppliers or customers
Our Company is significantly dependent on a few suppliers. For further details, refer to the chapter titled "Risk factors" on page 22 of Red Herring Prospectus.
10. Competitive Conditions
Competitive conditions have been discussed in sections titled "Our Business" and "Our Industry" on pages 123 and 114 of this Red Herring Prospectus.
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