OPERATIONS
The following discussion is intended to convey managements perspective on our financial condition and results of operations for Fiscal 2026, Fiscal 2025 and Fiscal 2024. This discussion and analysis is based on, and should be read in conjunction with, our Restated Financial Information (including the schedules, notes and significant accounting policies thereto) included in the section titled Restated Financial Statements on page 395.
Our Restated Financial Information have been derived from our audited Ind AS financial statements for Fiscal 2026, Fiscal 2025 and Fiscal 2024, and restated in accordance with the SEBIICDR Regulations and the Guidance Note on Reports on Company Prospectuses (Revised 2019) issued by the ICAI. Our financial statements are prepared in accordance with Ind AS, notified under the Companies (Indian Accounting Standards) Rules, 2015, and read with Section 133 of the Companies Act, 2013 to the extent applicable. Ind AS differs in certain material respects from IFRS and U.S. GAAP and other accounting principles with which prospective investors may be familiar. Accordingly, the degree to which the financial statements prepared in accordance with Ind AS included in this Red Herring Prospectus ( RHP ) will provide meaningful information is entirely dependent on the readers level of familiarity with Ind AS accounting policies. We have not attempted to quantify the impact of IFRS or U.S. GAAP on the financial information included in this RHP, nor do we provide a reconciliation of our financial information to IFRS or U.S. GAAP. Any reliance by persons not familiar with Ind AS accounting policies on the financial disclosures presented in this RHP should accordingly be limited. Please also see Risk Factors - Significant differences exist between Ind-AS and other accounting principles, such as U.S. GAAP and IFRS, which may be material to the financial statements prepared and presented in accordance with Ind-AS contained in this Red Herring Prospectus , on page 72.
Our fiscal year ends on March 31 of each year, and references to a particular fiscal year are to the 12 months ended March 31 of that year.
Unless otherwise indicated or the context requires otherwise, the financial information for Fiscal 2026, Fiscal 2025 and Fiscal 2024, included herein have been derived from our restated balance sheets as at March 31, 2026, March 31, 2025 and March 31, 2024, and restated statements ofprofit and loss, cash flows and changes in equity for Fiscal 2026, Fiscal 2025 and Fiscal 2024 of the Company, together with the statement of significant accounting policies, and other explanatory information thereon.
Some of the information contained in this section, including information with respect to our strategies, contain forward-looking statements that involve risks and uncertainties. You should read the section titled ForwardLooking Statements on page 19 for a discussion of the risks and uncertainties related to those statements and also the section titled RiskFactors and Our Business on pages 21 and 305 respectively, for a discussion of certain factors that may affect our business, results of operations and financial condition. The actual results of the Company may differ materially from those expressed in or implied by these forward-looking statements.
Unless stated otherwise, industry and market data used in this section has been obtained or derived from the report titled Industry Report on Community Industrial Gases Generation & Distribution in India , dated August 25, 2026 ( F&S Report ), prepared and issued by Frost & Sullivan and publicly available information as well as other industry publications and sources. The F&S Report has been commissioned and paidfor by the Company exclusively for the purpose of the Offering. Unless otherwise indicated, all financial, operational, industry and other related information derived from the F&S Report and included herein with respect to any particular year, refers to such information for the relevant calendar year. Frost & Sullivan was appointed by our Company pursuant to an engagement letters dated December 21, 2024 and August 13, 2026 and is not connected to our Company, our Directors, our Promoters, our Subsidiary, our Key Managerial Personnel, Senior Management or BRLM. A copy of the F&S Report is available on our website at https://steamhouse.in/.
For further details and risks in relation to commissioned reports, see Risk Factors — Certain sections of this Red Herring Prospectus contain information from the F&S Report which we commissioned and purchased and any reliance on such information for making an investment decision in the Offer is subject to inherent risks on page 69. Also, see Certain Conventions, Currency of Presentation, Use of Financial Information and Market Data - Industry and market data on page 17.
Unless otherwise stated, a reference to the Company, our Company we, us and our in this section is a reference to Steamhouse India Limited together with its subsidiary.
Overview
We are an Indian company specializing in the generation and centralized distribution of industrial gases, including steam and nitrogen, through our pipeline network. We and our Promoters are pioneers of the community boiler system in India, which was first introduced in 2014. (Source: F&S Report). Our community industrial gas generation and distribution systems provide gas to various industrial customers from a pipeline network, which provides an alternative to each individual customer having its own infrastructure.
Having established our steam generation business in India, we are now embarking on an expansion plan of supplying other industrial gases. Our Company commenced nitrogen production and supply on February 1, 2025. We commissioned our first project for nitrogen supply through a pipeline network at our Ankleshwar facility, and, in Fiscal 2026 and Fiscal 2025, we generated Rs.5.77 million and Rs.0.90 million revenue from our nitrogen operations, respectively. We are the only company in India that supplies nitrogen using a distributed pipeline network instead of the common practice of supplying in cryogenic tanks and onsite nitrogen generation. (Source: F&S Report).
Our industrial gas business consists of
Generation and Distribution of Steam: The generation and distribution of steam through our community boiler system and pipelines, which is our primary business offering.
Purchase and Distribution of Steam: We purchase steam produced by other steam generating entities and distribute it to our customers through our pipeline network.
Separation, Compression and Distribution of Nitrogen: We extract nitrogen from atmospheric air by separating it from other atmospheric gases, compressing it and supplying purified nitrogen through our pipeline network.
As we procure required quantities of coal as the primary fuel for our industrial gas business, we also engage in coal trading on an invoice only basis. During Fiscal 2026 and Fiscal 2025, we also supplied coal to our group company, Sanjoo Dyeing & Printing Mills Private Limited ( Sanjoo Dyeing ), and Sanjoo Prints Private Limited, which were related party transactions.
The table below sets forth our revenue from each of our offerings and their contribution to our revenue from operations for the years indicated.
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | % of revenue from operations | Amount | % of revenue from operations | Amount | % of revenue from operations | |
| (Rs. millions) | (%) | (Rs. millions) | (%) | (Rs. millions) | (%) | |
| Generation and distribution of steam (1) | 2,562.55 | 52.14% | 2,392.86 | 60.56% | 2,893.66 | 99.19% |
| Purchase and distribution of steam (2) | 869.97 | 17.70% | 778.91 | 19.71% | 0.02 | 0.00% |
| Coal trading | 1,323.27 | 26.92% | 762.45 | 19.30% | 0.19 | 0.01% |
| Generation and distribution of nitrogen gas (3) | 5.77 | 0.12% | 0.90 | 0.02% | - | - |
| Others | 153.56 | 3.12% | 15.93 | 0.40% | 23.24 | 0.80% |
| Total | 4,915.11 | 100.00% | 3,951.06 | 100.00% | 2,917.10 | 100.00% |
Notes:
(1) We generate and distribute steam from facilities in Vapi Phase 1, Vapi WTE unit, Ankleshwar Phase 1, Ankleshwar Phase 2, Sarigam, Nandesari and Panoli.
(2) We purchase steam in Dahej GIDC (Phase 1) and Sachin GIDC and distribute through pipelines.
(3) Our revenue from the separation, compression and distribution of nitrogen commenced on February 1, 2025.
(4) This includes sales of flow meters, scrap, other components and revenue from construction services. Revenue from construction services represents revenue recognised in respect of the funding received from the Ahmedabad Municipal Corporation for our Pirana project and includes the right to charge for services provided under the project.
We currently operate seven community steam boilers (six owned and one leased) in Gujarat through which we generate and distribute steam including Vapi Phase 1, Vapi WTE unit, Ankleshwar Phase 1, Ankleshwar Phase 2, Sarigam, Nandesari and Panoli. Our facilities are strategically located near Indian ports and near customer clusters in Gujarat. As of July 31, 2026, our combined installed plant capacity for steam across our seven boilers is an aggregate of 345 tonnes per hour ( TPH ), which translates to an annual installed capacity of 2,185,920.00 tonnes per annum ( TPA ).6 In addition, we distribute steam that we purchase in Dahej GIDC (Phase 1) and Sachin GIDC. In April 2026, we entered a steam purchase agreement with a chemical company to purchase and distribute steam for a term of 5 years in the Dahej SEZ as well as a steam purchase agreement with a chemical company to purchase and distribute steam for a term of 5 years in Haldia. We expect to commence operations in both Dahej SEZ and Haldia in the next 12 months from the date of this RHP. Further, we have one nitrogen generation and distribution facility, which is located in Ankleshwar and commenced commercial operations on February 1, 2025 with a capacity of 350 NM 3 /hour.
We endeavour to meet the steam requirements of our customers through our community boilers by implementing eco-friendly solutions, reducing pollution from several industries and providing cost efficient solutions. Except for our waste fired boilers, all our steam boilers have atmospheric fluidized bed combustion ( AFBC ) designs that reduce fuel consumption. These AFBC boilers help reduce the emission of sulphur oxide ( SOx ) and nitrogen oxide ( NOx ), which are major air pollutants. Further, the use of community boilers often results in more efficient and optimized combustion processes as compared to individual boilers. (Source: F&SReport).
We utilize a diverse range of fuels in our operational community steam boiler facilities, including coal and nonfossil fuels like plastic waste and textile chindi to generate steam. In addition, we are now exploring increased use of alternative fuel sources such as agro-waste, and refuse-derived fuel as a source of fuel for generating steam.
As of July 31, 2026, we owned, operated and maintained a 60,151 meters operational pipeline system connecting our facilities to our customers premises. We have established pipeline rights-of-ways, which are easements granting us the legal right to use land for pipelines, with our pipelines typically connecting to customer-owned pipes on their premises.
The following table describes our pipeline network for the years indicated.
| Particulars* | As at March 31, 2026 | As at March 31, 2025 | As at March 31, 2024 |
| Pipeline installed (in meters) | 57,041 | 47,526 | 41,539 |
* This information table is based on the certificate issued by Dr. P.J. Gandhi, Chartered Engineer, dated September 3, 2026.
We use flow meters and Supervisory Control and Data Acquisition ( SCADA ) systems for real-time monitoring in a single interface. We track the generation and consumption of industrial gasses, pressure, temperature and other critical parameters including suspended particulate matter ( SPM ), SOx and NOx emissions and, in case of waste fired boilers, we also monitor hydrochloric acid ( HCL ). We also map our installations with the assistance of drones to monitor leakages in our pipelines.
We have an established industrial customer base in Gujarat, India with reputed clients across key sectors including, pharmaceuticals, chemicals, textiles, agro-chemicals, tyres, dyes and pigments, polymers, paints and other sectors. Selected examples of our customer base include Aether Industries Limited, Anupam Rasayan India Limited, Globe Enviro Care Limited, Gujarat Polysol Chemicals Limited, Devanshi Dyestuff, K. Patel Chemo Pharma Private Limited, K. Patel Dye Chem Industries Private Limited, Mahavir Synthesis Private Limited, Mangalam Intermediaries, Orgo Chem Gujarat Private Limited and Subhasri Pigments Limited. For Fiscal 2026, Fiscal 2025 and Fiscal 2024, our revenues from repeat customers accounted for 90.72%, 88.01% and 91.49% of our revenues from operations, respectively.
Significant Factors Affecting Our Results of Operations
Our financial performance and results of operations are influenced by a number of important factors, some of which are beyond our control, including without limitation, intense domestic competition, general economic conditions, changes in conditions in the regional markets in which we operate, changes in costs of supplies, and evolving government regulations and policies. Some of the more important factors are discussed below, as well as in the section titled Risk Factors on page 21.
Raw material price fluctuations and availability
6 Annual installed capacity has been calculated assuming 330 operational days and boilers operating at an efficiency of 80%.
Our primary raw material currently used by our boilers for generation of steam is coal. We also use, and intend to increase our use of, non-fossil fuels, such as plastic waste, textile chindi, agro-waste, and RDF. Our business is subject to the availability and quality of raw materials from our suppliers, particularly coal. We predominantly purchase our coal from Indian importers, who in turn procure it predominantly from overseas suppliers, particularly in Indonesia. We also purchase coal on a high seas basis, which is where we purchase coal still in transit at sea before it enters Indian customs territory, and directly from overseas suppliers. Accordingly, while a substantial majority of our supply purchases are characterized in our financial statements as purchases from India, most of our supplies are sourced by our suppliers from outside India. Our dependence on foreign supplies for raw materials, particularly for coal, subjects us to certain risks and uncertainties, which include political and economic instability in the countries from which such raw materials are imported, disruptions in transportation, currency exchange rates and transport costs, amongst others. Any disruption in the supply of coal from sources outside India, including as a result of any trade restrictions, sanctions or higher tariffs placed by India on purchases made from other countries or similar restrictions are placed by the exporting country for supply of products to India, and other key imported raw materials may significantly impact our sourcing decisions and may lead to increased costs of purchase or shortages of key raw materials. Any such impact could have a material adverse effect on our business, results of operations, cash flows and financial condition.
We usually do not enter long-term supply contracts with our raw material suppliers, and typically source raw materials on a purchase order basis. The terms and conditions of these purchase orders contain provisions related to the suppliers product quantity, pricing, payment and delivery terms. We typically purchase raw materials based on our estimated requirements, taking into consideration any expected fluctuation in raw material prices and lead time. We face the risk that suppliers may be unable to provide raw materials in the quantities we ordered on a timely basis or at all or that the market price of raw materials may increase without warning. Whenever we determine that there is availability risk with respect to our key raw materials, we intend to try to mitigate such availability risk by entering into supply agreements with the relevant suppliers.
The supply and pricing of our raw materials can be volatile due to a number of factors beyond our control, including global demand and supply, general economic and political conditions, transportation, competition, import duties and tariffs. Under the terms of our customer agreements, the variable component of our steam pricing is linked to coal prices, which substantially mitigates our exposure to increases in coal prices. However, there may be a timing lag before such increases are passed through to our customers. Further, the price of coal is based on, or linked to, domestic coal prices. However, we face the risk that suppliers may be unable to provide raw materials in the quantities we ordered on a timely basis or at all. In cases where key raw materials may not be available on a timely basis or at all, we may be unable to produce steam in sufficient quantities to satisfy customer requirements, which could cause a material reduction in our revenue from operations, and may have a material adverse effect on our business, financial condition and results of operations.
The table below sets forth our Cost of Goods Sold, which is the sum of our cost of materials consumed, purchases of stock in trade and changes in inventories of finished goods, work-in-progress and stock-in trade, in Fiscal 2026, Fiscal 2025 and Fiscal 2024, including as a percentage of our total expenses for the respective periods:
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | % of total expenses | Amount | % of total expenses | Amount | % of total expenses | |
| (Rs. millions) | (%) | (Rs. millions) | (%) | (Rs. millions) | (%) | |
| Cost of Goods Sold* | 3,554.98 | 80.11% | 2,838.38 | 78.94% | 1,796.23 | 71.89% |
* Cost of Goods Sold is calculated as the sum of our cost of materials consumed, purchases of stock in trade and changes in inventories of finished goods, work-in-progress and stock-in trade.
The table below sets forth our purchases from suppliers in India and outside India, including as a percentage of our total purchases, for the periods indicated:
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | % of purchases for the period* | Amount | % of purchases for the year* | Amount | % of purchases for the year* | |
| (Rs. millions) | (%) | (Rs. millions) | (%) | (Rs. millions) | (%) | |
| India# | 3,376.74 | 100.00% | 2,728.95 | 96.24% | 1,703.89 | 78.33% |
| Outside India | ||||||
| - High Sea Purchases | - | - | 106.60 | 3.76% | 359.30 | 16.52% |
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | % of purchases for the period* | Amount | % of purchases for the year* | Amount | % of purchases for the year* | |
| (Rs. millions) | (%) | (Rs. millions) | (%) | (Rs. millions) | (%) | |
| - Direct imports | - | 0.00 | 0.00% | 112.13 | 5.15% | |
| Total Outside India | - | - | 106.60 | 3.76% | 471.43 | 21.67% |
| Total | 3,376.74 | 100.00% | 2,835.54 | 100.00% | 2,175.32 | 100.00% |
* Includes purchases of stock-in-trade.
# While a substantial majority of our supply purchases are characterized in our financial statements as purchases from India, most of our supplies are sourced by our suppliers from outside India.
As we predominantly purchase our coal from Indian importers, our expenditures on coal and other raw materials are predominantly made in Indian Rupees. However, since our Indian importers source their supplies from outside India, their raw materials imports are generally denominated in foreign currencies, primarily U.S. Dollars. Accordingly, we have indirect currency exposures relating to buying and selling raw materials imported by our Indian suppliers in currencies other than in Indian Rupees, particularly the U.S. Dollar. We do not enter into any hedging activities for our raw materials procurements. We can, therefore, be indirectly affected by fluctuations in exchange rates among the U.S. Dollar, Indian Rupee and other currencies, as any weakening of the Indian Rupee against the U.S. Dollar, for example, could cause our expenses to increase. While we are able to pass on any such cost increases to our customers, our cash outflows may increase and our profit margins may be adversely impacted.
Customer concentration
We served 202 customers in Fiscal 2026, 173 customers during Fiscal 2025, and 125 customers during Fiscal 2024. We have a diverse customer base compromising of institutional customers in a range of industries, including chemicals, agro-chemicals, textiles, pharmaceuticals, paints, cosmetics and water treatment. Some of our major customers include Aether Industries Limited, Anupam Rasayan India Limited, Globe Enviro Care Limited, Gujarat Polysol Chemicals Limited and Mahavir Synthesis Private Limited. However, our top 10 customers represent a significant portion of our revenue. Accordingly, our ability to manage and sustain customer relationships is critical to our business.
The table below sets forth our revenue from sales to our largest customer, top 3 customers and top 10 customers and their respective revenue contributions, expressed as a percentage of our revenue from operations, for Fiscal 2026, Fiscal 2025 and Fiscal 2024:
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | % of revenue from operations | Amount | % of revenue from operations | Amount | % of revenue from operations | |
| (Rs. millions) | (%) | (Rs. millions) | (%) | (Rs. millions) | (%) | |
| Largest customer | 902.44 | 18.36% | 656.03 | 16.60% | 314.19 | 10.77% |
| Top 3 customers | 1,396.11 | 28.40% | 1,117.92 | 28.29% | 833.92 | 28.59% |
| Top 10 customers | 2,352.91 | 47.87% | 2,131.67 | 53.95% | 1,744.12 | 59.79% |
Our Group Company, Sanjoo Dyeing and Printing Mills Private Limited ( Sanjoo Dyeing ), is a related party to the Company and was one of our top ten customers in Fiscal 2026 and in Fiscal 2025 and was one of our top ten suppliers in Fiscal 2026, Fiscal 2025 and Fiscal 2024. Our Group Company, Sanjoo Prints Private Limited ( Sanjoo Prints ), is a related party to the Company and was one of our top ten customers in Fiscal 2024 and was one of our top ten suppliers in Fiscal 2024.
Except Sanjoo Dyeing and Sanjoo Prints, none of our top ten customers for Fiscal 2026, Fiscal 2025 and Fiscal 2024 are either related parties or related to our Company, our Promoters, our Directors or our Subsidiary.
We enjoy long-term relationships and ongoing active engagements with many repeat customers (defined as customers and/or customer groups where our Company has recognized revenues from such customer and/or customer groups in at least one of the last three fiscal years preceding the fiscal year for which the data is being disclosed). As of March 31, 2026, we enjoyed relationships in excess of three years with 6 of our top 10 customers for sale of steam. In Fiscal 2026, Fiscal 2025 and Fiscal 2024, we derived approximately 90.72%, 88.01% and 91.49%, respectively, of our revenue from operations from repeat customers. We expect that our top customers will continue to contribute a significant portion of our revenue from operations for the foreseeable future.
We enter into customer supply arrangements of between 12 months and 10 years with our customers (including our top 10 customers). We rely on these contracts to govern the price, volume and other terms of sales for our steam. We generally determine the prices for our steam generation with our customers based two factors –
(i) a fixed price per unit of steam component, which is subject to reserved escalation year-on-year that is designed to cover inflation (other than coal prices), and
(ii) a variable price per unit of steam component that is linked to the coal price. Our customers may terminate their contracts or choose to reduce offtake for a number of reasons including, but not limited to, breach of agreement and reduction in demand in their end user industries. During Fiscal 2026, Fiscal 2025 and Fiscal 2024, there were 30 instances where customer agreements have been terminated by us or the customer. In the future, if any of our customers become unable or unwilling to fulfil their contractual obligations to us or if they otherwise terminate their agreements with us prior to the expiration thereof or not renew agreements with us that are expiring or not issue purchase orders, our business, results of operations, cash flows and financial condition could be adversely affected. . In respect of customers supply contracts that we have entered and/or proposing to enter after June 30, 2025, we have tried to negotiate and/or will negotiate with customers to agree to a minimum consumption amount in our customer agreements with them. In addition, in new contracts entered after June 30, 2025, we have committed to our customers a minimum supply of steam. If we are not able to supply steam as per the committed minimum guaranteed supply, the customer will be compensated for the deficient steam quantity at the invoice price as agreed.
Customers that do not have a written agreement with us procure industrial gases from us on an invoice basis and have no continuing obligation to continue purchasing from us. Certain of these customers have chosen not to continue to purchase industrial gases or coal from us in Fiscal 2026, Fiscal 2025 and Fiscal 2024. Accordingly, our business, results of operations, cash flows and financial condition could be adversely affected if any significant customers do not continue to purchase industrial gases from us on an invoice basis.
There is no assurance that our customers (in particular, our top 10 customers for the relevant fiscal period) will continue to source industrial gases from us at volumes or rates consistent with, and commensurate to, the amount of business received from them historically, or at all. Any decrease in orders from our major customers and/or failure to retain such customers on terms that are commercially viable could adversely affect our business, financial condition and results of operations. In addition, any defaults or delays in payments by a major customer or a significant portion of our major customers may have an adverse effect on business, financial condition and results of operations.
Capital expenditure and cost of funding
We require substantial capital to maintain our existing offices and facilities, to purchase, maintain and upgrade equipment and other machinery for our industrial gas generation facilities in order to service our customers, and to construct new facilities for our new planned projects.
We have incurred significant capital expenditure in recent fiscal years to construct new facilities and the expansion of our pipeline network. During Fiscal 2026, Fiscal 2025 and Fiscal 2024, we incurred capital expenditure (defined as acquisition of property, plant & equipment, capital-work-in-progress, intangible assets and intangible assets under development) on a restated basis of Rs.1,300.00 million, Rs.1,055.36 million and Rs.853.88 million, respectively. For more information, see Capital Expenditure and cost of funding in this section and Our Business - Our Facilities on pages 507 and 320, respectively.
In particular, we are planning new community industrial gas facilities: Panoli (Phase 2), Nandesari (Phase 2), Jhagadia, Vapi (Phase 3), Ankleshwar (Phase 3), Pirana (Ahmedabad), Tarapur and Dahej GIDC (Phase 2). Among these planned facilities of Nandesari (Phase 2), Vapi (Phase 3), and Pirana (Ahmedabad) are expected to use non-fossil fuel for generation of steam.
The following table provides information on the status, project cost, source of funds, expected timelines and any customer tie-ups for the purchase of steam as of July 31, 2026, in respect of our Nandesari (Phase 2), Jhagadia, Vapi (Phase 3), Pirana Tarapur projects:
| Project Name | All relevant approvals in place (yes/no) | Project cost | Source of Funds of total project cost | Expected timeline for start of operations | Customer tie-ups for purchase of steam | |||
| (Rs. millions) | (Rs. millions) | |||||||
| Proposed | Spent till July 31, 2026 | Debt finance or lease finance | Subsidy | Internal Accrual | ||||
| Nandesari (Phase 2) | Yes | 394.26 | 462.81 | 295.70 | - | 167.11 | Calendar year 2026 | Not Available |
| Jhagadia | Yes | 150.00 | 308.48 | 56.00 | - | 252.48 | Calendar year 2026 | Between 6 to 22 TPH as agreed with the customer |
| Vapi (Phase 3) | Yes | 400.00 | 594.22 | 300.00 | - | 249.22 | Calendar year 2026 | Between 6 and 15 TPH as agreed with the customer |
| Pirana | Yes | 695.00 | 114.93 | 260.00 | 347.50 | 87.50 | Calendar year 2027 | Not Available |
| Tarapur | Yes | 450.00* | 138.24 | 337.50 | - | 112.50 | Calendar year 2027 | Not Available |
*We are contemplating raising term debt up to 75% of the proposed project cost.
For further details on our expansion plans, see Our Business - Our Planned Facilities on page 324.
We expect to meet our capital expenditure requirements through a combination of internal accruals, short- and long-term borrowings from banks, and overdraft facilities that are repayable on demand.
Interest expenses on our borrowings have formed a material component of our expenses since Fiscal 2024. In Fiscal 2026, Fiscal 2025 and Fiscal 2024, our finance costs represented 4.42%, 5.61% and 6.40%, respectively, of our revenue from operations. We require borrowings to finance our capital expenditure and working capital.
As at March 31, 2026, our non-current borrowings totaled Rs.991.25 million, which mainly comprised secured term loans from banks in the amount of Rs.520.16 million and Non-Convertible debentures from Ascertis Credit (Formerly known as BPEA) of Rs.306.08 million, while our current borrowings totaled Rs.1,824.97 million. A majority of our borrowings is currently comprised of term loans from banks and Non-convertible debentures, which bear interest at fixed rates of between 7.85% and 16.08% per annum, loans from non-banking financial institutions, which bear interest at fixed rates of between 6.72% and 14.25% per annum, and letters of credit from banks, which bear letter of credit (LC) commission at rates between 0.55% and 0.75% per annum. As our business grows, we intend to repay our borrowings over time, which will reduce periodic debt payments and the amount of interest accruals. We also expect to allocate a portion of the Net Proceeds to repayment of our borrowings. For more information, see Objects of the Offer on page 127 The resulting increased cash flow will allow us to allocate funds for other opportunities and improve liquidity within our business.
The actual amount and timing of our future capital requirements may differ from estimates as a result of, among other things, unforeseen delays or cost overruns in developing our new projects, changes in business plans due to prevailing economic conditions, unanticipated expenses and regulatory changes. To the extent our planned expenditure requirements exceed our available resources, we will be required to seek additional debt or equity financing. Additional debt financing could increase our interest costs and require us to comply with additional restrictive covenants in our financing agreements. Additional equity financing could dilute our earnings per Equity Share and your interest in the Company and could adversely impact our Equity Share price. Moreover, we are significantly dependent on our banks to continue to offer sufficient amounts of funding on commercially reasonable terms. In the event that we are unable to raise sufficient funding on a timely basis or at all, our ability to service our existing and/or new projects could be compromised, which could adversely affect our business, reputation, results of operations and financial condition.
Product offerings
We have positioned our Company to benefit from the growth in the Indian industrial sector through the development of our dedicated pipeline network. Industrial gases are indispensable to large-scale industries, such as oil refining, chemical processing, and steel manufacturing, where they play a critical role in optimizing production efficiency and ensuring operational stability. As the Indian industrial sector continues to expand, the supply of industrial gases through pipelines is emerging as a preferred alternative. (Source: F&SReport).
Our industrial gas business consists of the
(i) generation and distribution of steam,
(ii) purchase and distribution of steam, and
(iii) separation, compression and distribution of nitrogen.
While the generation and distribution of steam through our community boiler system is our primary business offering, we have now embarked on an expansion plan of supplying other industrial gases as a complement to our core competency of steam generation and distribution. Recognizing the potential of pipeline distribution from our experience with steam distribution, we developed our own pipeline-based nitrogen supply model. Our Company commenced nitrogen production and supply on February 1, 2025. This marks a significant step towards providing comprehensive and sustainable industrial gas solutions, further reinforcing our commitment to innovation and efficiency in the sector. We intend to continue expanding on and diversifying our business and product offerings, which we believe will enable us to capitalize on the growing demand for industrial gases in India and be a driver of revenue growth for us.
Competition
We specialize in the generation and centralized distribution of industrial gases, including steam and nitrogen, through our own dedicated pipeline network. We are a market leader in the supply of steam through community boilers in India. (Source: F&S Report). We have developed an exclusive pipeline network through which we distribute industrial gases to our customers, which we believe to be a significant competitive advantage due to, among other things, the limited space available for set up of additional distribution networks by other companies.
As the industrial gases sector grows and evolves, we may also face new competitors who are not currently in the market. In addition, we may face competition from providers of alternative steam-generation technologies and fuel sources, including biomass, waste-to-energy, renewable fuels and green hydrogen, to the extent such technologies and fuel sources are used to generate steam for industrial customers. Competition from such providers may increase if the technologies used to generate steam from these alternative sources become more sophisticated and cost-effective, or if the GoI further strengthens its support for such technologies and fuel sources. Further, the availability of alternative electricity-generation technologies or sources that become more viable or cost-competitive could reduce demand for the steam we supply.
Furthermore, our competitors may have greater operational, financial, technical, management or other resources to achieve better economies of scale and lower cost of capital, allowing them to attract customers at more competitive rates. Our competitors may also have a more effective or established localized business presence or a greater willingness or ability to operate with little or no operating margins for sustained periods of time. Our competitors may also enter into strategic alliances or form affiliates with other competitors to our detriment. Moreover, suppliers or contractors may merge with our competitors, which may limit our choices of suppliers or contractors and hence the flexibility of our overall project execution capabilities. Any increase in competition during the bidding process or reduction in our competitive capabilities could materially and adversely affect our market share and the profit that we generate from our projects. Any inability on our part to remain competitive in our markets will adversely affect our financial condition and results of operation.
Macroeconomic trends that affect the industrial sectors in which our end customers operate
Our growth and results of operations and financial condition are significantly affected by end-customer demand for our products and services, which in turn is linked to macroeconomic factors driving demand for our end- customers products and services in India and globally. These factors may include levels of per capita disposable income, levels of consumer spending, consumer preferences, business investment, changes in interest rates, fuel and power prices, government policies or taxation, social or civil unrest and political, economic or other developments that affect consumption and business activities in general.
In particular, developments in the ongoing conflict among the United States, Israel and Iran and between Russia and Ukraine have resulted in, and may continue to result in, a period of sustained instability across global financial markets, induce volatility in commodity prices, adversely impact availability of oil and natural gas, increase in supply chain, logistics times and costs, increase borrowing costs, cause outflow of capital from emerging markets and may lead to overall slowdown in economic activity in India. In addition, currently, there is a global energy crisis which arose during the hostilities among the United States, Israel and Iran that has increased global oil & gas prices and price volatility, which may accelerate inflationary movements in India.
Our performance may decline during recessionary periods or in other periods where one or more macro-economic factors, or potential macro-economic factors, negatively affect the level of consumer and business confidence and consumption, or the demand for the products and services offered by our end-customers.
Geographic concentration
A large portion of our business operations is concentrated in the state of Gujarat. We currently own and operate seven community steam boilers in Gujarat through which we generate and distribute steam, including in Vapi Phase 1, Vapi WTE Unit, Ankleshwar Phase 1, Ankleshwar Phase 2, Sarigam, Nandesari and Panoli. We also have one nitrogen generation and distribution facility located in Ankleshwar. Further, much of our capacity expansion as part of our strategy is planned for the state of Gujarat. The concentration of our operations in Gujarat heightens our exposure to adverse developments in local and regional factors, such as economic and weather conditions, natural disasters, political, demographic and population changes, adverse regulatory developments, civil unrest and other unforeseen events and circumstances. In the event of a slowdown in the economic activity in Gujarat, or any other of the aforementioned developments that leads to a sustained economic downturn, we may experience an adverse impact on our business, results of operations and financial condition, which are largely dependent on the performance and other prevailing conditions affecting the economies of Gujarat. While we have not faced any such disruptions in the past, we cannot assure you that there will not be any significant developments in these regions in the future that may adversely affect our business, results of operations, cash flows and financial condition.
Government regulations and policies
The development and profitability of steam and industrial gas projects in the locations in which we operate are dependent on policy and regulatory frameworks that support such developments. As part of a new steam or industrial gas project, we may be required to obtain regulatory approvals, licenses and/or permits, secure appropriate land and pipeline space, with satisfactory use permits, and ensure availability of adequate infrastructure and obtaining rights to interconnect the project to the grid or other transmission infrastructure. Success in developing a project depends on our ability to secure and obtain all requisite approvals, licenses and/or permits. Changes in policies could lead to a significant reduction in or a discontinuation of the support for steam and industrial gas projects in such locations. Without such support, our projects might not be commercially viable in such locations. Any delays or unexpected difficulties in obtaining such approvals, licenses and/or permits will adversely affect our ability to commission and develop new projects and may impair our business strategy and adversely affect our future business, results of operations, cash flows and financial condition. In addition, further restrictions on the steam and industrial gas business, including amendments to The Indian Boilers Act, 2025 and other applicable legislation and regulation, may add compliance costs to our business or impose restrictions on our operations that could materially impact our business, results of operations, cash flows and financial condition.
Further, as coal is still our primary fuel source, any regulations which push for cleaner and environmentally friendly alternatives to coal fired boilers may materially and adversely impact our operations. In addition, the imposition of extra duties being levied on coal, additional restrictions, regulations or tariffs on the import of coal or the restrictions on coals use could materially impact our operations, including increases to our operating costs and reductions to our margins.
Key Performance Indicators and Non-GAAP Financial Measures
In addition to our financial results determined in accordance with Ind AS, we consider and use those certain non- GAAP financial measures and key performance indicators that are presented below as supplemental measures to review and assess our operating performance. Our management does not consider these non-GAAP financial measures and key performance indicators in isolation or as an alternative to the Restated Financial Information. We present these non-GAAP financial measures and key performance indicators because we believe they are useful to our Company in assessing and evaluating our operating performance, and for internal planning and forecasting purposes. We believe these non-GAAP financial measures and key performance indicators, when taken collectively with the Restated Financial Information, prepared in accordance with Ind AS, may be helpful to investors as an additional tool to evaluate our ongoing operating results and trends and to compare our financial results to prior periods.
Non-GAAP financial information is not recognized under Ind AS and do not have standardized meanings prescribed by Ind AS. In addition, non-GAAP financial measures and key performance indicators used by us may differ from similarly titled non-GAAP measures used by other companies. The principal limitation of these non- GAAP financial measures is that they exclude significant expenses and income that are required by Ind AS to be recorded in our financial statements, as further detailed below. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided below for each non- GAAP financial measure to the most directly comparable financial measure prepared in accordance with Ind AS. Investors are encouraged to review the related Ind AS financial measures and the reconciliation of non-GAAP financial measures to their most directly comparable Ind AS financial measures included below and to not rely on any single financial measure to evaluate our business. Other companies may calculate non-GAAP metrics differently from the way we calculate these metrics. See Risk Factors - We have in this Red Herring Prospectus included certain Non-GAAP Measures that may vary from any standard methodology that is applicable across the industrial gas generation industry and may not be comparable with financial information of similar nomenclature computed and presented by other companies on page 69.
Reconciliation of non-GAAP measures
Reconciliation for the following non-GAAP financial measures included in this section is set out below:
Reconciliation of Restated Profit after tax for the year to EBITDA and EBITDA Margin
The table below reconciles restated profit after tax for the year to EBITDA. EBITDA is calculated as restated profit after tax for the year minus other income plus finance costs, depreciation, amortization and impairment expense and total tax expense, while EBITDA Margin is calculated as EBITDA divided by revenue from operations.
(Rs. in millions, except percentages)
| Particulars | For the fiscal year ended March 31, | ||
| 2026 | 2025 | 2024 | |
| Restated Profit after tax for the year (I) | 386.39 | 311.61 | 271.86 |
| Other Income (II) | 34.64 | 34.23 | 14.46 |
| Finance Costs (III) | 217.30 | 221.80 | 186.78 |
| Depreciation, Amortization and Impairment Expense (IV) | 139.86 | 115.94 | 78.70 |
| Total Tax Expenses (V) | 125.97 | 78.05 | 161.18 |
| EBITDA (VI) = (I-II+III+IV+V) | 834.89 | 693.16 | 684.06 |
| Revenue from operations (VII) | 4,915.11 | 3,951.06 | 2,917.10 |
| EBITDA Margin (VIn=VI/VII) | 16.99% | 17.54% | 23.45% |
Reconciliation of Restated Profit after tax for the year to PAT Margin
The following table sets forth our restated profit after tax margin (PAT Margin), including a reconciliation of such financial measure to the Restated Financial Information, for Fiscal 2026, Fiscal 2025 and Fiscal 2024. PAT Margin is calculated as profit after tax for the year divided by total income.
(Rs. in millions, except percentages)
| Particulars | For the fiscal year ended March 31, | ||
| 2026 | 2025 | 2024 | |
| Restated Profit after tax for the year (A) | 386.39 | 311.61 | 271.86 |
| Total income (B) | 4,949.74 | 3,985.29 | 2,931.55 |
| PAT Margin (C=A/B) | 7.81% | 7.82% | 9.27% |
Reconciliation of Total Equity to Return on Equity
The following table sets forth our Return on Equity, including a reconciliation of such financial measure to the Restated Financial Information, for Fiscal 2026, Fiscal 2025 and Fiscal 2024. Return on Equity is calculated as restated profit after tax for the year divided by total equity as at the end of the year.
(Rs. in millions, except percentages)
| Particulars | As at, and for the fiscal year ended, March 31, | ||
| 2026 | 2025 | 2024 | |
| Restated Profit after tax for the year (A) | 386.39 | 311.61 | 271.86 |
| Total equity (B) | 1,727.69 | 1,324.45 | 1,035.45 |
| Return on Equity (C=A/B) | 22.36% | 23.53% | 26.26% |
Reconciliation of Total Equity to Capital Employed, and Restated Profit after tax for the year to EBIT and Return on Capital Employed
The following table sets forth our Return on Capital Employed, including a reconciliation of such financial measure to the Restated Financial Information, for Fiscal 2026, Fiscal 2025 and Fiscal 2024. Return on Capital Employed is calculated as (1) EBIT divided by (2) Capital Employed. EBIT is calculated as the sum of
(i) restated profit after tax for the year,
(ii) total tax expenses, and
(iii) finance costs. Capital Employed is calculated as total equity plus non-current borrowings and current borrowings.
(Rs. in millions, except percentages)
| Particulars | As at, and for the fiscal year ended, March 31, | ||
| 2026 | 2025 | 2024 | |
| Total equity (I) | 1,727.69 | 1,324.45 | 1,035.45 |
| Non-Current Borrowings (II) | 991.25 | 988.87 | 980.34 |
| Current Borrowings (III) | 1,824.97 | 1,240.60 | 1,046.72 |
| Capital Employed (IV = I + II + III) | 4,543.91 | 3,553.92 | 3,062.51 |
| Restated Profit after tax for the year (V) | 386.39 | 311.61 | 271.86 |
| Add: Total Tax Expense (VI) | 125.97 | 78.05 | 161.18 |
| Add: Finance Costs (VII) | 217.30 | 221.80 | 186.78 |
| Earnings before Interest and Tax (EBIT) (VIII = V + VI + VII) | 729.67 | 611.45 | 619.82 |
| Return on Capital Employed (IX = VIII/IV) | 16.06% | 17.20% | 20.24% |
Reconciliation of Total Borrowings to Net Debt and Net Debt to Equity Ratio
The following table sets forth our Net Debt/Equity Ratio, including a reconciliation of such financial measure to the Restated Financial Information, for Fiscal 2026, Fiscal 2025 and Fiscal 2024. Net Debt/Equity Ratio is calculated as Net Debt divided by total equity. Net Debt is calculated as the sum of
(i) non-current borrowings, and
(ii) current borrowings (including current maturities of non-current borrowings), less cash and cash equivalents and bank balances (other than cash and cash equivalents).
(Rs.in millions, except ratios)
| Particulars | As at, and for the fiscal year ended, March 31, | ||
| 2026 | 2025 | 2024 | |
| Non-Current Borrowings (1) | 991.25 | 988.87 | 980.34 |
| Current Borrowings (2) | 1,824.97 | 1,240.60 | 1,046.72 |
| Cash & Cash Equivalents (3) | 1.79 | 21.77 | 12.63 |
| Other Bank Balance (4) | 103.32 | 55.01 | 184.86 |
| Net Debt (A=(1)+(2)-(3)-(4)) | 2,711.11 | 2,152.68 | 1,829.57 |
| Total equity (B) | 1,727.69 | 1,324.45 | 1,035.45 |
| Net Debt to Equity Ratio (C=A/B) | 1.57 | 1.63 | 1.77 |
Company Overview
Steamhouse India Limited (the Holding Company or the Company) is an unlisted Public Company incorporated in 2015 and having its registered office in Surat, Gujarat, India. The Company provides industrial consumable steam through a network of pipelines, eliminating the need for individual boilers in industries. The Company employs advanced technology for monitoring steam quality, pressure, and temperature to ensure optimal performance.
The Company has one wholly-owned subsidiary, Steamhouse Welfare Foundation, (the WOS) as of March 31, 2026, registered under Section 8 of the Companies Act, 2013, with charitable objectives.
These Restated Financial Information comprise the Holding Company and its subsidiary (referred to collectively as the Group).
Restated Financial Information have been prepared and presented in Indian Rupees, unless otherwise stated and rounded off up to two decimals to rupees in millions.
The Restated Financial Information for the years ended March 31, 2026, March 31, 2025, and March 31, 2024 were authorized by the Board of Directors on August 18, 2026.
Summary of Material Accounting Policies
1. Basis of preparation and presentation of Restated Financial Information -
The Restated Financial Information of the Group comprise the Restated Consolidated Statement of Assets and Liabilities as at March 31, 2026 and March 31, 2025, and the Restated Consolidated Statement of Profit and Loss (including Other Comprehensive Income/(Loss)), Restated Consolidated Statement of Changes in Equity, and Restated Summary Statement of Cash Flows for the years ended March 31, 2026 and March 31, 2025, and Summary Statement of Material Accounting Policies and other explanatory information; the Restated Standalone Statement of Assets and Liabilities as at March 31, 2024 (Restated Consolidated Financial Information), and the Restated Standalone Summary Statement of Profit and Loss (including Other Comprehensive Income/(Loss)), Restated Standalone Statement of Changes in Equity, and Restated Standalone Statement of Cash Flows for the year ended March 31, 2024, and Summary of Material Accounting Policies and other explanatory information (Restated Standalone Financial Information) (collectively, the Restated Financial Information) has been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (the Act) read with the Companies (Indian Accounting Standards) Rules, 2015, (as amended) and presentation requirements of Division II of Schedule III to the Act (Ind AS compliant Schedule III), as applicable to the Group.
Restated Consolidated Financial Information and Restated Standalone Financial Information are collectively referred to as the Restated Financial Information.
The Restated Financial Information have been prepared by the management of the Company for the purpose of inclusion in Updated Draft Red Herring Prospectus - I (UDRHP-I), Red Herring Prospectus (RHP) and Prospectus (together, the Offer Documents) to be filed by the Company with the Securities and Exchange Board of India (SEBI), Registrar of Companies, Ahmedabad (ROC), BSE Limited and National Stock Exchange of India Limited (collectively, the Stock Exchanges) and / or any other regulatory or statutory authority in connection with proposed Initial Public Offering of its Equity Shares (IPO), in accordance with the requirements of:
(a) Section 26 of Part I of Chapter III of the Companies Act, 2013 (the Act);
(b) Paragraph (A) of Clause 11 (I) of Part A of Schedule VI of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended to date (the SEBI ICDR Regulations) issued by SEBI, and
(c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India (ICAI) as amended (the Guidance Note).
These Restated Financial Information have been extracted by the Management from the audited consolidated financial statements of the Group as at and for the years ended March 31, 2026 and March 31, 2025 and the audited standalone financial statements of the Company as at and for the year ended March 31, 2024 prepared in accordance with the Indian Accounting Standards (referred to as Ind AS) as prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015, as amended, and other accounting principles generally accepted in India, which have been approved by the Board of Directors at their meeting held on August 18, 2026, September 23, 2025, and June 19, 2024 respectively.
The Restated Financial Information have been prepared under the historical cost convention on the accrual basis except certain financial assets and liabilities (including derivative instruments) that are measured at fair value; and net defined benefit (asset) / liability that are measured at fair value of plan assets less present value of defined benefit obligations.
2. Basis of Consolidation
The Group consolidates all entities which are controlled by it. The Group establishes control when; it has power over the entity, is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect the entitys returns by using its power over relevant activities of the entity.
Entities controlled by the Group are Consolidated from the date control commences until the date control ceases. The financial year for the Holding Company and the subsidiaries is uniform i.e. April-March. The Group combines the financial statements of the Holding Company and its subsidiaries line by line adding together like items of assets, liabilities, equity, income and expenses. Intercompany transactions, balances and unrealised gains on transactions between Group Companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognised in Restated Statement of Profit and Loss. Any investment retained is recognised at fair value. In accordance with the provisions of Section 135 of the Companies Act, 2013, Steamhouse India Limited (the Holding Company) is required to undertake Corporate Social Responsibility (CSR) activities. To effectively discharge this statutory obligation, the Holding Company promoted and sponsored a not-for-profit entity incorporated under Section 8 of the Companies Act, 2013, namely Steamhouse Welfare Foundation (Wholly Owned Subsidiary (WOS)), for the purpose of implementing CSR initiatives. The Section 8 Company namely Steamhouse Welfare Foundation has been a Wholly Owned Subsidiary (WOS) of the Holding Company since its incorporation on November 14, 2022, with the Holding Company holding 100% of its share capital and exercising complete control over its operations.
The Company did not prepare consolidated financial statements as at and for the year ended March 31, 2024 as mentioned in Note 6 of the audited financial statements for year ended March 31, 2024 mentioning the assumption for non-consolidation which is reproduced as follows and accordingly the Restated Financial Information for year ended March 31, 2024 represents the restated standalone financial information:
As Steamhouse Welfare Foundation is a Section 8 licensed Company which is not allowed to distribute any profit to its members, financials of the said company is not required to be consolidated .
However, based on the Expert Advisory Opinion issued by the Institute of Chartered Accountants of India (ICAI) and in line with the requirements of Ind AS 110 - Consolidated Financial Statements, the financial statements of the Section 8 Company have been consolidated with those of the Holding Company for the year ended March 31, 2025. The consolidation has been performed on a line-by-line basis by aggregating assets, liabilities, income, and expenses of both entities, with elimination of all material intra-group balances and transactions.
The management has assessed that the impact of consolidation is not material to the Groups financial position or results of operations for the year ended March 31, 2025. Nevertheless, such consolidation has been undertaken to present a true and fair view of the Groups financial position, in adherence to the disclosure requirements under the Companies Act, 2013, and the Ind AS framework.
This treatment ensures alignment with the authoritative guidance of the ICAI Expert Advisory Committee and reflects the substance of control as defined in Ind AS 110, thereby enhancing transparency and completeness in financial reporting.
3. Current and non-current classification of assets and liabilities
The Group presents assets and liabilities in the Restated Statement of Assets and Liabilities based on Current/ Non-Current classification.
An asset is treated as Current when it is -
(i) Expected to be realized or intended to be sold or consumed in normal operating cycle;
(ii) Held primarily for the purpose of trading;
(iii) Expected to be realized within twelve months after the reporting period, or
(iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
All other assets are classified as non-current.
A liability is current when it is -
(i) Expected to be settled in normal operating cycle
(ii) Held primarily for the purpose of trading;
(iii) Due to be settled within twelve months after the reporting period, or
(iv) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
Operating Cycle
The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Group has identified twelve months as its operating cycle.
4. Use of judgments, estimates and assumptions
The preparation of financial information in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the reported amounts of revenue, expenses, current assets, non-current assets, current liabilities, non-current liabilities, and the disclosure of the contingent liabilities on the date of the preparation of restated financial information. Such estimates are on a reasonable and prudent basis considering all available information, however due to uncertainties about these judgments, estimates and assumptions, the actual results could differ from those estimates. Information about each of these estimates and judgments is included in relevant notes. Any revision to accounting estimates is recognized prospectively in current and future periods.
Judgments
Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the financial information is included in the classification of financial assets and financial liabilities: assessment of business model within which the assets are held and assessment of whether the contractual terms of the financial assets are solely payments of principal and interest on the principal amount outstanding.
Assumptions and estimation uncertainties
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment, assumptions and estimation uncertainties are provided here, whereas the quantitative break-ups for the same are provided in the notes mentioned below:
Useful life of depreciable assets, Property, Plant and Equipment and Other Intangible Assets
Recognition of contingencies, key assumptions about the likelihood and magnitude of outflow of resources
Recognition of tax expenses including deferred tax
Defined benefit obligation, key actuarial assumptions
Impairment of trade receivables
Valuation of Inventories
5. Going concern assumptions
These Restated Financial Information have been prepared on a going concern basis. The management has, given the significant uncertainties arising out of the various situations, assessed the cash flow projections and available liquidity for a period of at least twelve months from the date of this Restated Financial Information. Based on this evaluation, management believes that the Group will be able to continue as a going concern in the foreseeable future and for a period of at least twelve months from the date of these Restated Financial Information based on the following:
Expected future operating cash flows based on business projections, and
Available credit facilities with its bankers
Based on the above factors, the management has concluded that the going concern assumption is appropriate. Accordingly, the Restated Financial Information do not include any adjustments regarding the recoverability and classification of the carrying amount of assets and classification of liabilities that might result, should the Group be unable to continue as a going concern.
6. Fair Value Measurement
The Group measures financial instruments, such as, investments at fair value at each reporting date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
(i) In the principal market for the asset or liability, or
(ii) In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participants ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
(i) Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
(ii) Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
(iii) Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities whether transfers have occurred between levels in the hierarchy by re-assessing that are recognized in the financial statements on a recurring basis, the Group determines categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. The management determines the policies and procedures for both recurring fair value measurement as well as for non- recurring measurement.
At each reporting date, the management analyses the movements in the values of assets and liabilities which are required to be remeasured or re-assessed as per the Groups accounting policies. For this analysis, the management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.
The management also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable.
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
7. Investments in subsidiaries, Associates and Joint Ventures
The investment in subsidiaries and/or associates and/or Joint Ventures are carried in these restated financial information at historical cost, except when the investment, or a portion thereof, is classified as held for sale, in which case, it is accounted for as Non-Current assets held for sale and discontinued operations.
Where the carrying amount of investment is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount and the difference is transferred to the Restated Statement of Profit and Loss.
On disposal of investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the Restated Statement of Profit or Loss.
8. Property, Plant and Equipment (including Capital Work in Progress)
Recognition and measurement
Property, plant and equipment and capital work in progress are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost includes purchase price (after deducting trade discount / rebate), nonrefundable import duties and taxes, cost of replacing the component parts, borrowing costs and other directly attributable cost to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Property, Plant and Equipment which are significant to the total cost of that item of Property, Plant and Equipment and having different useful life are accounted separately. Other Indirect Expenses incurred relating to project, net of income earned during the project development stage prior to its intended use, are considered as pre- operative expenses and disclosed under Capital Work-in-Progress.
Major shutdown and overhaul expenditure is capitalized as the activities undertaken improves the economic benefits expected to arise from the asset. It includes professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the Groups accounting policy based on Ind AS 23 - Borrowing costs. Such properties are classified to the appropriate categories of PPE when completed and ready for intended use. Assets in the course of construction are classified under Capital Work-in-Progress. At the point when operating of an asset commences as per the managements intended use, the cost of construction/erection is transferred to the appropriate category of property, plant and equipment and depreciation is charged. Costs associated with the commissioning of an asset and any obligatory decommissioning costs are capitalized where the asset is available for use but incapable of operating at normal levels until a year of commissioning has been completed. Revenue generated from production during the trial period is capitalized. Property, plant and equipment except freehold land held for use in the production, supply or administrative purposes, are stated in the Restated Statement of Assets and Liabilities at cost less accumulated depreciation and accumulated impairment losses, if any.
An item of PPE is de-recognized on disposal or when no future economic benefits are expected from use. Any profit or loss arising on the de-recognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds and the carrying amount of the asset and is recognized in Restated Statement of Profit and Loss.
Subsequent costs
The cost of replacing a part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. The carrying amount of the replaced part is de- recognized. The cost of the day-today servicing the property, plant and equipment are recognized in the Restated Statement of Profit and Loss as incurred.
Derecognition
An item of property, plant and equipment is de-recognized upon the disposal or when no future benefits are expected from its use or disposal. Any gain and loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognized net within other income / expenses in the Restated Statement of Profit and Loss.
Depreciation
Depreciation on Property, Plant and Equipment is provided using Straight Line Method on depreciable amount. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
The depreciable amount of an asset is determined after deducting its residual value. Where the residual value of an asset increases to an amount equal to or greater than the assets carrying amount, no depreciation charge is recognized till the assets residual value decreases below the assets carrying amount. Depreciation of an asset begins when it is available for use, i.e., when it is in the location and condition necessary for it to be capable of operating in the intended manner. Depreciation of an asset ceases at the earlier of the date that the assets classified as held for sale in accordance with Ind AS 105 and the date that the asset is de-recognized.
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period and if the expectations differ from the previous estimates; the change is accounted for as a change in accounting estimate on a prospective basis.
The property, plant and equipment acquired under finance leases is depreciated over the assets useful life or over the shorter of the assets useful life and the lease term if there is no reasonable certainty that the Group will obtain ownership at the end of the lease term.
9. Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether the contract involves the use of an identified asset:
This may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified.
The Group has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and
The Group has the right to direct the use of the asset. The Group has this right when it has the decision making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, the Group has the right to direct the use of the asset if either:
The Group has the right to operate the asset; or
The Group designed the asset in a way that predetermines how and for what purpose it will be used.
At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, group has availed exemption in respect of allocating consideration in respect of component of land and building. However, as a lessee, the group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right of use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Interest rate implicit in the lease or, if that rate cannot be readily determined, groups incremental borrowing rate. Generally, the group uses its incremental borrowing rate as the discount rate. Lease payments included in the measurement of the lease liability comprise the following -
Fixed payments, including in-substance fixed payments;
Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
Any amount accrued for payment as per Agreement
Amounts expected to be payable under a residual value guarantee; and
The exercise price under a purchase option that the group is reasonably certain to exercise, lease payments in an optional renewal period if the group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the group is reasonably certain not to terminate early.
The lease liability is measured at amortized cost using the effective interest method. It is re-measured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the groups estimate of the amount expected to be payable under a residual value guarantee, or if group changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in Restated Statement of Profit and Loss if the carrying amount of the right-of-use asset has been reduced to zero.
The group presents right-of-use assets that do not meet the definition of investment property as a separate line item ROU Assets and lease liabilities as a separate line item Lease Liability in the Restated Statement of Assets and Liabilities.
Short-term leases and leases of low-value assets
The group has elected not to recognize right of use assets and lease liabilities for short term leases of real estate properties that have a lease term of 12 months. The group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.
10. Intangible Assets
Recognition and measurement
Intangible assets are recognized when the asset is identifiable, is within the control of the Group, it is probable that the future economic benefits that are attributable to the asset will flow to the Group and cost of the asset can be reliably measured. Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Intangible assets acquired by the Group that have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses. Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. Expenditure on Research activities is recognized in the Restated Statement of Profit and Loss as incurred. Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to complete development and to use or sell the asset. Intangible assets which comprise of the development expenditure incurred on new product and expenditure incurred on acquisition of user licenses for computer software is recorded at their acquisition price.
Revenue of by-products rights obtained in consideration for rendering construction services (under service concession agreement) represent the right to revenue of by-products during the concession period in respect of Build-Operate-Transfer (BOT) projects undertaken by the Group. Such rights are capitalised as intangible asset upon completion of the project at the cumulative construction costs including related margins.
Subsequent measurement
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates.
Amortization
The useful lives of intangible sets are assessed as either finite or indefinite. Intangible assets i.e., computer software is amortized on a straight-line basis over the period of expected future benefits commencing from the date the asset is available for its use. Intangible assets are assessed for impairment whenever there is an indication that the intangible asset may be impaired.
Rights obtained under service concession agreement for right to revenue of by-products are amortised over concession period after completion of construction.
Derecognition
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Restated Statement of Profit and Loss when the asset is de-recognize.
11. Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Initial Recognition and Measurement
Financial assets and/or financial liabilities are recognized when the Group becomes party to a contract embodying the related financial instruments. All financial assets, financial liabilities and financial guarantee contracts are initially measured at transaction values and where such values are different from the fair value, at fair value. Transaction costs that are attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from as the case may be, the fair value of such financial assets or liabilities, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in Restated Statement of Profit or Loss.
Offset
A financial asset and a financial liability are offset and presented on net basis in the Restated Statement of Assets and Liabilities when there is a current legally enforceable right to set- off the recognized amounts and it is intended to either settle on net basis or to realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty.
I. Financial Assets
Subsequent Measurements:
For subsequent measurement, the group classifies financial asset in following broad categories:
i. Financial asset carried at amortized cost.
ii. Financial asset carried at fair value through other comprehensive income (FVTOCI)
iii. Financial asset carried at fair value through profit or loss (FVTPL)
i. Financial asset carried at amortized cost (net of any write down for impairment, if any):
Financial assets are measured at amortized cost when asset is held within a business model, whose objective is to hold assets for collecting contractual cash flows and contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest. Such financial assets are subsequently measured at amortized costs using Effective Interest Rate (EIR) method less impairment, if any. The losses arising from impairment are recognized in the restated statement of profit or loss. Cash and bank balances, trade receivables, loans and other financial asset of the group are covered under this category.
Under the EIR method, the future cash receipts are exactly discounted to the initial recognition value using EIR. The cumulative amortization using the EIR method of the difference between the initial recognition amount and maturity amount is shown as ROU Asset on the face of the Restated Statement of Assets and Liabilities (net of principal repayments, if any) which is amortized over the relevant period of the financial asset to arrive at amortized cost at each reporting date. The corresponding effect of the amortization under EIR method is recognized as interest income over the relevant period of the financial asset. The same is included under other income in the restated statement of profit or loss. The amortized cost of the financial asset is also adjusted for loss allowance, if any.
ii. Financial asset carried at FVTOCI:
Financial asset under this category are measured initially as well as at each reporting date at fair value, when asset is held with a business model whose objective is to hold asset for both collecting contractual cash flows and selling financial assets. Fair value movements are recognized in the other comprehensive income.
iii. Financial asset carried at FVTPL:
Financial asset under this category are measured initially as well as at each reporting date at fair value. Changes in fair value are recognized in the restated statement of profit or loss.
Derecognition :
A financial asset is primarily derecognized when rights to receive cash flows from the asset have expired or the Group has transferred its contractual rights to receive cash flows of the financial asset and has substantially transferred all the risk and reward of the ownership of the financial asset.
Impairment of financial asset:
In accordance with Ind AS 109, the Group uses Expected Credit Loss (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).
ECL is the difference between all contractual cash flows that are due to the Group in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original effective interest rate. Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset. 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months from the reporting date.
For trade receivables, the Group applies simplified approach which requires expected lifetime losses to be recognized from initial recognition of the receivables. The Group uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analyzed. For other assets, the Group uses 12 Month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used. ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/expense in the Restated Statement of Profit and Loss under the head Other expenses.
II. Financial Liabilities:
Subsequent measurement :
For subsequent measurement, the group classifies financial asset in following broad categories:
i. Financial liability carried at amortized cost.
ii. Financial liability carried at fair value through profit or loss (FVTPL)
iii. Financial liability carried at amortized cost.
Interest-bearing loans and borrowings are subsequently measured at amortized cost using the Effective Interest Rate (EIR) method. Gains and losses are recognized in restated statement of profit or loss when the liabilities are derecognized as well as through EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the restated statement of profit and loss.
Non-interest bearing deposit and loans, group measures it at amortized cost using the Effective Interest Rate (EIR) method. Under the EIR method, the future cash receipts are exactly discounted to the initial recognition value using EIR. The cumulative amortization using the EIR method of the difference between the initial recognition amount and maturity amount is shown as separate line item (net of principal repayments, if any) on the face of the Restated Statement of Assets and Liabilities, which is deferred over the relevant period of the financial liability to arrive at amortized cost at each reporting date. The corresponding effect of the amortization under EIR method is recognized as interest expense over the relevant period of the financial liability. The same is included under Finance Charges in the restated statement of profit or loss. The amortized cost of the financial liability is also adjusted for gain allowance, if any.
i. Financial liability carried at fair value through profit or loss (FVTPL)
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities under this category are measured initially as well as at each reporting date at fair value. Changes in fair value are recognized in the restated statement of profit or loss.
Derecognition of financial liabilities:
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the Restated Statement of Profit and Loss.
12. Business combination under common control -
Business combinations involving entities or businesses under common control are accounted for using the pooling of interest method. Under pooling of interest method, the assets and liabilities of the combining entities or businesses are reflected at their carrying amounts after making adjustments necessary to harmonies the accounting policies. The financial information in respect of prior periods is restated as if the business combination had occurred from the beginning of the preceding period in the financial information, irrespective of the actual date of the combination. The identity of the reserves is preserved in the same form in which they appeared in the Financial Statements of the transferor and the difference, if any, between the amounts recorded as share capital issued plus any additional consideration in the form of cash or other assets and the amount of share capital of the transferor is transferred to capital reserve.
13. Impairment of Non-Financial Assets - Property, Plant and Equipment and Intangible Assets
At the end of each reporting period, the Group reviews the carrying amounts of non-financial assets, other than inventories and deferred tax assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Each CGU represents the smallest group of assets that generates cash inflows that are largely independent of the cash inflows of other assets or CGUs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs of disposal 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 the risks specific to the asset or CGU for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized immediately in restated statement of profit and loss. Impairment loss recognized in respect of a CGU is allocated to reduce the carrying amounts of the other assets of the CGU (or group of CGUs) on a pro rata basis.
Non-Financial Assets (other than goodwill) for which impairment loss has been recognized in prior periods, the Group reviews at each reporting date whether there is any indication that the loss has decreased or no longer exists. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in restated statement of profit and loss.
14. Inventories
Inventories comprise of Raw materials and finished goods. Inventories are measured at the lower of cost or net realizable value (NRV). Cost is determined on first-in-first-out (FIFO) method. Cost includes all charges in bringing the goods to their present location and condition. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
15. Cash and Cash Equivalents
Cash comprises cash on hand and demand deposit with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
16. Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized for when the Group has at present, legal or contractual obligation as a result of past events, only if it is probable that an outflow of resources embodying economic outgo or loss will be required and the amount involved can be measured reliably. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
Contingent liabilities being a possible obligation as a result of past events, the existence of which will be confirmed only by the occurrence or non- occurrence of one or more future events not wholly in control of the Group are not recognized in the accounts. The nature of such liabilities and an estimate of its financial effect are disclosed in notes to the restated financial information.
Contingent assets are not recognized in the financial information. However, the nature of such assets and an estimate of its financial effect are disclosed in notes to the restated financial information.
17. Employee Benefits
Employee benefits include gratuity, compensated absences, contribution to provident fund, employees state insurance and superannuation fund.
Short Term Employee Benefits
Employee benefits payable wholly within twelve months of rendering the services are classified as short-term employee benefits and recognized in the period in which the employee renders the related service. These are recognized at the undiscounted amount of the benefits expected to be paid in exchange for that service.
Post-Employment Benefits
Defined Contribution Plans
Retirement benefits in the form of provident fund, state insurance and superannuation fund are defined contribution schemes where the Groups legal or constructive obligation is limited to the amount that it contributes to a sperate legal entity. The Group recognizes contribution payable to the funds as an expense, when an employee renders the related service.
Defined Benefit Plans
The Group operates a defined benefit gratuity. The cost of providing benefits under the defined benefit plan is determined based on actuarial valuation, carried out by an independent actuary, using the projected unit credit method. When the calculation results in a potential asset for the group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contribution to the plan. The liability for gratuity is funded annually to a gratuity funds maintained with the Life Insurance Company Limited.
Re-measurements gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized immediately in the Restated Statement of Assets and Liabilities with a corresponding debit or credit to retained earnings through other comprehensive income in the period in which they occur. Re-measurements are not reclassified to restated statement of profit or loss in subsequent periods. Net interest is calculated by applying the discount rate to the net balance of defined benefit liability or asset.
The Group recognizes the following changes in the net defined benefit obligation as an expense in the restated statement of profit and loss in the line item Employee Benefits Expense:
Service cost including current service cost, past service cost, gains and losses on curtailments and non-routine settlements; and
Net interest expense or income.
Compensated absences
The Groups policy permits employees to accumulate and carry forward a portion of unutilized compensated absences and utilize them in future periods or receive cash in lieu thereof in accordance with the terms of such policy. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each reporting period.
18. Tax Expenses
Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year. Current and deferred taxes are recognized in Restated Statement of Profit and Loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively.
Current Tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-Tax Act, 1961 enacted in India. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted, at the reporting date.
Current income tax relating to items recognized outside the restated statement of profit and loss is recognized outside the restated statement of profit and loss (either in other comprehensive income (OCI) or in equity).
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred Tax
Deferred tax is recognized using the Restated Statement of Assets and Liabilities approach. Deferred tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except when the deferred tax arises from the initial recognition of an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.
Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized. The carrying amount of unrecognized deferred tax assets are reviewed at each reporting date to assess their reliability and corresponding adjustment is made to carrying values of deferred tax assets in the restated financial information.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax assets and liabilities are offset where a legally enforceable right exists to offset current tax assets and liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. Net outstanding balance in Deferred Tax account is recognized as deferred tax liability/asset.
19. Revenue Recognition
Revenue from contract with customer is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration which the Group expects to receive in exchange for those products or services. Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts and other incentives, if any, as per contracts with the customers.
The specific recognition criteria from various stream of revenue are described below:
Sale of Goods
Revenue from the sale of goods is recognized when the control of the goods has been passed to the customer, generally steam passes through Steam Pipeline on continuous basis based on the requirements of the customer. Sales are billed fortnightly for most of the consumers. However, for some of the consumers, it is billed at the end of each month. Price of the Steam is variable, which is in line with the variability of Coal Prices. Revenue is booked at the price which mutually agreed with the consumers.
Rendering of Services
Revenue from services rendered is recognized when the work is performed and as per the terms of agreement.
Revenue on account of construction services rendered in connection with Build-Operate-Transfer (BOT) projects undertaken by the Group is recognised during the period of construction using percentage of completion method. After the completion of construction period, revenue from steam is recognised based on price which mutually agreed with the consumers
Late Payment Charges
Revenue in respect of late payment charges on delayed realizations from customers and cheque bounce charges, if any, is recognized on grounds of prudence and based on certainty of collection.
Interest Income
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that assets net carrying amount on initial recognition.
Other Non-Operating Income
Donations received in kind are measured at fair value on the date of receipt and recognised as income only upon their utilisation.
Donation made with a specific direction that they shall form part of the corpus fund or endowment fund of the group are classified as such, and are directly reflected as Trust Fund receipts in the Restated Statement of Assets and Liabilities.
Specific Project Grants are recognised as Income based on actual amount spent in a year on that project. Such income is booked only where there is certainty of Grant being sanctioned / approved in future and necessary entries are passed in accounts. Grants received for specific projects remaining unutilised at the year end are shown as Grant Unutilized and on completion of Projects are returned back to donor, if the terms of grant indicate the same.
20. Foreign Currencies Transactions and Translation Functional and presentation currency
The financial information are presented in Indian Rupee (INR), which is entitys functional and presentation currency.
Transactions and Balances
Foreign currency transactions are translated into the functional currency, for initial recognition, using the exchange rates at the dates of the transactions.
All foreign currency denominated monetary assets and liabilities are translated at the exchange rates on the reporting date. Exchange differences arising on settlement or translation of monetary items are recognized in Restated Statement of Profit and Loss except to the extent of exchange differences which are regarded as an adjustment to interest costs on foreign currency borrowings that are directly attributable to the acquisition or construction of qualifying assets which are capitalized as cost of assets. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
21. Share-based payments - Employee stock option Scheme (ESOPs)
The fair value of equity instruments given in share options granted under Employee Stock Option Plan is recognized as an employee benefits expense with a corresponding increase in the equity. The total amount to be expensed is determined by reference to the fair value of the shares, derived using Discounted Cash Flows model. The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognizes the impact of the revision to original estimates, if any, in the Restated Statement of Profit and Loss, with a corresponding adjustment to the equity. Upon exercise of share options, the proceeds received are allocated to the share capital up to the par value of the shares issued with any excess being recorded as securities premium.
22. Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. Borrowing costs consist of interest and transaction costs that an entity incurs in connection with the borrowing of funds. Transaction costs in respect of long-term borrowings are amortized over the tenor of respective loans using effective interest method. All other borrowing costs are expensed in the period in which they are incurred. Borrowing costs also includes exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the borrowing costs.
Commencement of capitalization
Capitalization of borrowing cost as part of cost of a qualifying asset shall begin on the commencement date. The commencement date for capitalization is the date when the entity first meets all of the following conditions:
i) it incurs expenditure for the asset;
ii) it incurs borrowing costs; and
iii) it undertakes activities that are necessary to prepare the asset for its intended use or sale.
Cessation of capitalization
Cessation of capitalization shall happen when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are completed.
23. Non-Current Assets Held for Sale
The Group classifies assets and operations as held for sale / distribution to owners or as discontinued operations if their carrying amounts will be recovered principally through a sale / distribution rather than through continuing use. Classification as a discontinued operations occurs upon disposal or when the operation meets the below criteria, whichever is earlier.
Non-Current Assets are classified as held for sale only when both the conditions are satisfied -
i) The sale is highly probable, and
ii) The asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such assets.
Non-current assets which are subject to depreciation are not depreciated or amortized once those classified as held for sale.
A discontinued operation is a component of the Groups business, the operations of which can be clearly distinguished from those of the rest of the Group and
i) is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or
ii) is a subsidiary acquired exclusively with a view to resale.
Non-current assets held for sale / distribution to owners and discontinued operations are measured at the lower of their carrying amount and the fair value less costs to sell / distribute. Assets and liabilities classified as held for sale / distribution are presented separately in the Restated Statement of Assets and Liabilities. The results of discontinued operations are excluded from the overall results of the Group and are presented separately in the restated statement of profit and loss. Also, the comparative restated statement of profit and loss is re-presented as if the operations had been discontinued from the start of the comparative period.
24. Earnings Per Share
Basic EPS is computed by dividing the profit or loss attributable to the equity shareholders of the Group by the weighted average number of equity shares outstanding during the year. Diluted EPS is computed by dividing the profit or loss attributable to the ordinary equity shareholders adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to dilutive potential equity shares, by the weighted average number of equity shares for deriving the basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all the dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity would decrease the net profit per share from continuing ordinary operations.
25. Restated Summary Statement of Cash flows
Restated Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a 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. The cash from operating, investing and financing activities of the Group are segregated.
26. Audit Trail
The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The Group has used accounting software for maintaining its books of account which has a feature of audit trail (edit log) facility and the same was enabled throughout the year for all relevant transactions recorded in the software.
27. Recent accounting pronouncements
a) Standards and amendments effective from 1 April 2025
The Ministry of Corporate Affairs (MCA) has notified certain amendments to Ind AS. Key amendments relevant to the Group are summarised below:
Ind AS 1 - Classification of Liabilities as Current or Non-current: The amendment clarifies the meaning of a right to defer settlement, requires that such right must exist at the end of the reporting period, and confirms that classification is not affected by the likelihood of exercising this right. It also clarifies that the terms of a convertible liability affect classification only if the embedded derivative is equity classified.
The amendment is to be applied retrospectively in accordance with Ind AS 8. The Group has evaluated the impact and determined that these amendments do not have a material effect on the classification or presentation of liabilities for the year ended March 31, 2026.
Ind AS 7 and Ind AS 107 - Disclosures: Supplier Finance Arrangements:
These amendments require enhanced disclosures to help users of financial statements understand the effects of supplier finance arrangements on an entitys liabilities, cash flows and exposure to liquidity risk.
The amendments are effective for annual periods beginning on or after April 01, 2025. Comparative information for earlier periods and disclosures for interim periods ending on or before March 31, 2026 are not required. These amendments do not have an impact on recognition or measurement in the current financial statements.
Ind AS 12 - International Tax Reform: Pillar Two Model Rules:
The amendment introduces a mandatory temporary exception from recognising and disclosing deferred tax assets and liabilities related to Pillar Two income taxes. This exception is applicable immediately and retrospectively, with additional disclosure requirements effective from April 01, 2025 (but not for interim periods ending on or before March 31, 2026). These amendments do not have an impact on recognition or measurement in the current financial statements.
b) Standards and amendments issued but not yet effective
Further amendments to Ind AS 1 - Non-current Liabilities with Covenants specify that if a covenant breach existing at the reporting date is rectified after the reporting date, such rectification shall be treated as a non-adjusting event under Ind AS 10. These amendments are effective for annual reporting periods beginning on or after April 1, 2026. The Group will evaluate the implications of these amendments upon their applicability. Based on the preliminary assessment, no material impact is expected on the recognition or measurement of liabilities.
28. Additional Information
(a) Valuation of Property, Plant & Equipment
The Group has not revalued its property, plant and equipment during the current or previous years.
(b) Loans or Advances
No loans or advances in nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013) either severally or jointly with any other persons.
(c) Detail Benami property held
No proceedings have been initiated on or are against the Group for holding benami property under the Benami Transaction (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(d) Borrowing secured against current assets
The Group has borrowings from banks and financial institutions on the basis of security of current assets. As per sanction letter produced before us, the Group is not required to file any quarterly returns or statements with such banks or financial institutions.
(e) Wilful defaulter
The Group has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(f) Relationship with struck off companies
The Group has no transactions with the companies struck off under the Companies Act, 2013 or Companies Act 1956.
(g) Registration of charges or satisfaction with Registrar of companies.
There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.
(h) Companies with number of layers of companies
The Group has one subsidiary company, and the Group has complied with the number of layers prescribed under clause (87) of section 2 of the act read with Companies (Restriction on Number of Layers) Rules, 2017.
(i) Companies with approved scheme(s) of arrangements
During the year 2021-22, the scheme of amalgamation was sanctioned by the Regional Director, Ahmedabad between Vapi Eco Energy Limited, Sarigam Eco Energy Limited and Nandesari Eco Energy Limited with the Steamhouse India Limited. Accounting Effect as per scheme of amalgamation was already incorporated in Financial Year 2021-22.
The Office of the Regional Director, North-Western Region, Ministry of Corporate Affairs, at Ahmedabad, pursuant to a confirmation order dated August 5, 2022, under section 233 of the Companies Act, 2013, sanctioned the scheme of arrangement in the nature of amalgamation of NEEL, SEEL and VEEL, our erstwhile wholly- owned subsidiaries, into our Company with effect from April 1, 2021 (Appointed Date). Pursuant to the NSV Amalgamation, the undertakings and authorised, issued and paid-up share capitals of NEEL, SEEL and VEEL and our Company were consolidated in our Company. Consequently, with the objective:
(i) to consolidate the business activities of NEEL, SEEL and VEEL under one roof;
(ii) to integrate and combine the businesses of NEEL, SEEL and VEEL leading to greater and optimal utilisation of resources;
(iii) of greater management focus by streamlining the business activities; and
(iv) to reduce administrative costs and optimize profitability. The authorised share capital of our Company, pursuant to the addition of the authorised share capital of NEEL, SEEL and VEEL, was increased from Rs.30,000,000 comprising 3,000,000 equity shares of Rs.10 each to Rs.95,500,000 comprising 9,550,000 Equity Shares of Rs.10 each.
(j) Utilization of borrowed funds and share premium
The Group has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries), neither has not been recorded in the books of account.
(k) Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax, 1961, that has not been recorded in the books of account.
(l) Details of crypto currency or virtual currency
The Group has not traded or invested in crypto currency or virtual currency during the current or previous year. Changes in the accounting policies, if any, in Fiscals 2026, 2025 and 2024, and their effect on our profits and reserves
There are no changes in the accounting policies in the last three Fiscal Years.
Key Components of our Restated Statement of Profit and Loss
Set forth below are the key components of our Restated Statement of Profit and Loss.
Total Income
Our total income consists of
(i) revenue from operations and
(ii) other income.
Revenue from operations. Revenue from operations comprises revenue from the sale of products and revenue from the sale of services. Revenue from the sale of products is comprised of
(i) revenue from sale of steam;
(ii) revenue from sale of nitrogen gas,
(iii) revenue from sale of coal; and
(iv) revenue from sale of other products, such as flowmeters, scrap sales and other components. We earn revenue from the sale of services from construction and project related activity. In Fiscal 2026, the Group has undertaken a project for design, build, erection, commissioning, operation and maintenance of Municipal Solid Waste to Steam Plant basis pursuant to a service concession agreement with the Ahmedabad Municipal Corporation. See Restated Financial Information - Notes to Restated Financial Information - Note 48- Disclosure for service concession agreement pursuant to Ind AS 115 Revenue from Contracts with Customers on page 493. All of our revenue is generated in India.
Set forth below is a breakdown of our revenue from operations for the Fiscals indicated as per the Restated Financial Information.
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | % of revenue from operations | Amount | % of revenue from operations | Amount | % of revenue from operations | |
| (Rs. millions) | (%) | (Rs. millions) | (%) | (Rs. millions) | (%) | |
| Revenue from - Sale of products: | ||||||
| Sale of Steam | 3,432.52 | 69.84% | 3,171.78 | 80.28% | 2,893.67 | 99.19% |
| Sale of Nitrogen Gas | 5.77 | 0.12% | 0.90 | 0.02% | - | - |
| Sale of Coal | 1,323.27 | 26.92% | 762.45 | 19.30% | 0.19 | 0.01% |
| Sales - Others (1) | 21.90 | 0.45% | 15.93 | 0.40% | 23.24 | 0.80% |
| Revenue from the sale of products | 4,783.46 | 97.32% | 3,951.06 | 100.00% | 2,917.10 | 100.00% |
| Revenue from - sale of services: | ||||||
| Construction revenue relating to Service Concession Arrangement (2) | 131.65 | 2.68% | - | - | - | - |
| Revenue from operations | 4,915.11 | 100.00% | 3,951.06 | 100.00% | 2,917.10 | 100.00% |
(1) Others includes sales of flow meters, scrap and other components.
(2) Construction revenue represents revenue recognized in respect of funding received from the Ahmedabad Municipal Corporation for our Pirana project and includes the right to charge for services provided under the project
For managements purposes, our Companys business is considered to constitute one reporting segment. See Restated Financial Information on page 395.
Other Income. Other income primarily comprises of non-operating income, such as interest income from bank fixed deposits, interest income from others, exchange Gain /(Loss) resultant from the transaction /translation, scrap sales, balances written back, and profit on sale of assets.
Expenses
Total expenses comprise of cost of materials consumed, purchase of stock-in-trade, changes in inventories of finished goods, work-in-progress and stock-in-trade, employee benefits expense, finance costs, depreciation, amortization and impairment expenses and other expenses.
Cost of materials consumed . Cost of materials consumed consists of coal and other materials purchased and consumed by us and the cost of net increases or decreases in inventories of materials. Coal forms our principal material.
Purchase of Stock-in-Trade. Purchase of stock-in-trade primarily comprises the costs of coal and steam that are purchased by us and sold to our customers. These purchases form a significant component of purchase and distribution of our steam and coal trading businesses.
Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade. Changes in inventories of finished goods, work-in-progress and stock-in-trade comprises of the difference in closing balance vis-a-vis opening balance of inventories of finished goods, work-in-progress and stock-in-trade.
Employee Benefits Expense. Employee benefits expense comprises of salaries and wages, contribution to and provision for provident and other funds, retirement benefit, staff welfare expenses and directors remuneration.
Finance Costs. Finance costs primarily comprise of interest expenses on term loans, letters of credit commitment charges, finance charges (interest on lease), interest on debentures, interest on income tax and other borrowing costs.
Depreciation, Amortization and Impairment Expenses. Depreciation, amortization and impairment expenses comprise of depreciation on property, plant and equipment, depreciation on right-of-use assets, amortization of intangible assets and impairment losses.
Other Expenses. Other expenses primarily comprise manufacturing expenses (such as utility charges, labour charges, repair and maintenance expense, and loading and unloading expenses), administrative expenses (such as legal and professional charges, rent, rates, taxes & duties, travelling & conveyance expenses and office expenses), and selling & distribution expenses (such as bad debts written off, advertisement, business promotion and seminar expenses and commission and brokerage).
Tax Expenses
Our tax expenses represent the tax payable on the current periods taxable income based on the applicable income tax rate adjusted by income tax payable for earlier years and deferred tax charges or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period).
Operating Segment
Our Company is predominantly engaged in the generation and centralized distribution of industrial gases, including steam and nitrogen, through our dedicated pipeline network. As such, in accordance with Ind AS, our Companys business is considered to constitute one reportable segment.
The Company operates only in India, and all of our revenue is generated within the country.
Results of Operations as per the Restated Financial Information
The following table sets forth select financial information as per the Restated Financial Information for Fiscal 2026, Fiscal 2025 and Fiscal 2024, the components of which are also expressed as a percentage of total income for such Fiscals:
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | % of total income | Amount | % of total income | Amount | % of total income | |
| (Rs. million) | (%) | (Rs. million) | (%) | (Rs. million) | (%) | |
| Income: | ||||||
| Revenue from operations | 4,915.11 | 99.30% | 3,951.06 | 99.14% | 2,917.10 | 99.51% |
| Other income | 34.64 | 0.70% | 34.23 | 0.86% | 14.46 | 0.49% |
| Total income | 4,949.74 | 100.00% | 3,985.29 | 100.00% | 2,931.55 | 100.00% |
| Expenses: | ||||||
| Cost of materials consumed | 1,598.57 | 32.30% | 1,528.08 | 38.34% | 1,774.61 | 60.53% |
| Purchase of stock-intrade | 1,945.01 | 39.30% | 1,321.70 | 33.16% | 21.62 | 0.74% |
| Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade | 11.40 | 0.23% | (11.40) | (0.29)% | - | - |
| Employee benefits expense | 134.78 | 2.72% | 97.84 | 2.46% | 78.99 | 2.69% |
| Finance costs | 217.30 | 4.39% | 221.80 | 5.57% | 186.78 | 6.37% |
| Depreciation, amortization and impairment expense | 139.86 | 2.83% | 115.94 | 2.91% | 78.70 | 2.68% |
| Other expenses | 390.45 | 7.89% | 321.68 | 8.07% | 357.82 | 12.21% |
| Total expenses | 4,437.37 | 89.65% | 3,595.63 | 90.22% | 2,498.52 | 85.23% |
| Profit before tax | 512.37 | 10.35% | 389.65 | 9.78% | 433.04 | 14.77% |
| Tax expenses: | ||||||
| Current tax (including earlier years) | 72.81 | 1.47% | 60.17 | 1.51% | 88.37 | 3.01% |
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | % of total income | Amount | % of total income | Amount | % of total income | |
| (Rs. million) | (%) | (Rs. million) | (%) | (Rs. million) | (%) | |
| Deferred tax | 34.41 | 0.70% | 13.75 | 0.35% | 62.19 | 2.12% |
| Short/Excess Provision of Tax expenses of earlier year(s) | 18.75 | 0.38% | 4.12 | 0.10% | 10.61 | 0.36% |
| Total tax expenses | 125.97 | 2.55% | 78.05 | 1.96% | 161.18 | 5.50% |
| Profit after tax for the year | 386.39 | 7.81% | 311.61 | 7.82% | 271.86 | 9.27% |
| Gain/(loss) on remeasurements of the defined benefit plans | 1.28 | 0.03% | 0.07 | 0.00% | (0.25) | (0.01)% |
| Income tax (expenses)/income on remeasurements of the defined benefits plan | (0.32) | (0.01)% | (0.02) | (0.00)% | 0.06 | 0.00% |
| Effective portion of gain/(loss) on hedging instruments in a cash flow hedge | - | - | - | - | - | - |
| Income tax (expenses)/income on effective portion of gain/(loss) on hedging instruments in a cash flow hedge | - | - | - | - | - | - |
| Restated other comprehensive income for the year (net of tax) | 0.96 | 0.02% | 0.05 | 0.00% | (0.19) | (0.01)% |
| Total comprehensive income for the year | 387.35 | 7.83% | 311.66 | 7.82% | 271.67 | 9.27% |
Fiscal 2026 compared to Fiscal 2025
(Rs.in millions, except percentages)
| Particulars | Fiscal 2026 | Fiscal 2025 | Change(%) |
| Income : | |||
| Revenue from operations | 4,915.11 | 3,951.06 | 24.40% |
| Other income | 34.64 | 34.23 | 1.19% |
| Total Income | 4,949.74 | 3,985.29 | 24.20% |
| Expenses : | |||
| Cost of Goods Sold | |||
| Cost of materials consumed (A) | 1,598.57 | 1,528.08 | 4.61% |
| Purchase of stock-in-trade (B) | 1,945.01 | 1,321.70 | 47.16% |
| Changes in inventories of finished goods, work-in-progress and stock- in-trade (C) | 11.40 | (11.40) | (200.00)% |
| Cost of Goods Sold (=A+B+C) | 3,554.98 | 2,838 . 38 | 25.25% |
| Employee benefits expense | 134.78 | 97.84 | 37.75% |
| Finance costs | 217.30 | 221.80 | (2.03)% |
| Depreciation, amortization and impairment expense | 139.86 | 115.94 | 20.63% |
| Other expenses | 390.45 | 321.68 | 21.38% |
| Total Expenses | 4,437.37 | 3,595.63 | 23.41% |
| Profit before tax | 512.37 | 389.65 | 31.49% |
| Tax expenses: | |||
| Current tax | 72.81 | 60.17 | 21.01% |
| Deferred tax | 34.41 | 13.75 | 150.19% |
| Short/Excess Provision of Tax expenses of earlier year(s) | 18.75 | 4.12 | 355.24% |
| Total tax expenses | 125.97 | 78.05 | 61.41% |
| Particulars | Fiscal 2026 | Fiscal 2025 | Change(%) |
| Profit after tax for the year | 386.39 | 311.61 | 24.00% |
| Other comprehensive income for the year: | |||
| Items that will not be reclassified to profit or loss | |||
| Gain/(loss) on remeasurements of the defined benefit plans | 1.28 | 0.07 | 1,782.19% |
| Income tax (expenses)/income on remeasurements of the defined benefits plan | (0.32) | (0.02) | 1,782.19% |
| Items that may be reclassified to Profit and Loss | |||
| Effective portion of gain/(loss) on hedging instruments in a cash flow hedge | - | - | - |
| Income tax gain/(loss) on hedging instruments in a cash flow hedge | - | - | - |
| Other comprehensive (loss)/income for the year | 0.96 | 0.05 | 1,782.19% |
| Total comprehensive income for the year | 387.35 | 311.66 | 24.29% |
The following key factors and events had a material effect on our results of operations for Fiscal 2026:
Revenue per ton of steam sold decreased to Rs.3,208.02 in Fiscal 2026 from Rs.3,294.91 in Fiscal 2025. This decrease was primarily attributable to the onboarding of new customers at comparatively lower price points at our Panoli and Dahej trading units, coupled with higher steam consumption by customers under lower-priced contracts, which reduced the overall average realization per ton.
In Fiscal 2026, coal sales increased by 73.55% to Rs.1,323.27 million from Rs.762.45 million in Fiscal 2025. The majority of these sales were to Sanjoo Dyeing, which was engaged in manufacturing of steam, while the Company was engaged in procuring and distributing the steam produced by Sanjoo Dyeing.
Total Income
Our total income increased by 24.20% to Rs.4,949.74 million for Fiscal 2026 from Rs.3,985.29 million for Fiscal 2025, primarily due to a 24.40% increase in revenue from operations.
Revenue from Operations
Our revenue from operations increased by 24.40% to Rs.4,915.11 million for Fiscal 2026 from Rs.3,951.06 million for Fiscal 2025, which can be primarily attributed to
(i) an 8.22% increase in revenue from sales of steam to Rs.3,432.52 million in Fiscal 2026 from Rs.3,171.78 million in Fiscal 2025, and
(ii) a 73.55% increase in revenue from sales of coal to Rs.1,323.27 million in Fiscal 2026 from Rs.762.45 million in Fiscal 2025.
Sale of Products
Revenue from sales of products increased by 21.07% to Rs.4,783.45 million for Fiscal 2026 from Rs.3,951.06 million for Fiscal 2025, primarily due to
(i) a 73.55% increase in revenue from the sale of coal to Rs.1,323.27 million in Fiscal 2026 from Rs.762.45 million in Fiscal 2025, and
(ii) an 8.22% increase in revenue from the sale of steam to Rs.3,432.52 million in Fiscal 2026 from Rs.3,171.78 million in Fiscal 2025. The increase in coal sales in Fiscal 2026 was primarily attributable to higher sales of coal to Sanjoo Dyeing, driven by the increase in the scale of their business. See - Results of Operations as per the Restated Financial Information - Fiscal 2025 compared to Fiscal 2024 for an explanation regarding our resumption of coal trading. An increase in steam consumption from existing customers, the addition of new customers and the commencement of commercial operations at our Panoli unit during Fiscal 2026 were the principal drivers for the increase in our revenue from the sale of steam in Fiscal 2026.
Revenue from sales of steam increased by 8.22% to Rs.3,432.52 million in Fiscal 2026 from Rs.3,171.78 million in Fiscal 2025 due to a 10.91% increase in the unit volume of steam sold in Fiscal 2026 to 10,66,772.97 tons in Fiscal 2026 from 9,61,857.87 tons in Fiscal 2025, which was partially offset by a 2.64% decrease in the unit pricing of steam sold in Fiscal 2026 to Rs.3,208.02 per ton in Fiscal 2026 from Rs.3,294.91 per ton in Fiscal 2025. Revenue from sales of steam to customers in the
(i) chemicals and agrochemicals industries increased by 24.83% to Rs. 1,785.49 million in Fiscal 2026 from Rs. 1,430.39 million in Fiscal 2025, and
(ii) textiles industry increased by 45.20% to Rs.1,090.00 million in Fiscal 2026 from Rs.750.68 million in Fiscal 2025.
The following table sets forth our sales of products, broken down by product category, for the periods indicated:
| Sales of products | Fiscal 2026 | Fiscal 2025 | ||
| Rs. millions | % of revenue from sales of products | Rs. millions | % of revenue from sales of products | |
| Sale of Steam | 3,432.52 | 71.76% | 3,171.78 | 80.28% |
| Sale of Nitrogen Gas | 5.77 | 0.12% | 0.90 | 0.02% |
| Sale of Coal | 1,323.27 | 27.66% | 762.45 | 19.30% |
| Other products | 21.90 | 0.46% | 15.93 | 0.40% |
| Revenue from sales of products | 4,783.46 | 100.00% | 3,951.06 | 100.00% |
(1) Others includes sales of flow meters, scrap and other components.
The following table sets forth the sector-wise revenue for the periods indicated:
| Sector | Fiscal 2026 | Fiscal 2025 | ||
| Revenue (in f millions) | % of revenue from sale of products | Revenue (in f millions) | % of revenue from sale of products | |
| Pharmaceutical | 904.98 | 18.92% | 1,054.24 | 26.68% |
| Chemicals | 1,278.07 | 26.72% | 970.97 | 24.57% |
| Textiles | 1,090.00 | 22.79% | 750.68 | 19.00% |
| Agrochemical | 507.42 | 10.61% | 459.42 | 11.63% |
| Tyres | 240.14 | 5.02% | 222.05 | 5.62% |
| Dyes & Pigments | 181.17 | 3.79% | 146.81 | 3.72% |
| Polymers | 121.67 | 2.54% | 104.78 | 2.65% |
| Paints | 22.00 | 0.46% | 18.17 | 0.46% |
| Coal trading | 280.22 | 5.86% | 82.52 | 2.09% |
| Others | 157.77 | 3.30% | 141.42 | 3.58% |
| Revenue from sale of products | 4,783.46 | 100.00% | 3,951.06 | 100.00% |
(1) Industry classification is based on information available with us and our understanding of the principal business of our customers
(2) Others includes waste recyclers, manufacturers of industrial products and providers of affluent treatment systems.
Sale of Services
We earned Rs.131.65 million in revenue from the sale of services in Fiscal 2026 as compared to nil in Fiscal 2025. In Fiscal 2026, we commenced a new project for design, build, erection, commissioning, operation and maintenance of Municipal Solid Waste to Steam Plant for the Ahmedabad Municipal Corporation pursuant to a service concession agreement with Ahmedabad Municipal Corporation.
Other income
Our other income increased by 1.19% to Rs.34.64 million for Fiscal 2026 from Rs.34.23 million for Fiscal 2025, primarily due to
(i) a 299.37% increase in interest income from others to Rs.15.18 million for Fiscal 2026 from Rs.3.80 million for Fiscal 2025 resulting from an increase in interest charged to customers on late payment,
(ii) a 512.07% increase in balances written back to Rs.3.55 million for Fiscal 2026 from Rs.0.58 million for Fiscal 2025 due to the write-back of long-outstanding trade payable balances that were no longer payable,
(iii) income of Rs.2.85 million in scrap sales in Fiscal 2026 as compared to nil in Fiscal 2025,
(iv) provision written back in the amount of Rs.2.60 million in Fiscal 2026 as compared to nil in Fiscal 2025, and
(v) a gain on modification of lease contract of Rs.2.50 million in Fiscal 2026 as compared to nil in Fiscal 2025. Such increases were partially offset by a 42.73% decrease in interest income from bank fixed deposits to Rs.5.30 million for Fiscal 2026 from Rs.9.26 million for Fiscal 2025 resulting from liquidation of fixed deposits that had been maintained as security for various term loans, following the release of such security by the respective lenders.
Expenses
Cost of Goods Sold. Our Cost of Goods Sold, which is the aggregate of our cost of materials consumed, purchases of stock-in-trade and changes in inventories of finished goods, work-in-progress, and stock-in-trade, increased by 25.25% to Rs.3,554.98 million in Fiscal 2026 from Rs.2,838.38 million for Fiscal 2025. The increase in our Cost of Goods Sold was primarily attributable to a change in our mix of revenue. While our revenue from operations increased by 24.40% in Fiscal 2026, Cost of Goods Sold increased by 25.25%, primarily due to a higher contribution from coal sales. Revenue from steam sales increased to Rs.3,432.52 million in Fiscal 2026 from Rs.3,171.78 million in Fiscal 2025, while revenue from coal sales increased significantly to Rs.1,323.27 million from Rs.762.45 million. As coal trading carries a relatively higher corresponding cost of goods sold than steam sales, the increased proportion of coal sales in our overall revenue mix resulted in Cost of Goods Sold growing at a slightly higher rate than revenue from operations. As a percentage of our total income, our Cost of Goods Sold increased to 71.82% in Fiscal 2026 from 71.22% in Fiscal 2025.
Employee benefits expense. Employee benefits expense increased by 37.75% to Rs.134.78 million for Fiscal 2026 from Rs.97.84 million for Fiscal 2025, which was primarily due to increases in salaries and wages, share based payment expenses and directors remuneration. Our salaries and wages increased by 22.29% to Rs.99.37 million for Fiscal 2026 from Rs.81.26 million for Fiscal 2025 primarily due to an increase in our headcount in line with our business expansion. Our share-based payment expenses increased by 220.36% to Rs.15.89 million for Fiscal 2026 from Rs.4.96 million for Fiscal 2025 resulting from stock options granted to eligible employees of the Company under the ESOP adopted in Fiscal 2025. Our directors remuneration increased by 160.52% to Rs.8.05 million for Fiscal 2026 from Rs.3.09 million for Fiscal 2025, primarily due to an increase in remuneration of one of our directors to Rs.5.40 million for Fiscal 2026 from Rs.0.84 million for Fiscal 2025. We had 235 and 182 permanent employees on the roll as at March 31, 2026 and March 31, 2025, respectively. As a percentage of our total income, our employee benefits expense increased to 2.72% in Fiscal 2026 from 2.46% in Fiscal 2025.
Finance costs. Our finance costs decreased by 2.03% to Rs.217.30 million for Fiscal 2026 from Rs.221.80 million for Fiscal 2025, primarily due to a
(i) 22.89% decrease in LC commitment charges to Rs.43.36 million for Fiscal 2026 from Rs.56.23 million for Fiscal 2025,
(ii) 42.49% decrease in other borrowing costs to Rs.4.82 million for Fiscal 2026 from Rs.8.38 million for Fiscal 2025, and
(iii) the absence of interest on debentures in Fiscal 2026 as compared with Rs.2.48 million in Fiscal 2025. The decrease in LC commitment charges was primarily due to a lower number of Letters of Credit (LCs) issued during Fiscal 2026 compared to Fiscal 2025. The decrease in other borrowing costs was due to the capitalization of processing fees relating to term loans available for capital expenditure during Fiscal 2026, as such costs formed part of the cost of the underlying qualifying assets. The foregoing increases were partially offset by a
(x) a 6.33% increase in interest expenses to Rs.110.46 million for Fiscal 2026 from Rs.103.89 million for Fiscal 2025, primarily due to increased utilization of working capital facilities and the availing of additional borrowing facilities during Fiscal 2026,
(ii) 9.86% increase in finance charges - interest on lease to Rs.41.08 million for Fiscal 2026 from Rs.37.39 million for Fiscal 2025, primarily due to the leasing of additional assets during Fiscal 2026 to support increased operational capacity and business expansion, and
(iii) the incurrence of an applicable loss on foreign currency transactions and translation in the amount of Rs.5.68 million for Fiscal 2026, which was not incurred in Fiscal 2025. As at March 31, 2026, our total outstanding borrowings was Rs.2,816.22 million as compared to Rs.2,229.47 million as at March 31, 2025, which increase was due to the availing of additional borrowing facilities during Fiscal 2026 to fund capital expenditure, meet working capital requirements and support the expansion of our business operations. As a percentage of our total income, our finance costs decreased to 4.39% in Fiscal 2026 from 5.57% in Fiscal 2025.
Depreciation, amortization and impairment expenses. Our depreciation, amortization and impairment expense increased by 20.63% to Rs.139.86 million for Fiscal 2026 from Rs.115.94 million for Fiscal 2025, primarily due to the increase in our fixed assets upon commencement of operations of our boiler plant in Panoli unit and pipelines laid at various locations in Fiscal 2026. See Restated Financial Information - Notes to Restated Financial Information - Note 2- Property, plant and equipment on page 440. As a percentage of our total income, our depreciation, amortization and impairment expense decreased to 2.83% in Fiscal 2026 from 2.91% in Fiscal 2025.
Other expenses. Our other expenses increased by 21.38% to Rs.390.45 million for Fiscal 2026 from Rs.321.68 million for Fiscal 2025, primarily due to
(i) a 38.75% increase in labour charges to Rs.69.54 million for Fiscal 2026 from Rs.50.12 million for Fiscal 2025, reflecting the increase in personnel upon the commencement steam generation facilities at the Panoli facility,
(ii) a 481.24% increase in factory expense to Rs.16.69 million for Fiscal 2026 from Rs.2.87 million for Fiscal 2025, on account of the commencement of an operation and maintenance services arrangement with Sanjoo Dyeing pursuant to which the Company operated boilers on behalf of Sanjoo Dyeing and recognised the revenue from such boiler operation,
(iii) a 25.32% increase in utility charges to Rs.138.09 million for Fiscal 2026 from Rs.110.19 million for Fiscal 2025 due to the expansion of our business operations, and
(iv) a 149.70% increase in transportation expenses to Rs.16.78 million for Fiscal 2026 from Rs.6.72 million for Fiscal 2025 on account of the increase in transportation of waste to our Vapi location following the commencement and expansion of operations. As a percentage of our total income, our other expenses decreased to 7.89% in Fiscal 2026 from 8.07% in Fiscal 2025.
Profit before tax. As a result of the foregoing, our profit before tax increased by 31.49% to Rs.512.37 million for Fiscal 2026 from Rs.389.65 million for Fiscal 2025.
Tax expenses. Our total tax expenses increased by 61.41% to Rs.125.97 million for Fiscal 2026 from Rs.78.04 million for Fiscal 2025. The increase in our tax expenses for Fiscal 2026 was primarily attributable to
(i) a 150.19% increase in deferred tax to Rs.34.41 million for Fiscal 2026 from Rs.13.75 million for Fiscal 2025, primarily due to the increase in depreciation charged on account of our increased fixed asset base,
(ii) a 355.24% increase in short/excess provision of tax expenses of earlier year to Rs. 18.75 million for Fiscal 2026 from Rs.4.12 million for Fiscal 2025, and
(iii) a 21.01% increase in current tax to Rs.72.81 million for Fiscal 2026 from Rs.60.17 million for Fiscal 2025. Total tax expenses of Rs.125.97 million in Fiscal 2026 was 24.59% of profit before tax of Rs.512.37 million in Fiscal 2026, while total tax expenses of Rs.78.05 million in Fiscal 2025 was 20.03% of profit before tax of Rs.389.65 million in Fiscal 2025.
Profit after tax for the year. Our profit after tax for the year increased by 24.00% to Rs.386.39 million for Fiscal 2026 from Rs.311.61 million for Fiscal 2025.
Income :
Our total income increased by 24.20% to Rs.4,949.74 million for Fiscal 2026 from Rs.3,985.29 million for Fiscal 2025, primarily due to a 24.40% increase in revenue from operations.
Revenue from sales of products increased by 21.07% to Rs.4,783.45 million for Fiscal 2026 from Rs.3,951.06 million for Fiscal 2025, primarily due to
(i) a 73.55% increase in revenue from the sale of coal to Rs.1,323.27 million in Fiscal 2026 from Rs.762.45 million in Fiscal 2025, and
(ii) an 8.22% increase in revenue from the sale from the sale of steam to Rs.3,432.52 million in Fiscal 2026 from Rs.3,171.78 million in Fiscal 2025.
The following table sets forth our sales of products, broken down by product category, for the periods indicated:
| Sales of products | Fiscal 2026 | Fiscal 2025 | ||
| Rs. millions | % of revenue from sale of products | Rs. millions | % of revenue from sale of products | |
| Sale of Steam | 3,432.52 | 71.76% | 3,171.78 | 80.28% |
| Sale of Nitrogen Gas | 5.77 | 0.12% | 0.90 | 0.02% |
| Sale of Coal | 1,323.27 | 27.66% | 762.45 | 19.30% |
| Other products (1) | 21.90 | 0.46% | 15.93 | 0.40% |
| Revenue from sale of products | 4,783.46 | 100.00% | 3,951.06 | 100.00% |
(1) Other products includes sales of flow meters, scrap and other components.
We earned Rs.131.65 million in revenue from the sale of services in Fiscal 2026 as compared to nil in Fiscal 2025. In Fiscal 2026, we commenced a new project for design, build, erection, commissioning, operation and maintenance of Municipal Solid Waste to Steam Plant for the Ahmedabad Municipal Corporation pursuant to a service concession agreement with Ahmedabad Municipal Corporation.
Expenses:
Our total expenses increased by 23.41% to Rs.4,437.37 million for Fiscal 2026 from Rs.3,595.63 million for Fiscal 2025, primarily due to:
Purchases of stock in trade. Our purchases of stock-in-trade increased by 47.16% to Rs.1,945.01 million for Fiscal 2026 from Rs.1,321.70 million for Fiscal 2025, primarily attributable to higher coal purchases for trading during Fiscal 2026.
Employee benefits expense. Employee benefits expense increased by 37.75% to Rs.134.78 million for Fiscal 2026 from Rs.97.84 million for Fiscal 2025, which was primarily due to increases in salaries and wages, share based payment expenses and directors remuneration. Our employee benefits expense increased in large part due to the commencement of operations at our Panoli unit, necessitating the deployment of additional personnel, and an increase in the remuneration paid to one of our directors during Fiscal 2026. We had 235 permanent employees on our payroll as at March 31, 2026, and 182 permanent employees on our payroll as at March 31, 2025.
Depreciation, amortization and impairment expenses. Our depreciation, amortization and impairment expense increased by 20.63% to Rs.139.86 million for Fiscal 2026 from Rs.115.94 million for Fiscal 2025, primarily due to the increase in our fixed assets resulting from the commencement of operations at our Panoli unit and the addition of steam pipeline laid across various locations in Fiscal 2026. o Other expenses. Our other expenses increased by 21.38% to Rs.390.45 million for Fiscal 2026 from Rs.321.68 million for Fiscal 2025, primarily due to
(i) a 38.75% increase in labour charges to Rs.69.54 million for Fiscal 2026 from Rs.50.12 million for Fiscal 2025, reflecting the additional manpower requirements arising from the commencement of operations at our Panoli unit during Fiscal 2026,
(ii) a 481.24% increase in factory expense to Rs.16.69 million for Fiscal 2026 from Rs.2.87 million for Fiscal 2025, on account of the operation and maintenance services arrangement with Sanjoo Dyeing,
(iii) a 25.32% increase in utility charges to Rs.138.09 million for Fiscal 2026 from Rs.110.19 million for Fiscal 2025 due to the expansion of our business operations, and
(iv) a 149.70% increase in transportation expenses to Rs.16.78 million for Fiscal 2026 from Rs.6.72 million for Fiscal 2025 on account of the increase in transportation of waste to our Vapi location following the commencement and expansion of operations.
Profit Before Tax:
As a result of the foregoing, our profit before tax increased by 31.49% to Rs.512.37 million for Fiscal 2026 from Rs.389.65 million for Fiscal 2025.
Tax expenses:
Our tax expenses increased by 61.41% to Rs.125.97 million for Fiscal 2026 from Rs.78.05 million for Fiscal 2025. The increase in our tax expenses for Fiscal 2026 was primarily attributable to a 150.19% increase in deferred tax to Rs.34.41 million for Fiscal 2026 from Rs.13.75 million for Fiscal 2025, primarily due to the increase in depreciation charged on account of our increased fixed asset base. In addition, our current tax increased by 21.01% to Rs.72.81 million for Fiscal 2026 from Rs.60.17 million for Fiscal 2025, and our short/excess provision of tax expenses of earlier year increased by 355.24% to Rs.18.75 million for Fiscal 2026 from Rs.4.12 million for Fiscal 2025 on account of a decrease in provisioning of income tax for Fiscal 2025. Total tax expenses of Rs.125.97 million in Fiscal 2026 was 24.59% of profit before tax of Rs.512.37 million in Fiscal 2026, while total tax expenses of Rs.78.05 million in Fiscal 2025 was 20.03% of profit before tax of Rs.389.65 million in Fiscal 2025.
Other comprehensive income for the year (net of tax) .
Other comprehensive income for the year (net of tax) increased to Rs.0.96 million for Fiscal 2026 from Rs.0.05 million for Fiscal 2025.
In Fiscal 2026, we had other comprehensive income of Rs.0.96 million due to a gain on remeasurements of defined benefits plans of Rs.1.28 million and income tax expenses income relating to the foregoing of Rs.(0.32) million. In Fiscal 2025, we had other comprehensive income of Rs.0.05 million, due to gain on remeasurements of defined benefits plans of Rs.0.07 million and income tax expense relating to the foregoing of Rs.(0.02) million.
Total comprehensive income for the year .
As a result of the foregoing, our total comprehensive income for the year increased by 24.29% to Rs.387.35 million for Fiscal 2026 from Rs.311.66 million for Fiscal 2025.
Fiscal 2025 compared to Fiscal 2024
(Rs.in millions, except percentages)
| Particulars | Fiscal 2025 | Fiscal 2024 | Change(%) |
| Income: | |||
| Revenue from operations | 3,951.06 | 2,917.10 | 35.44 |
| Other income | 34.23 | 14.46 | 136.80 |
| Total Income | 3,985.29 | 2,931.55 | 35.94 |
| Expenses: | |||
| Cost of Goods Sold | |||
| Cost of materials consumed (A) | 1,528.08 | 1,774.61 | (13.89) |
| Purchase of stock-in-trade (B) | 1,321.70 | 21.62 | 6,013.83 |
| Particulars | Fiscal 2025 | Fiscal 2024 | Change(%) |
| Changes in inventories of finished goods, work-in-progress and stock- in-trade (C) | (11.40) | - | - |
| Cost of Goods Sold (=A+B+C) | 2,838 . 38 | 1,796.23 | 58.02 |
| Employee benefits expense | 97.84 | 78.99 | 23.87 |
| Finance costs | 221.80 | 186.78 | 18.75 |
| Depreciation, amortization and impairment expense | 115.94 | 78.70 | 47.32 |
| Other expenses | 321.68 | 357.82 | (10.10) |
| Total Expenses | 3,595.63 | 2,498.52 | 43.91 |
| Profit before tax | 389.65 | 433.04 | (10.02) |
| Tax expenses: | |||
| Current tax | 60.17 | 88.37 | (31.91) |
| Deferred tax | 13.75 | 62.19 | (77.89) |
| Short/Excess Provision of Tax expenses of earlier year(s) | 4.12 | 10.61 | (61.19) |
| Total tax expenses | 78.05 | 161.18 | (51.58) |
| Profit after tax for the year | 311.61 | 271.86 | 14.62 |
| Other comprehensive income for the year: | |||
| Items that will not be reclassified to profit or loss | |||
| Gain/(loss) on remeasurements of the defined benefit plans | 0.07 | (0.25) | (127.32) |
| Income tax (expenses)/income on remeasurements of the defined benefits plan | (0.02) | 0.06 | (127.32) |
| Items that may be reclassified to Profit and Loss | |||
| Effective portion of gain/(loss) on hedging instruments in a cash flow hedge | - | - | |
| Income tax gain/(loss) on hedging instruments in a cash flow hedge | - | - | |
| Other comprehensive (loss)/income for the year | 0.05 | (0.19) | (127.32) |
| Total comprehensive income for the year | 311.66 | 271.67 | 14.72 |
The following key factors/events had a material effect on our results of operations for Fiscal 2025:
Revenue per ton of steam sold in Fiscal 2025 decreased by 6.42% to Rs.3,294.91 million from Rs.3,521.13 million in Fiscal 2024. This decrease was primarily driven by the onboarding of new customers at comparatively lower price points in the Dahej trading unit.
In Fiscal 2025, coal sales amounted to Rs.762.45 million, compared to Rs.0.19 million in Fiscal 2024. The majority of these sales were to Sanjoo Dyeing, which was engaged in manufacturing of steam, while the Company was engaged in procuring and distributing the steam produced by Sanjoo Dyeing.
Total Income
Our total income increased by 35.94% to Rs.3,985.29 million for Fiscal 2025 from Rs.2,931.56 million for Fiscal 2024, primarily due to a 35.44% increase in revenue from operations.
Revenue from Operations
Our revenue from operations increased by 35.44 % to Rs.3,951.06 million for Fiscal 2025 from Rs.2,917.10 million for Fiscal 2024, which can be primarily attributed to
(i) a 9.61% increase in revenue from sales of steam and
(ii) an increase in sale of coal to Rs.762.45 million in Fiscal 2025 from Rs.0.19 million in Fiscal 2024.
Sale of Products
Revenue from sales of products increased by 35.44% to Rs.3,951.06 million for Fiscal 2025 from Rs.2,917.10 million for Fiscal 2024, primarily due to
(i) a 9.61% increase in revenue from sales of steam to Rs.3,171.78 million in Fiscal 2025 from Rs.2,893.67 million in Fiscal 2024, and
(ii) a Rs.762.26 million increase in revenue from sales of coal to Rs.762.45 million in Fiscal 2025 from Rs.0.19 million in Fiscal 2024. Following the termination of our lease of the steam generation facilities at the Sachin GIDC facility from Sanjoo Dyeing in Fiscal 2024, Sanjoo Dyeing resumed manufacturing of steam at these facilities in Fiscal 2025, and we resumed supplying coal to Sanjoo Dyeing for its steam production operations.
Revenue from sales of steam increased by 9.61% to Rs.3,171.78 million in Fiscal 2025 from Rs.2,893.67 million in Fiscal 2024. Revenue per ton of steam sold decreased to Rs.3,294.91 per ton in Fiscal 2025 from Rs.3,521.13 per ton in Fiscal 2024, principally due to the Dahej GIDC (Phase 1) unit becoming operational during the year, from which a majority of the steam that we sold had lower margins as compared to other locations.
The following table sets forth our sales of products, broken down by product, for the periods indicated:
| Sales of products | Fiscal 2025 | Fiscal 2024 | ||
| Rs. millions | % of revenue from operations | Rs. millions | % of revenue from operations | |
| Sale of Steam | 3,171.78 | 80.28% | 2,893.67 | 99.20% |
| Sale of Nitrogen Gas | 0.90 | 0.02% | 0.00 | 0.00% |
| Sale of Coal | 762.45 | 19.30% | 0.19 | 0.01% |
| Other products | 15.93 | 0.40% | 23.24 | 0.80% |
| Revenue from sales of products | 3,951.06 | 100.00% | 2,917.10 | 100.00% |
(1) Others includes sales of flow meters, scrap and other components.
The following table sets forth the sector-wise revenue for the periods indicated:
| Particulars | Fiscal 2025 | Fiscal 2024 | ||
| Revenue (in f millions) | % of revenue from sales of products | Revenue (in f millions) | % of revenue from sales of products | |
| Pharmaceutical | 1,054.24 | 26.68% | 1,161.57 | 39.82% |
| Chemicals | 970.97 | 24.57% | 835.71 | 28.65% |
| Agrochemical | 459.42 | 11.63% | 415.93 | 14.26% |
| Textiles | 750.68 | 19.00% | 215.94 | 7.40% |
| Others | 141.42 | 3.58% | 151.32 | 5.19% |
| Dyes & Pigments | 146.81 | 3.72% | 69.67 | 2.39% |
| Polymers | 104.78 | 2.65% | 48.82 | 1.67% |
| Paint | 18.17 | 0.46% | 18.14 | 0.62% |
| Coal trading | 82.52 | 2.09% | - | - |
| Tyres | 222.05 | 5.62% | - | - |
| Revenue from sales of products | 3,951.06 | 100.00% | 2,917.10 | 100.00% |
Sale of Services
We did not have sales of services in Fiscal 2025 and Fiscal 2024.
Other income
Our other income increased by 136.80% to Rs.34.23 million for Fiscal 2025 from Rs.14.46 million for Fiscal 2024, primarily due to
(i) a 22.33% increase in interest on bank fixed deposits to Rs.9.26 million in Fiscal 2025 from Rs.7.57 million in Fiscal 2024 resulting from an increase in our fixed deposit balances in Fiscal 2025 to be used as collateral to support increases in our non-fund based limits,
(ii) an increase in interest income from others to Rs.3.80 million for Fiscal 2025 from Rs.1.81 million for Fiscal 2024 resulting from an increase in interest charged to customers on late payments,
(iii) profit on sale of assets Rs.14.71 million for Fiscal 2025 due to the sale of land at Gabheni (Surat, Gujarat). Other income also increased by 531.22% to Rs.2.2 million for Fiscal 2025 from Rs.0.35 million for Fiscal 2024, which primarily includes a rate difference debit note issued by the Company. For more information, please see Restated Financial Information - Notes to Restated Financial Information - Note 46 - Related Party Disclosure on page 487.
Expenses
Cost of Goods Sold. Our Cost of Goods Sold, which is the aggregate of our cost of materials consumed, purchases of stock-in-trade and changes in inventories of finished goods, work-in-progress, and stock-in-trade, increased by 58.02% to Rs.2,838.38 million for Fiscal 2025 from Rs.1,796.23 million in Fiscal 2024. Our Cost of Goods Sold increased by 58.02% as compared to the 35.44% increase in our revenue from operations primarily due to an increase in sales of steam at our Dahej GIDC (Phase 1) unit, where we purchase and distribute steam at lower margin as compared to other locations. As a result, while revenue grew, the additional volumes generated required higher material costs, which in turn led to a relatively higher increase in Cost of Goods Sold. As a percentage of our total income, our Cost of Goods Sold increased to 71.22% in Fiscal 2025 from 61.27% in Fiscal 2024.
Employee benefits expense. Employee benefits expense increased by 23.87% to Rs.97.84 million for Fiscal 2025 from Rs.78.99 million for Fiscal 2024, which was primarily due to a 21.83% increase in salaries and wages to Rs.81.26 million for Fiscal 2025 from Rs.66.70 million for Fiscal 2024, principally due to our Nandesari unit being fully operational during Fiscal 2025, whereas in Fiscal 2024 it was operational only for 6 months, and share-based expenses increased by Rs.4.96 million for Fiscal 2025, which was NIL for Fiscal 2024. We had 182 and 196 permanent employees on the roll as at March 31, 2025 and March 31, 2024, respectively. As a percentage of our total income, our employee benefits expense decreased to 2.46% in Fiscal 2025 from 2.69% in Fiscal 2024.
Finance costs. Our finance costs increased by 18.75% to Rs.221.80 million for Fiscal 2025 from Rs.186.78 million for Fiscal 2024. This increase in finance costs was primarily due to
(i) a 38.36% increase in interest expenses to Rs.103.89 million for Fiscal 2025 from Rs.75.09 million for Fiscal 2024 as additional working capital loans were availed from our lenders,
(ii) a 36.63% increase in LC commitment charges to Rs.56.23 million in Fiscal 2025 from Rs.41.15 million for Fiscal 2024, and
(iii) the incurrence of interest on late payment to MSME of Rs.2.68 million in Fiscal 2025, which was Nil in Fiscal 2024. Such increases were partially offset by a 90.67% decrease in interest on debentures to Rs.2.48 million for Fiscal 2025 from Rs.26.55 million for Fiscal 2024. As on March 31, 2025, our total outstanding borrowings from banks and non-bank financial institutions was Rs.2,229.47 million as compared to Rs.2,027.06 million as on March 31, 2024. As a percentage of our total income, our finance costs decreased to 5.57 % in Fiscal 2025 from 6.37% in Fiscal 2024.
Depreciation, amortization and impairment expenses. Our depreciation, amortization and impairment expenses increased by 47.32% to Rs.115.94 million for Fiscal 2025 from Rs.78.70 million for Fiscal 2024, primarily due to the increase in our fixed assets upon commencement of operations of our boiler plant in Vapi - WTE unit and pipelines laid at various locations in Fiscal 2025. See Restated Financial Information - Notes to Restated Financial Information - Note 2 - Property, plant and equipment and capital work-in-progress on page 440. As a percentage of our total income, our depreciation, amortization and impairment expense increased to 2.91% in Fiscal 2025 from 2.68% in Fiscal 2024.
Other expenses. Our other expenses decreased by 10.10% to Rs.321.68 million for Fiscal 2025 from Rs.357.82 million for Fiscal 2024, primarily due to
(i) a 17.63% decrease in labour charges to Rs.50.12 million for Fiscal 2025 from Rs.60.84 million for Fiscal 2024 reflecting the decrease of personnel upon the termination of our lease of the steam generation facilities at the Sachin GIDC facility from Sanjoo Dyeing and Sanjoo Prints,
(ii) a 4.68% decrease in utility charges to Rs.110.19 million for Fiscal 2025 from Rs.115.60 million for Fiscal 2024 due to an increase in consumption of electricity generated by a turbine at our Nandesari unit,
(iii) a 45.31% decrease in repair & maintenance expenses to Rs.28.84 million for Fiscal 2025 from Rs.52.73 million for Fiscal 2024, and
(iv) a 45.48% decrease in advertisement, business promotion and seminar expenses to Rs.10.87 million for Fiscal 2025 from Rs.19.93 million for Fiscal 2024 on account of our reduced participation in seminars and exhibitions, sponsorships and advertisement expenses in Fiscal 2024. The decrease in other expenses was partially offset by a 127.46% increase in travelling & conveyance expenses to Rs.7.74 million for Fiscal 2025 from Rs.3.40 million for Fiscal 2024 and an increase in provision of expected credit losses to Rs.4.71 million for Fiscal 2025 from Rs.0.04 million for Fiscal 2024. As a percentage of our total income, our other expenses decreased to 8.07% in Fiscal 2025 from 12.21% in Fiscal 2024.
Profit before tax. As a result of the foregoing, our profit before tax decreased by 10.02% to Rs.389.65 million for Fiscal 2025 from Rs.433.04 million for Fiscal 2024.
Tax expenses. Our total tax expenses decreased by 51.58 % to Rs.78.05 million for Fiscal 2025 from Rs.161.18 million for Fiscal 2024. The decrease in our tax expenses for Fiscal 2025 was primarily attributable to a 31.91% decrease in current tax to Rs.60.17 million in Fiscal 2025 from Rs.88.37 million for Fiscal 2024, and a 77.89% decrease in deferred tax to Rs.13.75 million in Fiscal 2025 from Rs.62.19 million for Fiscal 2024. The decrease in current tax was directly attributable to the 10.02% decrease in profit before tax in Fiscal 2025 as compared to Fiscal 2024. Total tax expenses of Rs.78.05 million in Fiscal 2025 was 20.03% of profit before tax of Rs.389.65 million, while total tax expenses of Rs.161.18 million for Fiscal 2024 was 37.22% of profit before tax of Rs.433.04 million.
Profit after tax for the year. Our profit after tax for the year increased by 14.62% to Rs.311.61 million for Fiscal 2025 from Rs.271.86 million for Fiscal 2024.
The increase in our profit after tax for the year in Fiscal 2025 as compared to Fiscal 2024 was principally attributable to the 3 5.44% increase in the revenue from operations from Fiscal 2024 for the reasons duly explained below:
Income :
Our total income increased by 35.94% to Rs.3,985.29 million for Fiscal 2025 from Rs.2,931.56 million for Fiscal 2024, primarily due to a 35.44% increase in revenue from operations.
Our revenue from operations increased by 35.44% to Rs.3,951.06 million for Fiscal 2025 from Rs.2,917.10 million for Fiscal 2024, which can be primarily attributed to
(i) a 9.61% increase in revenue from sales of steam and
(ii) an increase in sale of coal to Rs.762.45 million in Fiscal 2025 from Rs.0.19 million in Fiscal 2024.
The following table sets forth our sales of products, broken down by product category, for the periods indicated:
| Sales of products | Fiscal 2025 | Fiscal 2024 | ||
| Rs. millions | % of revenue from operations | Rs. millions | % of revenue from operations | |
| Sale of Steam | 3,171.78 | 80.28% | 2,893.67 | 99.20% |
| Sale of Nitrogen Gas | 0.90 | 0.02% | 0.00 | 0.00% |
| Sale of Coal | 762.45 | 19.30% | 0.19 | 0.01% |
| Other products | 15.93 | 0.40% | 23.24 | 0.80% |
| Revenue from sales of products | 3,951.06 | 100.00% | 2,917.10 | 100.00% |
(1) Other products includes sales of flowmeter, scrap sales and other components.
Expenses:
Our total expenses increased by 43.91% between Fiscal 2024 and Fiscal 2025 from Rs.2,498.52 million to Rs.3,595.63 million, respectively. As a % of total income, total expenses increased from 85.23% in Fiscal 2024 to 90.22% in Fiscal 2025.
Our cost of materials consumed decreased by 13.89% between Fiscal 2024 to Fiscal 2025 from Rs.1,774.61 million to Rs.1,528.08 million, respectively. Our purchase of stock in trade increased by 6,013.83% on account of the purchase of steam in Dahej GIDC (Phase 1) and Sachin GIDC from Sanjoo Dyeing from Rs.21.62 million in Fiscal 2024 to Rs.1,321.70 million in Fiscal 2025.
Employee benefits expense increased by 23.87% to Rs.97.84 million for Fiscal 2025 from Rs.78.99 million for Fiscal 2024, which was primarily due to a 21.83% increase in salaries and wages to Rs.81.26 million for Fiscal 2025 from Rs.66.70 million for Fiscal 2024, principally due to our Nandesari unit being fully operational during Fiscal 2025, whereas our Nandesari unit operational only for six months in Fiscal 2024, and share-based expenses increased to Rs.4.96 million for Fiscal 2025 from NIL for Fiscal 2024. We had 182 and 196 permanent employees on the roll as at March 31, 2025 and March 31, 2024, respectively. As a percentage of our total income, our employee benefits expense decreased to 2.46% in Fiscal 2025 from 2.69% in Fiscal 2024.
Our finance costs increased by 18.75% to Rs.221.80 million for Fiscal 2025 from Rs.186.78 million for Fiscal 2024. This increase in finance costs was primarily due to
(i) a 38.36% increase in interest expenses to Rs.103.89 million for Fiscal 2025 from Rs.75.09 million for Fiscal 2024 as additional working capital loans were availed from our lenders,
(ii) a 36.63% increase in LC commitment charges to Rs.56.23 million in Fiscal 2025 from Rs.41.15 million for Fiscal 2024, and
(iii) the incurrence of interest on late payment to MSME of Rs.2.68 million in Fiscal 2025, which was Nil in Fiscal 2024. Such increases were partially offset by a 90.67% decrease in interest on debentures to Rs.2.48 million for Fiscal 2025 from Rs.26.55 million for Fiscal 2024. As on March 31, 2025, our total outstanding borrowings from banks and non-bank financial institutions was Rs.2,229.47 million as compared to Rs.2,027.06 million as on March 31, 2024. As a percentage of our total income, our finance costs decreased to 5.57 % in Fiscal 2025 from 6.37% in Fiscal 2024.
Our depreciation, amortization and impairment expenses increased by 47.32% to Rs.115.94 million for Fiscal 2025 from Rs.78.70 million for Fiscal 2024, primarily due to the increase in our fixed assets upon commencement of operations of our boiler plant in Vapi - WTE unit and pipelines laid at various locations in Fiscal 2025.
Our other expenses decreased by 10.10% to Rs.321.68 million for Fiscal 2025 from Rs.357.82 million for Fiscal 2024, primarily due to
(i) a 17.63% decrease in labour charges to Rs.50.12 million for Fiscal 2025 from Rs.60.84 million for Fiscal 2024 reflecting the decrease of personnel upon the termination of our lease of the steam generation facilities at the Sachin GIDC facility from Sanjoo Dyeing,
(ii) a 4.68% decrease in utility charges to Rs.110.19 million for Fiscal 2025 from Rs.115.60 million for Fiscal 2024 due to the an increase in consumption of electricity generated by a turbine at our Nandesari unit,
(iii) a 45.31% decrease in repair & maintenance expenses to Rs.28.84 million for Fiscal 2025 from Rs.52.73 million for Fiscal 2024, and
(iv) a 45.48% decrease in advertisement, business promotion and seminar expenses to Rs.10.87 million for Fiscal 2025 from Rs.19.93 million for Fiscal 2024 on account of our reduced participation in seminars and exhibitions, sponsorships and advertisement expenses in Fiscal 2025. The decrease in other expenses was partially offset by a 127.46% increase in travelling & conveyance expenses to Rs.7.74 million for Fiscal 2025 from Rs.3.40 million for Fiscal 2024 and an increase in provision of expected credit losses to Rs.4.71 million for Fiscal 2025 from Rs.0.04 million for Fiscal 2024. As a percentage of our total income, our other expenses decreased to 8.07% in Fiscal 2025 from 12.21% in Fiscal 2024.
Other comprehensive income/(loss) for the year (net of tax) .
We had other comprehensive income for the year (net of tax) of Rs.0.05 million in Fiscal 2025 as compared to an other comprehensive (loss) for the year (net of tax) of Rs.(0.19) million for Fiscal 2024.
In Fiscal 2025, other comprehensive (loss) comprised of remeasurement gain of defined benefit plans of Rs.0.07 million and income tax expense related to such remeasurement of Rs.0.02 million. In Fiscal 2024, we had other comprehensive loss of Rs.(0.19) million due to (loss) on remeasurements of defined benefits plans of Rs.(0.25) million and income tax income relating to the foregoing of Rs.0.06 million.
Total comprehensive income for the year .
As a result of the foregoing, our total comprehensive income for the year increased by 14.72% to Rs.311.66 million for Fiscal 2025 from Rs.271.67 million for Fiscal 2024.
Certain Items in the Restated Statement of Assets and Liabilities
Non-current assets . Our total non-current assets increased by 30.02% to Rs.5,573.24 million as at March 31, 2026, from Rs.4,286.40 million as at March 31, 2025, primarily due to
(i) an increase in our property, plant and equipment to Rs.2,847.03 million as at March 31, 2026, from Rs.2,137.19 million as at March 31, 2025, which was primarily on account of the capitalization of assets relating to the commencement of our Panoli facility and the laying of additional pipelines across various locations, and
(ii) an increase in our capital work-in-progress to Rs.1,579.35 million as at March 31, 2026 from Rs.1,154.99 million as at March 31, 2025.
Our total non-current assets increased by 41.56% to Rs.4,286.40 million as at March 31, 2025, from Rs.3,027.97 million as at March 31, 2024, primarily due to
(i) an increase in our capital work-in-progress to Rs.1,154.99 million as at March 31, 2025 from Rs.644.15 million as at March 31, 2024,
(ii) an increase in right-of-use assets to Rs.733.52 million as at March 31, 2025 from Rs.370.75 million as at March 31, 2024, and
(iii) an increase in our property, plant and equipment to Rs.2,137.19 million as at March 31, 2025, from Rs.1,715.30 million as at March 31, 2024, which was primarily on account of Vapi WTE unit and pipelines laid at various locations.
Current assets . Our total current assets increased by 6.17% to Rs.1,221.26 million as at March 31, 2026, from Rs.1,150.28 million as at March 31, 2025, primarily due to
(i) a 29.87% increase in trade receivables to Rs.392.83 million as at March 31, 2026, from Rs.302.47 million as at March 31, 2025, and
(ii) a 431.29% increase in other financial assets to Rs.91.78 million as at March 31, 2026, from Rs.17.27 million as at March 31, 2025, which were partially offset by a 24.90% decrease in other current assets to Rs.218.33 million as at March 31, 2026, from Rs.290.73 million as at March 31, 2025, and a 10.45% decrease in inventories to Rs.412.84 million as at March 31, 2026, from Rs.461.02 million as at March 31, 2025
Our total current assets increased by 3.75% to Rs.1,150.28 million as at March 31, 2025, from Rs. 1,195.10 million as at March 31, 2024, primarily due to a decrease in other bank balance, which includes a 70.24% decrease in fixed deposits with maturity less than 12 months to Rs.55.01 million as at March 31, 2025, from Rs.184.86 million as at March 31, 2024, which was partially offset by a 31.37% increase in trade receivables to Rs.302.47 million as at March 31, 2025, from Rs.230.24 million as at March 31, 2024, and a 72.39% increase in a cash and cash equivalents to Rs.21.77 million as at March 31, 2025, from Rs.12.63 million as at March 31, 2024.
Other equity. Other equity primarily consists of retained earnings and securities premium from the issuance of equity securities and remeasurement of net defined asset/liability.
Our other equity increased to Rs.1,275.74 million as at March 31, 2026, from Rs.872.49 million as at March 31, 2025, as a result of
(i) an increase in our retained earnings as at March 31, 2026, due to our earning a total comprehensive income for Fiscal 2026 of Rs.387.35 million, and
(ii) recognition of share based payment of Rs.15.89 million.
Our other equity increased to Rs.872.49 million as at March 31, 2025, from Rs.583.49 million as at March 31, 2024, as a result of
(i) an increase in our retained earnings as at March 31, 2025, due to our earning a total comprehensive income for Fiscal 2025 of Rs.311.66 million, and
(ii) recognition of share based payment of Rs.4.96 million. Such increase was partially offset by a premium paid on redemption of debentures of Rs.27.60 million.
Non-current liabilities. Our total non-current liabilities increased to Rs.1,700.82 million as at March 31, 2026, from Rs.1,610.58 million as at March 31, 2025, primarily due to
(i) a 25.84% increase in deferred tax liabilities (net) to Rs.169.15 million as at March 31, 2026, from Rs.134.42 million as at March 31, 2025, on account of the capitalization of fixed assets during the year, which resulted in higher depreciation being recognized in the financial statements,
(ii) a 6.47% increase in lease liabilities to Rs.434.55 million as at March 31, 2026, from Rs.408.15 million as at March 31, 2025, and
(iii) a 33.89% increase in other financial liabilities to Rs.105.87 million as at March 31, 2026, from Rs.79.07 million as at March 31, 2025.
Our total non-current liabilities increased to Rs.1,610.58 million as at March 31, 2025, from Rs.1,401.99 million as at March 31, 2024, primarily as a result of a 84.64% increase in lease liabilities to Rs.408.15 million as at March 31, 2025, from Rs.221.05 million as at March 31, 2024, which was primarily on account of new leases taken for aircraft and land, and a 11.41% increase in deferred tax liabilities (net) to Rs.134.42 million as at March 31, 2025 from Rs.120.65 million as at March 31, 2024.
Non-current borrowings increased from March 31, 2024 to March 31, 2026 to fund our growing capital expenditure requirements. Lease liabilities increased from March 31, 2024 to March 31, 2026 because we have laid new pipelines and acquired certain plant and machinery to accommodate the requirements of our expanding business.
Current liabilities. Our current liabilities increased by 34.55% to Rs.3,365.99 million as at March 31, 2026, from Rs.2,501.66 million as at March 31, 2025, primarily as a result of
(i) a 47.10% increase in current borrowings to Rs.1,824.97 million as at March 31, 2026, from Rs.1,240.60 million as at March 31, 2025, which was primarily on account of increased utilization of existing working capital facilities and additional working capital facilities sanctioned and availed during the year to support the growth of our business and increased operating requirements, and
(ii) a 22.04% increase in trade payables due to other than micro and small enterprises to Rs.916.47 million as at March 31, 2026, from Rs.750.98 million as at March 31, 2025.
Our current liabilities increased by 40.10% to Rs.2,501.66 million as at March 31, 2025, from Rs. 1,785.63 million as at March 31, 2024, primarily as a result of
(i) a 114.98% increase in trade payables due to other than MSME to Rs.750.98 million as at March 31, 2025, from Rs.349.32 million as at March 31, 2024, which was primarily on account of an increase in the quantity of coal purchased from suppliers on credit basis in Fiscal 2025 where the same were purchased on a cash basis in Fiscal 2024,
(ii) a 106.82% increase in other current liabilities to Rs.292.92 million as at March 31, 2025, from Rs.141.63 million as at March 31, 2024, which was primarily on account of an increase in creditors for capital goods, and
(iii) an 18.52% increase in current borrowings to Rs.1,240.60 million as at March 31, 2025, from Rs.1,046.72 million as at March 31, 2024.
FINANCIAL INDEBTEDNESS
As at March 31, 2026, we had total borrowings of Rs.2,816.22 million. The following table sets forth certain information relating to our outstanding indebtedness as at March 31, 2026, March 31, 2025, March 31, 2024.
Borrowings
(Rs. in millions)
Non-current borrowings
| Particulars | As at March 31, 2026 | As at March 31, 2025 | As at March 31, 2024 |
| Secured | |||
| Term loans from banks | 520.16 | 588.58 | 208.99 |
| Vehicle loan from banks | 7.19 | 7.21 | 4.22 |
| Loan from NBFC | 157.82 | 92.75 | 77.96 |
| Non-Convertible Debentures | 306.08 | 300.33 | 676.95 |
| Total non-current secured borrowings | 991.25 | 988.87 | 968.13 |
| Total unsecured non-current borrowing - from Body Corporates | - | - | 12.21 |
| Total non-current borrowings | 991.25 | 988.87 | 980.34 |
(Rs. in millions)
Current liabilities: Financial liabilities - Borrowings
| Particulars | As at March 31, 2026 | As at March 31, 2025 | As at March 31, 2024 |
| Secured - At amortised cost: | |||
| Letter of Credit from Bank | 644.64 | 374.24 | 326.89 |
| Bank Overdraft | 161.49 | 220.78 | 176.14 |
| Working Capital Loans from Banks and NbFCs | 200.00 | 200.00 | 200.00 |
| Unsecured: | |||
| From Banks: | |||
| Credit Cards | 59.69 | 19.73 | 3.15 |
| Purchase Bill Discounting | 48.57 | 85.66 | - |
| From Others: | |||
| Body Corporates* | 54.88 | - | - |
| Purchase Bill Discounting | 30.84 | - | - |
| Purchase financing | 88.46 | 47.02 | - |
| Current maturities of long-term borrowings: | |||
| Secured borrowings | 536.39 | 293.17 | 339.83 |
| Unsecured borrowings | - | - | 0.71 |
| Total | 1,824.97 | 1,240.60 | 1,046.72 |
* Loans repayable on demand.
Our total borrowings increased to Rs.2,816.22 million as at March 31, 2026, from Rs.2,229.47 million as at March 31, 2025, primarily due to an increase in letters of credit availed during Fiscal 2026.
Our total borrowings increased to Rs.2,229.47 million as at March 31, 2025, from Rs.2,027.06 million as at March 31, 2024, primarily due to an increase in term loans availed during Fiscal 2025.
See Financial Indebtedness for a description of broad terms of our indebtedness on page 554.
Total Equity. Due to the increase in our revenue and net profit in Fiscal 2026 for the reasons discussed above, our total equity increased to Rs.1,727.69 million as at March 31, 2026, from Rs.1,324.45 million as at March 31, 2025. Due to the increase in our revenue and net profit in Fiscal 2025 for the reasons discussed above and the equity financing completed in March 2025 as described above, our total equity increased to Rs.1,324.45 million as at March 31, 2025, from Rs.1,035.45 million as at March 31, 2024.
Liquidity and Capital Resources
Capital Requirements
Our principal capital requirements are for capital expenditure, working capital and payment of principal and interest on our borrowings. Our principal source of funding has been and is expected to continue to be, cash generated from our operations, supplemented by borrowings from banks and financial institutions. For Fiscal 2026, Fiscal 2025 and Fiscal 2024, we met our funding requirements, including satisfaction of debt obligations, capital expenditure, investments, other working capital requirements, payouts to shareholders and other cash outlays, principally with funds generated from operations, proceeds from the issuance of non-convertible debentures, and optimization of operating working capital, with the balance met from borrowings from banks.
Liquidity
Historically, our primary liquidity and capital requirements have been to finance our working capital needs for our operations. capital expenditures for the building and maintenance of our operating facilities, the purchase of plant, equipment and machinery, and the repayment of borrowings and debt service obligations. We have met these requirements through cash flows from operations, short- and long-term borrowings from banks, overdraft facilities that are repayable on demand, cash and cash equivalents and equity. We have also entered into various revolving credit and other working capital facilities, which provides sufficient liquidity for our present requirements.
As at March 31, 2026, we had Rs.1.79 million in cash and cash equivalents, Rs.103.32 million in other bank balances, Rs.218.64 million in other current assets, and Rs.392.83 million in trade receivables (current). We believe that, after taking into account the expected cash to be generated from operations, we will have sufficient liquidity for our present requirements and anticipated requirements for capital expenditure and working capital for 12 months following the date of this RHP.
Cash Flows
The following table summarizes our cash flows for Fiscal 2026, Fiscal 2025 and Fiscal 2024, as per the Restated Financial Information:
(Rs. in millions)
| Particulars | For the fiscal year ended March 31, | ||
| 2026 | 2025 | 2024 | |
| Net cash flows generated from operating activities | 1,004.61 | 1,070.98 | 210.16 |
| Net cash utilized in investing activities | (1,445.71) | (1,229.94) | (1,259.08) |
| Net cash generated from financing activities | 480.40 | 123.47 | 1,037.23 |
| Net (decrease)/ increase in cash and cash equivalents | 39.30 | (35.49) | (11.70) |
| Cash and cash equivalents at the beginning of the year | (199.00) | (163.51) | (151.81) |
| Cash and cash equivalents at the end of the year | (159.70) | (199.00) | (163.51) |
Cashflows from operating activities
Net cash generated from operating activities was Rs.1,004.61 million in Fiscal 2026. While our profit after extraordinary items and before tax for the year was Rs.512.37 million, we had operating profit before working capital changes of Rs.885.20 million, which was primarily due to non-cash adjustments for depreciation & amortization expense of Rs.139.86 million and financial charges other than interest on lease liability of Rs.176.22 million. Our working capital adjustments for Fiscal 2026 primarily consisted of increases in trade payables & other liabilities of Rs.155.53 million and in other current liabilities of Rs.86.31 million and a decrease in inventories of Rs.48.17 million, which were partially offset by an increase in trade and other receivables of Rs.(96.27) million.
Net cash generated from operating activities was Rs.1,070.98 million in Fiscal 2025. While our profit after extraordinary items and before tax for the year was Rs.389.65 million, we had operating profit before working capital changes of Rs.721.91 million, which was primarily due to non-cash adjustments for financial charges other than interest on lease liability of Rs.184.40 million and depreciation & amortization expense of Rs.107.78 million. Our working capital adjustments for Fiscal 2025 primarily consisted of increases in trade payables & other liabilities of Rs.416.12 million and in other current liabilities of Rs.104.50 million, which were partially offset by an increase in trade and other receivables of Rs.(77.09) million Net cash generated from operating activities was Rs.210.16 million in Fiscal 2024. While our profit after extraordinary items and before tax for the year was Rs.433.04 million, we had operating profit before working capital changes of Rs.711.61 million, which was primarily due to non-cash adjustments for finance costs of Rs.159.99 million and depreciation & amortization expense of Rs.78.70 million. Our working capital adjustments for Fiscal 2024 primarily consisted of increases in inventories of Rs.(379.09) million and in other current assets of Rs.(120.18) million and a decrease in provisions of Rs.(0.72) million, which were partially offset by an increase in trade payables & other liabilities of Rs.148.92 million.
Cashflows utilized in investing activities
Net cash utilized in investing activities was Rs.1,445.71 million for Fiscal 2026, primarily due to purchases of fixed assets, including intangible assets, CWIP and capital advances, consisting of plant and machinery, building, office equipment, furniture, software, capital work-in-progress and advances to vendors for capital assets, including a pipeline for distribution of steam and its related right-of-use assets, in the amount of Rs.1,300.00 million and purchases of right of use of assets of Rs.90.48 million, which were partially offset by an increase in deposits accepted from customers Rs.26.80 million and the maturity of fixed deposits with remaining maturity of more than 12 months in the amount of Rs.25.43 million.
Net cash utilized in investing activities was Rs.1,229.94 million for Fiscal 2025, primarily due to purchases of fixed assets, consisting of plant and machinery, building, office equipment, furniture, software, capital work-in-progress and advances to vendors for capital assets, and land in the amount of Rs.1,055.36 million, purchases of right of use of assets of Rs.399.77 million investments in fixed deposits with remaining maturity of more than 12 months in the amount of Rs.35.65 million, which were partially offset by profit from sale of assets of Rs.57.85 million, maturity of fixed deposits with remaining maturity of less than 12 months in the amount of Rs.129.85 million and decrease in other non-current assets of Rs.94.02 million.
Net cash utilized in investing activities was Rs.1,259.08 million for Fiscal 2024, primarily due to purchases of fixed assets, consisting of plant and machinery, building, office equipment, furniture, software, capital work-in-progress and advances to vendors for capital assets, and land in the amount of Rs.850.52 million, investments in fixed deposits with remaining maturity of less than 12 months in the amount of Rs.170.77 million, an increase in other non-current assets of Rs.(136.35) million and purchases of right of use of assets of Rs.151.47 million, which were partially offset by the maturity of fixed deposits with remaining maturity of more than 12 months in the amount of Rs.31.51 million.
Cashflows from financing activities
Net cash generated from financing activities was Rs.480.40 million in Fiscal 2026, primarily due to the receipt of proceeds of other borrowings (net) of Rs.643.66 million and net proceeds of lease liabilities of Rs.51.67 million, which were partially offset by financial charges other than interest on lease liability of Rs.(176.22) million and interest on lease liability of Rs.(41.08) million.
Net cash generated from financing activities was Rs.123.47 million for Fiscal 2025, primarily due to net proceeds of lease liabilities of Rs.215.10 million and proceeds of other borrowings (net) of Rs.149.24 million, which were partially offset by financial charges other than interest on lease liability of Rs.184.41 million and interest on lease liability of Rs.37.39 million.
Net cash generated from financing activities was Rs.1,037.23 million for Fiscal 2024, due to the receipt of proceeds of non-current borrowings of Rs.582.78 million, proceeds of other borrowings (net) of Rs.373.44 million and proceeds of issuance of equity share capital of Rs.195.35 million, which were partially offset by finance costs of Rs.186.78 million.
Capital Commitments
The following table summarizes our capital commitments as at March 31, 2026, March 31, 2025 and March 31, 2024, as per the Restated Financial Information:
(Rs. in millions)
| Particulars | As at March 31, 2026 | As at March 31, 2025 | As at March 31, 2024 |
| Estimated amount of contracts remaining to be executed for purchase of property, plant & equipments and not provided for | 700.00 | 1,050.00 | 1,308.00 |
| Total | 700.00 | 1,050.00 | 1,308.00 |
Lease Liabilities
We enter into agreements for leasing of land and office premises (including our registered and corporate office, communications office and land on which certain of our projects are located. For more information on leases for our land and office premises, see Our Business - Properties on page 336.
The following table sets forth a summary of our lease liabilities as at March 31, 2026, March 31, 2025 and March 31, 2024, as per the Restated Financial Information, broken down by current and non-current:
(Rs. in millions)
| Particulars | As at March 31, 2026 | As at March 31, 2025 | As at March 31, 2024 |
| Current | 102.50 | 77.22 | 49.22 |
| Non-current | 434.55 | 408.15 | 221.05 |
| Total | 537.05 | 485.37 | 270.28 |
Capital Expenditure
Capital expenditures consist primarily of investments in our office and manufacturing facilities at our projects and purchases of furniture and fixtures, office equipment, and motor vehicles. We have made and intend to continue making investments to expand our operating capacity at our new projects as part of our growth efforts. We also make investments in our fleet of trucks, equipment and machines to add new, and upgrade and modernize, our equipment and machinery. Capital expenditure will vary from year to year depending upon a number of factors, including the need to add or replace equipment and the timing of certain projects.
The following table summarizes our capital expenditure for Fiscal 2026, Fiscal 2025 and Fiscal 2024:
(Rs. in millions)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| Property, plant & equipment | |||
| Land | 26.67 | 0.53 | 19.77 |
| Buildings | 32.73 | 14.92 | 21.65 |
| Boiler | 302.37 | 93.75 | 202.36 |
| Pipeline | 366.08 | 308.42 | 265.36 |
| Plant & Machinery | 73.39 | 91.25 | 107.76 |
| Office Equipment | 1.88 | 4.91 | 5.56 |
| Computer and Peripherals | 1.21 | 1.75 | 0.93 |
| Furniture and Fixtures | 0.62 | 2.04 | 1.48 |
| Vehicle | 0.36 | 8.58 | 0.08 |
| Electric Installations | 3.11 | 9.75 | 17.37 |
| Total Capital Expenditure | 808.42 | 535.89 | 642.34 |
| Right of use assets | 115.73 | 399.81 | 150.64 |
| Intangible assets | 1.39 | 1.89 | 3.55 |
| Intangible assets under development | 65.83 | - | - |
Contingent Liabilities
The following table sets forth certain information relating to our contingent liabilities and claims against us, to the extent not provided for, as at March 31, 2026, March 31, 2025 and March 31, 2024, as per the Restated Financial Information:
(Rs. in millions)
| Particulars | As at March 31, 2026 | As at March 31, 2025 | As at March 31, 2024 |
| Contingent liability: | |||
| - GST | 10.67 | 0.37 | - |
| - Litigations under income tax | - | 0.01 | 0.32 |
| - Order of Superintendent of Stamps | 35.77 | 8.68 | - |
| - Bank Guarantee | 75.33 | 67.57 | 44.04 |
| Total Contingent Liabilities | 121.77 | 76.62 | 44.36 |
For details, see Financial Statements - Notes forming part of the Restated Financial Statements - Note 28 - Contingent Liabilities and Capital Commitments on page 470.
Contractual Obligations and Commitments
The following table sets forth certain information relating to future payments due under known contractual commitments as of March 31, 2026, March 31, 2025 and March 31, 2024, aggregated by type of contractual obligation:
(Rs. in millions)
| Particulars | Carrying amount | Within 12 months | After 12 months |
| As at March 31, 2026 | |||
| Financial Liabilities | |||
| Borrowings | 2,816.22 | 1,824.97 | 991.25 |
| Lease Liability | 537.05 | 102.50 | 434.55 |
| Trade Payables | 932.34 | 932.34 | - |
| Other Financial Liabilities | 160.38 | 54.51 | 105.87 |
| Total non-derivative liabilities | 4,445.99 | 2,914.32 | 1,531.67 |
| As at March 31, 2025 | |||
| Financial Liabilities | |||
| Borrowings | 2,229.47 | 1,240.60 | 988.87 |
| Lease Liability | 485.37 | 77.22 | 408.15 |
| Trade Payables | 780.36 | 780.36 | |
| Other Financial Liabilities | 113.27 | 34.13 | 79.13 |
| Total non-derivative liabilities | 3,608.46 | 2,132.31 | 1,476.16 |
| As at March 31, 2024 | |||
| Financial Liabilities | |||
| Borrowings | 2,027.06 | 1,046.72 | 980.34 |
| Lease Liability | 270.28 | 49.22 | 221.05 |
| Trade Payables | 364.81 | 364.81 | |
| Other Financial Liabilities | 160.18 | 80.98 | 79.20 |
| Total non-derivative liabilities | 2,822.33 | 1,541.74 | 1,280.59 |
Off-Balance Sheet Commitments and Arrangements
We do not have any off-balance sheet arrangements, derivative instruments, swap transactions or relationships with affiliates or other unconsolidated entities or financial partnerships that would have been established for the purpose of facilitating off-balance sheet arrangements.
Related Party Transactions
We have engaged in the past, and may engage in the future, in transactions with related parties. For details of our related party transactions, see Related Party Transactions on page 552.
Quantitative and Qualitative Analysis of Market Risks
The Groups business activities are exposed to a variety of financial risks, namely market risk, liquidity risk, credit risk and commodity risk. The Groups senior management has the overall responsibility for establishing and governing the Groups risk management framework and policies. The Groups risk management policies are established to identify and analyse the risks faced by the Group, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the board of directors of the Group.
Liquidity Risk
Liquidity risk refers to insufficiency of funds to meet the financial obligations. Liquidity risk management implies maintenance of sufficient cash and the availability of funding through an adequate amount of committed credit lines to meet obligations when due.
The Groups remaining contractual maturity for its financial liabilities with agreed repayment periods is given above in the sub-section, - Contractual Obligations and Commitments . The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which our Company can be required to pay. The contractual maturity is based on the earliest date on which our Company may be required to pay.
Credit risk
The concentration of credit risk is very limited due to the fact that the customer base is large and widely dispersed and secured with security deposit. Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from our Companys receivables from customers. The Groups exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Group is dependent on the domestic market for its business and revenues. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry and country in which customers operate. Exposures to credit risk the Group is exposed to the counterparty credit risk arising from the possibility that counterparties might fail to comply with contractual obligations. This exposure may arise with regard to unsettled amount. The Groups credit policies and practices with respect to distribution areas are designed to limit credit exposure by collecting security deposits prior to providing utility services or after utility service has commenced according to applicable regulatory requirements.
Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Group grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Group uses expected credit loss model to assess impairment loss or gain. The Group uses a matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and the Groups historical experience for customers:
The Group has made provision on expected credit loss on trade receivables and other financials assets, based on the management estimates.
Credit risk on cash and cash equivalents is limited as the Group generally invests in deposits with banks and financial institutions with high credit ratings assigned by domestic credit rating agencies.
Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk includes currency risk, interest rate risk and other price risk, such as commodity price risk. Financial instruments affected by market risk include trade receivables and trade payables. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimizing the return.
Currency risk
The Group is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the companys functional currency. The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the cash flows of highly probable forecast transactions by hedging the foreign exchange inflows on regular basis.
Currency risks related to the principal amounts of the Groups foreign currency receivable/ payables have not been hedged using forward contracts.
| Particulars | March 31, 2026 | March 31, 2025 | March 31, 2024 |
| EURO in millions | EURO in millions | EURO in millions | |
| Financial Instruments | |||
| Trade payables | 0.00 | - | - |
| Net financial position exposure | 0.00 | - | - |
Interest risk
The Group has exposure to interest rate risk, arising principally on changes in Marginal Cost of Funds based Lending Rate (MCLR). A fall in the discount rate which is linked to the Government Security Rate will increase
the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.
(Rs. in millions)
| As at March 31, 2026 | As at March 31, 2025 | As at March 31, 2024 | |
| Fixed Rate BorrowingsRs. | 7.19 | 15.14 | 9.64 |
| Variable Rate Borrowings | 2,809.04 | 2,214.34 | 469.30 |
(#) This borrowing does not include the borrowing from related parties.
The below mentioned sensitivity analysis is based on the exposure to interest rates for floating rate borrowings. For this it is assumed that the amount of the floating rate liability outstanding at the end of the reporting period was outstanding for the whole year. If interest rates had been 100 basis points higher or lower, other variables being held constant, following is the impact on profit before tax:
(Rs. in millions)
| Impact on Profit Before Tax | |||
| As at March 31, 2026 | As at March 31, 2025 | As at March 31, 2024 | |
| Increase by 100 basis points | (28.09) | (22.14) | (20.17) |
| Decrease by 100 basis points | 28.09 | 22.14 | 20.17 |
Commodity risk
The commodity exposure is mainly on account of Coal, a substantial part of which is a pass through cost and hence the commodity price exposure is not likely to have a material financial impact on the Group.
The Group has exposure to USD / INR exchange rate arising principally on account of import of coal. The Group does not follow a policy of hedging for such exposures and actual rupee costs of import of coal are substantially passed on to the consumers, because of which such commodity price exposure is not likely to have a material financial impact on the Group.
Reservations, Qualifications and Adverse Remarks Included in Financial Statements
There have been no reservations or qualifications or adverse remarks of, or matters of emphasis highlighted by, our Statutory Auditors in their examination report on the Restated Financial Information.
Unusual or Infrequent Events or Transactions
Except as described in this RHP, there have been no other events or transactions, including unusual trends on account of business activity, unusual items of income, change of accounting policies and discretionary reduction of expenses etc., that, to our knowledge, may be described as unusual or infrequent.
Known Trends or Uncertainties
Our business has been subject, and we expect it to continue to be subject, to significant economic changes arising from the trends identified above in Principal Factors Affecting our Results of Operations above and the uncertainties described in Risk Factors on page 21. To our knowledge, except as disclosed in this RHP, there are no known trends or uncertainties that have had, or are expected to have, a material impact on our business or results of operations.
Future Relationship between Cost and Revenue
Other than as described in Risk Factors , Our Business and Managements Discussion and Analysis of Financial Condition and Results of Operations on pages 21, 305, and 502, respectively, to the knowledge of our management, there are no known factors that may adversely affect our business prospects, results of operations and financial condition.
New Products or Business Segments
Other than as disclosed in this section and in Our Business on page 305, as on the date of this RHP, there are no new products or business segments that have had or are expected to have a material impact on our business prospects, results of operations or financial condition.
Significant Dependence on Single or Few Customers
In Fiscal 2026, Fiscal 2025 and Fiscal 2024, our largest customer contributed to 18.36%, 16.60% and 10.77%, respectively, of revenue from operations, our top three customers contributed to 28.40%, 28.29% and 28.59%, respectively, of revenue from operations, and our top 10 customers contributed to 47.87%, 53.95% and 59.79%, respectively, of revenue from operations.
See Significant Factors Affecting Results of Operations - Customer concentration in this section and Risk Factors - Our top ten customers contributed 47.87% of our revenue from operations in Fiscal 2026. We also derive a significant portion (90.72% in Fiscal 2026) of our revenue from operations from repeat orders. Loss of any of these customers or a reduction in purchases or repeat orders by any of them could adversely affect our business, results of operations, cash flows and financial condition. on pages 506 and 22, respectively.
Seasonality of Business
We experience cyclicality in our business due to the business cycles affecting the industries we serve. Changes in industry conditions directly impact our customers operations and, consequently, their steam requirements. For more information, see Risk Factors - Our steam generation and distribution plant and our nitrogen plant are concentrated in Gujarat, India and our raw materials (including fuel sources other than coal) are sourced from suppliers located in the State of Gujarat. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in the Gujarat area could have an adverse effect on our business, results of operations, cash flows and financial condition on page 39.
Competitive Conditions
While we are currently the primary steam producing and supplying company in India, we may face significant competition from other Indian steam and industrial gas producing companies in the future who will compete for the same customers. Please refer to Our Business , Industry Overview , Risk Factors and - Significant Factors Affecting our Results of Operations above on pages 305, 226, 21, and 504, respectively, for further information on our industry and competition.
Significant developments subsequent to March 31, 2026
Effective April 1, 2026, Sanjoo Dyeing began procuring coal directly from third-party suppliers, and we discontinued coal trading, which was ancillary to our core steam generation and distribution business. Accordingly, we have not undertaken coal sales in Fiscal 2027 to date. While the discontinuation of coal trading is expected to reduce our revenue from operations, profit margins from coal sales were substantially lower than those from steam sales. Accordingly, we do not believe that the discontinuation will have a material adverse effect on our business, results of operations, cash flows or financial condition.
As per the Debenture Trust Deed executed between Axis Trustee Services Limited and Steamhouse India Limited on May 22, 2026, the Company received a sanction for Rs.750 million of debentures, structured into two tranches: Tranche I of Rs.500 million and Tranche II of Rs.250 million. Out of the sanctioned amount, Tranche I of Rs.500 million was disbursed on May 27, 2026, and has been utilized for general corporate purposes in accordance with the terms of the Debenture Trust Deed. The Company has not availed the disbursement of Tranche II of Rs.250 million.
Except as set out in this RHP, since the date of the last financial statement as disclosed in this RHP, there are no developments which have taken place that materially or adversely affect or are likely to affect the business, revenue or profitability of the Company or the value of its assets or its ability to pay its liabilities in the next 12 months.
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IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132 (Member ID - NSE: 10975 BSE: 179 MCX: 55995 NCDEX: 01249), DP SEBI Reg. No. IN-DP-185-2016, Merchant Banker SEBI Regn. No. INM000010940, RA SEBI Regn. No: INH000000248, BSE Enlistment Number (RA): 5016, AMFI-Registered Mutual Fund Distributor & SIF Distributor
ARN NO : 47791 (Date of initial registration – 17/02/2007; Current validity of ARN – 08/02/2027), PFRDA Reg. No. PoP 20092018, IRDAI Corporate Agent (Composite) : CA1099
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
