1. At a Glance
EKI Energy Services, the self-styled desi climate savior from Indore, was once the darling of carbon credits. Today? Market cap barely ₹320 Cr, CMP ₹116, down 64% in a year. Q1 FY26 sales at ₹15 Cr, down 92% YoY, PAT at -₹0.72 Cr, down 155%. ROE is -3.6%, ROCE at 0.8%. Debt is negligible (₹1 Cr), but that’s like saying “I have no EMIs” when you don’t even have a job. Dividend yield 1.7% — because management still thinks shareholders deserve mithai after this bloodbath.
2. Introduction
This company was once hailed as “India’s first climate unicorn.” In FY22, sales ₹1,800 Cr, profit ₹383 Cr. Investors thought they had discovered the Tesla of Indore. Fast-forward FY25: sales ₹406 Cr, PAT -₹1 Cr. In just 3 years, the revenue shrank like a cheap polyester kurta after first wash.
What happened? Accounting red flags in FY22 (auditors questioning revenue recognition), voluntary carbon market crashes, buyers disappearing faster than Ola cabs in rain, and of course, management’s talent for announcing MoUs bigger than Ambani weddings.
But they still flaunt partnerships: Shell, IOCL’s Surya Nutan solar stove, Jospong in Ghana for $1bn financing dreams, smart meters collab in the UK. Reality check: 97% of revenue still comes from selling carbon credits — a market that’s as volatile as an Arnab Goswami debate.
3. Business Model – WTF Do They Even Do?
At its core, EKI is in carbon credits trading. They register, validate, verify, and sell carbon credits from projects worldwide. Clients include UN, IMF, Shell, Adani, JSW. On paper, glamorous. In practice? Like running a kirana shop in a mall — margins killed by middlemen, demand dependent on fads.
They also make cookstoves (4 mn capacity, 2 mn distributed in India & Africa). Sounds noble — “smokeless kitchens, healthy women.” But contribution to revenue? Just ~2%. The stoves might be saving lives, but not EKI’s P&L.
They tried diversifying — power trading license, AI-driven CRM, Surya Nutan. But these feel like side hustles, while the main act (carbon trading) is bleeding.
Question: Would you trust a company whose sales fell 92% YoY to manage your
