1. At a Glance
Once upon a time, BGR Energy was the darling of India’s power EPC sector. Today, it’s more like that joint family uncle who borrowed money for a “small business” in 2009 and still hasn’t repaid. With revenues collapsing from ₹3,300 Cr in FY14 to just ₹367 Cr in FY25, and losses ballooning to₹-1,127 Cr, the company is stuck in a never-ending debt-trap. Yet, the stock has rallied 200% in a year – proof that in Indian markets, hope often sells better than balance sheets.
2. Introduction
Think of BGR Energy as the “Balaji Telefilms” of EPC contracting: endless drama, constant management exits, and unpredictable endings.
Founded in 1985, the company became a big player inBoiler-Turbine-Generator (BTG)andBalance of Plant (BOP)packages, supplying equipment to power plants, refineries, and petrochem units. It had subsidiaries making660 MW boilersand800 MW turbines– sounds glamorous, right?
But then reality hit:
- Projects delayed, mostly by state utilities like TANGEDCO (Tamil Nadu).
- Working capital stretched worse than a railway pantry samosa.
- Debt piled up (₹3,471 Cr).
- Promoters started pledging shares like desperate contestants pawning jewellery in a TV reality show (58.8% pledged).
Now, BGR is in “survival mode,” dependent on unsecured promoter loans, debt restructuring, and prayers.
3. Business Model (WTF Do They Even Do?)
At its core, BGR Energy tries to be aturnkey EPC contractor– design, manufacture, erect, and commission power projects. Let’s break it:
- Power Projects (65% order book):EPC of thermal/gas power plants and BOP contracts.
- Oil & Gas Equipment:Pig launchers/receivers, compressor packages, tanks. (If you don’t know what pig launchers are, no, it’s not animal cruelty. It’s pipeline cleaning equipment.)
- Air Fin Coolers / Heat Exchangers:For refineries & petrochemicals.
- Environmental Engineering:Water treatment systems, RO/UF/NF plants.
- Electrical Projects:EPC for utilities.
But here’s the catch: ~73% of order book is concentrated in Tamil Nadu, withone project (Ennore TANGEDCO)making up55%of the unexecuted backlog. Basically, if Tamil Nadu sneezes, BGR Energy gets pneumonia.
4. Financials Overview
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 88.6 | 174 | 130 | -49.0% | -31.8% |
| EBITDA (₹ Cr) | -105 | -3 | -302 | N/A | +65.2% |
| PAT (₹ Cr) | -265 | -112 | -332 | -137% | +20.2% |
| EPS (₹) | -36.7 | -15.7 | -45.8 | N/A | +19.9% |
| Annualised EPS | -146 |
Commentary:Every line bleeds
red. PAT negative for 13+ quarters, EBITDA consistently negative. At CMP ₹136, P/E is “not meaningful” – unless you count it as Price/Excuses.
5. Valuation (Fair Value Range Only)
- P/E Method:Not applicable (loss-making).
- EV/EBITDA:EV ₹4,372 Cr; EBITDA (TTM) ₹-668 Cr → Negative multiple.
- DCF (Dark Comedy Forecast):With negative free cash flows, a DCF model gives FV = “pray to gods.”
👉Fair Value Range (Educational): ₹0 – ₹50(Current price ₹136 = pure hope premium).
6. What’s Cooking – News, Triggers, Drama
- CFO Musical Chairs:Feb 2024 resignation of CFO Easwar Kumar; Aug 2025 appointment of new CFO Sundar. BGR hires CFOs like IPL teams hire overseas players.
- Promoter Loans:Unsecured loans of ₹231 Cr in FY23, another ₹70 Cr in Q1FY24, and ₹88 Cr in Q2FY24. Interest-bearing and repayable on demand – aka “Dad bailing out son’s failed startup.”
- Project Delays:Ennore project continues to haunt. 55% of order book tied up here. Execution risk = sky high.
- Ratings:Brickwork & CARE keep downgrading like a Netflix season that lost its plot.
- Stock Rally:Despite all this, share jumped 200% in 1 year – short covering? Retail madness? Operator play? Pick your poison.
7. Balance Sheet (FY25)
| Item | Value (₹ Cr) |
|---|---|
| Assets | 4,701 |
| Liabilities | 4,701 |
| Net Worth | -1,608 |
| Borrowings | 3,471 |
Auditor Roast: Negative net worth = company is technically bankrupt.
