EKI Energy Services Ltd: From Carbon King to Credit Crunch – Can Green Dreams Pay the Bills?
1. At a Glance
EKI Energy once minted money selling carbon credits like Big Bazaar discounts. From ₹1,800 Cr revenue in FY22 it has shrunk to barely ₹243 Cr in FY25, and now reports losses. Stock is down -67% in 1 year, and promoters trimmed stake from 73% to 66%. The auditors even red-flagged revenue recognition earlier—basically saying, “bhai, these credits look more like store coupons than real cash.”
2. Introduction
Founded in 2011, EKI Energy positioned itself as the desi Goldman Sachs of carbon markets—registering projects, trading carbon credits, and advising big names like the UN, IMF, Shell, Adani, and even Zomato (probably for guilt-free food delivery).
For a while, it worked. They mobilized 200+ million carbon credits, launched the world’s largest biomass cookstove program, tied up with Shell for nature-based projects, and IOCL for Surya Nutan solar stoves. In FY22, they were printing profits with 29% OPM.
But fast forward to FY25: revenue collapsed, losses mounted, and inventory of 12.8 Mn carbon credits is stuck like unsold Diwali sweets. With regulatory scrutiny, buyer skepticism, and a crash in voluntary carbon markets, EKI went from “climate champion” to “climate struggler.”
Question: Is this a turnaround story waiting for Paris Agreement 2.0, or are we just watching the carbon bubble deflate in slow motion?
3. Business Model – WTF Do They Even Do?
Core Segments:
Carbon Credit Advisory & Trading (97% revenue in FY23): Register, verify, issue, and sell credits for global clients.
Cookstoves (~2%): Claims to be world’s largest biomass cookstove manufacturer, capacity 4 Mn units p.a.
Advisory & Training (~1%): Classic consulting on sustainability, net-zero roadmaps, and climate investments.
Geography: 64% sales from Europe, 12% North America, 17% Asia. Basically, India is just the manufacturing hub, customers sit abroad.
Problem: When Europe sneezes, EKI catches pneumonia.
4. Financials Overview
Source table
Metric
Q1 FY26
Q1 FY25
Q4 FY25
YoY %
QoQ %
Revenue
₹14.9 Cr
₹178.2 Cr
₹17.6 Cr
-91.6%
-15%
EBITDA
-₹3.8 Cr
₹0.3 Cr
-₹6.4 Cr
NA
+41%
PAT
-₹1.3 Cr
₹0.04 Cr
-₹6.6 Cr
NA
+80%
EPS (₹)
-0.26
0.48
-2.26
NA
+88%
Commentary: Revenue vanished faster than Delhi’s winter sun. YoY sales fell 92%. Losses are narrowing QoQ, but survival mode is obvious.
5. Valuation – Fair Value Range
P/B Method: Book value ₹141, stock trades at 0.8× → Floor value ~₹100–₹120.
EV/EBITDA: With negative EBITDA, we assume a turnaround to ₹50–70 Cr EBITDA → EV ~₹500–700 Cr → per share ₹180–220.
