Revenue and Operating Performance
IRM Energy’s net sales have shown considerable variation, rising sharply from ₹507.15 crores in March 2022 to nearly ₹980 crores in March 2023, before a slight dip to ₹890.52 crores in March 2024 and a recovery to ₹975.48 crores in March 2025. This volatility reflects the company’s operational challenges and market conditions. Total operating income mirrors this pattern, as other operating income remained nil throughout the period.
On the expenditure front, the purchase of finished goods constitutes the largest cost component, increasing from ₹249.23 crores in 2022 to ₹736.65 crores in 2025, indicating a scaling of operations. Employee costs have also risen steadily, reaching ₹18.07 crores in the latest fiscal year. Other expenses climbed from ₹65.33 crores in 2022 to ₹124.68 crores in 2025, contributing to a total expenditure (excluding depreciation) of ₹879.16 crores in 2025.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income peaked at ₹186.43 crores in 2022 but declined to ₹96.32 crores by 2025. However, other income improved significantly, reaching ₹34.40 crores in 2025, which helped the overall operating profit (PBDIT) to stand at ₹130.72 crores in the latest year, albeit lower than the ₹189.48 crores recorded in 2022.
Under the radar no more! This Large Cap from Cement is emerging from turnaround with solid fundamentals intact. Discover it while it's still relatively hidden!
- - Hidden turnaround gem
- - Solid fundamentals confirmed
- - Large Cap opportunity
Profitability and Margins
IRM Energy’s profit before tax (PBT) has experienced a downward trend from ₹152.36 crores in 2022 to ₹73.81 crores in 2025. Correspondingly, profit after tax (PAT) declined from ₹113.56 crores in 2022 to ₹47.04 crores in 2025. The consolidated net profit followed a similar pattern, falling from ₹128.03 crores in 2022 to ₹45.20 crores in 2025.
Margins have contracted notably over this period. The operating profit margin (excluding other income) dropped from a robust 36.76% in 2022 to 9.87% in 2025, while the PAT margin decreased from 22.39% to 4.82%. Earnings per share (EPS) also reflected this decline, falling from 42.31 in 2022 to 11.01 in 2025, signalling reduced profitability on a per-share basis.
Balance Sheet and Financial Position
The company’s shareholder funds have grown substantially, from ₹243.72 crores in 2022 to ₹950.72 crores in 2025, supported by a significant increase in reserves. This indicates a strengthening equity base despite the profit fluctuations. Total liabilities have also increased, reaching ₹1,269.75 crores in 2025, with total debt reducing from ₹202.59 crores in 2022 to ₹125.70 crores in 2025, reflecting some deleveraging efforts.
On the asset side, total assets rose from ₹554.80 crores in 2022 to ₹1,269.75 crores in 2025, driven by growth in net block and capital work in progress. The net block increased from ₹287.47 crores to ₹633.60 crores, while capital work in progress nearly doubled to ₹88.48 crores, signalling ongoing investment in fixed assets.
Current assets expanded significantly, with cash and bank balances fluctuating but ending at ₹345.32 crores in 2025. However, net current assets declined from ₹375.54 crores in 2024 to ₹271.75 crores in 2025, indicating tighter short-term liquidity.
Cash Flow Trends
IRM Energy’s cash flow from operating activities has remained positive but showed a decline from ₹128 crores in 2022 to ₹93 crores in 2025. Investing activities consistently reflected cash outflows, increasing from ₹110 crores in 2022 to ₹198 crores in 2025, consistent with capital expenditure growth. Financing activities were more volatile, with a significant inflow of ₹379 crores in 2024 but a substantial outflow of ₹116 crores in 2025. The net cash position swung from a positive ₹33 crores in 2022 to a negative ₹221 crores in 2025, resulting in a closing cash balance of ₹36 crores in the latest fiscal year.
Is IRM Energy your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- - Better alternatives suggested
- - Cross-sector comparison
- - Portfolio optimization tool
Summary of Historical Performance
IRM Energy’s historical performance reveals a company that has experienced significant growth in scale but faces challenges in sustaining profitability and margin stability. While revenues have nearly doubled from 2022 to 2025, profit margins have compressed sharply, and net profits have halved. The balance sheet shows a stronger equity base and reduced debt, reflecting prudent financial management amid operational pressures. Cash flow remains positive from operations but is offset by heavy investing outflows and fluctuating financing activities, leading to a net cash decline.
Investors analysing IRM Energy should weigh the company’s expanding asset base and equity strength against the volatility in earnings and cash flows. The recent years highlight a transition phase with ongoing capital investments and margin pressures, suggesting a need for cautious optimism regarding future performance.
Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →
