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Key Points

RattanIndia Power experienced a dramatic financial shift in Q1 FY26, reporting a net loss of Rs 13.11 crore compared to the previous year's profit. The company's operating revenue declined by 11.8% year-on-year, dropping to Rs 821.96 crore from Rs 931.83 crore. Despite maintaining its 1,350 MW thermal power plant in Amravati, the firm faced significant market challenges. The stock market responded negatively, with shares dropping over 5% following the earnings announcement.

Key Points: RattanIndia Power Reports Q1 Loss Despite 1,350 MW Plant

  • - RattanIndia Power shifts from Rs 93 crore profit to Rs 13.11 crore loss
  • Operating revenue drops 11.8% year-on-year
  • Power plant maintains 1,350 MW capacity in Amravati
  • Stock experiences heavy selling pressure post-earnings announcement
2 min read

RattanIndia Power clocks Rs 13.11 crore loss in Q1, turns negative from last year's profit

RattanIndia Power faces financial challenges with Q1 net loss of Rs 13.11 crore, marking a sharp reversal from previous year's profit

"The company's quarterly performance reflects significant market volatility - Financial Analyst"

Mumbai, July 23

New Delhi-based electric power distribution firm, RattanIndia Power, on Wednesday reported a consolidated net loss of Rs 13.11 crore for the quarter ended June 30 (Q1 FY26) -- marking a sharp reversal from a net profit of Rs 93 crore in the same period of the previous year (Q1 FY25).

The company had also reported a profit of Rs 125.94 crore in the previous quarter (Q4 FY25), according to its stock exchange filing.

The company's operating revenue for the first quarter of FY26 fell by 11.8 per cent year-on-year (YoY), coming in at Rs 821.96 crore, compared to Rs 931.83 crore in Q1 FY25.

On a sequential basis as well, revenue dipped from Rs 936.25 crore reported in the March quarter.

RattanIndia Power recorded an EBITDA of Rs 196 crore in Q1. The company owns a 1,350 MW thermal power plant at Maharashtra's Amravati, which comprises five units of 270 MW each.

This facility has the capacity to generate 11,826 million units (MUs) annually. Of the total capacity, 1,200 MW is tied up under a Power Purchase Agreement (PPA) with the Maharashtra State Electricity Distribution Company Limited (MSEDCL), while an additional 28 MW is sold on the open market.

During the quarter, the company sold 12.09 MUs on the power exchange, generating Rs 9.36 crore in revenue from open market sales in addition to the PPA earnings.

The company's board also approved the appointment of Ravi Kumar Pakalapati as an Additional Director and Whole-Time Director, with immediate effect, it added in its filing.

Following the announcement of quarterly losses, RattanIndia Power's shares saw heavy selling pressure.

The stock, which trades below Rs 20, dropped over 5 per cent and closed the trading session at Rs 14.22, down by Rs 0.87 or 5.77 per cent on the National Stock Exchange (NSE). However, it touched an intra-day low of Rs 14.10.

- IANS

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Reader Comments

P
Priya S
From 93cr profit to 13cr loss in a year? 😳 Management needs to explain what went wrong. Shareholders deserve transparency - hope the new director can turn things around.
A
Aman W
Coal prices have skyrocketed this year. Most thermal plants are struggling. Government should consider temporary subsidies to prevent power shortages during peak summer months.
S
Sarah B
The 5% stock drop seems like an overreaction. This is just one quarter and they still have solid PPAs in place. Could be a buying opportunity for long-term investors.
V
Vikram M
Why isn't the company diversifying into renewable energy? Thermal power is becoming unsustainable. They should use their Amravati land for solar projects - future-proof the business!
K
Kavya N
The revenue drop is worrying but let's see next quarter results. Maybe just seasonal factors? Monsoon affects power demand and coal transportation both.

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