IRM Energy Limited is a prominent city gas distribution (CGD) company in India, focused on developing and operating natural gas distribution projects. The company caters to industrial, commercial, domestic, and automobile customers by providing Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) services. Incorporated in 2015, IRM Energy is a Group Company of Cadila Pharmaceuticals Ltd. It specializes in the development, operation, and expansion of local natural gas distribution networks.
Previously known as IRM Energy Private Limited, the company was renamed IRM Energy Limited in March 2022. Established in Ahmedabad, India, in 2015, it operates as an Authorised Gas Distributor. IRM Energy holds exclusive rights for laying, building, operating, and expanding city or local natural gas distribution networks in key Geographical Areas (GAs) including Banaskantha GA (Gujarat), Fatehgarh Sahib GA (Punjab), Diu and Gir Somnath GA (Union Territory of Daman and Diu/Gujarat), and Nammakkal Tiruchirapalli GA (Tamil Nadu). The company's sole operating segment is the sale of natural gas.
IRM Energy's operational footprint covers multiple geographic regions, emphasizing the provision of clean energy solutions across various customer segments. The company supplies natural gas via CNG and PNG to industrial, commercial, domestic, and automobile users. As of March 31, 2024, its customer base included 66,228 domestic customers, 195 industrial customers, 340 commercial customers, and 82 CNG retail outlets comprising 324 dispensing points.
The company has steadily developed its infrastructure since commencing operations in 2017. Key milestones include:
- 2017: Commissioning of the first City Gate Station and Mother Station at Banaskantha.
- 2018: Commissioning of a City Gate Station and Mother Station at Fatehgarh Sahib.
- 2021: Commissioning of the 50th CNG Station (including DODO and OMC stations).
- 2022: Commissioning of an LCNG Station at Gir Somnath and commencement of operations in the Diu & Gir Somnath GA.
- 2023: Over 35,000 PNG domestic connections commissioned at Banaskantha; over 50,000 PNG domestic connections commissioned at a company level; commissioning of the first CNG Station at Namakkal and Tiruchirappalli GA (OMC Station).
IRM Energy actively pursues strategic collaborations to enhance its operational capabilities and service offerings.
- Technical Partnership: The company has a strategic and technical partnership with Shizuoka Gas Co. Ltd. of Japan, the fourth-largest gas company in Japan. This partnership leverages Shizuoka Gas's expertise as a total energy provider.
- Compressed Bio-Gas (CBG) Off-take: A tripartite agreement with IAV Biogas Pvt Ltd and GAIL is in place for the off-take of compressed bio-gas in Tamil Nadu, supporting India's clean energy initiatives.
- Electric Vehicle (EV) Charging: In collaboration with Mindra EV Pvt Ltd, IRM Energy has launched its first Fast EV DC Charging Station at its MEGA CNG DODO Station near Rampura Chowkdi in Palanpur, Banaskantha. This initiative aligns with sustainable energy solutions and energy security.
- Market Capitalization: ₹1,176.36 Cr (as of June 16, 2025).
- Company Size: Classified as a Small Cap company by Value Research.
- Revenue (TTM): ₹975 Cr
- Profit (TTM): ₹45.2 Cr
- Profit After Tax (TTM): ₹45 Cr
- Net Sales: Increased by 25.03% to ₹267.86 Cr for the quarter ending March 2025.
- Net Profit: Decreased by 59.46% to ₹4.55 Cr.
- EBITDA: Decreased by 18.81%.
- EPS: Dropped to ₹1.11 from ₹2.73 in the corresponding period last year.
- P/B Ratio: 1.25 times (as of June 16, 2025), trading at a 22% discount to its peers' median of 1.61 times.
- P/E Ratio: 26.30 times (as of June 16, 2025), trading at a 115% premium to its peers' median of 12.22 times.
- Return on Equity (ROE): Low at 10.4% over the last 3 years.
- Debt: The company has reduced its debt.
- Dividend Payout: Low at 7.74% of profits over the last 3 years.
- Dividend Declared (Q4 FY24): ₹1.50 per share, translating to a dividend yield of 0.52%.
- Promoter Holding: 50.1%, indicating strong promoter confidence.
- Promoter Pledging: No promoter pledging is reported for IRM Energy Ltd.
IRM Energy Limited was honored as "One of the Best Brands – 2024" by ET Edge at the 7th Edition of the ET Now Best Brands Conclave 2024. This award acknowledges the company's dedication to customer service and operational excellence.
- 52-Week High: ₹481
- 52-Week Low: ₹237
- Listing Date: October 26, 2023. The company is relatively new to the public markets.
IRM Energy Limited represents a focused investment opportunity in India's expanding natural gas distribution infrastructure. With established operations across multiple states and a growing commitment to sustainable energy solutions, the company's strategic partnerships and ongoing infrastructure development initiatives position it for future growth in the evolving energy landscape.
