Karma Energy Ltd (KARMAENG)
🎯 Key Takeaways
- Karma Energy Ltd appears to be in a financial distress phase, marked by persistent losses, negative ROE, and declining operational scale. Despite shareholder approval of governance matters at the AGM, the company continues to report significant losses and weak cash flows, with no visible path to profitability evident in the financial trajectory.
- Revenue declined 79.8% QoQ to ₹2 in Q4FY22.
- ⚠️ Persistent operational losses and revenue decline with no signs of stabilization.
- Market Cap
- ₹43
- P/B Ratio
- 1.42
- ROE
- -5.4%
- ROCE
- 6.5%
- Debt/Equity
- 0.58
- Promoter
- 74.7%
📖 The Story
Karma Energy Ltd appears to be in a financial distress phase, marked by persistent losses, negative ROE, and declining operational scale. Despite shareholder approval of governance matters at the AGM, the company continues to report significant losses and weak cash flows, with no visible path to profitability evident in the financial trajectory.
📰 What's Happening
The company successfully conducted its 19th Annual General Meeting on July 23, 2026, where shareholders approved the adoption of audited FY2026 financial statements, reappointed director Neelkamal Siraj, and ratified revised remuneration for Managing Director Chetan Mehra. All resolutions passed with overwhelming support across promoter, institutional, and public shareholder categories, indicating no governance concerns. The AGM was held via video conference with a record date of July 16, 2026 for shareholder eligibility. These actions reflect continuity in leadership and governance but do not signal operational improvement.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2021 | Sep 2021 | Dec 2021 | Mar 2022 |
|---|---|---|---|---|
| Revenue | 7 | 12 | 10 | 2 |
| Operating Profit | -1 | 2 | 4 | -2 |
| OPM % | -11.4% | 12.5% | 35.3% | -104.9% |
| Net Profit | -2 | 1 | 2 | -3 |
| EPS | ₹-1.56 | ₹0.52 | ₹1.97 | ₹-2.33 |
Financial performance shows a sharp decline in scale and profitability, with revenue dropping from ₹12 crore in September 2021 to ₹2 crore by March 2022, while operating losses widened dramatically from ₹1 crore to ₹-2 crore. Despite temporary margin improvement in late 2021 (OPM of 35.3%), the company has since returned to severe losses, with negative operating cash flow and mounting working capital pressures. The downward trend in revenue and persistent losses suggest no near-term recovery, contradicting any implied stability in operations.
🔮 Management Outlook & What's Next
There is no forward guidance or explicit outlook provided in the available filings regarding future revenue, margins, or capital allocation strategy. Management has not articulated a turnaround plan, target markets, or investment roadmap in the disclosed commentary. The absence of strategic commentary or updated projections indicates limited visibility into management's expectations for operational recovery or value creation.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2021 | Mar 2021 | Mar 2022 | Mar 2022 |
|---|---|---|---|---|
| Equity Capital | 12 | 12 | 12 | 12 |
| Reserves | -2 | 12 | 19 | -3 |
| Borrowings | 93 | 82 | 17 | 81 |
| Total Liabilities | 119 | 131 | 63 | 106 |
| Fixed Assets | 67 | 70 | 32 | 64 |
| Investments | 16 | 20 | 2 | 1 |
| Total Assets | 119 | 131 | 63 | 106 |
The balance sheet reveals a fragile financial position, with total assets declining from ₹119 crore in March 2021 to ₹63 crore by March 2022, while borrowings remain elevated at ₹81 crore in the latest period. Equity remains stable at ₹12 crore, but reserves have turned negative in some periods, signaling cumulative losses eroding capital. The company is not deleveraging aggressively, and the asset contraction suggests shrinking operations without a corresponding reduction in debt, raising solvency concerns.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2022 |
|---|---|
| Operating | -1 |
| Investing | +50 |
| Financing | -49 |
| Net Cash Flow | -0 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 74.7% | 74.7% | 74.7% | 74.7% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 16.0% | 16.0% | 16.0% | 16.1% |
| # Shareholders | 11,745 | 11,403 | 11,232 | 11,114 |
Promoter holding remains stable at 74.7% over the past year, indicating no dilution or stake sale by promoters. Institutional (FII) and domestic institutional (DII) holdings are currently zero, with public shareholding gradually increasing slightly from 15.96% to 16.12% over six quarters. The shareholder base remains fragmented with over 11,000 public shareholders, but lack of institutional interest suggests limited market confidence. No changes in pledging or share buybacks are evident.
⚖️ Peer Comparison — Power Generation & Distribution
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| ADANIPOWER | 3.80 L Cr | 26.6 | 18.3% | — | 0.86 |
| NTPC | 3.14 L Cr | 11.3 | 10.1% | — | 1.34 |
| POWERGRID | 2.43 L Cr | 15.3 | 10.5% | — | 1.47 |
| ADANIGREEN | 2.07 L Cr | 120.3 | 7.3% | — | 5.21 |
| ADANIENSOL | 1.60 L Cr | 53.9 | 10.5% | — | 1.92 |
| TATAPOWER | 1.14 L Cr | 29.6 | 11.1% | — | 1.80 |
| ENRIN | 1.14 L Cr | 76.5 | 46.2% | — | 0.00 |
| JSWENERGY | 91,307 | 44.4 | 7.3% | — | 2.52 |
| NTPCGREEN | 75,812 | 126.7 | 3.7% | — | 1.54 |
| NHPC | 73,831 | 20.8 | 5.0% | — | 1.26 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Persistent operational losses and revenue decline with no signs of stabilization. 2. Negative equity reserves and shrinking asset base raise solvency concerns. 3. High leverage (D/E of 0.58) combined with shrinking operations increases financial vulnerability. 4. Absence of institutional interest and lack of market depth may hinder liquidity and future capital raising.
📋 Recent Filings
- 🟡 Board Meeting2026-07-24Karma Energy Limited announced that all three resolutions at its 19th Annual General Meeting on July 23, 2026 were passed, including adoption of audit…
- 🟡 Board Meeting2026-07-23Karma Energy Limited held its 19th Annual General Meeting on July 23, 2026 via video conference, adopting audited FY2026 financials, reappointing dire…
- 🔴 Corporate Action2026-07-14Karma Energy Limited announced its 19th Annual General Meeting will be held on July 23, 2026 via video conferencing, with July 16, 2026 set as the rec…
- share transfer2026-07-08Karma Energy Limited received a SEBI-mandated share transfer certificate from Bigshare Services for the quarter ended June 30, 2026, confirming demate…
- 🔴 Corporate Action2026-07-01Karma Energy Limited announced its 19th Annual General Meeting will be held on July 23, 2026 via video conference, with July 16, 2026 set as the recor…
- Board Meeting2026-06-29Karma Energy Limited announced that its designated insiders and immediate relatives must remain in a trading window closure from July 1, 2026 until 48…
- 🟡 Board Meeting2026-05-28No summary available
- regulation 312026-05-18No summary available
- Announcement2026-04-21Karma Energy Limited disclosed a price movement on the NSE without any specific or extraordinary events or information that could explain the change, …
- Announcement2026-04-07Karma Energy Limited disclosed a Rs.580,560 fine from BSE for failing to maintain its Stakeholders Relationship Committee and board composition compli…
🧠 Analyst's Read
Karma Energy Ltd shows no clear path to profitability, with deteriorating financials and no disclosed recovery strategy. Investors should monitor for any future strategic shifts, capital raises, or operational restructuring that might alter the trajectory, but current trends offer no indication of improvement.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-30.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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