BGR Energy Systems Limited

Industrials — Engineering & Construction · NSE

₹312.41+₹14.87 (+5.00%)

DalalBaazaar Score

19 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, negative free cash flow, the company is currently loss-making.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, but sales are shrinking. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of BGR Energy Systems Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

BGR Energy Systems Limited, together with its subsidiaries, manufactures and sells capital equipment for power plants, petrochemical and process industries, and refineries in India and internationally.

IndustryEngineering & Construction

SectorIndustrials

Employees375

Annual revenue₹293 Cr

How does it make money?

Turns over ₹293 Cr a year. Of every ₹100 of sales, about ₹-440 reaches shareholders as profit, with ₹-149 left at the operating level before interest, tax and depreciation. Each of its 375 employees supports ₹78.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹78.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -27.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -63% while net margin moved +617% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-63%

Margin effect+617%

DalalBaazaar Score

19/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

18/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

—

PEG

—

Red Flags

8 items require attention · 6 high · 2 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Debt has risen sharplyFinancial
Total debt is up 146% over 3 years, from ₹1,845 Cr to ₹4,535 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.6x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹1,288 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 128.3 points, from -20.7% to -149.0%.
🔴Receivables growing faster than salesFinancial
Receivables up 92% against revenue up -63% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -0.6x to -0.6x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹24 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from -20.7% to -149.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 92% against revenue up -63%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
6 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -151%✓ -149.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹24 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -0.6x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

0 good · 4 neutral · 7 weak

Market Cap

₹2,254 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-172.83

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

-27.6%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

-82.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-32.5%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹24 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-653.3%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.85

Market-like

Moves roughly in line with the market

52W Range Position

35%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

264.4 / 254.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

68.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹790 Cr	₹999 Cr	₹446 Cr	₹293 Cr	-28.2%
EBITDA	-₹163 Cr	-₹286 Cr	-₹363 Cr	-₹436 Cr	—
EBITDA Margin	-20.7%	-28.6%	-81.3%	-149.0%	—
PAT (Net Profit)	-₹485 Cr	-₹758 Cr	-₹972 Cr	-₹1,288 Cr	—
EPS	₹-67.21	₹-105.07	₹-134.75	₹-178.51	—
ROCE	-53.7%	—	—	-27.6%	—
Total Debt	₹1,845 Cr	₹1,833 Cr	₹3,471 Cr	₹4,535 Cr	+35.0%
Free Cash Flow	₹302 Cr	₹149 Cr	-₹1,858 Cr	-₹24 Cr	—

🔴 Revenue has shrunk at 28.2% a year over 3 years.

🔴 EBITDA Margin has fallen from -20.7% to -149.0% over 3 years (-128.3 pts).

🟢 ROCE has risen from -53.7% to -27.6% over 3 years (+26.1 pts).

🔴 Total Debt has grown at 35.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹302 Cr to -₹24 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,311 Cr

Total Liabilities

₹7,214 Cr

Cash & Equivalents

₹22 Cr

Operating Cash Flow

-₹23 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

52.4%

Corporate Actions

Ex-Dividend Date

18 Sept 2014

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

2 mixed1 negative3 general

BGR Energy Systems Upper Circuit Today: Price, Data and Peers

Univest, 16 Oct

BGR Energy Systems Lower Circuit Today: Price, Data and Peers

Univest, 13 Oct

BGR Energy Systems Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

BGR Energy Systems Q1 Standalone Net Loss Narrows to 2.3B Rupees, Revenue Drops to 153M

Sahi, 29 JulResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

BGR Energy Systems closes trading window ahead of Q2FY27 results

scanx.trade, 25 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

BGR Energy Systems reports consolidated net loss of Rs 224.14 crore in the June 2026 quarter

Business Standard, 30 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Revenue growth is negative (-82.2%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

BGR Energy Systems Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 6 high-severity red flags sit above this conclusion and should be read first.

2 of 3 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑