BGR Energy spurts on debt restructuring agreement with NARCL

BGR Energy Systems hit the upper circuit of 5% at Rs 244.59 after the company entered into a Master Restructuring Agreement with National Asset Reconstruction Company (NARCL).

NARCL is acting through India Debt Resolution Company under the agreement to restructure BGR Energy's outstanding debt.

Under the agreement, BGR Energy's total outstanding debt of Rs 3,736 crore as of 1 October 2025 comprises sustainable debt of Rs 1,245 crore and unsustainable debt of Rs 2,491 crore. The sustainable debt is to be repaid over four years, by 30 September 2030.

As part of the restructuring, NARCL will be allotted 20% of BGR Energy's equity shares on a fully diluted basis, subject to applicable corporate and regulatory approvals. The agreement also provides NARCL with the right to appoint up to two nominee directors and includes a monitoring committee comprising representatives of the lenders and the company to oversee implementation of the restructuring.

Under the agreement, 75% of amounts recovered or to be recovered by BGR Energy from specified arbitration claims, receivables, awards and other claims will be payable to NARCL. Existing security in favour of NARCL will continue.

NARCL is not related to BGR Energy's promoter or promoter group, and the transaction does not constitute a related-party transaction.

BGR Energy Systems provides EPC, BOP and LSTK contracting services for infrastructure and core sectors. It also manufactures equipment and systems for the power, oil & gas and process industries, along with design and engineering services for the energy and infrastructure sectors.

On a consolidated basis, BGR Energy Systems reported net loss of Rs 224.14 crore in Q1 June 2026 as against net loss of Rs 265.12 crore in Q1 June 2025. Net sales declined 82.18% YoY to Rs 15.79 crore in Q1 June 2026.

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