Times Green Energy India has reported positive profits in every year since FY18, but the cash behind those profits has been negative in four of the last five years, and the gap widened sharply in FY26. Governance and disclosure practices have also drawn repeated flags: promoter family members have rotated through board roles with filing failures, a related-party acquisition of a controlling stake in a pharma company was approved for a nominal sum, and the company has cycled through three statutory auditors in three years.
Key findings
- Operating cash flow has been negative in four of the last five years while profits stayed positive
Major- Cumulative operating cash flow was -₹10 crore against cumulative PAT of ₹2 crore over FY18-FY26, with CFO negative in FY22, FY24, FY25 and FY26 while PAT was positive in each of those years. Trade receivables days rose 249% to 475 days in FY26 from 136 days in FY25, and receivables of ₹28.72 crore exceeded annual revenue of ₹22.06 crore by 30%. Revenue fell 44.9% to ₹22.06 crore in FY26, which the company attributed to moderation in agri-produce trading volumes. - Promoter family members rotate through board and KMP roles with repeated filing failures and a 7.84pp holding drop
Major- One director was appointed, re-designated and then appointed as Independent Director through an AGM resolution, yet his e-form DIR-12 was never filed with MCA, so his name does not appear on the MCA portal. The secretarial audit noted delayed filings and inconsistencies in recorded reasons/dates of cessation for certain directors. Promoter holding declined by 7.84 percentage points over one year to 39.75%, including one promoter selling her entire 10.82% stake via an off-market inter-se transfer in September 2024 and another selling her entire 24.16% stake in November 2024. - Company repeatedly authorizes up to ₹30 crore in NCDs while reporting only ₹0.77 crore in borrowings
Major- The board and shareholders approved NCD issuance of up to ₹30 crore in 2022, and the 16th AGM notice proposes a fresh Special Resolution for up to 600 senior, secured, unrated, unlisted, redeemable Series A NCDs with an 18% coupon, aggregating up to ₹30 crore. The FY2024-25 Annual Report confirms the company "has never issued any non-convertible debentures," and the FY2025-26 Annual Report states long-term borrowings of ₹3.12 crore were fully repaid during the year. The company's latest reported borrowings are ₹0.77 crore, all short-term, with a debt-to-equity of 0.02. - Promoters sold a 53% controlling stake in a pharma company to Times Green Energy for ₹3.71 lakh
Major- Shareholders approved the acquisition of 37,100 shares (53% stake) of Rajjguru Institute of Medical Sciences Private Limited from promoters for total consideration of ₹3.71 lakh, a target with zero turnover established in April 2023. The FY2024-25 Annual Report states this acquisition constituted the target as a subsidiary company. The FY2025-26 Annual Report states the company has no subsidiary, joint venture or associate company during that year. - Three statutory auditor changes in three years, each triggered by resignation
Major- M/s N G Rao & Associates, appointed for five years from FY2019-20, resigned and was replaced by M/s VASG & Associates in March 2024. M/s VASG & Associates, re-appointed for a second term of five years, resigned effective February 5, 2026, citing "non-availability of staff and resources." M/s TRAK and Associates was appointed to fill the casual vacancy effective February 5, 2026, and has been recommended for re-appointment for a first term of five years. - Audit opinions have been consistently unqualified, but secretarial audit qualifications and statutory dues arrears went unsurfaced
Major- The statutory auditor issued unqualified opinions for each of FY2021 through FY2026, with no Key Audit Matters communicated in FY2025. The FY2026 Secretarial Audit Report contained qualifications, noting an inability to verify reconstitution of Board Committees and delayed filings for director changes. The FY2024 audit reported the company was "not generally regular in depositing undisputed statutory dues" with arrears of ₹25,46,643, and that the audit trail feature in accounting software "was not enabled" during that year. - BSE issued a warning letter for late disclosure of a promoter reclassification application
Minor- BSE issued a warning letter on 21 Aug 2025 for non-compliance with Regulation 31A of SEBI LODR, as the company submitted its promoter reclassification application on January 04, 2025, but disclosed it only on March 07, 2025. The company's annual reports for FY2020-21 through FY2025-26 each state that no significant or material orders were passed by Regulators or Courts impacting going concern status. - Income tax claims against the company rose to ₹75.56 lakh by FY2026
Minor- Claims against the company not acknowledged as debts in respect of income tax matters stood at ₹75.56 lakh as at March 31, 2026. The independent auditor's reports for FY2023-24 and FY2024-25 each stated there were no pending litigations impacting the financial position.
What to watch
- NCD and capital raise vote. Shareholders vote on Item 8 (NCD issuance up to ₹30 crore) and Item 10 (capital raise up to ₹100 crore) at the 16th Annual General Meeting scheduled for September 14, 2026.
- Director appointments. The 16th AGM on September 14, 2026 will also vote on re-appointment of Mr. Chandaka Janardhanrao as Whole Time Director, regularization of two Independent Directors, and appointment of Mr. Ramakrishna Avadhanam as Whole Time Director.
- Rajjguru acquisition status. Whether the acquisition of Rajjguru Institute of Medical Sciences was completed and, if so, why the FY2025-26 Annual Report discloses no subsidiary.
- Cash flow reversal. Whether the company's claim of "temporarily negative" operating cash flow reverses in FY2026-27, given the FY26 CFO of -₹5.57 crore was the largest negative in the 10-year window.
- Receivables collection. Whether the FY2026-27 annual report discloses collection of the ₹28.72 crore trade receivables and any ageing deterioration beyond the 475-day position.
Bottom line: This is a record of consistently positive reported profits and unqualified statutory audit opinions, but the cash conversion is poor, operating cash flow has been negative in four of the last five years while receivables have ballooned to exceed annual revenue. The risk character is one of earnings quality and governance opacity: related-party transactions are repeatedly described as immaterial or non-existent even as a controlling stake in an unrelated pharma company was acquired from promoters, and auditor churn plus filing failures have gone unremarked in clean opinions. Watch the AGM votes on the NCD and capital raises, and whether the receivables and cash flow positions improve in the next annual report.