The Energy Efficiency Services Limited (EESL) is facing significant financial challenges, with a decline in consolidated turnover from Rs 1,968 crore in 2024 to Rs 1,686 crore in 2025, and losses increasing to Rs 596 crore from Rs 459 crore in the same period. The company’s subsidiaries, such as EESL EnergyPro and CESL, have also reported losses or minimal profits. EESL is now planning to sell its stake in IntelliSmart, a joint venture that provides smart meter solutions, in a market where private companies are vying to gain a foothold. This move has been criticized by a former official, who believes that selling lucrative businesses is a short-sighted approach and will lead to missed opportunities in the future.
EESL is also planning to exit three other joint ventures, including NEESL, Energy Efficiency Services Co Ltd, Thailand, and Energy Efficiency Services LLC (UAE), to streamline operations. The company’s arm, CESL, is currently carrying out the PM E-Drive scheme, which provides upfront subsidies to EV buyers and is procuring over 10,000 buses under the scheme. Additionally, CESL will be procuring about 5,500 e-trucks, priced lower than traditional trucks.
Despite these efforts, EESL’s debt protection metrics remain weak, with a negative operating profitability and refinancing risks. However, as a public-sector company, EESL is expected to have access to government-guaranteed long-term lines from multilateral agencies to fund its upcoming capital expenditures. The company’s internal cash accrual, unencumbered cash, and ability to raise funds should also be able to cover debt obligations and incremental working capital requirements over the medium term.
The bigger question, however, is whether EESL has missed an opportunity to rewrite India’s energy efficiency program and build a successful public sector company. The answer is likely yes, given the company’s financial struggles and failure to capitalize on opportunities in the energy efficiency sector. EESL’s problems are also attributed to ownership issues, with four public sector units (PSUs) involved, and the lack of a strong leader. The company’s debt issues can be solved in the short term, but the long-term challenges require a more strategic approach to revamp the company’s operations and capitalize on emerging opportunities in the energy efficiency sector.