Shares of BGR Energy Systems surged nearly 10 per cent in two trading sessions as the company signed a Master Restructuring Agreement (MRA) with the National Asset Reconstruction Company to recast total outstanding debt of ₹3,736 crore.
The company’s shares touched an upper circuit of 5 per cent on Wednesday, trading at ₹256 on the NSE, valuing the company at ₹1,850 crore.
As per the MRA, BGR’s debt of ₹3,736 crore, comprised sustainable debt of ₹1,245 crore and unsustainable debt of ₹2,491 crore as of October 1, 2025.
The sustainable portion is to be repaid over four years, by September 2030, and NARCL will be allotted 20 per cent of the company’s equity on a fully diluted basis.
“The restructuring is expected to rationalise the company’s liabilities through an overall reduction in debt and to improve its net worth, placing the company on a stronger footing for the next phase of growth,” the company said in a statement.
A monitoring committee drawn from the lender and the company will oversee implementation, and NARCL may appoint up to two nominee directors. Promoter entity BGR Investment Holdings continues to hold 51 per cent of the company.
BGR faced financial challenges more due to technical stress than to any collapse of its underlying business. Founded in 1985, the company grew into one of India’s larger power sector contractors, executing thermal plant and balance-of-plant orders of more than 15,000 MW.
Its slide into a non-performing classification around 2023 traced to a cluster of external pressures, among them technical regulatory reasons, including repeated rollovers of working capital facilities and RBI divergence audit instructions applying retrospectively.
Also, the government’s focus on renewable energy led to this downfall.
The debt resolution coincides with a generational leadership transition at the company.
Sasikala Raghupathy, a director since BGR Energy was founded in 1985, who became chairperson in 2013, stepped down as chairperson and from the board with effect from September 30, 2026.
She had steered the company through the period after the founder’s death and, in 2020, named her son Arjun Govind Raghupathy as managing director. Following a change to the company’s articles approved at its annual general meeting, Arjun Raghupathy has now also taken over as chairman, placing the next generation firmly at the helm.
As part of its business diversification and revival strategy, BGR Energy has expanded its presence in the Engineering Services business.
Published on October 7, 2026
