EKI Share Price Declines Over 4 % Post NDDB Carbon Credit Milestone

In a pioneering move that marks a major milestone for India’s dairy industry, EKI Energy Services Ltd (EKI) has facilitated the first-ever carbon credit payments to dairy farmers from Rajasthan and Assam. 

This significant achievement comes as part of the National Dairy Development Board’s (NDDB) manure management program, in collaboration with the Sustain Plus Energy Foundation (SPEF), and was unveiled at the Diamond Jubilee celebrations of NDDB in Anand, Gujarat.

A Landmark Achievement for Sustainable Agriculture

The payments, made to over 1,000 dairy farmers across 7 states, represent the culmination of sustainable agricultural practices that have earned carbon credits through the process of biomethanation. 

These credits were generated by household-level biogas plants established by the farmers under the program. The historic occasion was graced by several distinguished figures, including Union Minister Amit Shah, who presented the carbon credit payments to the farmers.

EKI played a key role in ensuring the successful registration, verification, and trading of carbon credits, making this groundbreaking achievement possible. 

Biomethanation and Its Role in Sustainability

The core of the initiative lies in biomethanation – a process that converts organic waste, such as manure, agricultural residues, or food waste, into biogas through anaerobic digestion. This biogas serves as a renewable energy source, reducing dependence on fossil fuels and lowering greenhouse gas emissions. 

It also generates a nutrient-rich byproduct, digestate, which can be used as organic fertiliser, enhancing soil health and further promoting sustainable agricultural practices.

By integrating biomethanation into the farming process, the dairy farmers are not only making their operations more environmentally friendly but also contributing to waste management solutions and the reduction of landfill use. 

EKI’s Key Financial Metrics

For Q2 September 2024-25, EKI Energy Services demonstrated steady quarterly growth but faced notable challenges on an annual basis. Revenue for Q2 FY25 stood at ₹45.95 crore, up from ₹41.68 crore in the previous quarter, reflecting a growth trend. Net profit also improved to ₹4.09 crore in Q2 FY 25, a rise from ₹3.48 crore in Q1 FY 25, showcasing consistent quarter-on-quarter performance.

Impact on EKI Share Price

Following the announcement, on November 11, 2024, EKI share price dropped over 4%. By 2:00 PM, EKI shares were trading at ₹251.50, a 5.08% decrease from its opening price of ₹265.00 earlier in the day.

Conclusion

This first-ever payment to dairy farmers is just the beginning of a larger movement toward sustainable farming practices. EKI’s partnership with NDDB and SPEF is paving the way for future projects that will expand the scope of carbon credit programs in agriculture. 

The company is already exploring additional collaborations with NDDB, aiming to support even more farmers and communities in adopting eco-friendly practices while simultaneously boosting their incomes.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.