EL5-Energo: revenue up 84.9%, but operating profit nearly vanished — what hides behind the record quarter

On August 25, EL5-Energo released its results for the second quarter of 2026. Revenue grew 84.9% year-on-year to RUB 29,709.5 million, but EBITDA fell 9.8% and the company posted a net loss of RUB 881.3 million versus a profit a year earlier. This review examines what lies behind this divergence and why operating profit nearly vanished.

Key takeaways

— Revenue grew 84.9% year-on-year, but EBITDA fell 9.8% — margin compressed from 22.8% to 11.1%

— Operating profit in Q2 2026 was just RUB 202.1 million — nearly zero versus RUB 2,051.9 million a year earlier

— Net loss of RUB 881.3 million — first negative quarterly profit in two years

— Debt rose by RUB 15.5 billion in the quarter to RUB 29,139.7 million, while net debt/EBITDA over 12 months stands at 1.2

— Operating cash flow for the quarter was RUB 7,341.1 million, but that is not enough to cover the debt increase

— Capex for the quarter was not disclosed, but for H1 it was RUB 1,025.1 million — below last year's levels

— Multiples: P/E 1.3 and EV/EBITDA 1.8 versus a three-year average of 3.1 — the stock trades at a discount to its own history

Key figures, RUB bn

Revenue grew 84.9% year-on-year, but EBITDA fell 9.8% — margin compressed from 22.8% to 11.1%

In Q2 2026, EL5-Energo's revenue reached RUB 29,709.5 million, up 84.9% year-on-year. This is the highest quarterly figure in the last two years. However, EBITDA for the same period fell 9.8% to RUB 3,312.1 million, and the EBITDA margin dropped from 22.8% to 11.1%.

Such divergence indicates that revenue growth is not translating into operating profit. The reason is likely an increase in cost of sales or operating expenses, but it is not disclosed in the report. For an investor, this is a signal: the company is growing turnover but not making money on it.

Operating profit in Q2 2026 was just RUB 202.1 million — nearly zero versus RUB 2,051.9 million a year earlier

Operating profit in Q2 2026 was RUB 202.1 million versus RUB 2,051.9 million in Q2 2025. That is a more than tenfold decline. Operating margin contracted from 12.8% to 0.7%.

Near-zero operating profit on record revenue means the company either incurred one-off expenses or faced a sharp rise in costs. The report does not specify what happened, but for shareholders this is a worrying sign: even if revenue continues to grow, profit may remain low.

Net loss of RUB 881.3 million — first negative quarterly profit in two years

Net loss in Q2 2026 was RUB 881.3 million versus a profit of RUB 707.8 million a year earlier. This is the first negative quarterly net profit in at least two years. Net margin turned negative at -3.0% versus positive 4.4% in Q2 2025.

The loss resulted from weak operating profit and likely higher interest expenses. Over the last 12 months, net profit is still positive at RUB 9,157.9 million, but the trend is clearly deteriorating.

Debt rose by RUB 15.5 billion in the quarter to RUB 29,139.7 million, while net debt/EBITDA over 12 months stands at 1.2

Net debt at the end of Q2 2026 stood at RUB 29,139.7 million, up RUB 15.5 billion in the quarter and RUB 7.4 billion over the last 12 months. Net debt/EBITDA over the last 12 months is 1.2, which looks moderate.

However, rising debt amid falling profit is a worrying signal. If EBITDA continues to decline and debt keeps growing, the multiple will deteriorate quickly. For now, the company retains a safety margin, but the trajectory is unfavorable.

Operating cash flow for the quarter was RUB 7,341.1 million, but that is not enough to cover the debt increase

Operating cash flow in Q2 2026 was RUB 7,341.1 million — higher than a year earlier (RUB 5,087.4 million). However, net debt rose by RUB 15.5 billion in the quarter, more than double the operating flow.

This means the company is spending more than it generates and covers the difference with borrowed funds. Capex for the quarter was not disclosed, but for H1 it was RUB 1,025.1 million — less than in H1 2025 (RUB 2,148.6 million in Q2 alone).

Capex for the quarter was not disclosed, but for H1 it was RUB 1,025.1 million — below last year's levels

For H1 2026, capital expenditures amounted to RUB 1,025.1 million. For comparison, in Q2 2025 alone they were RUB 2,148.6 million, and in Q4 2024 — RUB 2,263.3 million. The decline in capex may be temporary, but it also means the company is investing less in maintaining and developing capacity.

Low capex combined with rising debt is an unusual combination. Typically, companies increase debt to finance investments; here, debt is growing while investments are shrinking. Possibly, funds are going to working capital or repaying previous obligations.

Multiples: P/E 1.3 and EV/EBITDA 1.8 versus a three-year average of 3.1 — the stock trades at a discount to its own history

Over the last 12 months, P/E is 1.3 and EV/EBITDA is 1.8. The three-year average EV/EBITDA is 3.1. Thus, the stock trades significantly cheaper than its own history.

The discount reflects deteriorating operating performance and rising debt. However, at this valuation, the market is already pricing in further profit decline. If the company can stabilize EBITDA, the re-rating potential is significant.

Valuation on the latest reported figures

Bottom line

Bottom line: EL5-Energo's revenue in Q2 2026 grew 84.9%, but this did not bring profit — EBITDA declined, operating profit nearly vanished, and the net loss was RUB 881.3 million. Debt rose by RUB 15.5 billion in the quarter, and the company has not yet explained where the funds are going. At the same time, the stock trades at a discount to its own history: EV/EBITDA of 1.8 versus a three-year average of 3.1. For shareholders, the key question is whether the company can restore operational efficiency; otherwise, the current valuation may not be cheap but fair.