Genus Power — Q1 FY26 earnings call

Call held 11 Aug 2025

Management summary

Genus Power reported a strong Q1 FY26, with standalone revenue growing 128% to ₹942 crores and EBITDA tripling to ₹199 crores, driven by robust execution and smart meter installations. The company's order book stands at ₹29,321 crores, providing significant revenue visibility. While working capital remains elevated, management expects improvement and aims for cash flow positivity by FY26.

Highlights

  • Standalone revenue of ₹942 crores, a sharp 128% increase over ₹414 crores in Q1 FY25, driven by accelerated execution.

  • EBITDA more than tripled year-on-year to ₹199 crores, with margins improving 590 basis points to 21.2%, aided by operating leverage and disciplined cost control.

  • Profit after tax from continuing operations surged over three-fold to ₹128 crores, translating into a PAT margin of 13.6%.

  • Total order book as of June 30, 2025, stands at ₹29,321 crores, providing long-term revenue visibility.

  • Installed 16 lakh smart meters in Q1 FY26, contributing to a cumulative 45 lakh smart meters installed to date.

Concerns

  • Working capital intensity remains elevated during pre-operational phases due to upfront investments.

  • Q1 and Q2 are generally slower due to summertime and rains, posing practical execution challenges.

  • Public pushbacks and concerns regarding smart meter installation practices and billing have been observed in some cities.

Key financials

  1. Standalone Revenue ₹942 Cr +128%YoY
  2. EBITDA ₹199 Cr +200%YoY
  3. EBITDA Margin 21.2%
  4. PAT ₹128 Cr +200%YoY
  5. PAT Margin 13.6%
  6. Debtor Days 125 days
  7. Inventory Days 162.5 days

What they filed

Q1 FY27: revenue up 44.9%, net profit up 43.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue487 604 937 942 1,149 +136%1,122 +86%1,537 +64%1,365 +45%
EBITDA81 93 196 199 234 +189%212 +128%267 +36%260 +31%
Net profit83 57 123 137 143 +72%140 +146%172 +40%197 +44%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹29,321 Cr

as of 2025-06-30 quantified

Execution

Concessions span 8 to 10 years, with 55-58% revenue in first three years and 20-22% in O&M over six to eight years.

Composition

Mix 2 product phases
  • Supply and Installation (first 3 years) ₹16,000 Cr 69.6%
  • O&M (remaining 6-7 years) ₹7,000 Cr 30.4%

Share of order book by product phase, derived from disclosed amounts

Pipeline

L1 awaiting loa

3 crore meter tender from Tamil Nadu already quoted, 55 lakh tender from Delhi and Pondicherry expected to be quoted this month.

The industry backdrop remains highly favorable with a large, sustained pipeline of opportunities, and the company is well-positioned to sustain its leadership.

Source: Prepared remarks

Capital allocation

medium confidence
  • Debt Debt disclosed
    So, I think that debt will go up once the revenue will go up. But you will see a sizable improvement in the working capital cycle. So, that will be self-sustainable with some amount of the debt adding in it.

Guidance & targets

Revenue

  • FY26 Revenue Revenue · FY26 · High confidence ₹4,000 crores
    We remain confident in delivering our FY '26 guidance of over Rs. 4,000 crores in revenue

    — Jitendra Agarwal

Margin

  • FY26 EBITDA Margin Margin · FY26 · High confidence 18%
    and 18% EBITDA margin.

    — Jitendra Agarwal

Installation Volume

  • FY26 Smart Meter Installations Installation Volume · FY26 · High confidence 80 lakh to 90 lakh smart meters
    So, this financial year, our target is to install around 80 lakh to 90 lakh smart meters.

    — Jitendra Agarwal

  • FY27 Smart Meter Installations Installation Volume · FY27 · High confidence 1.1 crores to 1.2 crores smart meters
    In the next financial year, we will do around 1.1 crores to 1.2 crores smart meters.

    — Jitendra Agarwal

Working Capital

  • Working Capital as % of Sales Working Capital · Future · Medium confidence 40%

    Previously 50-60% → 40%

    So, the best level we can see will be around 40% of the sales will be required as a working capital. So, it won't go up to 20% - 30%, but right now it is not even 50% - 60%, even far higher than that. So, there will be almost a 20% - 30% improvement from these levels, going up to 40% levels of the revenue.

    — Kailash Agarwal

Market context

  • Cash Flow from Operations Cash Flow · FY26 · High confidence Positive
    No, we feel that by FY '26 itself, we will be a cash flow positive.

    — Kailash Agarwal

What to watch in Q2 FY26

Revision of FY26 Revenue/Profit Guidance

after Q2 FY26 results
Current FY26 Revenue: ₹4,000 crores, EBITDA Margin: 18%
Target Revised guidance after H1 FY26 results

Why it matters

Management indicated a potential upward revision of guidance after H1 results, which would signal stronger confidence in execution.

We will be surely doing that, Ashwani. We are just waiting for one more quarter to happen because second quarter, normally because of rain and some things, sometimes is not very good. So, we are very hopeful that we will be doing better in the coming quarters. And surely after once the six months are finished, we will be revising our guidance for the revenue also and for the profits also.

Risks & concerns

  • Elevated Working Capital Intensity

    medium

    Working capital intensity remains elevated during pre-operational phases due to upfront investments in procurement, installation, and system integration.

    Management acknowledged

  • Public Pushbacks on Smart Meter Installations

    medium

    Concerns around installation practices and billing have led to public pushbacks in some cities, potentially impacting rollout pace.

    Analyst acknowledged

  • Seasonal Execution Challenges

    low

    Q1 and Q2 are generally slower due to summertime and rains, leading to practical challenges in execution and installation.

    Management acknowledged

  • Regulatory Scrutiny (ED Raid)

    low

    An ED raid occurred seven months ago, but the company has not received any further communication or adverse findings from the department, and sees no impact on operations.

    Analyst downplayed

Q&A highlights

8 direct
Total cumulative smart meters installed and operational go-live status Direct
So, the total order is around 3.5 crores smart meters. Out of the 3.5 crores smart meters, we have installed, as on date, I am talking of, so, this is April, May, June. My conclusion always lies. I am sitting in August. But I have to say the numbers of what we did in Quarter 1. So, as of Quarter 1 and the last financial year, we have installed at an approximate of 45 lakh smart meter. [...] Around 21 lakh meters are operational go-live.

Clarifies the distinction between total installed meters and those that have achieved operational go-live status and started generating revenue.

Asked by Jainam Jain

Addressable market value for remaining smart meters and Genus's market share Direct
So, we will definitely try to maintain our market share. So, it is very difficult to say out of the remaining 16 crores, how much we will win. But what we have to understand two things here is, this is the addressable market. And you can take an average of around Rs. 8,000 per point. So, that is the total size of the addressable market. [...] So, we have been maintaining around 25% to 30% market share, and we continue to maintain that.

Provides an estimate of the potential market size for the remaining smart meter installations and reiterates the company's consistent market share.

Asked by Aditya Welekar

Update on the tender pipeline amount Direct
So, yes, the 3 crores meter tender of Tamil Nadu is already quoted, which we expect to get decided in next three to four months. And remaining 55 lakh tender, which is from Delhi and Pondicherry, that we expect to be quoted in this month.

Gives specific updates on significant upcoming tender decisions, indicating future order inflows.

Asked by Aditya Welekar

Working capital days (inventory and receivables) improvement Direct
So, if you will see in Q1, if you will see the debtor days of Genus, if you compare the inventory days from last financial year and the debtor days from last financial year, it has already started coming down considerably. So, we will see last year we were hovering around anywhere from 195 to 205 days. Now we are hovering anywhere from 120 to 130 days in the debtor days. Same way in inventory, we were hovering around anywhere from 170 to 180 days in the last financial year, which has already come to 160 to 165 days in the current financial year.

Quantifies the initial improvements in working capital metrics, which is a key concern for capital-intensive businesses.

Asked by Aditya Welekar

Tamil Nadu 3 crore meter tender process and qualifications Direct
The qualifications, I don't remember hands-on. But Genus qualifies, so we have quoted all six projects, six packages of Tamil Nadu. So, we qualify in all six packages. The process is that once you bid the tender, there will be an evaluation done by the Electricity Board. So, there are multiple people who quote for multiple projects. So, they will take, according to me, at least two to three months in evaluating all the bids, if there is any confusion or if there is any doubts. There will be some correspondence between the Electricity Board and the bidder.

Explains the competitive bidding process for large smart meter tenders and Genus's participation strategy.

Asked by Pranjal Mukhija

Challenges in H1 execution due to rains or manpower shortages Direct
Yes, you are absolutely right. Generally, Quarter 1 and Quarter 2 are relatively slow because of the summertime, because of the rains and you get less shut down from the customer. So, these are practical challenges which is being faced. So, generally, Quarter 1, Quarter 2 is relatively little slower than Quarter 3 and Quarter 4.

Acknowledges seasonal execution challenges, providing context for potential quarter-on-quarter variations in performance.

Asked by Pranjal Mukhija

ED raid findings and future obligations Direct
So, after the search, they called us for one, after that, we haven't received anything from the department yet. So, it is almost seven months has passed, and we haven't received anything from the department. So, if anything will be received from the department, then only we can say that. We don't see there is any impact on the company because of that, the revenue or the sales or the ordering or anything.

Addresses a significant regulatory concern, indicating no adverse findings or impact on the company's operations or order book to date.

Asked by Yash

Smart meter manufacturing capacity in India Direct
Yes, it is more than sufficient. So, current capacity is not a problem. Rather, I will suggest all the new players who want to enter into this market, please do your survey before entering into the manufacturing. [...] So, in general, what we understand from the manufacturing capability of the large player, the country has a comfortable capacity of, I would say, 7 crores to 8 crores meters per annum.

Provides insight into the overall smart meter manufacturing capacity in India, addressing concerns about supply meeting demand and potential new entrants.

Asked by Pranjal Mukhija

3 min read 7 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

Genus Power reported a strong Q1 FY26, with standalone revenue reaching ₹942 crores, marking a significant 128% increase compared to ₹414 crores in Q1 FY25. This growth was attributed to accelerated project execution and a ramp-up in installation volumes. EBITDA more than tripled year-on-year to ₹199 crores, with margins expanding by 590 basis points to 21.2%, driven by operating leverage and cost control. Profit after tax (PAT) also surged over three-fold to ₹128 crores, resulting in a PAT margin of 13.6% despite higher finance costs.

Order Book and Market Opportunity

As of June 30, 2025, Genus Power's total order book stands at ₹29,321 crores, net of taxes, across all SPVs and the GIC Platform. This substantial order book provides long-term revenue visibility, with concessions spanning 8 to 10 years. Approximately 80% of the AMISP revenue from this order book is expected to accrue directly to Genus Power. The company noted that the industry backdrop remains highly favorable, with India targeting 30-31 crore smart meter installations by FY32, leaving a large and sustained pipeline of opportunities.

Smart Meter Installation Progress and Targets

In Q1 FY26, Genus Power installed approximately 16 lakh smart meters, contributing to a cumulative total of 45 lakh smart meters installed to date. Of these, 21 lakh meters are already operational go-live, meaning they have started generating O&M revenue from the Electricity Board. For FY26, the company targets installing 80 lakh to 90 lakh smart meters, with a further increase to 1.1 crores to 1.2 crores smart meters projected for FY27.

Working Capital Management and Cash Flow

Management acknowledged that working capital intensity remains elevated during pre-operational phases due to upfront investments. However, they reported initial improvements, with debtor days reducing from 195-205 days to 120-130 days, and inventory days decreasing from 170-180 days to 160-165 days. The company aims to reduce working capital requirements to around 40% of sales from the current higher levels. Genus Power expects to be cash flow positive by FY26, with further improvements in working capital cycle and debtor days anticipated in subsequent quarters.

Supply Chain and Manufacturing Capabilities

Genus Power emphasized that smart meters are classified as Category-1 products, with over 60-65% value addition happening in India. The company designs and develops its own RF communication systems. While some components are sourced globally, the supply chain is currently smooth. India's overall smart meter manufacturing capacity is estimated at 7-8 crore meters per annum, which is considered more than sufficient to meet the targeted demand of 30-31 crore meters by FY32.

Smart Meter Adoption and Consumer Benefits

The company highlighted the significant benefits of smart meters for consumers, including zero human intervention, potential 3-5% rebates on prepaid systems, complete control over electricity consumption via apps, and the provision of a free solar meter. Management believes that despite some public pushbacks and initial outrages in certain areas, the smart metering journey is progressing rapidly across the country, with over 3.5 million meters installed in July alone.

Regulatory and Legal Matters

Genus Power addressed a news article regarding a blacklisting in Goa and an ED raid. Management clarified that the blacklisting by the Goa Board was illogical and unjustified, and the High Court had given a strong message against it. Regarding the ED raid, the company stated that after the initial search seven months ago, they have not received any further communication from the department and do not foresee any impact on the company's revenue or operations.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Capital Goods earnings calls