Genus Power

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.

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.

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.

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.

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.

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.

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.