Genus Power — Q2 FY26 earnings call

Call held 7 Nov 2025

Management summary

Genus Power reported a robust Q2 FY26, with revenue surging 136% YoY to ₹1,149 crores and PAT growing 162% to ₹148 crores, driven by strong execution of smart metering projects. The company revised its FY26 revenue guidance upwards to ₹4,500 crores with a 20% EBITDA margin, supported by a substantial order book of ₹28,758 crores. While gross debt increased to ₹1,744 crores, management expects working capital days to reduce significantly over the next few years and aims for cash flow positivity by FY27.

Highlights

  • Strong revenue growth of 136% YoY in Q2 FY26 to ₹1,149 crores, driven by AMISP project progress.

  • EBITDA more than tripled to ₹244 crores in Q2 FY26, with margin expansion to 21.3% due to operating leverage and efficiency.

  • PAT increased by 162% to ₹148 crores in Q2 FY26, reflecting improved operating performance.

  • Robust order book of ₹28,758 crores for 3.6 crore meters provides strong revenue visibility.

  • Significant progress in smart meter installations, with 80 lakh meters installed to date and 40 lakh achieving Operational Go-Live (OGL).

Concerns

  • Gross debt increased by ₹400 crores from March 31, 2025, to ₹1,744 crores as of September 30, 2025, primarily from short-term loans.

  • Working capital cycle remains high due to inventory requirements for multiple ongoing AMISP projects, though debtors days have reduced.

  • Uncertainty regarding the finalization timeline for large smart meter tenders (e.g., Tamil Nadu, Delhi, Punjab) due to evaluation processes.

Key financials

2 periods

Q2 FY26

  • Revenue
    ₹1,149 Cr
    YoY +136%
  • EBITDA
    ₹244 Cr
  • EBITDA Margin
    21.3%
  • PAT
    ₹148 Cr
    YoY +162%

H1 FY26

  • Revenue
    ₹2,091 Cr
    YoY +132%
  • EBITDA
    ₹444 Cr
  • EBITDA Margin
    21.2%
  • PAT
    ₹277 Cr
    YoY +185%

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

₹28,758 Cr

as of 2025-09-30 quantified

Inflow this quarter

₹127 Cr

Composition

  • Utilities, other AMISPs, Joint Venture Platform (client type)

Pipeline

L1 awaiting loa

Remaining 10 crore smart meters pending from various states; 3 live tenders (Tamil Nadu 3.05 crore meters, Delhi BSES 50 lakh meters, Punjab 26 lakh meters); 6-6.5 crore meters expected in next 12-18 months; 15 crore meters yet to be finalized in 1-2 years.

The company is very hopeful in maintaining its run rate for order wins, expecting another 10 crore meters to be finalized in the next 12-18 months.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • New injection molding plant in Kotputli, Rajasthan, with 40 machines to be operational by end of FY26, to supplement plastic molding components capacity.
    Further, company is also setting up a new injection molding plant in Kotputli, Rajasthan. In first phase, we are willing to install 40 machines which are expected to be operational by end of FY26. This unit will supplement our capacity to supply plastic molding components for meters manufactured by us.
  • Debt Gross ₹1,744 Cr · Net ₹1,150 Cr
    As on 30th September 2025, company had a total gross debt of 1,744 crores which is about 400 crores more than the gross debt that was on 31st March 2025. The increase in gross debt is primarily from short-term loans, and this will start reducing from middle of FY28 onwards. The expected peak borrowing by the company will go to maximum of INR 2,000 crores to INR 2,100 crores. ... the gross debt is 1,744 and the net debt actually is 1,150 crores.
  • M&A Joint venture Platform with GIC Joint venture · Ongoing investment · Consideration ₹[object Object] (cash)

    Investment in the platform for smart metering projects.

    Company's investment in the Platform (26% partner) will reach ₹1,000-1,100 crores over 3 years.

    As on 30th September 2025, the company had invested approximately INR 318 crores in the joint venture Platform and SPV of joint venture Platform with GIC. Company expects investment of another INR 700-800 crores in the joint venture Platform in next 3 years, i.e., over Financial Year 2026-2027-2028. So, put together, the company's investment in the Platform where we are a 26% partner will go to a level of INR 1,000 crores to 1,100 crores, not more than that.
  • Liquidity Cash ₹600 Cr Cash and cash equivalents include fixed deposits.
    As on 30th September 2025, company had a cash and cash equivalent of approximately INR 600 crores. So, when we say 600 crores cash and cash equivalents in the form of fixed deposits, the gross debt is 1,744 and the net debt actually is 1,150 crores.

Guidance & targets

Revenue

  • Revenue Revenue · FY26 · High confidence ₹4,500 crores

    Previously ₹4,000 crores → ₹4,500 crores

    The company estimates revenue of INR 4,500 crores for Financial Year 2026 and INR 5,500-6,000 crores for Financial Year 2027 with an EBITDA margin of 20%. So, the company is revising its guidance for FY26. Earlier, we have given a guidance of INR 4,000 crores and 18% EBITDA. Now, we are giving a guidance of INR 4,500 crores for FY26 with EBITDA of 20% and for FY27 around INR 5,500-6,000 crores with EBITDA of 20%.

    — Kailash Agarwal

  • Revenue Revenue · FY27 · High confidence ₹5,500-6,000 crores

    — Kailash Agarwal

Profitability

  • EBITDA Margin Profitability · FY26 · High confidence 20%

    Previously 18% → 20%

    The company estimates revenue of INR 4,500 crores for Financial Year 2026 and INR 5,500-6,000 crores for Financial Year 2027 with an EBITDA margin of 20%. So, the company is revising its guidance for FY26. Earlier, we have given a guidance of INR 4,000 crores and 18% EBITDA. Now, we are giving a guidance of INR 4,500 crores for FY26 with EBITDA of 20% and for FY27 around INR 5,500-6,000 crores with EBITDA of 20%.

    — Kailash Agarwal

  • EBITDA Margin Profitability · FY27 · High confidence 20%

    — Kailash Agarwal

Volume

  • Meter Installations Volume · FY26 · High confidence 80 lakh meters

    Previously 75 lakh meters → 80 lakh meters

    In the first half yearly, we have installed around 36 lakh meters, and we are confident of the guidance what we gave earlier - around (+) 80 lakh meters we will install - because November to March is the best period for the installation of meters historically also. So, we are more than confident of achieving the target what we have set earlier for ourselves.

    — Jitendra Agarwal

Working Capital

  • Working Capital Cycle Reduction Working Capital · every 6 months · Medium confidence 40-50 days
    We are very hopeful that every 6 months you will see a reduction of 40 to50 days in working capital cycle. By March 2026, another reduction of 40-50 days. Then next 6 months to 12 months, another reduction of 40-50 days.

    — Kailash Agarwal

  • Working Capital Cycle Working Capital · by end of 2027 · Medium confidence 160-170 days
    So, by the end of 2027, we are very hopeful that our working capital cycle from here also will go to 160-170 days, which we have earlier told to the investors.

    — Kailash Agarwal

Debt

  • Peak Borrowing Debt · High confidence ₹2,000-2,100 crores
    The expected peak borrowing by the company will go to maximum of INR 2,000 crores to INR 2,100 crores.

    — Kailash Agarwal

Investment

  • JV Platform Investment Investment · High confidence ₹1,000-1,100 crores

    Previously ₹1,600-1,700 crores → ₹1,000-1,100 crores

    So, put together, the company's investment in the Platform where we are a 26% partner will go to a level of INR 1,000 crores to 1,100 crores, not more than that. ... We have a commitment for the joint venture of $210 million. But now seeing the requirement, we can envisage that it won't go up to INR 1,600 crores. It will not go more than INR 1,100 crores.

    — Kailash Agarwal

Market context

  • Cash Flow Positive Cash Flow · FY27 · Medium confidence Positive

    Previously FY26 → Positive

    But we are very hopeful that in FY27, for sure, we will be cash flow positive company.

    — Kailash Agarwal

What to watch in Q3 FY26

Working Capital Cycle Reduction

by March 2026
Current 126 days (from 187 days in March 2025)
Target Further reduction of 40-50 days

Why it matters

Improvement in working capital is crucial for cash flow generation and reducing debt reliance.

The debtors day have already started coming down and have reduced from 187 days as on 31st March 2025 to 126 days on 30th September 2025. ... We are very hopeful that every 6 months you will see a reduction of 40 to50 days in working capital cycle. By March 2026, another reduction of 40-50 days.

Risks & concerns

  • Working Capital Intensity

    medium

    AMISP business requires significant inventory for multiple project sites, leading to high working capital. Debtors days reduced from 187 to 126, but inventory remains high.

    We are in an AMISP business where initial 3 years are the phase of installation and completion of projects. Thus, a lot of inventory is required at different sites of different projects. ... The debtors day have already started coming down and have reduced from 187 days as on 31st March 2025 to 126 days on 30th September 2025. So, there is a reduction of almost 61 days in debtors' days. But the inventories remain same because again new projects are being started, new areas are being started.

    Management acknowledged

  • Tender Finalization Timelines

    medium

    Large tenders take time for technical evaluation by electricity boards, making it difficult to predict finalization dates, though hopeful for FY26.

    It's very, very difficult to say. These are large tenders. Electricity boards take their own time to evaluate. So, right now, technical evaluation is going on. It may take 30 days, it may take 90 days, very difficult to put any number onto it. ... But JK hopefully, we can say that in this financial year, this will be finalized.

    Management acknowledged

  • Project Execution Delays / Local Issues

    low

    Ongoing project issues in states like Maharashtra leading to temporary slowdowns, but considered natural field issues.

    These are ongoing project issues. So, there's nothing very specific. Yes, currently there is a little bit of slowdown and then it picks up again. So, this keeps on coming and going. So, I won't say it is such a problem, which is not... I don't know how to put the right word onto it. These are natural field issues. I don't see them as a major problem.

    Management downplayed

Q&A highlights

8 direct
Meter Installation Target for FY26 Direct
In the first half yearly, we have installed around 36 lakh meters, and we are confident of the guidance what we gave earlier - around (+) 80 lakh meters we will install - because November to March is the best period for the installation of meters historically also.

Clarifies the progress towards the annual installation target and the confidence in achieving it, citing seasonal factors.

Asked by Divyansh Thakur

Operational Go-Live (OGL) Status and Revenue Recognition Direct
As of date, out of 3.62 crore meters, we have installed total 80 lakh meters. Out of 80 lakh meters, 42 lakh meters, SAT has been done. And out of this 42 lakh meters, 40 lakh meters have achieved the Operation Go-Live (OGL). ... This 40 lakh meters, we have started receiving the monthly revenue. This monthly revenue starts after the 45 days of achieving of OGL.

Provides a clear breakdown of installed meters, SAT completion, OGL achievement, and the timeline for revenue recognition from OGL projects.

Asked by Bhavin Chheda

Indigenization and Latching Relay Sourcing Direct
Just to give you an understanding on this, smart meters is already in the Category 1 of manufacturing in India. So, more than 60% of the value addition has to happen in India. Smart meters are already in this category. And Genus, very comfortably, is part of this category being the largest meter manufacturer in the country. ... As Genus, we are not manufacturing latching relays. We are buying it from our suppliers. We don't intend to manufacture latching relays in the future also. It is being imported from China also. It is being made in India also. There are multiple manufacturers based in India who are also supplying us latching relays.

Addresses concerns about local manufacturing content and supply chain for critical components like latching relays, indicating a diversified sourcing strategy.

Asked by Eshwar Arumugam

Status of New Tenders (Tamil Nadu, Delhi, Punjab) Direct
Just to give you a heads up on this, there are six projects in Tamil Nadu, two in Delhi and five in Punjab, totalling around 4 crore meters. Genus has quoted all 13 projects, and the status of Tamil Nadu is, it is under technical evaluation. The status of Delhi is, it is under technical evaluation. Punjab, 26 lakh meters has been quoted today.

Provides an update on the company's participation and the current status of significant upcoming tenders, which are crucial for future order book growth.

Asked by Mahesh Patil

Future Growth Avenues: Exports, Gas & Water Meters Direct
On the export market, Genus is working strategically in some markets. ... you will see very meaningful numbers coming from the export business in the next two to three years. ... When it comes to gas meters in India, there is a requirement of around 12 crore to 14 crore gas meters as per the latest reports - which will be required to be installed in the next five to six years. ... When it comes to water meters, we see water meters as a very, very large opportunity as big as or even bigger than electricity meters, where it has started coming up. ... Four years to six years down the line, we see water meter business to be as large or even larger than electricity meter business.

Outlines the company's long-term diversification strategy beyond electricity smart meters into export markets and the nascent but large opportunities in gas and water metering.

Asked by Mahek Talati

Customer Outreach for Smart Meters Direct
It is a regular process. All the RDSS projects, there has to be a consumer outreach to be done jointly by the utility and the AMISP. ... Most of the people are welcoming smart meters. If you see the numbers in the last 3-4 months, the installation rate has increased almost everywhere across the country. Consumer outreach is one of the major reasons where people have started understanding the value of smart meters.

Highlights the importance and effectiveness of consumer outreach programs in driving acceptance and accelerating smart meter installations, addressing potential resistance.

Asked by Pranjal Mukhija

Long-term Business Mix Post-RDSS Scheme Direct
Next 5-6 years I see no problem with the electricity meter business and definitely 5-6 years down the line, it would not have the same number once these 32 crore meters have been installed, then definitely there will be a lot of replacement meters coming, a lot of new service connections coming, but not as large as replacement of meters. So, there will be a good revenue source from the electricity meters and yes, a lot of revenue source will come from exports, water meters, and gas meters.

Provides a long-term view of the business model, indicating a shift towards replacement, new connections, O&M, and diversification into exports, gas, and water meters after the initial RDSS rollout.

Asked by Darsh Solanki

Cash Flow Positive Timeline Revision Direct
Basically, cash flow positive may take some more time, what we were saying in FY26, because the projects have started and a lot of inventory is needed in that. ... But we are very hopeful that in FY27, for sure, we will be cash flow positive company.

Clarifies a revision in the timeline for achieving cash flow positivity, attributing the delay to higher inventory requirements for new projects, which is a key financial metric for investors.

Asked by Santanu Chatterjee

3 min read 7 chapters

Detailed narrative

Q2 FY26 Performance Highlights

Genus Power delivered a strong Q2 FY26, with standalone revenue soaring by 136% year-on-year to ₹1,149 crores, significantly up from ₹487 crores in Q2 FY25. This growth was primarily fueled by healthy progress across large AMISP projects transitioning into operational phases. EBITDA more than tripled to ₹244 crores, with margins expanding by 456 basis points to 21.3%, attributed to operating leverage and execution efficiency. Profit after tax from continuing operations grew by 162% to ₹148 crores, translating into a PAT margin of 12.9%.

H1 FY26 Performance Overview

For the first half of FY26, the company reported a revenue of ₹2,091 crores, marking a 132% year-on-year increase. EBITDA for H1 FY26 grew over three-fold to ₹444 crores, with margins improving to 21.2%. PAT rose to ₹277 crores, an increase of 185% compared to the same period last year. This consistent performance across quarters underscores the company's focus on execution excellence and financial discipline amidst rapid scaling.

Market Opportunity and Order Book Status

The total smart meter requirement under the RDSS scheme is estimated at 25 crore meters, with 15 crore already awarded and 10 crore pending. Genus Power holds a total order book of ₹28,758 crores (net of taxes) as of September 30, 2025, for approximately 3.6 crore meters. This includes supply to utilities, other AMISPs, and the joint venture Platform. The company expects another 10 crore meters to be finalized in the next 12-18 months, with current live tenders including 3.05 crore meters in Tamil Nadu, 50 lakh in Delhi BSES, and 26 lakh in Punjab.

Working Capital and Debt Management

The company's gross debt stood at ₹1,744 crores as of September 30, 2025, an increase of ₹400 crores from March 31, 2025, primarily due to short-term loans. Net debt was ₹1,150 crores, with cash and equivalents at ₹600 crores. Management expects peak borrowing to reach ₹2,000-2,100 crores. While inventory remains high due to multiple ongoing projects, debtors' days have reduced from 187 days to 126 days. The company aims to reduce its working capital cycle by 40-50 days every six months, targeting 160-170 days by the end of 2027, and expects to be cash flow positive by FY27.

Smart Meter Installation Progress and Operational Go-Live

Genus Power has installed 80 lakh smart meters to date, with 42 lakh meters having completed Site Acceptance Test (SAT) and 40 lakh meters achieving Operational Go-Live (OGL). The company manufactured approximately 90 lakh meters in H1 FY26, with about 50 lakh in Q2 FY26. Of the 24 AMISP projects being implemented, 13 projects totaling 2.10 crore meters have received OGL certificates, with the remaining 11 expected to achieve OGL status by December 2025-January 2026. Monthly revenue generation commences 45 days after OGL achievement.

Strategic Investments and Capacity Expansion

The company has invested approximately ₹318 crores in its joint venture Platform with GIC as of September 30, 2025. An additional investment of ₹700-800 crores is planned over the next three years (FY26-FY28), bringing the total JV investment to ₹1,000-1,100 crores. Furthermore, Genus Power is establishing a new injection molding plant in Kotputli, Rajasthan, with 40 machines expected to be operational by the end of FY26. This expansion will bolster the capacity to supply plastic molding components for its meter manufacturing.

Future Growth Avenues: Exports, Gas & Water Meters

Genus Power is strategically working on export markets, expecting meaningful numbers in the next two to three years. The company also sees significant long-term opportunities in gas and water metering. India has a requirement for 12-14 crore gas meters over the next 5-6 years, and the water meter market is projected to become as large or even larger than the electricity meter business in 4-6 years. These segments are expected to provide substantial revenue streams post-2031/2032, complementing the ongoing electricity meter business.

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