Genus Power

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%.

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.

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.

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.

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.

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.

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.