Genus Power — Q4 FY25 earnings call

Call held 2 Jun 2025

Management summary

Genus Power delivered a landmark FY25, marked by significant growth in revenue and profitability, driven by smart metering rollout. The company reported strong Q4 FY25 results with revenue up 123% YoY and EBITDA margin at 22.3%. A robust order book of ₹30,110 crores provides long-term visibility, and the company guided for ₹4,000 crores revenue and 18% EBITDA margin for FY26. While working capital saw temporary elongation, management expects normalization and continued operational efficiency.

Highlights

  • Q4 FY25 standalone revenue grew 123% YoY to ₹937 crores, and 55% sequentially, driven by accelerated execution.

  • Q4 FY25 EBITDA surged 276% YoY to ₹208 crores, with margins expanding 905 bps to 22.3%.

  • Full year FY25 revenue doubled to ₹2,442 crores, and PAT grew nearly 4 times to ₹298 crores.

  • Order book stood at ₹30,110 crores as of March 31, 2025, providing 8-10 years of revenue visibility.

  • Demerger of Strategic Investment Business sanctioned, expected to enhance focus and unlock shareholder value.

Concerns

  • Working capital position saw temporary elongation during the ramp-up phase, though normalization is expected.

  • New tender activity has moderated temporarily, expected to resume over the medium term.

  • Debt is expected to increase in absolute numbers, though not in the same ratio as revenue growth.

Key financials

2 periods

Q4 FY25

  • Revenue
    ₹937 Cr
    YoY +123% QoQ +55%
  • EBITDA
    ₹208 Cr
    YoY +276%
  • EBITDA Margin
    22.3%
  • PAT
    ₹129 Cr
    YoY +300%

FY25

  • Revenue
    ₹2,442 Cr
    YoY +103%
  • EBITDA
    ₹470 Cr
    YoY +247%
  • EBITDA Margin
    19.2%
  • PAT
    ₹298 Cr
    YoY +300%

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

₹30,110 Cr

as of 2025-03-31 quantified

Execution

Concessions span 8 years to 10 years

Pipeline

L1 awaiting loa

Tenders worth INR 27,300 crores are open and will be quoted in next 3-4 months.

Order book provides clear multi-year revenue visibility, with new tender activity expected to resume over the medium term.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex ₹25 Cr
    • Capacity increase, automation, in-house software development
    Regarding the capex that has happened in last financial year is, it is almost around INR150 crores, which consists of increase in capacity, increasing automization and a lot of capex that has happened is of in-house development of the software systems.
  • Debt Debt disclosed
    Yes, there will be certainly some increase in the debt, but not in the ratio of increase in revenue. So, revenue will increase by another 60%, but the debt will not increase in that ratio.
  • Liquidity Liquidity disclosed Working capital position saw temporary elongation during the ramp-up phase, expected gradual normalization over coming quarters.
    Our working capital position saw temporary elongation during the ramp-up phase - a trend we had foreseen and communicated earlier. However, with more projects moving into their stable operational phase, we expect gradual normalization over the coming quarters.

Guidance & targets

Revenue

  • Standalone Revenue Revenue · FY26 · High confidence INR 4,000 crores
    For FY '26, we are targeting a top line of INR4,000 crores which would translate into a year-on-year growth of almost 60%

    — Kailash Agarwal

Margin

  • EBITDA Margin Margin · FY26 · High confidence 18%
    and EBITDA margins of 18%. This reflects our confidence in the robustness of our execution pipeline and the operational maturity of key projects moving into OPEX phase.

    — Kailash Agarwal

Volume

  • Meter Installation Volume Volume · FY26 · High confidence 7 million to 8 million meters
    So, I expect at least 7 million to 8 million meters to be installed in this year.

    — Jitendra Agarwal

Working Capital

  • Working Capital Normalization Working Capital · Coming quarters · Medium confidence Gradual normalization
    However, with more projects moving into their stable operational phase, we expect gradual normalization over the coming quarters.

    — Kailash Agarwal

Debtors Days

  • Debtors Days Improvement Debtors Days · Gradually, quarter-to-quarter · Medium confidence 20-30 days reduction
    There, we see a good expectation of improvement. And there, we can see an improvement for surely, you can say, coming to by another 20 days, 30 days. And that even if more, it will happen gradually in quarter-to-quarter.

    — Kailash Agarwal

Order Book Revenue Recognition

  • Revenue from Order Book Order Book Revenue Recognition · Next 3 years · High confidence 60% in next 3 years
    Broadly, you have to understand, 60% of the revenue, 55% to 60% of the revenue will be coming in next 3 years and remaining will last till 8 years to 10 years.

    — Kailash Agarwal

Capacity

  • Manufacturing Capacity Capacity · Current · High confidence 15 million meters
    So, capacities already we have reached to a level of 15 million.

    — Kailash Agarwal

What to watch in Q1 FY26

Working Capital Normalization

Next 1-2 quarters
Current Elongated, ~50% of debtors with total revenue
Target Improvement, 20-30 days reduction

Why it matters

Impacts liquidity, debt levels, and cash flow, crucial for financial health.

Our working capital position saw temporary elongation during the ramp-up phase - a trend we had foreseen and communicated earlier. However, with more projects moving into their stable operational phase, we expect gradual normalization over the coming quarters.

Risks & concerns

  • Installation Delays due to External Factors

    medium

    Installation pace can be affected by weather, elections, and festivals, making quarter-on-quarter comparisons difficult.

    Here, I would like to add that you have to understand that installation is a little typical thing that depends on many things. That depends on weather. That depends on elections. That depends on festivals. So it cannot be compared from quarter-to-quarter.

    Management acknowledged

  • Smart Meter Program Delays

    medium

    Dealing with consumers and electricity as a sensitive subject, along with geopolitical issues, could cause delays in the smart meter program, though it is considered a necessity.

    One of the potential risk is you are directly dealing with the consumer and electricity is a very sensitive subject. So, there's always a risk. And all your weather conditions, everything makes part of it. But if you see historically, also electricity meters is a very important subject, where everybody has some interest from a common man to utilities to everybody.

    Management acknowledged

  • Supply Chain Risk (Geopolitical)

    low

    Analyst raised concerns about geopolitical impact on chip/part imports; management stated no current risk due to diversified suppliers, in-house design, and multiple manufacturing units.

    Currently, we are not seeing any risk. And we are very well diversified when it comes to buying components. It's not that we are particularly buying components. So, there can be one large company, which has multiple manufacturing units in different parts of the world. So because of that strategically and as Genus because we control our own design, we always have multiple component suppliers, not from today, from last 15 years, 20 years, we have maintained that always that we should have multiple suppliers.

    Analyst downplayed

Q&A highlights

6 direct
New Tendering and Order Pipeline Direct
So currently, you will see already the tenders have started floating. And as on date when we are talking, there is a tender value worth INR27,300 crores is already open up, which will be quoted in next 3 months to 4 months.

Provides specific figures and timelines for future order inflow, indicating market activity resumption.

Asked by Aditya Welekar

Margin Guidance for FY26 vs. Q4 FY25 Direct
So the major driver has been our cost control. And what we envisioned 3 years back, we could see the results clearly with our backward integration of the software and forward integration of providing end-to-end solution, that is helping us in the margin and of course, with the volumes increasing. So both combined together, we are giving this guidance.

Clarifies the rationale behind the 18% FY26 EBITDA margin guidance despite higher Q4 FY25 margins, emphasizing sustainability and strategic drivers.

Asked by Aditya Welekar

Working Capital and Project Go-Live Status Direct
So now on the operational go-live (OGL), most of the states are either done or will be done in maximum next 2 months to 3 months.

Indicates progress in project execution and transition to operational phases, which is crucial for revenue recognition and cash flow.

Asked by Ashwani

Peak Debt and Working Capital Improvement Partial
After 1 or 2 quarters, we will be very clear that, okay, what position or where we'll be standing in the terms of debt. But absolutely, we can say right now that it will be -- if there will be any increase or it will be increased, there won't be in the same ratio, what we will increase in the revenues.

Addresses concerns about rising debt and working capital, with management expecting clarity and improvement in the near future.

Asked by Nikhil Jain

Payments from Utilities Post Go-Live Direct
There are initial hiccups in some of the utilities. But in general, they are as per the expected timeline. RDSS is a Central Government's scheme, so every state utility is following it up.

Provides insight into the payment collection process from utilities, a key factor for working capital management in the sector.

Asked by Nikhil Jain

Update on ED Raid Direct
After that search and all, we haven't received any communication from either from the department or from the any court or any summons and all. So, we are at the status quo. Any information or anything comes to us, we will be first to inform to our investors and to the exchanges.

Clarifies the current status of a significant regulatory event, reassuring investors that it has not impacted operations.

Asked by Nikhil Jain

Trade Receivables from GIC Platform Partial
It will be, I think, almost 60% to 70% will be with the Platform only, but exact numbers we can provide you through SGA.

Gives an estimate of the proportion of trade receivables linked to the GIC Platform, which is important for understanding the company's working capital structure.

Asked by Chandresh Malpani

Overall Smart Meter Industry Scenario Direct
So out of 25 crores meters, around 12 crores has been awarded, and so which is almost 55% of the number are still not. And this 25 crores was decided in 2016, '17. So that number has also increased, because the country is growing and with every growth, there is an electricity meter connection required.

Provides context on the vast untapped potential in the smart metering market and the increasing demand for meters.

Asked by Deepanshu

2 min read 7 chapters

Detailed narrative

Strong Financial Performance in FY25

Genus Power reported a landmark FY25, with standalone revenue more than doubling to ₹2,442 crores from ₹1,201 crores in the previous year. EBITDA surged 247% YoY to ₹470 crores, expanding the margin by 797 basis points to 19.2%. Profit after tax for the year grew nearly 4 times to ₹298 crores, reflecting robust financial performance and strategic execution strength.

Robust Order Book and Revenue Visibility

As of March 31, 2025, the company's order book stood at ₹30,110 crores (net of taxes), covering projects across multiple SPVs and the GIC Platform. These concessions span 8 to 10 years, providing clear multi-year revenue visibility. Management indicated that approximately 60% of this order book's revenue will be realized in the next 3 years, with the remainder over the 8-10 year period.

Strategic Focus on Smart Metering and RDSS Scheme

The strong performance was primarily driven by tailwinds from the nationwide smart metering rollout under the RDSS scheme. The company's end-to-end model, from in-house manufacturing to software integration, has been validated. Genus Power is positioned as a forward-integrated technology-enabled AMISP, leading India's smart grid revolution.

Working Capital Management and Operational Efficiency

The working capital position experienced temporary elongation during the ramp-up phase, a trend management had foreseen. However, with more projects moving into stable operational phases, gradual normalization is expected over the coming quarters. Management anticipates an improvement in debtors days by 20-30 days, contributing to positive cash flows.

Capacity Expansion and Technology Investments

The company's manufacturing capacity has reached 15 million meters. FY25 capex was approximately ₹150 crores, allocated to capacity increase, automation, and in-house software development. For FY26-FY27, capex is projected to be around ₹25 crores, focusing on technology and automation rather than pure capacity enhancement.

Demerger and Value Creation

The Honorable NCLT, Allahabad Bench, sanctioned the Scheme of Arrangement for the demerger of the Strategic Investment Business into Genus Prime Infra Limited. This strategic move is expected to enhance focus, improve capital allocation, and unlock value for shareholders. Management clarified that promoter pledge shares reflect a commitment to the GIC Platform, not actual encumbrance.

Outlook and Guidance for FY26

For FY26, Genus Power is targeting a top line of ₹4,000 crores, representing almost 60% YoY growth, with an EBITDA margin of 18%. The company expects to install 7 million to 8 million meters in FY26. New tender activity, which had moderated, is expected to resume, with ₹27,300 crores worth of tenders currently open for bidding in the next 3-4 months.

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