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    Genus Power

    GENUSPOWER
    Capital Goods·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

    5
    • 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

    3
    • 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.

    What Changed2

    vs Q1 FY26

    Guidance items6 → 7 (+1)Risks discussed4 → 3 (-1)
    Key financials

    Metrics

    8

    Periods

    2

    Q4 FY25

    4
    • Revenue
      ₹937 Cr
      YoY+123%QoQ+55.0%
    • EBITDA
      ₹208 Cr
      YoY+2.8%
    • EBITDA Margin
      22.3%
    • PAT
      ₹129 Cr
      YoY+3%

    FY25

    4
    • Revenue
      ₹2,442 Cr
      YoY+103%
    • EBITDA
      ₹470 Cr
      YoY+2.5%
    • EBITDA Margin
      19.2%
    • PAT
      ₹298 Cr
      YoY+3%

    Order Book

    high confidence

    Total Value

    ₹ 30,110 crores

    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

    3
    medium confidence
    CategoryHeadline
    Capex

    ₹25 crores

    Debt

    Debt disclosed

    Liquidity

    Liquidity disclosed

    Working capital position saw temporary elongation during the ramp-up phase, expected gradual normalization over coming quarters.

    Guidance & targets

    7
    CategoryTargetPriority
    Revenue
    Standalone Revenue
    INR 4,000 crores
    High
    Margin
    EBITDA Margin
    18%
    High
    Volume
    Meter Installation Volume
    7 million to 8 million meters
    High
    Working Capital
    Working Capital Normalization
    Gradual normalization
    Medium
    Debtors Days
    Debtors Days Improvement
    20-30 days reduction
    Medium
    Order Book Revenue Recognition
    Revenue from Order Book
    60% in next 3 years
    High
    Capacity
    Manufacturing Capacity
    15 million meters
    High

    Working Capital Normalization

    Next 1-2 quarters
    CurrentElongated, ~50% of debtors with total revenue
    TargetImprovement, 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.

    How to verify

    capital_allocation.liquidity.notes

    Risks & concerns

    3
    RiskSeverity

    Supply Chain Risk (Geopolitical)

    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.Analyst downplayed

    low

    Installation Delays due to External Factors

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

    medium

    Smart Meter Program Delays

    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.Management acknowledged

    medium

    Q&A highlights

    8

    “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

    2 min read7 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    07

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.