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    GP Eco

    GPECO
    Capital Goods·10 Jun 2026
    Management Summary

    GP Eco reported a transformational FY26, achieving 3-4x revenue and PBT growth, driven by the commissioning of its Giga factory and new product launches. Despite missing its initial revenue guidance for FY26 due to project deferrals and rising raw material costs, the company remains confident in its FY27 outlook, targeting 2-3x revenue and PBT growth with an 8-10% EBITDA margin increase. Working capital management remains a key focus for improvement.

    Highlights

    6

    • Achieved three to four X of revenue growth for FY26, demonstrating significant scale-up.

    • Maintained PBT growth of three to four X for FY26, aligning with previous guidance.

    • State-of-the-art Giga factory at Dasna commissioned on May 30, 2026, with full 3 GW operation expected by September 30, 2026.

    • Launched comprehensive BESS portfolio (5 kWh to 5 MWh) and PV string inverter portfolio (1.5 kW to 350 kW) under Invergy brand.

    • Secured over 12 project orders, including C&I scale and one utility-scale BESS project totaling 58 MW.

    • Achieved BIS and IEC certifications, making products compliant and bankable for institutional projects.

    Concerns

    4

    • FY26 revenue top line restricted to 414 CR, missing the original guidance of 550-600 CR.

    • Approximately 150-200 CR of revenue was deferred from FY26 to FY27 due to international market scenarios, Indian policy challenges, and increased raw material costs.

    • Working capital deterioration: Receivable days increased from 95 (FY25) to 172 (FY26), and inventory days from 27 to 63.

    • Plan for solar panel manufacturing has been postponed to focus on BESS, inverters, and EPC segments.

    Key financials

    Single quarter

    04 metrics
    1. 01Revenue₹414 Cr
    2. 02PBT Growth3 X
    3. 03Receivable Days172 days
    4. 04Inventory Days63 days

    Segment breakdown

    FY26 Revenue Mix
    31% Manufacturing53% Distribution16% EPC
    FY27 Revenue Mix Guidance
    13% Distribution53% Invergy Production33% GPS Green Projects
    List

    Order Book

    medium confidence

    Pipeline

    other

    Cumulative order pipeline for EPC, BESS, and inverter segments.

    Cancellations / Deferrals

    • deferred:Approximately 150-200 CR of revenue deferred from FY26 to FY27 due to policy changes, government challenges, and increased raw material costs.

    "Management indicated that current orders are in final discussion stages and will be disclosed upon finalization, with a significant pipeline in BESS and inverter segments."

    Source:
    Prepared remarks

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Capex

    ₹150 crores

    Guidance & targets

    8
    CategoryTargetPriority
    Revenue
    Revenue Growth
    2-3X
    		High
    Revenue
    H1 Revenue Performance
    Better than H1 FY26
    		Medium
    Revenue
    FY26 Revenue
    414 CR
    		High
    Profitability
    PBT Growth
    2-3X
    		High
    Margin
    EBITDA Margin Increase
    8-10%
    		High
    Capacity
    Giga Factory Full Operation
    3 GW
    		High
    Capacity
    Giga Factory Capacity Expansion
    5 GW
    		High
    Capex
    Capex Spend
    150 CR plus
    		High

    Working Capital Improvement

    Next quarter (by Sep 30, 2026)
    CurrentReceivable days 172, Inventory days 63
    TargetReduction in receivable and inventory days

    Why it matters

    Improvement in working capital is crucial for cash flow and operational efficiency, especially with planned growth.

    Deepak Pandey: "we are right now operating with our approximately 40 partners and that will be increased to approximately 75 to 80 partners by September. And we have created a system for channel financing to them..."

    How to verify

    key_financials.metrics[label='Receivable Days']

    Risks & concerns

    3
    RiskSeverity

    Working Capital Deterioration

    Receivable days increased from 95 to 172, and inventory days from 27 to 63, indicating potential cash flow strain. Management is implementing channel financing to mitigate this. — Analyst acknowledged

    medium

    Project Deferrals and Raw Material Cost Volatility

    International market scenarios, Indian policy challenges, and increased raw material costs (due to war conditions) led to project postponements and a 150-200 CR revenue deferral from FY26 to FY27. — Management acknowledged

    medium

    Reliance on Pipeline Conversion

    Significant portion of future revenue and growth depends on converting the current 'pipeline' of BESS and inverter orders, which are still in discussion or final stages. — Management acknowledged

    low

    Q&A highlights

    7

    “Deepak Pandey: "we are right now operating with our approximately 40 partners and that will be increased to approximately 75 to 80 partners by September. And we have created a system for channel financing to them, so that the cooling period for this, the duration of the fund lying with them reduces and the channel financing company will take care of that fund and our partners will become independent instead of taking credits from the company as a manufacturer.”

    Addresses the significant increase in receivable and inventory days, outlining a clear strategy for improvement through channel financing.

    asked by Raghav Shrivastava

    2 min read5 chapters

    Detailed Narrative

    01

    FY26 Performance and Revenue Guidance Revision

    GP Eco reported a transformational Financial Year 2025-26, achieving three to four X revenue growth and maintaining PBT growth of two to three X. However, the company's revenue top line for FY26 was restricted to 414 CR, missing the previously guided range of 550-600 CR. This miss was primarily attributed to approximately 150-200 CR of revenue being deferred to FY27 due to international market scenarios, Indian policy changes, government challenges, and increased raw material costs from war conditions.

    02

    Giga Factory Commissioning and Capacity Expansion

    A significant milestone for FY26 was the successful commissioning of the state-of-the-art Giga factory at Dasna, Uttar Pradesh, on May 30, 2026. The company anticipates the full-fledged 3-gigawatt operation of this factory by September 30, 2026. Looking ahead, GP Eco plans to expand this capacity to 5 gigawatts by 2027-28, with an estimated peak supply potential of 1.5 to 2 gigawatts in 2027-28 from this expanded capacity.

    03

    Product Portfolio Expansion and Market Positioning

    GP Eco launched its full BESS portfolio under the Invergy brand, covering residential units (5 kWh) to utility-scale segments (5 MWh). Additionally, the company introduced PV string inverters ranging from 3 kW residential to 350 kW utility-scale. The company emphasizes its 'Make-In-India' approach, aiming for over 50% local content by December 2026, and differentiates itself through cost competitiveness, rapid service, and customization capabilities, positioning itself against Chinese imports.

    04

    Working Capital and Mitigation Strategies

    The company experienced a deterioration in its working capital metrics, with receivable days increasing from 95 in FY25 to 172 in FY26, and inventory days rising from 27 to 63. To address this, GP Eco plans to increase its partner network from 40 to 75-80 by September and implement a channel financing system. This system aims to reduce the cooling period for funds and improve stock rotation, making partners independent of company credit.

    05

    FY27 Outlook and Strategic Focus

    For FY27, GP Eco projects a revenue growth of approximately two to three X and PBT growth of two to three X, with an expected increase in EBITDA margin by 8-10% from FY26 levels. The revenue mix is guided to shift, with distribution contributing 13%, Invergy production 53%, and GPS Green Projects 33%. The company has postponed its solar panel manufacturing plan to focus entirely on the BESS, inverter, and EPC segments, aligning with India's ambitious renewable energy targets.

    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.