GE Power India Limited — Q2 FY26 earnings call

Call held 14 Nov 2025

Management summary

GE Power India Limited reported a strong Q2 FY26 with significant revenue and PBT growth, driven by core services and strategic settlements. Despite a reduction in the overall order backlog due to contract terminations, core order intake showed robust growth. The company is focusing on high-margin core services and expanding its international presence, while managing financial exposures through amicable dispute resolutions and a strategic demerger.

Highlights

  • Revenue for Q2 FY26 stood at INR 281 crores, up 29.5% YoY from INR 217 crores in Q2 FY25, primarily from core services.

  • Profit Before Tax (PBT) for Q2 FY26 was INR 33 crores, a substantial increase from INR 8 crores in Q2 FY25.

  • Core order intake for the current quarter increased by 45% to INR 162 crores from INR 112 crores in the September 2024 quarter.

  • Net worth increased to INR 298 crores as of September 30, 2025, from INR 233 crores on March 31, 2025, reflecting disciplined cash management.

  • Amicable and successful settlement of BHEL outstanding receivables (INR 340 crores) and JP Venture Power Limited dispute (near breakeven).

Concerns

  • Order backlog decreased by 31.4% to INR 1,825 crores as of September 30, 2025, from INR 2,662 crores on March 31, 2025, due to termination of two FGD EP contracts worth INR 775 crores.

  • Gross margins for Q2 FY26 were roughly 33% (on INR 281 crores top line), a decline from 42% in the corresponding quarter last year.

  • A charge of INR 27 crores was taken on the P&L for the Jaypee settlement, though an INR 25 crores recovery is expected.

Key financials

  1. Revenue ₹281 Cr +29.5%YoY
  2. PBT ₹33 Cr +312.5%YoY
  3. Net Worth ₹298 Cr +27.9%QoQ
  4. Gross Margin 33% -21.4%YoY

What they filed

Q1 FY27: revenue up 7.7%, net profit up 65.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue217 317 266 287 281 +29%386 +22%316 +19%309 +8%
EBITDA10 4 -21 0 28 +180%125 +3025%107 +610%45
Net profit66 -20 156 32 30 −55%72 +460%103 −34%53 +66%
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

₹1,825 Cr

as of 2025-09-30 quantified

-31.4% QoQ

Inflow this quarter

₹240 Cr

Execution

average lead time is within 12 months for core business projects

Composition

  • Core Orders (Current Quarter) (product) ₹162 Cr
  • International Boiler Spares (geography) ₹4 Cr

Cancellations & deferrals

  • terminated: Termination of 2 FGD EP contracts (Jaypee Bina and Jaypee Nigrie)
Our revenue streams are showing encouraging stability and a profitable first half, giving us confidence as we navigate the second half of the year. The fall in orders is due to a high base effect from a large order last year, with core order intake actually up 18% on an apple-to-apple comparison.

Source: Prepared remarks · Q&A

Capital allocation

high confidence
  • Debt Debt disclosed
    • Repayment First tranche received in October as part of INR 340 crores settlement with BHEL. ₹50 Cr
    Delighted to share about the amicable and the successful settlement of BHEL outstanding, strengthening our financial position by unlocking cash inflow with clear time lines of payments in the subsequent quarters.
  • M&A Durgapur undertaking Divestment · Closed · Consideration ₹[object Object] (stock)

    Streamlines portfolio, unlocks value for shareholders, allows focus on high-margin shorter cycle opportunities.

    Demerger to JSW Energy effective July 1, 2025, via a share entitlement ratio of 10 JSW Energy shares for every 139 GEPIL share.

    Building on that, the first half FY 2026, we announced a key strategic demerger of our Durgapur undertaking to JSW Energy, effective from July 1, 2025 via a share entitlement ratio of 10 JSW Energy shares for every 139 GEPIL share.

Guidance & targets

Profitability

  • Core business growth Profitability · Ongoing · High confidence double-digit year-over-year growth
    Core is poised to build on its momentum and deliver double-digit year-over-year growth.

    — Aashish Ghai

Power Generation Mix

  • Thermal generation share Power Generation Mix · 2030 or 2032 · High confidence more than 55%
    But all said and done, the thermal generation is still poised to the level of more than 55% or so in terms of the electricity generated, if you take it like 2030 or 2032, something like that.

    — Puneet Bhatla

Regulatory Compliance

  • Flue Gas Desulfurization (FGD) installation Regulatory Compliance · by December 2027 and December 2028 progressively · High confidence about 30 gigawatts
    Ministry of Environment and Forest and the climate change revised the notification, limiting flue gas desulfurization installation to about 30 gigawatts of India's thermal power plants by December 2027 and December 2028 progressively, while taking the Category C plants, which are more or less like 70 gigawatts out of the scope of the policy.

    — Puneet Bhatla

Power Consumption Growth

  • Acceleration in power consumption Power Consumption Growth · 2026 · High confidence 2.5%
    Looking to 2026, we anticipate 2.5% acceleration fuelled by industrial recovery and moderated renewable penetration.

    — Puneet Bhatla

What to watch in Q3 FY26

BHEL settlement cash inflow

Next 2-3 quarters
Current INR 50 crores received in October
Target Remaining INR 290 crores (340-50) of receivables

Why it matters

Significant cash inflow to strengthen financial position and improve liquidity.

the cash flow would come in the next 2 to 3 quarters. We have received the first tranche in the month of October to the tune of INR 50 crores

Risks & concerns

  • Limitation on Flue Gas Desulfurization (FGD) installation

    medium

    Revised notification limits FGD installation to about 30 gigawatts by December 2027/2028, excluding 70 gigawatts of Category C plants. Despite challenges, the company maintains a solid financial footing.

    Management acknowledged

  • Order cancellations (FGD EP contracts)

    medium

    Termination of two FGD EP contracts worth INR 775 crores (Jaypee Bina and Jaypee Nigrie) impacted the order backlog. The financial impact of the Jaypee settlement is expected to be near breakeven.

    Management managed

  • Underutilization of Durgapur facility

    low

    Durgapur facility, with 2.5 lakh hours capacity, was underutilized. This has been addressed by its demerger to JSW Energy, with GEPIL securing a 5-year contract for access to its services.

    Management addressed

Q&A highlights

6 direct
Fall in outstanding orders and gross margins Direct
The fall of the orders is because Wanakbori complex turbine order worth INR 243 crs was booked in corresponding quarter of last year... But if you look at the apple-to-apple comparisons, you will find that it will be about 18% up on to the order intake from a Core perspective.

Asked by Rahul

BHEL settlement details and financial impact Direct
in our receivables, today, we have INR 357 crores of receivables coming from BHEL... they have agreed to pay us what is owed to us to the tune of INR 340 crores... We have received the first tranche in the month of October to the tune of INR 50 crores.

Asked by Premal Shah

Jaypee FGD order cancellation and associated costs/recoveries Direct
it is going to be almost breakeven. We might have an impact maybe in the range of INR 2 crores to INR 4 crores overall. We had a balance sheet exposure of around INR 27 crores, which is what we have taken a charge already. And like I said, we expect INR 25 crores to see from Jaypee.

Asked by Premal Shah

Scalability and manufacturing capabilities of the Service business post-divestitures and demerger Direct
this is not just manpower. What we typically do in the Services are 2 sets of businesses. One is the core services in which there are 3 sub-parts of it... within the Vernova Group, we had a factory in Sanand... we have a 5-year contract with them where we had access to their facility... with this current demerger also announced, we have again signed a 5-year contract with JSW Energy, which would give us access or continuity to serve our customers on the boiler and mills, these core orders and upgrade orders.

Asked by Premal Shah

Normalized profitability considering settlements and one-time items Direct
We have a charge of INR 27 crores coming out of Jaypee settlement, and we have a release of INR 23 crores coming out of BHEL settlement. So, you can say that both are neutralizing each other. And what you see the profitability is what it is. There is still a charge of INR 4 crores in the P&L.

Asked by Abhishek Jain

Quality and collectability of INR 1,000 crores in receivables Direct
on the receivables, firstly, I would say that there is a policy that your company has adopted. We call it the expected credit loss policy in which any default or delay risk that we perceive from any invoice, we account for it suitably and take necessary provisions... In terms of the INR 1,000 crores receivable that we hold, 35% of it is from BHEL... So, I would say that INR 1,000 crores of the receivables are solid.

Asked by Lavneesh

2 min read 5 chapters

Detailed narrative

Q2 FY26 Financial Performance and Net Worth Improvement

GE Power India Limited reported a robust Q2 FY26, with revenue growing by 29.5% year-on-year to INR 281 crores, primarily driven by core services. Profit Before Tax (PBT) saw a significant increase to INR 33 crores, up from INR 8 crores in the corresponding quarter of the previous year. The company's net worth also improved to INR 298 crores as of September 30, 2025, from INR 233 crores on March 31, 2025, reflecting effective cash management and financial prudence.

Order Book Dynamics and Core Services Growth

While the overall order backlog decreased by 31.4% to INR 1,825 crores as of September 30, 2025, largely due to the termination of two FGD EP contracts worth INR 775 crores, the core order intake demonstrated strong momentum. Core orders for the current quarter increased by 45% to INR 162 crores from INR 112 crores in the September 2024 quarter, indicating a healthy demand in the company's strategic focus areas. Management noted that on an 'apple-to-apple' comparison, core order intake was up 18%.

Strategic Settlements and Durgapur Demerger

The company successfully settled significant financial exposures, including an amicable resolution with BHEL for INR 340 crores in outstanding receivables, with INR 50 crores already received in October. A dispute with JP Venture Power Limited was also settled, resulting in a INR 27 crores charge on the P&L, with an expected recovery of INR 25 crores. Furthermore, the demerger of the Durgapur undertaking to JSW Energy became effective July 1, 2025, securing a 5-year contract for GEPIL to access manufacturing services for boilers and mills.

Focus on High-Margin Core Services and Export Expansion

GEPIL is strategically focusing on high-margin, shorter-cycle core services, which now constitute approximately 55% of its gross margin. This segment encompasses spare parts supply, in-house repair capabilities, and overhauling/maintenance. The company has also made strides in international expansion, penetrating 7 countries and securing INR 4 crores in boiler spare orders, with plans to further ramp up these export opportunities.

Broader Power Sector Context and Regulatory Landscape

India's power consumption grew 3.2% year-on-year to 146 billion units in September 2025, with cumulative H1 FY26 growth at 4%. Peak power demand reached 229 gigawatts. The Ministry of Environment and Forest revised its notification, limiting flue gas desulfurization (FGD) installation to about 30 gigawatts of thermal power plants by December 2027 and 2028, while excluding 70 gigawatts of Category C plants from this policy.

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