GE Power India Limited — Q3 FY26 earnings call

Call held 17 Feb 2026

Management summary

GE Power India Limited reported a strong Q3 FY26 with revenue up 22% YoY to ₹386 crores and PBT before exceptional items significantly increasing to ₹131 crores. This performance was driven by a strategic pivot towards high-margin, shorter cash cycle core services, which saw a 21% QoQ increase in order inflow. While the overall order backlog decreased due to FGD contract terminations, the company maintains a healthy normalized EBITDA of ~14.5% for the quarter and expects double-digit EBITDA for the full year. The demerger of the Durgapur facility is progressing, and the company is focused on disciplined execution and cash management.

Highlights

  • Revenue for Q3 FY26 stood at ₹386 crores, marking a 22% increase from ₹317 crores in the corresponding quarter last year.

  • Profit before tax and exceptional item from continuing operations for Q3 FY26 was ₹131 crores, a significant increase from ₹23 crores in Q3 FY25.

  • Core services order inflow rose by 21% QoQ to ₹136 crores in December 2025, indicating strong momentum in the strategic shift.

  • Order backlog of ₹1,671 crores as of December 31, 2025, provides visibility for close to two years of execution.

  • Balance sheet strengthened with standalone networth of ₹378 crores as of December 2025, reflecting benefits of strategic actions and improved working capital discipline.

Concerns

  • Total order inflow for Q3 FY26 declined to ₹141 crores from ₹461 crores in Q3 FY25, primarily due to a large one-off order in the prior year.

  • Order backlog decreased from ₹2,662 crores as of March 31, 2025, to ₹1,671 crores due to termination of two FGD EP contracts worth ₹775 crores.

  • A provision of ₹42 crores, including ₹15 crores for discontinued operations, was recorded due to New Labour Codes, classified as an exceptional item.

  • FGD installation market momentum is slow, with no new orders post government notification, and some awarded orders being terminated.

Key financials

  1. Revenue ₹386 Cr +21.8%YoY
  2. Profit Before Tax (Excl. Exceptional) ₹131 Cr +469.6%YoY
  3. Normalized EBITDA Margin 14.5%
  4. Order Inflow (Total) ₹141 Cr -69.4%YoY
  5. Order Inflow (Core Services) ₹136 Cr +21.4%QoQ
  6. Standalone Networth ₹378 Cr

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

₹1,671 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹141 Cr

Execution

visibility to close to around two years of execution from the continuing operations.

Composition

Mix 2 contract types
  • EPC/New-build 26.9%
  • Services (including FGD O&M) 73.1%

Share of order book by contract type

Cancellations & deferrals

  • cancelled: Termination of two FGD EP contracts (JPVL Bina and Nigrie)
The company's strategic shift towards high-margin, shorter cash cycle, and lower working capital intensive opportunities is strengthening business stability, with core services showing strong momentum.

Source: Prepared remarks

Capital allocation

high confidence
  • M&A Durgapur facility Divestment · Pending regulatory

    Streamline portfolio, reduce fixed cost exposure, sharpen focus on asset-light, service-led opportunities.

    The strategic demerger of Durgapur facility to JSW Energy effective July 1st, 2025, as shared in the last quarter, is moving with the correct pace and direction. This transaction will streamline our portfolio, reduce fixed cost exposure and sharpen our focus on asset-light, service-led opportunities while ensuring continuity of the supply and the services support for the customer through appropriate commercial agreements.

    The strategic demerger of Durgapur facility to JSW Energy effective July 1st, 2025, as shared in the last quarter, is moving with the correct pace and direction. This transaction will streamline our portfolio, reduce fixed cost exposure and sharpen our focus on asset-light, service-led opportunities while ensuring continuity of the supply and the services support for the customer through appropriate commercial agreements.

Guidance & targets

Profitability

  • EBITDA Profitability · year-over-year basis · High confidence 10% plus
    We are on track for that in this year and the target remains to deliver, you know, a 10% plus EBITDA on year-over-year basis.

    — Aashish Ghai

  • EBITDA Profitability · next year and years to come · High confidence 10% plus
    we stick to 10% plus for next year and years to come, but we are on track for 10% this year.

    — Aashish Ghai

Revenue

  • Top line growth Revenue · next year and the year after · Medium confidence plus 5% to 8%
    Wegive futuristic statements, but at least I can give you a range that we expect in the range where we are in this year plus minus 5%. So we will be for the next year and the year after we expect a plus 5% to 8% kind of a compounded growth in the top line.

    — Aashish Ghai

Revenue Mix

  • Core services volume mix Revenue Mix · next two years · High confidence around 60%
    So I will -- for the next two years, since you have given a timeframe here, next two years volume mix would be something like this that I expect around 60% coming from core services.

    — Aashish Ghai

  • Core services volume mix Revenue Mix · post two years · High confidence up to 80%
    But sustainably, I would say 60% in the next two years will grow and would go up to 80% post two years. So 80% sustainably would be the volume mix of Core services is our expectation to answer you, Mr. Mehul.

    — Aashish Ghai

Collections

  • BHEL settlement collections Collections · February and March (this financial year) · High confidence around INR 124 to INR 125 crores
    On your question of how much is yet to come, around INR 124 to INR 125 crores is what we expect... further to come in the month of February and March. So within this financial year, we expect around INR 340 crores in total to collect from BHEL.

    — Aashish Ghai

  • BHEL settlement collections (total) Collections · this financial year · High confidence around INR 340 crores

    — Aashish Ghai

Demerger

  • Durgapur facility demerger closure Demerger · calendar year 2026 · Medium confidence within calendar year 2026
    Our expectation is that within the calendar year 2026, we should get it. That is our expectation

    — Aashish Ghai

Market context

  • EBITDA Profitability · this year · High confidence double-digit
    So on your first question, yes, you are right, there are certain one-offs which I have already highlighted, the key ones. On the sustainable basis, our target and endeavor for this and future years is to deliver a double-digit EBITDA for the business.

    — Aashish Ghai

What to watch in Q4 FY26

FGD segment order momentum

next quarter
Current Slow, no new orders post notification
Target Signs of new order build-up or increased tendering activity

Why it matters

Indicates recovery in a key segment impacted by regulatory changes and order terminations.

Your company is watching this very carefully as to how does the market momentum of the new order builds up on this segment in the coming months, while the market is also witnessing the termination of few awarded orders as we move ahead.

Risks & concerns

  • Slow market momentum for FGD installations

    medium

    Government notification revised FGD installation limits, and market momentum for new orders is slow, with no new orders post notification.

    Your company is watching this very carefully as to how does the market momentum of the new order builds up on this segment in the coming months, while the market is also witnessing the termination of few awarded orders as we move ahead.

    Management acknowledged

  • Termination of awarded orders

    medium

    The market is witnessing the termination of few awarded orders, impacting the order backlog.

    Your company is watching this very carefully as to how does the market momentum of the new order builds up on this segment in the coming months, while the market is also witnessing the termination of few awarded orders as we move ahead.

    Management acknowledged

  • NCLT approval for Durgapur demerger

    medium

    The demerger transaction is a court-driven process with multiple tollgates, and NCLT approval is the last step, making the timeline uncertain.

    NCLT is the last step, but before that there are other tollgates, so it is very difficult to answer. Our expectation is that within the calendar year 2026, we should get it.

    Management acknowledged

  • Impact of New Labour Codes

    low

    A provision of ₹42 crores, including ₹15 crores for discontinued operations, was recorded due to new Labour Codes, classified as an exceptional item.

    Following the notification of New Labour Codes, we have recorded a provision of INR 42 crores, including INR 15 crores for discontinued operations based on the draft rules issued by Ministry of Labour and Employment. Given it is regulatory driven and non-recurring in nature, this has been classified as an exceptional item in the financials.

    Management acknowledged

Q&A highlights

7 direct
Sustainable EBITDA margin for core business Direct
So on your first question, yes, you are right, there are certain one-offs which I have already highlighted, the key ones. On the sustainable basis, our target and endeavor for this and future years is to deliver a double-digit EBITDA for the business.

Analyst sought clarity on long-term profitability excluding one-off items, which management confirmed as double-digit EBITDA.

Asked by Akash Jain

Strategy on low-margin contracts and nuclear sector Direct
So yes, we would be putting our big efforts towards the continuous services business, but having said that,, we are changing our strategy from EPC to the EP side, which is only the equipment supply. So with this, I would like to rest my answer.

Management reiterated focus on high-margin, shorter cash cycle services and confirmed no current plans for nuclear sector involvement, aligning with their strategic shift.

Asked by Tushar Bhavsar

Normalized profitability and growth rate conservatism Direct
I mean, really good question I must say, and I'm glad that you have gone through the financials and analyzed it well. So yes, firstly, for this quarter, yes your the normalized margins that you're talking about or profitability are in that range. So in terms of the nine months so far, I am calling it a 10% normalized EBITDA so far, not 12%, so one. And second to your point, is this the base, like I said we are on track to deliver 10% plus in this year.

Analyst probed on the actual normalized EBITDA for the quarter (~14.5%) and 9M (~10%), confirming the company's target of 10%+.

Asked by Nikhil

Market share and competitors in core services Direct
And we are focusing only on those assets which are geometrically similar so that our efforts and our costs are well restrained and constrained. Today we are looking at the Chinese fleet as well as few Indian manufacturers also and a substantial amount of the NPI which we call it as a new product introduction efforts have been getting along onto these activities so that we get into the capability of serving the non-GEPIL assets.

Analyst inquired about the company's market share in core services and competitive landscape, revealing focus on geometrically similar assets including Chinese and Indian manufacturers.

Asked by Aman Shah

Breakup of current order book and working capital days Direct
So we have INR 1,671 crores worth of orders in hand as on 31st December. In this, consider around INR 450 crores from the EPC side or the new-build side and the balance is from the services business including the FGD O&M projects.

Analyst sought a detailed breakdown of the order book and commentary on debtor/creditor days, which management provided, indicating expected normalization in 2-3 quarters.

Asked by Smit Shah

BHEL settlement and discontinued operations Direct
On your question of how much is yet to come, around INR 124 to INR 125 crores is what we expect... further to come in the month of February and March. So within this financial year, we expect around INR 340 crores in total to collect from BHEL.

Analyst inquired about the remaining BHEL collections and the phasing out of discontinued operations, with management providing specific collection targets and demerger timeline.

Asked by Sunny Shah

NCLT approval timeline for Durgapur demerger Partial
This is very difficult to answer, Mr. Mehul, honestly because there are many tollgates in that. NCLT is the last step, but before that there are other tollgates, so it is very difficult to answer. Our expectation is that within the calendar year 2026, we should get it. That is our expectation

Analyst asked for a timeline on the critical NCLT approval for the Durgapur demerger, which management indicated is complex but expected within calendar year 2026.

Asked by Mehul Panjuani

Impact of steam turbine upgrade orders on growth rates Direct
Yes, but just on this turbine upgrade, these are typically long gestation projects. One, long-gestation from a commercial standpoint and also once it is booked, these are not like core services projects where within a year you have maybe around 40% book-to-bill, you convert 40% of orders into revenue the same year. These typically take 3 to 4 years until commissioning.

Analyst questioned if large turbine upgrade orders could boost growth beyond the 5-8% guidance, to which management clarified their long gestation period.

Asked by Aman Shah

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Detailed narrative

Macroeconomic and Sectoral Environment

India's macroeconomic fundamentals remain resilient, with real GDP growth projected at around 7.4% for 2026, supported by broad-based demand. Inflation pressures have moderated to 1.7%, and monetary conditions remain supportive. The government continues strategic support for energy and related sectors, ensuring reliable baseload supply while scaling renewables. However, the Ministry of Environment, Forest and Climate revised FGD installation limits, impacting the thermal power sector, with 630 GW limited by Dec 2027/2028 and 70 GW (Category C) removed from scope.

Q3 FY26 Performance Highlights

GE Power India Limited reported a strong Q3 FY26, with revenue increasing 22% YoY to ₹386 crores, up from ₹317 crores in Q3 FY25. Profit before tax and exceptional items from continuing operations surged to ₹131 crores, a significant increase from ₹23 crores in the prior year. This reflects sustained efforts in improving operating performance. The company achieved a normalized EBITDA of approximately 14.5% for the quarter and 10% for the nine months ended December 2025.

Strategic Shift and Order Book Dynamics

The company's strategic shift towards high-margin, shorter cash cycle, and lower working capital intensive opportunities is yielding results. Core services order inflow grew 21% QoQ to ₹136 crores in December 2025. Total order inflow for Q3 FY26 was ₹141 crores, down from ₹461 crores in Q3 FY25 due to a large one-off order in the previous year. The order backlog as of December 31, 2025, stands at ₹1,671 crores, providing approximately two years of execution visibility. This backlog includes about ₹450 crores from EPC/new-build and the balance from services, with 53% of core services orders coming from non-GEPIL assets.

Balance Sheet Strengthening and Durgapur Demerger

The company has made significant progress in strengthening its balance sheet. Legacy receivables, including BHEL outstanding, have moved into structured settlement and collection phases, with ₹216 crores received year-to-date and an additional ₹124-125 crores expected by March 2026. The standalone networth improved to ₹378 crores as of December 2025. The strategic demerger of the Durgapur facility to JSW Energy, effective July 1, 2025, is progressing, aiming to streamline the portfolio, reduce fixed cost exposure, and sharpen focus on asset-light, service-led opportunities. This transaction is expected to close within calendar year 2026.

Profitability and One-off Items

The significant increase in profitability for Q3 FY26 was partly boosted by certain one-off items. These include a reversal of ECL provision for BHEL collections amounting to ₹37 crores, Solapur extension of time and LD settlement with a ₹22 crores provision reversal, and Jaypee Bina and Nigrie full and final settlement with a ₹25 crores positive impact. Additionally, a provision of ₹42 crores (including ₹15 crores for discontinued operations) was recorded due to New Labour Codes, classified as an exceptional item.

Core Services Growth and Market Opportunity

The company is actively pursuing growth in core services, targeting India's installed base of approximately ₹2,500 crores, which includes both GEPIL and non-GEPIL assets. Their strategy involves focusing on geometrically similar assets, including Chinese and Indian manufacturers, to ensure cost-effective service delivery. Management expects core services to constitute around 60% of the volume mix in the next two years, growing to 80% thereafter, indicating a sustained shift towards this segment. The company is also active in steam turbine upgrades, with 200+ units (70 GW) identified for upgrades, and 1 GW already ordered.

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