Detailed Narrative
Business Transformation and Financial Strengthening
GE Power India Limited has undergone significant transformation over the past two years, focusing on high-margin, cash-accretive opportunities and faster cash conversion cycles. This strategic shift has led to a substantial improvement in the company's financial health. Net Worth grew more than eight-fold from INR 57 crores in March 2024 to INR 483 crores by March 2026, and liquidity improved from a deficit of INR 66 crores in 2023 to a robust INR 880 crores by March 2026. The company also shed INR 1,364 crores in bank guarantee exposure and saw its EBITDA turn positive at INR 277 crores in FY 2026, from a loss of INR 251 crores in FY 2023.
Strategic Rationale for Durgapur Demerger
The company has proposed the demerger of its Durgapur business unit to JSW Energy Limited. This decision stems from the Durgapur facility's significant underutilization, which resulted in an average annual loss of approximately INR 27 crores between 2023 and 2025. The demerger aims to simplify GEPIL's portfolio, exit an underutilized asset, and sharpen its focus on core services that align with its growth and profitability strategy. JSW Energy, an established Indian energy company, is expected to ensure better future utilization of the facility.
Shareholder Value Creation from Demerger
The proposed demerger is designed to maximize shareholder value. Shareholders will receive 10 fully paid-up equity shares of JSW Energy for every 139 fully paid equity shares of GE Power India Limited, preserving their existing ownership in GEPIL. This structure allows shareholders to gain direct equity participation in JSW Energy, benefiting from the potential value creation of the Durgapur business under new management, without diluting their current position in GE Power India Limited. The entitlement ratio has been rigorously evaluated by independent valuers and received a formal Fairness Opinion.
Post-Demerger Operational Continuity
Management assures that the demerger will not disrupt manufacturing and fabrication support for the core services business. A five-year manufacturing services agreement has been established with JSW Energy to secure reserved capacity at pre-agreed schedules and pricing. Concurrently, GE Power India Limited is advancing efforts to establish full supply chain independence, aiming to achieve it very soon. This phased transition is intended to protect order execution, maintain service delivery commitments, and build a resilient long-term manufacturing ecosystem.
Order Bookings and Market Expansion
The company's core services business has shown strong momentum, with order bookings growing from INR 299 crores in 2021-2022 to INR 734 crores in 2025-2026, representing a CAGR of approximately 25%. In FY26 alone, core services saw a 34% growth in order bookings. The other oOEM segment also demonstrated significant progress, with order growth increasing from INR 162 crores to approximately INR 320 crores. This growth reflects the company's expanded reach in the third-party fleet and increased presence across international markets including Saudi Arabia, Turkey, Austria, UAE, Malaysia, Indonesia, and Morocco.