GE Power India has detailed the proposed scheme of arrangement to demerge its Durgapur business unit to JSW Energy Limited, offering shareholders a specific exchange ratio. The company announced that shareholders will receive 10 fully paid-up equity shares of JSW Energy for every 139 fully paid-up equity shares held in GE Power India. The scheme is effective retrospectively from July 1, 2025, subject to National Company Law Tribunal (NCLT) sanction.

The strategic demerger involves the transfer of the Durgapur facility, which manufactures power boilers, pressure vessels, piping, and coal mills, to JSW Energy on a “going concern, as-is-where-is” basis. This move aims to simplify GE Power India's portfolio by exiting an under-utilized asset that booked an average loss of ₹27 crore per year over the last two years. The company believes JSW Energy is well-positioned to utilize the facility given the Indian power industry's demand.

To ensure operational continuity for its core services business, GE Power India has secured a 5-year manufacturing services agreement with JSW Energy. This agreement reserves capacity at pre-agreed schedules and pricing while the company concurrently establishes an independent supply chain. The transition is designed to protect order execution and service delivery commitments.

The presentation highlighted a significant turnaround in financial metrics since FY24. Net Worth recovered from ₹57 crore in March 2024 to ₹483 crore in March 2026, while Bank Balance improved from ₹49 crore to ₹880 crore in the same period. Outstanding Bonds reduced from ₹2,128 crore to ₹764 crore. The company reported an EBITDA of ₹312 crore in FY25 and ₹277 crore in FY26, aided by a ₹295 crore gain from the Hydro & Gas slump sale.

Core services have shown robust growth, with order bookings increasing at a CAGR of 25% over the past five years to reach ₹734 crore in FY26. Orders from the third-party fleet (oOEM) grew approximately 1.9 times year-on-year to ₹320 crore. The ICRA Long term credit rating was upgraded to BBB+(Stable) in March 2026 from BBB+(Neg) in March 2023.

*Includes ₹295 crore gain from Hydro & Gas slump sale.

GE Power India Limited has reported a significant financial turnaround, with its net worth growing over eight times to ₹483 crore by March 2026, up from ₹57 crore in March 2024. The company detailed its performance and strategic initiatives in an investor presentation for Q1FY27, emphasizing a shift towards high-margin services and a proposed demerger of its Durgapur manufacturing unit to JSW Energy Limited.

The turnaround strategy, initiated in 2024, focused on business restructuring to target only services, resulting in a substantial improvement in financial metrics. The bank balance turned positive, reaching ₹880 crore in March 2026 compared to a negative balance of ₹66 crore in March 2023. Outstanding bonds reduced significantly to ₹764 crore in March 2026 from ₹2,128 crore in March 2024. EBITDA turned positive, recording ₹312 crore in FY25 and ₹277 crore in FY26, against losses of ₹251 crore and ₹90 crore in FY23 and FY24 respectively. The ICRA long-term credit rating was upgraded to BBB+(Stable) by March 2026.

Financial Performance

The company's core services business demonstrated robust growth, with order bookings increasing at a CAGR of approximately 25% over the past five years. Total orders booked rose to ₹734 crore in FY26 from ₹299 crore in FY22. Growth in the third-party fleet (oOEM) was particularly strong, with orders growing 1.9x to approximately ₹320 crore in FY26 from ₹162 crore in FY25.

*Includes INR 295 crs. gain from Hydro & Gas slump sale.

Strategic Demerger to JSW Energy

GE Power India Limited is undertaking a Scheme of Arrangement to demerge its Durgapur business unit, which manufactures power boilers and pressure vessels, to JSW Energy Limited. The Durgapur facility has been underutilized, incurring an average loss of approximately ₹27 crore per year over the last two years. The demerger is intended to simplify the portfolio and allow the remaining business to focus on core services.

The transaction is effective retrospectively from July 1, 2025, subject to sanction by the National Company Law Tribunal (NCLT). Under the scheme, shareholders of GE Power India will receive 10 fully paid-up equity shares of JSW Energy (₹10 each) for every 139 fully paid-up equity shares of GE Power India (₹10 each) held. Existing shareholders will retain their current stake in GE Power India without dilution while gaining equity in JSW Energy.

Operational Continuity

To ensure seamless operations, GE Power India has entered into a 5-year manufacturing services agreement with JSW Energy. This agreement secures reserved capacity at pre-agreed schedules and pricing, ensuring no disruption to the core services business. Concurrent efforts are underway to establish an independent supply chain to achieve full autonomy in the near future.