GE Power India Limited (GEPIL) has reported a strong performance in its core services business for the second quarter, with a 45% quarter-on-quarter growth in orders. The company also announced a significant corporate restructuring move with the planned demerger of its Durgapur manufacturing facility.

Financial Highlights

For the quarter ended September 30, GEPIL's financial results showed notable improvements:

• Total income from continuing operations rose to INR 3,069.60 crore, marking a 25.6% increase from INR 2,444.50 crore in the same quarter last year.
• Profit before tax from continuing operations nearly doubled to INR 461.00 crore, up from INR 244.00 crore in the previous year's quarter.
• EBITDA margin before exceptional items improved to 17.7% from 15.2% year-over-year.

However, the company's order backlog saw a decline:

• Order backlog stood at INR 1,825.00 crore, down 28.7% from INR 2,559.70 crore in the previous year.
• The decrease was primarily attributed to the termination of two Flue Gas Desulphurization (FGD) EP contracts at Jaypee Bina and Nigrie, amounting to INR 775.00 crore.

Strategic Developments

GEPIL's focus on core services is yielding positive results, as evidenced by the significant growth in orders. The company's Managing Director, Puneet Bhatla, emphasized the strategic importance of this segment, stating, "Our strategic focus on Core Services is progressing well, evidenced by the 45% quarter-over-quarter order growth we witnessed in the period."

In a major corporate action, GEPIL's Board of Directors approved a scheme to demerge its Durgapur manufacturing facility. The demerger plan involves transferring this business undertaking to JSW Energy Limited on a going concern basis. This move is expected to be completed within twelve months, subject to necessary approvals.

Operational Highlights

• The company secured a significant turbine upgrade order for the Wanakbori project, valued at INR 243.00 crore.
• GEPIL reached a settlement agreement with Bharat Heavy Electricals Limited (BHEL), which is expected to result in payments totaling INR 340.00 crore to GEPIL by March 31, 2026.
• The company also resolved contractual disputes with Jaiprakash Power Ventures Limited (JPVL) regarding FGD systems at JPVL's Bina and Nigrie projects.

Market Position and Outlook

Despite the reduction in order backlog, GEPIL maintains its position as a leading player in the Indian power generation equipment market. The company's focus on emissions control solutions and services portfolio aligns with the growing demand for sustainable and affordable electricity solutions in India.

The demerger of the Durgapur facility may streamline GEPIL's operations, potentially allowing for a more focused approach to its core services and growth areas. This strategic move could enhance the company's competitiveness in the evolving energy sector.

As the Indian power sector continues to emphasize cleaner energy solutions, GEPIL's expertise in emissions control and power generation technologies positions it well to capitalize on future opportunities in the market.

The company's ability to secure major orders, such as the Wanakbori turbine upgrade, demonstrates its continued relevance in the power generation equipment space. However, the termination of significant FGD contracts highlights the challenges and volatility in the sector.

Moving forward, GEPIL's performance will likely be closely tied to its execution of the existing order book, success in growing its core services business, and ability to navigate the ongoing energy transition in India's power sector.

GE Power India Limited (GEPIL) has reported strong financial results for the second quarter of fiscal year 2026, ended September 30, 2025, with significant improvements in revenue and profitability.

Key Financial Highlights

• Total income from continuing operations rose to INR 3,069.60 million, marking a 25.6% increase from INR 2,444.50 million in the same quarter last year.
• Profit before tax from continuing operations nearly doubled to INR 461.00 million, up from INR 244.00 million in Q2 FY25.
• EBITDA margin improved to 17.7% from 15.2% in the corresponding quarter of the previous fiscal year.

Operational Performance

The company's strategic focus on core services has shown positive results, with a 45% quarter-over-quarter growth in orders. However, the order backlog decreased by 28.7% to INR 18,250.00 million, primarily due to the termination of two Flue Gas Desulphurization (FGD) EPC contracts worth INR 7,750.00 million at Jaypee Bina and Nigrie projects.

Management Commentary

Puneet Bhatla, Managing Director of GE Power India Limited, commented on the results: "Our strategic focus on Core Services is progressing well, evidenced by the 45% quarter-over-quarter order growth we witnessed in the period. Equally important, we significantly improved our operational profitability. This positive result is a direct outcome of our disciplined execution of FGD backlog and growth initiatives in Core services."

Settlement with BHEL and JPVL

The company has made progress in resolving contractual disputes:

1. GEPIL executed a settlement agreement with Bharat Heavy Electricals Limited (BHEL) on September 9, 2025. BHEL has agreed to make payments totaling INR 3,400.00 million to GEPIL in a phased manner until March 31, 2026.

2. The company has amicably settled contractual disputes with Jaiprakash Power Ventures Limited (JPVL) regarding FGD systems at JPVL's Bina and Nigrie projects. This settlement, formalized on October 3, 2025, has resulted in the closure of all related proceedings.

Outlook

While GE Power India Limited has shown improved financial performance and strategic progress in its core services, the reduction in order backlog due to contract terminations may pose challenges for future revenue growth. The company's focus on operational efficiency and the resolution of contractual disputes are expected to contribute to its financial stability going forward.

Investors and stakeholders will be watching closely to see how GEPIL leverages its improved profitability and strategic initiatives to navigate the evolving power generation equipment market in India.