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.

GE Power India Limited (GEPIL) has announced a significant restructuring move, approving a scheme of arrangement to demerge its boiler manufacturing business to JSW Energy Limited. This strategic decision, approved by GEPIL's board on September 18, 2025, marks a pivotal moment for both companies in the power sector.

Key Details of the Demerger

The demerger involves transferring GEPIL's business of manufacturing and supplying power boiler components, pressure vessels, piping, and coal mills for thermal power plants at the Durgapur Facility to JSW Energy. This move is designed to streamline GEPIL's operations while allowing JSW Energy to expand its footprint in the energy sector.

Share Exchange Ratio

Under the approved scheme, JSW Energy will issue 10 fully paid equity shares of INR 10 each for every 139 shares held in GE Power India. This share entitlement ratio was determined based on recommendations from independent valuers and has been deemed fair by IDBI Capital Markets and Securities Limited, a SEBI-registered Category-I merchant banker.

Financial Impact

The demerged business generated a turnover of INR 529.50 million in the financial year ended March 31, 2025, representing 5.10% of GE Power India's total revenue of INR 10,471.00 million. Notably, the net worth contribution of the demerged undertaking was negative INR 203.50 million, or -8.70% of GEPIL's total net worth.

Strategic Rationale

For GE Power India:

• Focus on strategic growth areas and services
• Streamline operations and reduce costs
• Unlock value for shareholders

For JSW Energy:

• Enter the boiler pressure parts manufacturing business
• Achieve vertical integration in power generation
• Create operational synergies and improve cost efficiencies

Regulatory Approvals

The transaction is subject to various approvals, including:

• Shareholders and creditors of both companies
• National Company Law Tribunal (NCLT)
• Securities and Exchange Board of India (SEBI)
• Stock exchanges (BSE and NSE)

JSW Energy's Position

JSW Energy, already a significant player in the power generation sector, reported revenue of INR 12,639.49 crores for the financial year ended March 31, 2025. This demerger aligns with their long-term vision of expanding their energy portfolio and extending their footprint in the competitive power sector.

Conclusion

This demerger represents a strategic move for both GE Power India and JSW Energy, potentially reshaping their positions in the Indian power sector. As the companies await necessary approvals, the market will be watching closely to see how this restructuring impacts their future growth and operational efficiency.