GE Power India Limited (GEPIL) has reported a 45% growth in its core services orders for Q2 FY2025-26, demonstrating the company's successful pivot towards a more focused and profitable business model. The company achieved a revenue of INR 281.00 crores for the quarter, with core services orders growing to INR 162.00 crores.

Key Financial Highlights

• Revenue for Q2 FY2025-26: INR 281.00 crores
• Core services orders: INR 162.00 crores (45% growth year-on-year)
• Profit before tax and exceptional items: INR 33.00 crores (compared to INR 8.00 crores in Q2 FY2024-25)

Strategic Settlements and Financial Prudence

GEPIL has made significant strides in resolving long-standing disputes and optimizing its financial position:

1. BHEL Settlement: The company has reached an agreement with BHEL for the recovery of INR 340.00 crores. This settlement relates to receivables for boiler pressure parts supplied by GEPIL for various BHEL projects. The first tranche of INR 50.00 crores was received in October 2025.

2. Jaypee Group Settlement: GEPIL has amicably settled disputes with Jaypee Group companies, resulting in a recovery of INR 25.00 crores. This settlement involves the termination of two FGD EP contracts valued at INR 775.00 crores.

Operational Focus and Market Expansion

GEPIL is sharpening its focus on high-margin, shorter-cycle opportunities:

• The company has completed the strategic demerger of its Durgapur facility to JSW Energy, streamlining its portfolio and unlocking shareholder value.
• GEPIL has expanded its international presence, securing orders in seven countries including Saudi Arabia, Turkey, Austria, Australia, UAE, Malaysia, Indonesia, and Morocco.
• The company won a NOx abatement and performance improvement order worth INR 47.00 crores from Adani Mahan for 600-megawatt units.

Management Commentary

Puneet Bhatla, Managing Director of GEPIL, stated, "Our strategic focus on core services is progressing well, as evidenced by the 45% quarter-on-quarter growth. We have significantly improved our operational profitability, which is a direct outcome of our disciplined execution of our backlog and growth initiatives in the Services segment."

Aashish Ghai, CFO, added, "The settlements with BHEL and Jaypee Group, along with the strategic demerger of the Durgapur facility, reflect our commitment to reducing financial exposure, optimizing operational costs, and marching towards sustained profitability backed by our core services business."

Future Outlook

GEPIL remains confident in its ability to grow and stabilize its services segment, focusing on profitable, fast-turnaround, and cash-accretive orders. The company's strategy includes:

1. Expanding its core services business, including spare parts supply, repair capabilities, and overhauling and maintenance services.
2. Leveraging its access to manufacturing facilities through strategic partnerships and agreements.
3. Capitalizing on the expected growth in thermal power generation, which is projected to contribute over 55% of electricity generation by 2030-2032.

As GEPIL continues to execute its focused strategy, investors can expect the company to build on its momentum in the core services business while maintaining financial discipline and operational excellence.

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.