Gujarat Industries Power Co Reports Q2 Revenue Growth Amid Profitability Challenges

Gujarat Industries Power Company Limited (GIPCL) has released its financial results for the second quarter, revealing a mixed performance characterized by revenue growth but declining profitability.

Revenue Growth

GIPCL reported a significant increase in revenue for Q2, with the top line reaching ₹3.20 billion, up from ₹2.76 billion in the same period last year. This 15.9% year-over-year growth demonstrates the company's ability to expand its operations and potentially capture a larger market share in the power generation sector.

Profitability Metrics

Despite the robust revenue growth, the company faced challenges in maintaining its profitability:

Metric	Q2 Current Year	Q2 Previous Year	Change
EBITDA	₹776.00 million	₹813.00 million	-4.55%
EBITDA Margin	24.19%	29.46%	-527 bps
Net Profit	₹213.00 million	₹347.00 million	-38.62%

The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) declined by 4.55% year-over-year, indicating increased operational costs or pricing pressures. The EBITDA margin compressed significantly from 29.46% to 24.19%, suggesting a decrease in operational efficiency or higher input costs.

Net profit saw a substantial decline of 38.62%, falling to ₹213.00 million from ₹347.00 million in the previous year's corresponding quarter. This sharp decrease in bottom-line performance may be attributed to various factors such as increased finance costs, depreciation, or tax expenses, which are not fully reflected in the EBITDA figures.

Financial Position

As of September 30, GIPCL's balance sheet showed:

Total Assets: ₹85,800.73 crore
Total Equity: ₹35,360.23 crore
Non-current Liabilities: ₹45,495.27 crore
Current Liabilities: ₹4,945.22 crore

The company maintains a substantial asset base, with a significant portion allocated to Property, Plant, and Equipment, reflecting its capital-intensive nature as a power generation company.

Cash Flow and Liquidity

GIPCL reported a cash and cash equivalents balance of ₹2,325.00 crore at the end of the half-year, indicating a strong liquidity position. The company's cash flow statement reveals:

Net Cash Flow from Operating Activities: ₹3,089.30 crore
Net Cash Flow used in Investing Activities: (₹12,255.39) crore
Net Cash Flow from Financing Activities: ₹6,816.53 crore

The positive operating cash flow demonstrates the company's ability to generate cash from its core business operations. However, the significant cash outflow in investing activities suggests substantial capital expenditures or investments, which may be part of the company's growth strategy or modernization efforts.

Outlook and Challenges

While GIPCL has shown strong revenue growth, the decline in profitability metrics presents challenges that the management may need to address. The company's ability to manage costs, improve operational efficiency, and navigate the competitive landscape of the power sector will be crucial for future performance.

Investors and analysts will likely be watching closely to see how GIPCL plans to balance its growth initiatives with profitability improvement measures in the coming quarters. The power generation sector's dynamics, including regulatory changes, fuel costs, and demand fluctuations, will continue to play a significant role in shaping the company's financial trajectory.

Note: The financial figures mentioned in this article are based on the unaudited financial results for the quarter ended September 30, as reported by Gujarat Industries Power Company Limited.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.65%	-0.62%	-9.26%	-18.47%	-16.74%	+122.77%

Gujarat Industries Power Company Limited (GIPCL) announced a change in its board composition as Jai Prakash Shivahare, IAS, stepped down from his role as Director, effective November 6, 2025. This development comes following Shivahare's transfer from his position as Managing Director of Gujarat Urja Vikas Nigam Limited (GUVNL) to a new role as Joint Secretary in the Department for Promotion of Industry and Internal Trade, Government of India.

Details of the Resignation

The company disclosed the following key information regarding the directorial change:

Aspect	Detail
Director Name	Jai Prakash Shivahare, IAS
DIN	07162392
Position	Director (Nominee of Gujarat Urja Vikas Nigam Limited)
Resignation Date	November 6, 2025 (after noon)
Reason for Change	Transfer to new government position

Background of the Transfer

The resignation follows administrative orders:

Department of Personnel & Training, Government of India issued Order No. 33/11/2025 – EO (MM-I) on November 1, 2025, transferring Shivahare to his new role.
General Administration Department, Government of Gujarat, issued Notification No. AIS/35.2025/52/G on November 5, 2025, formalizing the transfer.

Impact on GIPCL

Shivahare's departure marks the end of his tenure as a nominee director representing Gujarat Urja Vikas Nigam Limited on GIPCL's board. The company has not announced a replacement for this position.

Regulatory Compliance

GIPCL has informed the stock exchanges about this change in directorship, adhering to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This ensures that shareholders and the market are informed of significant changes in the company's governance structure.

The resignation of Jai Prakash Shivahare from GIPCL's board reflects the impact of government appointments on public sector enterprise directorships. Stakeholders may observe any subsequent appointments to GIPCL's board and their potential implications for the company's direction.