This article first appeared on GuruFocus .
Release Date: November 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
GE Power India Ltd ( BOM:532309 ) reported a 23% increase in overall sales, driven by strong performance in core services.
-
The company successfully settled disputes with BSL and JP Venture Power Limited, unlocking cash inflow and strengthening its financial position.
-
GE Power India Ltd expanded its international presence by securing orders in seven countries, including Saudi Arabia, Turkey, and Australia.
-
The strategic demerger of the Durgapur undertaking to JSW Energy is expected to streamline the portfolio and unlock shareholder value.
-
The company reported a significant increase in core order intake, marking a 45% rise compared to the previous year.
Negative Points
-
The order backlog decreased from INR 2,662 crores to INR 1,825 crores due to the termination of two FGDEP contracts.
-
Gross margins for the current quarter were reported at 33%, a decline from 42% in the corresponding quarter of the previous year.
-
The company incurred a charge of INR 27 crores related to the JP Power settlement, impacting profitability.
-
There is a concern over the scalability of the service business, especially with the sale of hydro and gas businesses and the Durgapur factory.
-
Receivables remain a concern, with a significant portion tied up in settlements and retention linked to project milestones.
Q & A Highlights
-
Warning! GuruFocus has detected 2 Warning Signs with BOM:532309.
-
Is BOM:532309 fairly valued? Test your thesis with our free DCF calculator.
Q: How does the management explain the fall in outstanding orders? A: The fall in orders is due to the absence of FGD and upgrade numbers from the previous period, which were mostly product-based. However, comparing core services, there is an 18% increase in order intake. The current order backlog stands at INR 1,825 crore as of September 30, 2025. - Unidentified_2, Managing Director
Q: Can you explain the gross margins for the current quarter? A: The gross margin for the current quarter is approximately 33%, primarily due to core services, which now constitute 55% of the top-line. The quarter also includes a charge of INR 27 crore related to a settlement with JP Power. - Unidentified_3, CFO
Q: What is the status of the settlement agreement with BHEL? A: BHEL has agreed to pay INR 340 crore, which is already in our receivables. This settlement is part of a joint agreement involving Vernova entities and BHEL. The cash flow from this settlement will be realized over the next 2 to 3 quarters. - Unidentified_3, CFO
Q: What is the scalability of the service business given the sale of hydro and gas businesses? A: The service business focuses on core services, including spare parts, repairs, and maintenance. We have access to facilities for manufacturing through contracts with Arabelle Solutions and JSW Energy, ensuring continuity in serving our customers. - Unidentified_3, CFO
Q: Are there any concerns regarding the collection of the INR 1,000 crore receivables? A: The company has an expected credit loss policy to account for any perceived risks. A significant portion of the receivables is from BHEL, with whom we have a signed agreement. The receivables are solid, and any risks have been adequately provided for. - Unidentified_3, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
