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GE Power India Limited — Q4 FY26
GE Power India delivered a strong Q4 FY26 with revenue of ₹315 crore (+19% YoY) driven by upgrade volumes and core services growth.
bullish
high
✓ Verified against BSE filing
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GE Power India delivered a strong Q4 FY26 with revenue of ₹315 crore (+19% YoY) driven by upgrade volumes and core services growth. Full-year revenue rose 21% YoY to ₹1,269 crore, with core services orders up 32% YoY. EBITDA margin for Q4 was 37.6%, though this includes a one-off ECL reversal of ~₹44 crore from BHL settlement; normalized EBITDA margin for FY26 was 11%. The company continues its pivot to asset-light, high-margin service-led business, with the demerger of Durgapur facility to JSW Energy on track. Order backlog stands at ₹1,628 crore, with core services backlog up ~40% YoY. Management guided for sustained profitability and cash generation, but near-term revenue visibility is limited as new build orders decline. Key risk: slower-than-expected ramp-up in core services orders could pressure revenue growth.
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FGD regulatory changes reduce addressable market
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Core Services Orders Growth (FY26 vs FY25)
32%
+32% YoY
Core services orders grew 32% year-over-year, reflecting strong demand for service-led offerings.
Order Book (as of Mar 31, 2026)
₹1,628 crore
-39% YoY
Order book declined due to termination of FGD contracts and ramp-down of new build projects.
Core Services Order Backlog Growth (YoY)
~40%
+40% YoY
Core services backlog increased ~40% YoY, indicating strong momentum in the strategic focus area.
Market Share in Core Services
18%
flat
Company holds ~18% share of the estimated ₹3,500-4,000 crore core services market.
What Changed vs Last Quarter
NEW
Core services order growth expected to continue
Management expects core services orders to grow further, targeting increased market share from current 18%.
NEW
Durgapur demerger to close within 12 months
The demerger of Durgapur facility to JSW Energy is targeted to close within 12 months from March 31, 2026, with a goal of completion within calendar 2026.
NEW
Normalized EBITDA margin base set at 11% for FY26
Management indicated that the normalized EBITDA margin (excluding one-offs) for FY26 was 11% and expects to at least maintain this level going forward.
DROPPED
Double-digit EBITDA margin target
Management targets normalized EBITDA margin of 10%+ for FY26 and going forward, with Q3 normalized margin at ~14.5%.
DROPPED
Revenue CAGR of 5-8% over next two years
Company expects top-line growth of 5-8% compounded annually, driven by core services growth offsetting EPC decline.
DROPPED
Core services mix to reach 80% in 2+ years
Volume mix of core services expected to rise from ~60% in next two years to ~80% thereafter.
DROPPED
BHL collections of ₹340 crore by FY26 end
Total expected collection from BHL settlement is ₹340 crore, with ₹216 crore already received as of reporting date.
NEW RISK
FGD regulatory changes reduce addressable market
Government notification in July 2025 exempted Category C plants (over 50% of installed base) from mandatory FGD installation, significantly shrinking the FGD opportunity.
NEW RISK
Declining order book may pressure future revenue
Total order book fell 39% YoY to ₹1,628 crore due to FGD contract termination and new build ramp-down, raising concerns about revenue visibility beyond FY27.
NEW RISK
Dependence on parent for global expansion limited
Management clarified that GE Power India's mandate is restricted to India and 13 countries for boiler services, and non-GE services are limited to India only, capping international growth.
RISK GONE
FGD market stagnation post government notification
No new FGD orders have been placed since the Ministry notification limiting installations; only ~8 GW of category A remains, with slow progress.
RISK GONE
Dependence on one-off items for profitability
Q3 PBT included ₹84 crore of one-off reversals; normalized EBITDA margin for 9 months is only ~10%, indicating underlying profitability is still thin.
RISK GONE
Execution risk in turbine upgrade orders
Turbine upgrades are long-gestation projects (3-4 years), which could strain cash flows and delay revenue recognition.
RISK GONE
NCLT approval delay for demerger
The demerger of Durgapur facility to JSW Energy is subject to multiple approvals; any delay could impact the planned asset-light strategy.
Fast read
Guidance and risk preview
Management expects core services orders to grow further, targeting increased market share from current 18%.
Government notification in July 2025 exempted Category C plants (over 50% of installed base) from mandatory FGD installation, significantly shrinki...
View Risks →