GPECO - GP Eco

📊 NSE: GPECO 🏢 Electric Equipment 📅 Last Updated: 12/13/2025 22:33

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 78.4% YoY to INR 247.44 Cr in FY25 from INR 138.68 Cr in FY24. H1 FY26 revenue reached INR 121.94 Cr, a 45.44% YoY increase from H1 FY25 (INR 83.84 Cr), driven by scaling EPC projects and manufacturing operations.

Geographic Revenue Split

The company is expanding solar deployment across Asia-Pacific, Africa, and Latin America to meet electrification and climate goals; specific percentage splits per region are not disclosed in available documents.

Profitability Margins

Net Profit Margin was 4.27% in FY25, down from 5.15% in FY24 due to increased operating expenses. However, PAT margin improved to 8.53% in H1 FY26, reflecting a 112.59% YoY growth in PAT to INR 10.40 Cr.

EBITDA Margin

EBITDA margin was 6.82% in FY25 (INR 16.88 Cr) and improved significantly to 12.74% in H1 FY26 (INR 15.54 Cr), a 354 BPS increase. The company targets 13-14% for full-year FY26 and 17-18% by FY27.

Capital Expenditure

Property, Plant & Equipment (PPE) increased 578% from INR 3.00 Cr in FY24 to INR 20.32 Cr in FY25 to support manufacturing expansion and the upcoming BESS facility.

Credit Rating & Borrowing

Debt-Equity ratio stood at 0.55 in FY25, down from 0.67 in FY24. Total borrowings include INR 2.29 Cr in long-term debt and INR 30.09 Cr in short-term debt to fund working capital for EPC projects.

⚙️ Operational Drivers

Raw Materials

Key raw materials include solar panels, solar cells, and battery components for the upcoming BESS facility. Raw material expenses accounted for 77.7% of total income in H1 FY26 (INR 94.78 Cr).

Capacity Expansion

The company is scaling its manufacturing base, supported by a 578% increase in PPE to INR 20.32 Cr in FY25, including a new facility for BESS expected to deliver 15% margins.

Raw Material Costs

Raw material costs were INR 94.78 Cr in H1 FY26, representing 77.7% of revenue. Procurement strategies focus on increasing purchasing strength through a larger manufacturing base.

Manufacturing Efficiency

The company is aiming for a 5x increase in PAT compared to historical levels by scaling manufacturing and improving purchasing strength.

📈 Strategic Growth

Expected Growth Rate

80%

Growth Strategy

The company aims to achieve an 80% CAGR over three years by scaling its manufacturing base to increase purchasing power, expanding into high-margin (15%) Battery Energy Storage Systems (BESS), and growing its asset-light EPC and recurring O&M revenue streams.

Products & Services

Solar EPC (Engineering, Procurement, and Construction) projects, Operations & Maintenance (O&M) services, and Battery Energy Storage Systems (BESS).

Brand Portfolio

GP Eco Solutions.

New Products/Services

New BESS (Battery Energy Storage Systems) products are expected to contribute higher margins of 15% compared to the 8-9% average for standard EPC projects.

Market Expansion

Targeting emerging markets in Asia-Pacific, Africa, and Latin America driven by electrification needs and climate goals.

🌍 External Factors

Industry Trends

The solar industry is seeing strong deployment in Asia-Pacific and Africa driven by climate goals. GPECO is positioning itself by transitioning from a pure EPC player to a manufacturer, targeting a margin increase from 6.82% to 17-18% by FY27.

Competitive Landscape

Operates in the competitive solar EPC and O&M market, differentiating through an asset-light model and a move toward higher-margin manufacturing (15% target for BESS).

Competitive Moat

GPECO's moat lies in its asset-light EPC model combined with recurring O&M income, providing stable cash flow. Its shift to in-house manufacturing is designed to capture more value, aiming to increase EBITDA margins to 17-18%.

Macro Economic Sensitivity

Highly sensitive to global renewable energy policies and electrification trends in emerging markets like Asia-Pacific and Africa.

Consumer Behavior

Increasing demand for sustainable energy and electrification in emerging markets is driving the shift toward solar solutions and battery storage.

Geopolitical Risks

Trade barriers or supply chain shifts in the global solar market could impact the procurement of components, affecting the 80% CAGR growth target.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act 2013 and GST regulations. The company must also follow technical standards for solar installations and manufacturing to maintain its EPC project quality.

Taxation Policy Impact

Effective tax rate for H1 FY26 was approximately 22.9% (INR 2.92 Cr tax on INR 12.72 Cr PBT).

Legal Contingencies

No specific pending court case values were disclosed; however, the auditor's report for FY25 noted that internal financial controls need to be strengthened to ensure the reliability of financial reporting.

⚠️ Risk Analysis

Key Uncertainties

Supply chain volatility and the need for stronger internal financial controls (as noted by auditors) are primary risks to achieving the 80% CAGR target.