GVKPIL - GVK Power Infra.

📊 NSE: GVKPIL 🏢 Engineering - Turnkey Services 📅 Last Updated: 12/13/2025 22:44

💰 Financial Performance

Revenue Growth by Segment

Standalone total operating income grew 11.15% YoY to INR 98.15 Cr in FY19 from INR 88.30 Cr in FY18, primarily driven by consultancy services and interest income from financial guarantees. Consolidated revenue grew 13.78% to INR 3,455.20 Cr in FY18 from INR 3,036.85 Cr in FY17.

Geographic Revenue Split

Not disclosed in available documents; however, operations are primarily based in India (Hyderabad, Mumbai, Punjab) with associate interests in Singapore (GVK Coal Developers).

Profitability Margins

Standalone PAT margin for FY19 was 116% (INR 113.94 Cr) compared to a negative margin in FY18 (Loss of INR 36.08 Cr), though this was inflated by a non-cash tax reversal of INR 80.47 Cr. Consolidated net loss was INR 537.37 Cr in FY18 due to subdued operations and high finance costs.

EBITDA Margin

Standalone PBILDT margin improved to 44.93% (INR 44.10 Cr) in FY19 from a negative margin in FY18 (Loss of INR 4.82 Cr). Core profitability remains under pressure due to high interest obligations.

Capital Expenditure

Not disclosed in available documents; however, the group recognized a massive exceptional loss of INR 1,041.58 Cr in Q1 FY26 due to the deconsolidation of GVK Energy Limited assets.

Credit Rating & Borrowing

The company carries a 'CARE D' (Default) rating as of December 2018 for bank facilities totaling INR 201.32 Cr due to persistent delays in debt servicing and a stretched liquidity position.

⚙️ Operational Drivers

Raw Materials

Coal and water for power generation; bitumen, stone aggregates, and steel for road construction. Specific cost percentages for each are not disclosed.

Import Sources

Coal was historically sourced from Australia (via GVK Coal Developers Singapore) and domestic mines like Tokisud; however, control over these assets has been lost due to insolvency proceedings.

Key Suppliers

Not disclosed in available documents; however, lenders like Phoenix ARC, Edelweiss, and ARCIL are primary financial 'suppliers' of capital currently in dispute.

Capacity Expansion

Current capacity is declining as the group lost control of GVK Energy Limited (May 2025) and its Airport vertical (July 2021). No new expansions are planned as the company is under financial stress.

Raw Material Costs

Not disclosed in available documents; however, finance costs and depreciation were cited as the primary drivers for the INR 537.37 Cr consolidated loss in FY18.

Manufacturing Efficiency

Capacity utilization is severely impacted; the group reported that one subsidiary project has been terminated and is following a liquidation basis of accounting.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

The company has no clear growth strategy and is currently in a divestment and liquidation phase. It lost control of its airport business to Adani Airport Holdings in 2021 and its energy business to CIRP in 2025. Strategy is limited to legal defense against CBI/ED investigations and attempting to maintain 'going concern' status through the insolvency process.

Products & Services

Consultancy services, power generation (historically), and road infrastructure management (GVK Jaipur Expressway).

Brand Portfolio

GVK, GVK ONE.

New Products/Services

No new products or services are planned; the focus is on debt resolution.

Market Expansion

None; the company is exiting major markets like Airports and Power.

Market Share & Ranking

The company has lost its leading position in the private airport and power sectors following the divestment of MIAL and the insolvency of GVKEL.

Strategic Alliances

Historical alliance with Adani Airport Holdings Limited (AAHL) for debt acquisition and security transfers; however, this resulted in the loss of the airport vertical.

🌍 External Factors

Industry Trends

The infrastructure sector is shifting toward consolidation by larger players (like Adani); GVKPIL is poorly positioned as it is losing its flagship assets to insolvency and debt settlements.

Competitive Landscape

Key competitors like Adani Group have acquired GVK's prime assets (MIAL), leaving GVKPIL with a depleted portfolio of stressed assets.

Competitive Moat

The company's moat (experienced promoters and diversified infra portfolio) has eroded due to defaults and legal investigations. The 'GVK' brand is currently associated with financial distress and regulatory scrutiny.

Macro Economic Sensitivity

Highly sensitive to interest rate fluctuations and credit availability; current liabilities exceed assets significantly, making the company vulnerable to any tightening of liquidity.

Consumer Behavior

Not applicable as the company is a B2B/Government-linked infrastructure holding firm.

Geopolitical Risks

Exposure to Australian regulatory and environmental clearances for coal projects, which have stalled and led to full impairment of INR 790.48 Cr in investments.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Insolvency and Bankruptcy Code (IBC), with GVKEL admitted into CIRP as of May 6, 2025. Electricity industry regulations and PMLA (Prevention of Money Laundering Act) are also critical.

Environmental Compliance

Not disclosed in available documents; however, environmental clearances are a cited hurdle for the GVK Coal project in Australia.

Taxation Policy Impact

The company benefited from a non-cash tax reversal of INR 80.47 Cr in FY19, which was the sole reason for its standalone net profit.

Legal Contingencies

Pending investigations by the CBI and ED regarding alleged irregularities, conflict of interest, and money laundering at MIAL. The group also faces a claim in the High Court of Justice in England and Wales by lenders of GVK Coal Developers.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'Going Concern' status; auditors issued a disclaimer because liabilities are much higher than assets and the group has defaulted on most loan repayments.