GVPIL - GE Power

📊 NSE: GVPIL 🏢 Heavy Electrical Equipment 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Overall revenue for FY2024 was INR 1,674.8 Cr, a decline from INR 1,795.8 Cr in FY2023. However, Q2 FY2026 saw a 29% YoY revenue increase. Core Services grew 34% YoY in Q2 FY2026, while the divestment of Hydro (31.1% of revenue) and Gas (5.1% of revenue) businesses resulted in a structural revenue reduction of approximately 36% to pivot toward higher-margin segments.

Geographic Revenue Split

While primarily focused on the Indian thermal market, the company has expanded its export footprint to 7 countries including Saudi Arabia, Turkey, Austria, Australia, UAE, Malaysia, Indonesia, and Morocco. Core services order intake saw an 18% apple-to-apple growth when excluding divested segments.

Profitability Margins

Operating Profit Margin improved by 92%, moving from -15.5% in FY2024 to -1.3% in FY2025. Net Profit Margin (before tax) improved by 100%, reaching 0.0% from -10.9% YoY. Gross margins for project-related direct costs stand at approximately 22% as of Q2 FY2026.

EBITDA Margin

Operating loss (OPBDIT/OI) was -9.1% in FY2024, improving from -16.0% in FY2023. The company is trending toward sustained operational profitability through a 45% QoQ growth in high-margin Core Services and the elimination of low-margin EPC commissioning scopes.

Capital Expenditure

Not explicitly disclosed in absolute INR Cr for future periods, but the company is hiving off its Durgapur manufacturing facility to JSW Energy to transition to an asset-light engineering and services model.

Credit Rating & Borrowing

Credit rating reaffirmed at [ICRA]BBB (Negative) for long-term and [ICRA]A3+ for short-term. Borrowing costs are mitigated by a 100% reduction in external debt to zero as of March 31, 2025, and access to a GE internal cash pool with a sanctioned limit of INR 286 Cr.

⚙️ Operational Drivers

Raw Materials

Key inputs include boiler spares (valued at INR 4 Cr per 8GW base), turbine components, flue-gas desulphurisation (FGD) equipment, and bought-out components for NOx abatement systems.

Import Sources

Sourced globally through the GE Vernova network and locally in India; specific country-wise import percentages are not disclosed, though the company serves an 8GW installed base across 7 international markets.

Key Suppliers

Key suppliers include GE Vernova group entities for technology and components, and JSW Energy which is the new owner of the Durgapur facility.

Capacity Expansion

The company is shifting from manufacturing to services; it currently supports an 8GW installed base for boiler spares and recently secured a 600MW NOx abatement order for Adani Mahan.

Raw Material Costs

Profit margins are highly susceptible to volatility in raw material prices due to the fixed-price nature of long-term contracts. Inventory turnover decreased by 40% to 8.6 in FY2025 due to a decrease in average inventory levels.

Manufacturing Efficiency

Transitioning to an engineering-led model; efficiency is measured by the reduction in project execution duration following the exclusion of hydro and construction segments.

Logistics & Distribution

Not disclosed as a specific percentage, but the focus on 'Core Services' and 'Spares' typically involves lower logistics complexity compared to full-scale EPC plant construction.

📈 Strategic Growth

Expected Growth Rate

18%

Growth Strategy

Growth will be achieved by focusing on the 'Core Services' segment which saw 45% QoQ growth, expanding NOx abatement offerings (INR 47 Cr order from Adani), and executing turbine upgrades (INR 243 Cr Wanakbori order). The company is also penetrating 7 new international markets for boiler spares.

Products & Services

Flue-gas desulphurisation (FGD) systems, NOx abatement systems, boiler spares, turbine upgrades, and technical field services for thermal power plants.

Brand Portfolio

GE Power, GE Vernova.

New Products/Services

Export of boiler spares and NOx abatement services; the Adani Mahan order worth INR 47 Cr represents a key win in the clean environment segment.

Market Expansion

Targeting the non-GEPIL fleet for services and expanding into 7 international geographies to diversify revenue beyond the Indian thermal sector.

Market Share & Ranking

GEPIL is a major player in the Indian power equipment industry with an operational track record of several decades.

Strategic Alliances

Strategic demerger of the Durgapur undertaking to JSW Energy and a settlement agreement with BHEL to resolve historical disputes.

🌍 External Factors

Industry Trends

The industry is shifting toward emission control (FGD/NOx) and services rather than new plant construction. GEPIL is positioning itself as a services-first company to align with this trend.

Competitive Landscape

Faces intense competition from local players like BHEL and other global majors in the thermal and emission control segments.

Competitive Moat

Moat is built on GE Vernova's technological parentage (68.58% shareholding) and a massive installed base that requires proprietary spares and specialized services.

Macro Economic Sensitivity

Highly sensitive to national power policy; thermal capacity addition slowed by 32% in FY2025, impacting the addressable market for new equipment.

Consumer Behavior

Shift toward clean energy and environmental compliance is driving demand for NOx abatement and FGD systems.

Geopolitical Risks

Global presence of GE Vernova provides a buffer, but local competition from established players remains intense.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by Central Pollution Control Board norms for thermal plants, which mandate the installation of FGD and NOx control equipment.

Environmental Compliance

Actively pursuing NOx abatement and FGD orders to meet tightening Indian environmental norms; secured INR 47 Cr in NOx orders in H1 FY2026.

Taxation Policy Impact

Effective tax impact is reflected in the improvement of Net Profit Margin from -10.9% to 0.0% YoY.

Legal Contingencies

Settled a long-standing dispute with Jaypee Power (JPVL) for INR 25 Cr; settlement reached with BHEL resulting in a provision reversal of INR 23.8 Cr.