GE Power India demerges Durgapur, posts Rs 277 cr EBITDA turnaround
The demerger eliminates a Rs 27 cr annual drag while core services order bookings grow 34% YoY, swinging profitability from Rs 251 cr loss in FY23.
What's new
- EBITDA swung from Rs 251 cr loss (FY23) to Rs 277 cr profit (FY26).
- Core services order bookings grew 34% YoY to Rs 734 cr, 25% CAGR since FY22.
- Durgapur facility demerged to JSW Energy effective July 1, 2025; 139 GE Power shares get 10 JSW shares.
- Net worth grew 8x to Rs 483 cr; liquidity at Rs 880 cr; credit rating upgraded to BBB+.
Themes from the call
Services Growth
Core services order book CAGR 25% since FY22, with Other OEM orders doubling to Rs 320 cr, driving revenue diversification.
Profitability
Value-over-volume strategy since 2024 shifted mix to high-margin service revenue, generating Rs 528 cr EBITDA swing.
Portfolio Restructuring
Durgapur demerger removes Rs 27 cr annual loss; 5-year MSA with JSW ensures supply continuity.
Guidance watch
- Demerger effective date set (July 1, 2025, retrospectively), subject to NCLT sanction.
- Supply chain independence target: 'very soon', no specific completion date.
- No FY27 revenue, EBITDA, or margin guidance provided.
Risk flags
- Supply chain independence timeline remains open-ended.
- Post-demerger execution risk: reliance on JSW MSA for manufacturing support.
- International expansion into seven markets adds execution complexity.
Key quotes
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"We stopped chasing volume for the sake of revenue and began chasing value for the sake of profitability."
— Puneet Patla, Management
The brief
GE Power India's turnaround is the headline, but the demerger of its Durgapur facility is the structural unlock. The company swung from a Rs 251 crore EBITDA loss in FY23 to a Rs 277 crore profit in FY26, driven by a deliberate shift from chasing low-margin volume to high-margin service contracts. Core services order bookings grew 34% year-on-year to Rs 734 crore, with third-party OEM work doubling to Rs 320 crore. Net worth expanded eightfold to Rs 483 crore, liquidity reached Rs 880 crore, and the credit rating was upgraded to BBB+. The Durgapur demerger, effective July 1, 2025, transfers a chronically underutilised asset that averaged Rs 27 crore in annual losses to JSW Energy. Shareholders get 10 JSW shares for every 139 GE Power shares, preserving their existing holding. A five-year manufacturing services agreement secures supply continuity, though management has not specified a completion date for achieving full supply chain independence. The services-led model is now the core: 25% CAGR in orders, faster cash conversion, and expanding international footprint. The demerger simplifies the portfolio, but the next test is sustaining service growth without manufacturing legacy drag. The financial recovery is real, but guidance remains absent for FY27. Investors now own a leaner services play with a clean balance sheet.
GE Power India's turnaround is real. The demerger is the clean-up. The services business is the story now.