1. At a Glance
Ladies and gentlemen, GE Power India Ltd just pulled a Bollywood-style comeback in Q2 FY25 — from the ashes of operating losses to a 10% operating profit margin, with a ₹3,400 million settlement twist, and a JSW demerger subplot. The script writes itself.
At ₹353 a share and a market cap of ₹2,374 crore, GE Power India (NSE: GVPIL) is finally getting noticed for more than its boiler blues. The stock trades at a spicy P/E of 50.9, compared to the industry median of 46.7, while maintaining an impressive ROE of 105%, thanks (partly) to extraordinary items and a lighter balance sheet.
Revenue for Q2 FY25 stood at ₹281 crore, up 29% YoY, and PAT at ₹45 crore, up a blockbuster 78.6%. Sure, a good chunk came from settlements and one-offs, but even the auditors must have smiled this quarter.
Debt? A modest ₹20 crore. Promoters? Still comfortably at 68.6%. Dividend? Don’t ask — GE Power prefers saving electrons, not distributing them.
The company’s ₹2,560 crore order book and focus on high-margin flue-gas desulphurization (FGD) and service upgrades promise a better sequel. Whether it’s a true revival or a plot twist before the end credits — let’s find out.
2. Introduction
GE Power India has been through more transformations than an IPL franchise logo. Once a powerhouse of power equipment EPCs, then an unwanted stepchild of loss-making contracts, it’s now reinventing itself as a leaner, cleaner FGD and service specialist.
For years, the company was known for negative margins, delayed payments, and client dependence so high that NTPC probably knew their CFO by first name. Between FY22 and FY24, it looked like the company’s boilers weren’t the only thing losing pressure.
Then came FY25 — GE Power dropped the deadweight (literally), selling its Hydro and Gas Power businesses to GE Vernova and signing off on a demerger of its Durgapur boiler division to JSW (effective July 1, 2025). The new avatar? Focused on core FGD systems, service upgrades, and select overseas projects.
The BHEL settlement of ₹3,400 million was the surprise item in the Q2 FY25 results, showing that sometimes, closure pays — literally. The stock’s 6-month rally of 46% (before cooling off 3.6% last quarter) shows that investors, too, love a redemption story.
Is this GE’s “Rocky Balboa” moment, or just another training montage before the next hit? Stay tuned.
3. Business Model – WTF Do They Even Do?
In short: GE Power India makes the stuff that makes power plants run — and sometimes, the stuff that makes them cleaner (if you believe in FGD).
Their business splits into four drama-rich segments:
- Core Services – Boilers, turbines, generators, and air-quality systems — basically, the heart and lungs of power plants. The company builds and services them for clients like BHEL, NTPC, and Siemens.
- Service Upgrades – The repair and rejuvenation arm that milks aging state utilities’ boilers for a few more years of steam. This segment now contributes 70% of new orders.
- FGD Systems – The greenwashing arm. These systems scrub out SO₂ from thermal plant emissions — an environmental necessity turned profitable niche.
- Durgapur Parts Business – The company’s engineering foundry and export hub. It supplies pressure parts and cryogenic vessels to L&T, Linde, and international markets.
But wait, Durgapur is now being spun off to JSW Energy as per the September 2025 scheme — 10 JSW shares for every 139 GE Power shares. So GE Power is essentially exiting manufacturing-heavy operations and sticking to EPC and services.
In short, they’re moving from being
