📍 At a glance
GMR Power & Urban Infra (GPUIL) pulled a surprise in FY25 — from a ₹127 Cr loss last year to a ₹1,552 Cr profit this year. OPM touched 24%, cash flows were solid, and interest costs were somehow handled. But while the company turned green, FIIs turned their backs — dropping from 21% holding to just 4.99%. So, is this a missed multibagger or a landmine with solar panels?
🏗️ About the Company
GMR Power & Urban Infra Ltd is part of the GMR Group, the same group that builds airports, power plants, and sometimes investor hopes.
This demerged entity now focuses on:
- Thermal & renewable energy projects
- Urban infra (think smart cities and power infra)
- Transportation segments (non-airport)
It’s the infrastructure cousin that got less press but is quietly growing.
👥 Key Managerial Personnel
- G. B. S. Raju – Chairman
- Ajay Kumar Singh – CEO & Executive Director
- Manish Shah – CFO (has the unenviable task of managing ₹10,259 Cr debt)
Management has been restructuring, refinancing, and reviving assets like a full-time ICU team.
📊 5-Year Financial Snapshot (FY21–FY25)
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 2,733 | 4,102 | 5,516 | 4,489 | 6,344 |
| EBITDA / OPM | ₹44 / 2% | ₹495 / 12% | ₹427 / 8% | ₹906 / 20% | ₹1,534 / 24% |
| Net Profit (₹ Cr) | -2,185 | -652 | 1,139 | -127 | 1,552 |
| Other Income (₹ Cr) | -552 | 441 | 2,304 | 785 | 2,228 |
| ROCE (%) | — | 8% | 19% | 11% | 13% |
🧨 Note: A big chunk of FY25 profit is from Other Income (₹2,228 Cr). Not all profits come from business — some come from balance sheet gymnastics.
🧾 Quarterly Runway
| Quarter | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM (%) | EPS (₹) |
|---|---|---|---|---|
| Q1 FY25 | 1,612 | 1,362 | 32% | 20.30 |
| Q2 FY25 | 1,384 | 250 | 30% | 3.57 |
| Q3 FY25 | 1,611 | -108 | 17% | -1.49 |
| Q4 FY25 | 1,737 | 49 | 17% | 0.61 |
⚠️ The big Q1 was likely due to one-off gains. Normalised profit seems far lower in Q3 & Q4.
💼 Balance Sheet Breakdown
| Year | Borrowings (₹ Cr) | Reserves (₹ Cr) | Net Worth (₹ Cr) | Debt/Equity |
|---|---|---|---|---|
| FY21 | 11,653 | -2,057 | Neg Net Worth | NA |
| FY24 | 13,876 | -3,219 | Still Negative | NA |
| FY25 | 10,259 | +229 | Now Positive 💪 | 2.9x approx |
📌 Company has finally turned the corner on net worth. It now has positive equity after 4 years of red.
🪫 Risks & Red Flags
- 💣 Promoter Pledge: 75.4% of promoter shares are pledged
- 🧾 Contingent Liabilities: ₹5,484 Cr worth — pray they remain contingent
- ⚡ Interest Coverage: Still weak, due to high debt (₹10,259 Cr)
- 🧮 Working Capital Flip: From -96 days to +81 days — slower receivables?
📈 Shareholding Shakeup
| Stakeholder | Sep ’22 | Mar ’24 | Mar ’25 |
|---|---|---|---|
| Promoters | 59.83% | 50.55% | 50.55% |
| FIIs | 21.07% | 3.41% | 4.99% |
| DIIs | 2.75% | 2.35% | 2.29% |
| Public | 16.36% | 43.70% | 42.16% |
👋 FIIs left in 2023 like it was a horror movie. But in FY25, they added ~1.6%. Smart money sniffing a turnaround?
🧮 Fair Value Estimate (EduInvesting Range)
| Metric | Estimate |
|---|---|
| EPS (TTM) | ~₹19.83 |
| Adjusted (core business) EPS | ~₹6–7 (ex-other income) |
| Target P/E Range | 10–15 (Infra avg) |
| Fair Value Range | ₹60 – ₹105 (conservatively) |
📉 CMP ₹109 means it’s already pricing in a lot of the FY25 gains — which may not be repeatable.
🧠 EduInvesting Take
Let’s be honest: This is not a blue chip. It’s a redemption arc.
But it’s one hell of an arc:
- From -₹2,185 Cr loss to ₹1,552 Cr PAT
- From negative net worth to equity positive
- From no investor interest to a slow FII comeback
Yet — this is still a debt-heavy, infra-heavy, pledge-heavy stock. If FY26 earnings aren’t clean or if Other Income vanishes — you’re back to square one.
But if you’re a high-risk, turnaround-hungry infra bro, this is the kind of script you might like.
🔚 TL;DR
- ✅ FY25 PAT: ₹1,552 Cr vs loss last year
- ✅ OPM improved to 24%
- ✅ Net worth turned positive
- ⚠️ FIIs dumped in FY23 but slowly returning (now 4.99%)
- ⚠️ 75.4% promoter shares pledged
- ⚠️ Fair Value: ₹60–₹105 based on core business
- 🎯 CMP ₹109 implies thin upside unless earnings sustain
This isn’t a “sip your coffee and forget it” stock.
This is: “keep one eye on the news and the other on the pledge data” stock.
Author: Prashant Marathe
Date: 12 June 2025
Tags: GMR Urban Infra, GMRPUIL, infra stocks, power sector, FII selling, turnaround stocks, pledged shares, net worth revival
