GE Power India Ltd: Boilers, FGDs, and a 105% ROE That Looks Like an Accounting Error
1. At a Glance
GE Power India Ltd, once the EPC arm flexing turbines and hydro dreams, is now running on fumes of flue-gas desulphurization (FGD) contracts and “other income” steroids. Sales growth is negative over five years, order book stands at ₹2,560 crore, and FY25 net profit magically revived to ₹247 crore thanks to ₹379 crore “other income.” Stock is at ₹348, 7.4x book value, and that 105% ROE? More like “Return on Excel.”
2. Introduction
If Indian power equipment companies were Bollywood characters, BHEL would be the aging superstar, Siemens the classy NRI cousin, and GE Power India the underdog trying to stay relevant with cameos in FGD projects.
Born as ALSTOM India before GE swallowed it, this company was supposed to electrify India’s power sector with hydro, gas, and thermal EPC. Instead, it has spent the last decade oscillating between losses, litigations, and “restructuring.”
The latest script twist came in July 2024: GE Power exited its hydro and gas EPC businesses entirely, declaring “FGD hi asli business hai.” Flue-gas desulphurization might sound boring, but with India mandating emissions cuts, it’s a ₹3,000 crore buffet for the next 3–4 years.
But here’s the paradox: operating margins remain negative (-5.9% in FY25 TTM), working capital is a graveyard (409 debtor days!), and every time profits appear, they’re dressed in “other income.” Yet the stock rallied 48% in six months because smallcap investors are convinced FGDs are the new fintech.
Stick around—things get spicier two scrolls down.
3. Business Model – WTF Do They Even Do?
GE Power India plays three roles:
EPC & Core Services – Boilers, turbines, generators, and air quality systems. Basically the construction crew for power plants.
Service Upgrades – The equivalent of AMC packages for NTPC and utilities—“boiler cleaning subscription” included.
FGD (Flue-Gas Desulphurization) – Their current obsession. India’s pollution norms force coal plants to install FGDs. GE Power installs these units, billing utilities like NTPC.
Durgapur Parts Factory – Supplies boiler pressure parts and even cryogenic vessels. Some exports to APAC & MENAT, but think of it as their spare parts bazaar.
So yes, EPC + spares + pollution control gear. But with hydro/gas gone, they’re basically the Swiggy of FGDs—waiting for orders to deliver “clean air.”
4. Financials Overview
Source table
Metric
Latest Qtr (Jun ’25)
YoY Qtr (Jun ’24)
Prev Qtr (Mar ’25)
YoY %
QoQ %
Revenue
₹287 Cr
₹246 Cr
₹266 Cr
16.4%
7.9%
EBITDA
-₹12 Cr
-₹18 Cr
-₹35 Cr
Improvement
Less negative
PAT
₹34.7 Cr
-₹10 Cr
₹164 Cr
Swing
-78.8%
EPS (₹)
5.16
-1.42
24.4
Swing
Painful fall
Commentary: Core ops still bleeding, but PAT rescued by “other income.” EPS is like a yo-yo—24 one quarter, 5 the next. Investors must feel like watching India-Pak cricket: unpredictable drama every match.
