GE Power India Ltd Q1 FY26 – From ₹-441 Cr Loss to ₹247 Cr Profit, ROE Now 105%, but Sales Growth Still Missing the Voltage ⚡

1. At a Glance

GE Power India is like that student who always topped in theory but failed practicals. After years of negative growth, it has suddenly pulled off a shocking 105% ROE (FY25) thanks to one-off gains and accounting jugglery. The revenue is limping at just ₹1,088 Cr TTM, yet the market is valuing it at ₹2,380 Cr. The order book is decent at ₹2,560 Cr, but cash collection is slower than Mumbai Metro construction. The stock trades at 7.5x book value, which is basically investors saying: “We don’t care about sales, we just like the drama.”

2. Introduction

Welcome to the GE Power India show — an EPC company that has been through more plot twists than a daily soap. Incorporated to power India, it has instead powered Excel sheets with red ink for a decade.

Once upon a time, it was supposed to be a jewel in the power equipment sector, manufacturing boilers, turbines, generators, and even flue-gas desulphurization systems (FGDs). But over the last 10 years, its revenue graph looks like the Sensex during demonetization week — full of dips, crashes, and disappointment.

In FY22, the company posted losses that would make Kingfisher Airlines proud. Then in FY23, it doubled down with more pain. Finally, FY25 arrives and suddenly — boom! — a ₹247 Cr profit. Before you open the champagne, hold on. This profit includes a ₹295 Cr exceptional gain from selling the Hydro business. Without that, it’s just another sob story.

But here’s the twist: the company is now exiting distractions (Hydro, Gas) and focusing only on FGD and boiler parts. It expects ₹3,000 Cr in business in this segment over the next 3–4 years. In short, GE Power is now saying: “Chhodo kal ki baatein, aaj kuch naya karte hain.”

Question to you: would you trust a company that needed 10 years to find its “core focus”?

3. Business Model – WTF Do They Even Do?

Let’s decode this. GE Power India is essentially a power equipment tailor. Instead of making ready-made electricity, it stitches the machines that produce it.

• Core Services: Boilers, turbines, generators, and air quality systems. If you’re NTPC, BHEL, or any state electricity board, GE Power is your “theka-wala.”
• Service Upgrades: Your plant is old? Don’t worry. GE comes with spanners and an upgrade plan. Think of it like Flipkart “Exchange Offer” for turbines.
• FGD (Flue-Gas Desulphurization): With India moving towards cleaner coal plants, FGD is the hot samosa on the plate. GE expects ₹3,000 Cr of business here. Basically, “pollution hatao, GE ko paisa dilao.”
• Durgapur Parts: From boiler pressure parts to cryogenic vessels, this is the spare parts bazaar. Clients include everyone from NTPC to L&T to Linde.

But here’s the kicker: 89% of revenue is still from construction contracts. So while the company looks like a diversified player on paper, in reality, it’s still heavily dependent on “project work.” And we know how Indian infra projects go — delays, litigations, and more delays.

4. Financials Overview

Commentary:
EBITDA is still negative — basically the company spends more to run projects than it earns. PAT looks positive thanks to “other income” magic. Last quarter’s EPS of 24.4 has crashed to 5.16. The roller-coaster is so wild, even Wonderla rides look boring.

Question: would you pay 29x EV/EBITDA for a