1. At a Glance
Welcome to the thrilling sequel of GMR Power & Urban Infra Ltd (GPUIL) — the company that manages to stay relevant even when profits go poof! In Q2FY26, it reported ₹1,810 crore in sales (up 30.8% YoY) but a net loss of ₹127 crore (down 295% — yes, that’s negative direction growth). Current market price: ₹127, market cap ₹9,058 crore, and a Debt-to-Equity ratio that would make any banker sweat at 8.23x. Promoter holding? A comfortable 50.6%, but here’s the spicy bit — 77.2% of that is pledged.
Return on capital employed (ROCE) stands at 13.2%, respectable until you remember it’s barely beating their interest coverage of 0.73x. In short, the company earns ₹1 and spends ₹1.37 explaining how it will one day make ₹2.
With ₹11,589 crore debt, ₹1,773 crore in “other income” (because accounting magic is real), and a ₹403 crore loss in FY25, GMR Power & Urban Infra continues its tradition — making every quarter look like a rollercoaster ride through an EPC site in monsoon.
But hey, at least it’s GMR. India’s favourite infrastructure soap opera never runs out of plot twists.
2. Introduction
You know that friend who constantly borrows money, launches new ventures, and insists they’re “just one deal away from making it big”? That’s GMR Power & Urban Infra Limited — the corporate embodiment of that friend.
Born from the grand GMR Group lineage, this company carries the heavy surname of airports, roads, and ambitious dreams that often collide with harsh financial reality. Founded under the empire of G.M. Rao, GPUIL was designed to be the energy and infrastructure powerhouse — the kind that builds the roads, lights the cities, and occasionally forgets to pay the electricity bill.
Over the years, GMR Power has built coal plants, gas plants, hydropower dreams, solar parks, and roadways long enough to lose your luggage on. The story is vast — 1650 MW of coal, 1156 MW of gas, 180 MW of hydro, 26 MW of solar, and even 3.4 MW of wind power (that’s like two windy afternoons in Rajasthan).
But numbers tell a tale of contrast. FY25 revenue shot up 41% to ₹6,344 crore, yet profits fell by 95%. Even their operating margin, though a muscular 19%, couldn’t save them from that ₹403 crore after-tax heartbreak. Still, GPUIL soldiers on — part engineer, part dreamer, part financial contortionist.
3. Business Model – WTF Do They Even Do?
If GMR Power were a restaurant, it’d serve everything from dosa to sushi to a vague promise of dessert later.
The company runs four major business kitchens:
- Energy (61%): Coal, gas, hydro, solar — if it burns, spins, or glows, GMR’s tried it. Two coal plants (1650 MW operational + 350 MW coming soon), one gas plant (1156 MW), and hydro ambitions reaching 1,425 MW under development. Think of it as the Thali of Indian
- power — everything’s there, but some dishes are still cooking.
- Roads & Transportation (18%): 1,814 lane-kilometres of roads and highways. From expressways to potholes, they’ve got it all covered.
- EPC (10%): Building infrastructure for others when you’ve already borrowed for your own. Their EPC arm is currently laying down 417 km of Dedicated Freight Corridor for DFCCIL — expected completion June 2024. (We’ll wait.)
- Urban Infrastructure (11%): A shiny 2,101-acre multi-product region in Krishnagiri, Tamil Nadu. Land bank ~906 acres. Translation: real estate dreams powered by Excel sheets.
And because diversification is their cardio — GMR is now entering Smart Metering, bagging a ₹7,593 crore UP government contract to install 7.5 million prepaid meters. That’s a lot of billing potential… if consumers pay on time.
4. Financials Overview
Quarterly Comparison (₹ crore)
| Metric | Q2FY26 | Q2FY25 | Q1FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1,810 | 1,384 | 1,648 | 30.8% | 9.8% |
| EBITDA | 341 | 416 | 401 | -18% | -15% |
| PAT | -127 | 250 | -7 | -151% | -1,714% |
| EPS (₹) | -2.21 | 3.57 | -0.11 | N/A | N/A |
(EPS annualised = -₹8.84, hence P/E not meaningful)
Commentary:
GMR’s numbers are like a quiz: revenues climb 30%, profits fall 295%, and interest expenses don’t even blink. The ₹1,810 crore topline looks grand until you see ₹446 crore in interest and ₹164 crore in depreciation eating away the glamour.
If accounting were an Olympic sport, GMR would win gold in “creative resilience.”
5. Valuation Discussion – Fair Value Range (Educational Only)
Let’s try to value this financial adventure three ways:
a) P/E Method (not meaningful)
Since EPS is negative, we can’t apply P/E meaningfully.
b) EV/EBITDA Method:
- EV = ₹19,837 Cr
- EBITDA (TTM) = ₹1,822 Cr
→ EV/EBITDA = 10.9x (matches screener)
If peer average EV/EBITDA = 9–12x (NTPC 8.5x, JSW Energy 11x, Adani Green 15x),
Fair Value Range (EV basis) = ₹17,000 – ₹21,000 crore.
Translated to equity value: ₹110–₹135 per share.
c) DCF Method (simplified)
Assuming ₹1,800 Cr operating cash flow, 3% perpetual growth, 11% discount:
→ Fair value = ₹8,500 – ₹9,500 crore range.
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