At a Glance
GMR Power & Urban Infra (GPUIL) just reported Q1 FY26 and the numbers scream “soap opera.” Revenue stayed at ₹1,648 Cr, but a net loss of ₹7 Cr slapped investors despite a 24.3% OPM. Meanwhile, promoters have pledged 71.7% of their holdings, because apparently, collateral is the new trend. Add ₹5,484 Cr in contingent liabilities and you’ve got a cocktail stronger than any Friday night. The share trades at ₹114 (13.9× book), making investors wonder: are we buying infrastructure or inheriting debt?
Introduction
When you mix power projects with urban infra dreams, sprinkle in high debt, and add pledged shares, you don’t get a cocktail—you get GMR Power & Urban Infra Ltd. (GPUIL). This GMR Group arm is supposed to shine with energy and infrastructure projects, but instead, it oscillates between profits and losses like a college student’s sleep schedule.
The company’s story is a thriller: last year’s PAT ₹1,552 Cr thanks to one-off income, this quarter’s loss ₹7 Cr, and promoters holding just 50.55% (and pledging most of it). Investors are asking—are we building cities or digging holes?
Business Model (WTF Do They Even Do?)
GPUIL operates across three segments:
- Energy: Power generation assets (some profitable, some acting like financial black holes).
- Urban Infra: Real estate & township developments that take years to show returns.
- Transportation: Road/urban transport projects with slow payback.
Revenue streams are diversified but inconsistent. Other income (₹987 Cr TTM) often saves the P&L, meaning core operations aren’t the star—yet.
Financials Overview
Q1 FY26 highlights:
- Revenue: ₹1,648 Cr (flat YoY)
- Operating Profit: ₹401 Cr (OPM 24.3%)
- Net Profit: -₹7 Cr (ouch).
- Interest Cost: ₹441 Cr—burning cash faster than it earns.
FY25 was a rollercoaster:
- Revenue ₹6,344 Cr (+41%)
- PAT ₹1,552 Cr (mostly due to other income)
- Debt reduced to ₹10,259 Cr (good effort, but still huge).
Valuation – The Crystal Ball Section
- P/E Method: Not applicable (loss in Q1).
- EV/EBITDA:
- EBITDA ≈ ₹1,377 Cr
- Industry multiple 12×
- Fair Value ≈ ₹98
- DCF (Hope & Prayers Edition):
- Growth 10%, discount 12%
- Fair Value ≈ ₹105
🎯 Fair Value Range: ₹98–₹110 (Current ₹114: slightly overvalued unless miracles happen).
What’s Cooking – News, Triggers, Drama
- Auditor Reappointments: Walker Chandiok continues—same chef, same recipe.
- Leadership Changes: MD steps down; remains as Non-Exec—sounds like “I quit, but not really.”
- Debt Reduction Goal: Borrowings trimmed but still Everest-like.
- Urban Infra Projects: Delays remain a risk.
- Pledge Overhang: 71% promoter shares pledged—investors pray no margin call.
Balance Sheet
| Particulars (₹ Cr.) | FY21 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Assets | 15,413 | 11,803 | 19,467 | 16,987 |
| Liabilities | 15,413 | 11,803 | 19,467 | 16,987 |
| Borrowings | 11,653 | 8,216 | 13,876 | 10,259 |
| Net Worth | -1,755 | -2,621 | -2,917 | 586 |
Auditor’s Roast: Net worth finally positive. Borrowings still enough to buy a small country.
Cash Flow – Sab Number Game Hai
| (₹ Cr.) | FY21 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Operating Cash Flow | 588 | 1,230 | 1,690 | 2,833 |
| Investing Cash Flow | 692 | 3,120 | -902 | -159 |
| Financing Cash Flow | -1,603 | -3,840 | -1,324 | -2,417 |
Commentary: CFO is the only savior. Financing outflows show debt repayments, but interest remains a vampire.
Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 19% | 11% | 13% |
| P/E | NA | NA | 44 |
| PAT Margin | 20% | -2% | 24%* |
| D/E | 3.1 | 2.4 | 1.7 |
Verdict: D/E improving but still high. PAT margin volatile like a crypto coin.
P&L Breakdown – Show Me the Money
| (₹ Cr.) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 5,516 | 4,489 | 6,344 |
| EBITDA | 427 | 906 | 1,534 |
| PAT | 1,139 | -127 | 1,552 |
Commentary: PAT in FY25 driven by other income, not core ops. Sustainability questionable.
Peer Comparison
| Company | Rev (₹ Cr.) | PAT (₹ Cr.) | P/E |
|---|---|---|---|
| NTPC | 1,86,665 | 23,959 | 14 |
| JSW Energy | 11,745 | 1,785 | 52 |
| NHPC | 10,380 | 3,007 | 28 |
| GMR Urban | 6,381 | 183 | NA |
Comment: Compared to peers, GMR Urban has size but not consistent profits.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: Flat at 50.55% but heavily pledged (71.7%).
- FIIs: Dropped from 21% to 4.8%—foreigners fleeing.
- Public: Jumped to 42.7%—retail bagholders unite.
Promoters: Half owners, full borrowers. Pledge addiction needs rehab.
EduInvesting Verdict™
GMR Urban is like that friend who promises to pay you back “next week.” High revenue growth, improving OPM, and debt reduction efforts are positives. However, pledged promoter shares, contingent liabilities, and reliance on other income make it a risky play.
SWOT Analysis
- Strengths: Strong project portfolio, improving cash flows.
- Weaknesses: Pledge overhang, inconsistent profits, high interest burden.
- Opportunities: Urban infra boom, debt restructuring.
- Threats: Margin calls, regulatory risks, project delays.
Final Word: GPUIL has potential, but investors must be ready for turbulence. It’s not for the faint-hearted—only for those who like living dangerously.
Written by EduInvesting Team | 30 July 2025SEO Tags: GMR Urban, Power Infrastructure, GMR Group
