GE Power India Limited (532309) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the earnings conference call in respect of Interalia, the unaudited financial results for the quarter ended on 31st December 2025, hosted by GE Power India Limited. [Operator Instructions] I now hand the conference over to Mr. Puneet Bhatla, Managing Director of GE Power India Limited. Thank you, and over to you.

Thank you. Dear investors, good afternoon and good evening. Thank you for joining today's call to discuss GE Power India Limited performance for the third quarter and the 9 months ended December 2025. I'm joined today by our CFO and Dr. Aashish Ghai to update you on our financial performance across the business and to address any queries you may have. We trust that you have had the opportunity to review our financial results and the investor presentation, which have been made available on our website as well as on the stock exchanges. Would like to touch upon quickly a brief context on the broader macro economy and the sectoral environment into which we continue to operate before moving to the highlights of our quarterly performance. Against a challenging backdrop of global economy, India's macroeconomic fundamentals remain resilient. As per the economic survey, 2025, 2026, Real GDP growth for 2026 is projected at around 7.4%, supported by broad-based demand, improving rural consumption and strengthening industrial activities. This momentum is expected to continue into FY '27 with real GDP goal projected in the range of 6.8% to 7.2%. Inflation pressures have moderated to 1.7% and monetary conditions remain supported and its easing policy rates. These trends, coupled with robust capital expenditure provide a constructive backdrop for investment in infrastructure and energy sectors, including power. The government signals continued strategic support for energy and related sectors which underscore a balanced energy outlook for India ensuring reliable baseload supply while progressively scaling tenurable and cleaner technologies. Recent parity developments further import this balance approach to India's revolving energy landscape, the Union budget for FY '27 presented or in February 2026. In parallel, the Ministry of Environment, Forest and primate provide Notification Limiting [indiscernible] India thermal power station by December '27 and December 2028 progressively by taking category C about 70 gigawatts out of the scope of the policy. Your company is watching this very carefully as how to -- how does the market momentum of the new order buildup on this segment in the coming months, while the market is also witnessing determination of few awarded orders as we move ahead. Your company has played and continue to play a critical role in delivering reliable, affordable electricity to communities accompanying our customers in their energy transition endeavors. In the third quarter ended December 2025, within 9 months, the interventions done by your company to keep the electricity reliable, affordable and sustainable both on the tool of 14 gigawatts of assets. Very happy to state this work has been essentially to lifting the quality of the life of the million of people. We are proud this mission and the impact it has had. Now turning towards our business performance of this quarter, I'm pleased to share that the strategic resets undertaken over past 2 years continue to translate into sustained operational and financial progress as we approach the end of FY 2026. Revenue remains resilient and losses have continued to narrow, and the profitability across the core service portfolio has improved sequentially, providing clear momentum as we progress on. Our deliberate shift towards the high-margin shorter cash cycle and lower working capital intense opportunities alongside a penetrated scaling back from long-gestation project, has further strengthened the business stability over the period, as you will see it in the results. The success of such typical business comes from the operational excellence with better and all rounded project management along with the consistent order intake. Core orders, the backbone has driven by 21% from December 2024, along with the revenue for the same period witnessed 4% upside. Execution discipline and operational excellence has continued to drive meaningful margin expansion across our core services and business upgrades. Our sustained focus on strengthening capabilities and the product offerings for both GEPIL and non-GEPIL assets, this has translated into healthy and consistent order inflow during the year for core. This quarter, your company has booked about 53% from non-GEPIL assets in the overall core services order. As of December 2025, company's order book stands at INR 1,671 crores, providing visibility to close to around 2 years of execution from the continuing operations. As already informed last quarter, we also have made important progress in strengthening the balance sheet. Legacy receivables, including DHL outstanding, have progressed into structured settlements and collection phases during this quarter. [indiscernible] has successfully conducted to record 11 PG tests during last 9 months. The strategic demerger of Durgapur facility to JSW Energy effective July 1, 2025, as shared as here in the last quarter is moving with the correct pace and direction. This transaction will streamline our portfolio reduced fixed cost exposure and sharpen our focus on asset-light service-led opportunities while ensuring continuity of the supply and the services support for the customer through appropriate commercial agreements. As a result of disciplined cash management and portfolio realization, our stand-alone networth, INR 378 crores remains significantly stronger as of December 2025, reflecting the benefits of these strategic actions and improving working capital discipline. We are moving into the end of 2026 with a sharp focus on financial prudence and stronger operational discipline, with focused portfolio, improving markets and a healthy order book, we are very well positioned. I will now hand over to Ashish, who will walk you through the financial performance in much greater detail. Over to you, Ashish.

Thank you, Puneet. Good evening, everyone. Thanks for taking time to join the days of this call, I would like to build on the promotional update, which as the share and share a few insights on the financial performance of the quarter. Starting in commercial updates during the current quarter, your company secured orders worth INR 141 crore compared to INR 461 crores in the corresponding period of the previous year. Now while [indiscernible], this is a key quarter-on-quarter decline. However, the prior year's figure included a single significant order for intact turbine upgrade valued at INR 348 current. Notably, your company's posit to margin and cash accretive core services is on the right track with orders increasing from INR 112 crores in December 2024 to INR 136 crores in December 2025. This marks an 21% quarter-over-quarter increase. score sources is poised to build on its momentum and deliver double-digit year-over-year growth again in this year. As of December 31, 2025, your company has an order backlog of INR 1,671 crores, which is down from INR 2,662 crores as of March 31, 2025. This reduction is driven by termination of 2 GDP contracts, Jaypee Bina and Nigrie, which collectively is INR 775 crores worth. Coming to the financial performance now. Revenue for the quarter ended December 2025 stood at INR 386 crores, driven by core services up from INR 317 crores in the corresponding quarter last year, marking a 32% increase again. Profit before tax and exceptional items. From the continuing operations of the business, for this quarter stood at INR 131 crores. This is a significant increase when you compare with INR 23 crores in the quarter ended 31 December 2024. This reflects sustained efforts in improving the operating performance of the company. This cheap quarter-on-quarter profitability increase is also complemented by a certain [indiscernible] items, like the reversal of ECA provision for the BHM collections that we have done in the quarter amounting to INR 37 crores. Sholapur of time received and LD settlement terms and provision reversal of INR 22 crores and GP Bina and increase full in [indiscernible] settlement with INR 25 crores of positive impact. I would also like to update our investors that pursuant to the settlement agreement with PHL signed earlier this year, we, as on reporting date have received INR 2,415 crores year-to-date. Additionally, during the current quarter, we received INR 35 crores from Jaypee settlement. With this, the settlement with Jaypee has been successfully concluded, and both parties stand fully discussed with no further obligation outstanding on these [indiscernible]. Following the notification of new labor codes, we have recorded a provision of INR 42 crores, including INR 15 crores for discontinued operations. Based on the draft will be shipped by net labor and employment. Given it is regulatory driven and nonrecurring in nature, this has been classified as an exceptional item in the financial. We continue to closely monitor further regulatory developments and will assess any incremental impact is as. Your company has taken few critical steps in the last 9 months, such as signing of settlements with BHEL and Jaypee plus filing of demerger transaction for [indiscernible]. These actions are decisive and reflect our commitment to continue to reduce financial exposure, optimize operational costs and mark towards sustained profitability at the back of core service business and maintain the disciplined execution at sites. And this quarter's performance is another testament to the effectiveness of the strategy. Despite the challenges posed by the limitation on FGD installation, we have managed to maintain a solid financial putting from operations. Our ability to secure 3 core orders and a healthy backlog position well for the year ahead. Before I open the forum for Q&A, I humbly want to convey to you all that as management, we remain fully committed to drive sustainable growth in strategic areas like core services focusing on generating consistent profits and cash flow. We have made a lot of ground in this journey on financial turnaround of your company. But as I always say, this is a marathon, and we are taking 1 quarter at a time. Thank you for joining once again, and I now open the floor for Q&A.

[Operator Instructions] We will take a first question from the line of Akash Jain from Money [indiscernible] Analytics. 00

Yes. I'm a real new to the company. So some of the questions will be quite basically later. So apologize for that. So sir, there have been a lot of one-offs, right? Even in this quarter, we have seen settlements and insurance claims, et cetera, plus obviously a lot of cost on the excess items as well. So if I just want to understand what is the long-term sustainable EBITDA margin for the core business, how should we look at it from an ongoing perspective for the -- serving services business that we are focusing now, what is the sustainable EBITDA margins. That is the first question. The second question is also regarding the overall TAM of the business? Because my -- is my understanding correct that primarily, we will be doing repairs maintenance and spare parts, et cetera, for for equipment which are installed by GE in the past and also in the future? Or are we also doing contracts for other manufacturers as well? So can you give us a little bit of a sense of the TAM growth opportunity for the business, et cetera? That will be my second question.

So first, on your bigger part of the question, I would put my request [indiscernible] Ashish as can take it the first [indiscernible]

Surely. Thank you, Mr. Jain, and welcome to the first investor call that you are attending. So on your first question, yes, you are right, there are a lot of -- there are certain one-offs which I have already highlighted the key ones. On the sustainable basis, our target and levers for this and future years is to deliver a double-digit EBITDA for the business, right? And I think we are on track on a normalized basis, I'm saying, excluding the one-off that I mentioned. We are on track for that in this year and the target remains to deliver a 10% plus EBITDA on a year-over-year basis. On your second point, which is on the target market that we serve, Puneet, if you can...

So thanks for joining this call. But probably, I think I will start -- I'll just put a little bit of an addition to what Ashish has said. We have taken a turnaround of our strategy last year, where we started focusing more towards the shorter cash cycle, cash accretive, lower capital investment projects. With that, we were also focused on getting into our backlogs executed as designed as possible. So what you will see as one-off at start and parcel of the education business or project execution wise, which keeps on coming over the course of the -- or the course of the project execution. So yes, you are right, it's -- they are one-off, but they are not like that they are something very unique for our project business. Second thing, at that point of time, the strategy was more which we have created and which has actually started gaining a lot of the results back, which we are all witnessing now that we wanted to actually get into the. And today, in a installed base -- is -- which is more or less the target market for us would be about INR 2,500 crores or something like that, which comprises of the assets which are both Jail assets as well as non-Jail assets. And we are progressing quite strongly into the non-Jaipil assets also, as I mentioned in my starting speech that we have seen 53% of the orders which are coming to us from the non-Jail assets. So it's -- this strategy is giving us the returns. And I would like to answer it in this way in case you have anything else, probably do ask us.

We'll take our next question from the line of Tushar [indiscernible]

Congratulations for the exceptional numbers, sir. So I have like a couple of questions. One is, are we deliberately getting out of low-margin contracts like I've seen from the decline in the back orders and anticipating higher margin orders? Like we -- when I see like when I go through the details, I see like that we are installing the digital control systems and mechanical upgrades that allows companies like NTPC and statements to operate at like differential loads at 40% or lower like those kinds of systems, which are pretty, I would say, difficult like for other companies? That's one of the questions. SP-6

Tushar, anything else before I answer your first question, maybe if you can put the second question also, then probably, I think you can take it altogether?

Yes, sure. It's a different question, right? Will [indiscernible] like a benefit from the USD 165 million, like order for the nuclear from the GE team and BHEL by getting the maintenance contract in the later years? Or like how that impacts like our approach to the new player?

Tushar, let me take both these things together. I'll first take that nuclear one first for you. The nuclear the nuclear sector for us on the servicing or the O&M contract is out of the domain of GEPIL or GE Power India Limited. So that's not what we are. That's not the area of what we are looking at and what the number -- what we have talked about a little bit before about INR 2,500 crores of something that doesn't include nuclear. So that's the first part of the question. Second part of the question was with respect to the installed base. So when we are talking of the installed base, yes, there would be a few areas we are in. As I said to Mr. Jain also before, we have changed our strategy where we want to really focus on to the low cycle, high-margin deals because of very conscious decision, which we have taken last year, where we do not want to risk into the long projections -- long gestation projects, which are basically cash destroying. So yes, we would be putting our big efforts towards the continuous services business. But that -- having said, this thing, we would -- we are still doing -- we are changing our strategies from the PC to the TP side, which would only be equipment suppliers. So with this, I would like to rest my answer in case questions.

And I think you also had a flexible flexibility aspect of the Indian grid, which is asking the plants to work. So we have got a capability, and we are working with our customers wherein we can give the solutioning, the technical solutioning, and we can work together. So far, nothing has come up -- at this point of time, we are the beyond design conditions have to be achieved at this point of time because the plants have to achieve only the design conditions. So this will be the last part of the answer to your question. So we don't have any -- so we don't have any plans for the nonrenewable like in a nuclear ever as of now.

No plans.

No plan for now. Never say never, but no, it is not a part of the strategy and point of time. And I was just going to refer to that also to kind of complement to what Puneet said, on your deliberate coming out of these projects. So we launched a 7 quarters back. Getting into nuclear were not part of it. It is not part of part of the strategy today as well. That's one. Two, whatever we had already booked, right? This is the new order, the new commercial -- new orders or commercial strategy for the company. But whatever we have booked we continue to complete those projects. So there is no deliberate attempt of coming out of any project which is booked by GEPIL. It got triggered from the announcement of notifications from the ministry and many customers, including Jaypee were excluding their options for the category B and category C plants. And we have now amicably I'm glad that we have amicably settled that decision on that dispute between Jaypee because Jaypee is not only a customer for the trait customer for services projects as well. So it is important to continue to have a good relation with the customer. So it was not -- there is no deliberate tend to kind of come out of any contract, whatever we have booked, we continue to serve our customers to the best of our abilities. But yes, from a promotional standpoint, we launched a strategic 7 quarters back, and we stick to it and there is no change in that strategy. And core services is the center pillar of that strategy, and we continue to focus on that.

Next question is from the line of Sanjay Kohli from Goldstone Capital.

For the opportunity...

Can we use the headset mode, please? Sanjay, I'm sorry, your audio is not very clear.

I am using a headset. Can you hear me? Hello? because my audio also is very, very bad throughout this call so far has been and not particular to this call, it's -- I don't know, just through this conference center, but only restricted to this call, could you make the adjustments, please?

We can hear well, if you...

I guess -- I'll ask 2 questions. I can't hear you, but I'll ask the questions. A couple of these onetime numbers in this quarter, Jaypee Bina, Solapur, LD [indiscernible]. And we've taken these in the top line? And this is in the normal course. I mean, I'm just trying to grapple with the fact on how this accounting works and how you are sort of synchronizing your contract conditions with the accounting revenue recognition as per accounting requirements. So we can also let us know what the expenses are against. So if you were to total up the Jaypee Bina 25 and 22 and 37, this is Page 8 of the presentation. This amounts to INR 80 crores. What are the expenses we booked against us during the quarter?

Sure. Are you able to hear us? I mean...

Yes, it's better.

So yes, I mean, there are 3 parts of the question. Number 1, it is absolutely in accordance with the accounting policies that the company follows. Of course, it has duly verified [indiscernible] quarter-over-quarter. So in terms of revenue recognition principles laid down by the -- in the accounting standard, this is in line with that, all these 3, right? And the first 2, which is Jaypee and Sholapur flow from the top line and the large BHEL is not a top line item, it is more of a reversal of cost items. Yes, totality, these numbers are INR 84 crores, the 3 significant items that I spoke about. In this quarter, there is almost 0 expenditure on these 3 tickets because if you kind of go back to the previous quarter, just September quarter itself, we recorded an expense of INR 25 crores on -- almost INR 25 crores on GP. And we put a note in the financials and also in the investors call, we clarified that we are in discussion with the customer. However, there is no settlement, which has achieved so far. In the event, we are done with all the obligations under the settlement and the settlement comes effective -- in that case, we will be having a P&L gain in the next quarter, but the obligations are still not done by the time. So the expense was recorded in the previous quarter. The gain is now since we have fully start our obligations. We are recording that revenue in this quarter to year. Likewise, the other 2 are an outcome of either a settlement achieved or in line with the accounting policy that we follow, there is a provision reversal. So you can take that almost mill cost is recorded against these 3 tickets in the quarter. And all the goes directly to the bottom line.

So INR 37 crores comes in the goes towards improving the margins. It doesn't add to the top line. It goes -- it reduces the expenditure.

The INR 37 crores, yes, you are right.

My other question pertains to any near-term FGV catalyst orders that we can look forward to?

What we have been seeing post the government notification, there is no ordering which has taken place so far on the FGDs and just to remind ourselves that about C categories were already out of the -- has been out of the notification, which is -- which amounted to be about 70 gigawatts or so. And today, for category A, which are left behind, they are about 8 gigawatts or so and 2 gigawatts are under tendering precession, but so far, the progress has been very, very slow and no ordering done so far after the notification.

[Operator Instructions] We'll take our next question from the line of Mehul Panjwani from Forty Cents.

So my question is what percentage of revenue will come from our core services over the next 2 years? And how does margin differ between services and the EPC work?

So as well for the next 2 years, since we have given a time frame here. Next 2 years, volume mix would be something like this that I expect around 60% coming from core services. But post 2 years, which is like, I would call it like a more stable because we have these 2 big turbine upgrade orders in the backlog today, which would get executed in the next year that hence, you have lower core services and a lot of upgrade also coming in the next 2 years. But sustainably, I would say the 60% in the next 2 years will grow and would go up to 80%, post 2 years. So 80-20 sustainably would be the volume mix is our expectation to answer you, Mr. Mihal, right, on the volume mix. We do not want to give segment profitability or margin. But what I can tell you is that the gross margins for -- the weighted gross margins, we expect a good 30% plus gross margin number and effectively an EBITDA of 10% plus is what we are expecting going forward. But yes, we can't give you segment margins at this point.

And sir, what revenue regulated do we have for FY '27 on the attributable order book.

Again, we don't -- I think you have been a part we don't give future statement, but at least I can give you a real that we expect in the range where we are in this year, plus/minus 5%. So we will be for the next year and the year after, we expect plus kind of compounded growth in the top line.

Okay. I'll get back in the queue.

Next question is from the line of Nikhil from Toro Wealth Managers LLP.

congratulations on what probably the numbers and the turnaround that you are seeing, which you had actually discussed even in the AGM. So sir, just wanted to understand, if you exclude the one-off, the operational level of profitability is around 12% already, like around INR 46 crores of maybe an operational profitability. So we've been focus on telling 10% plus. So is it fair to assume that this is probably a base level margins that probably will be there and maybe going forward? And I'll come to the second question or probably you'll be answering this first.

Sure. I missed your name, again. Nikhil? Okay. Thank you for that question. I mean, a really good question, I must say. And I'm glad that you have seen through the financial and analyze it well. So yes, firstly, for this quarter, yes, your the normalized margins that you're talking about profitability are in that range. So in terms of the 9 months so far, I'm calling it a 10% normalized EBITDA so far, not 12%. So one. And second, to your point, it is the base, like I said, we are on track to deliver 10% plus in this year. And -- but at the same time, we continue to optimize our costs, and we continue to focus on pricing. We have had very good success in the OEM or GEPIL owned machine industry, which helps in the margin, right? So we continue to focus there and we would -- yes, we would definitely aim to maximize that EBITDA levels. But as a, let's say, call out, we stick to 10% plus for next year and years to come, but we are on track for 10% this year.

Got it. Got it. Understood. So also on the -- like just following on to the earlier question, you just said it's 5% to 8% growth. Is it too conservative? Or are you being more cautious than like in calling out the numbers, you don't want to specifically call out the quarter

it's not conservative, it's like -- there are 2 elements. We are going on to and we, like I said, there are turbine upgrade, which we would see significant execution in 2027. So that's where our top line growth would immediately come from, from these 2 things. And I'm confident that could come. However, there is another element, we are not focusing on promotional efforts on the greenfield side. That is not the part of the promotion strategy, which means that the volume coming from the greenfield project or the EPC business would keep shrinking. So there is an element of growth on the services side, but at the same time, compensating decline on the new bidders. So keeping both in mind, I still believe we will be having a growth trajectory in terms of the revenue numbers. but I've kept the decline of the new build also in mind when I gave that 5% to 8% figure, and I do think

Yes. Okay. I have 1 more question. Can I ask that?

Please join back the queue. Next question is from the line of Aman Shah an Individual Investor.

Sir, my question is, we said India the installed base for core service business is INR 2,500 crores. If I see that on an annual basis, and if we see a 9-month order wins, would it mean that we have a market share of 25%, 30% in core service currently?

Yes. This is inclusive of our old assets as well as our non-GEPIL assets.

Okay. Who are the other competitors in the core service business? And what is the reason like on other OEM business has grown quite well over successive years. So what are the key elements that has allowed us to gain so much?

So maybe, Aman, I think I will -- there was a little bit of a disconnect in the voice, but probably just come up again with your question -- last

Sorry. So I was saying there has been very good growth in the other OEM business in the core service. What has allowed us to grow so well for a couple of years in that business? And who are the competitors we are competing within that segment?

So I give you those pieces of information, but just to give you a little bit of a more clarification of INR 2,500 crores and 25% market share. This is with respect to our target market. We're not talking about the complete India installed base stuff because we would like to get into our toll fleet as well as our dose target equity, which we would like to venture upon. And this is our very, very well [indiscernible] strategy and the capability metrics, which we have been working on it over the last few years, wherein we have developed the capability to serve the non-GEPIL assets. And we are focusing only on those assets which are domestically similar so that our efforts are our costs are well restrained and constrained. Today, we are looking at the Chinese base as well as Indian manufacturers also and a substantial amount of the NPI, which we call it as a new product introduction efforts have been getting along onto these activities so that we get into the stability of serving the non-GEPIL asset.

[Operator Instructions]Tejas?

Most of my questions are answered. I just had 1 question regarding the EBITDA margin. Like you mentioned that currently, our core is around 12% this quarter, and you're saying we're looking at double-digit plus. So can you give us a range? Are we looking at 10% to 20%, 10% to 15%. Is that some range that you can share with us, please, sir?

Sorry, first, just a correction. I didn't say 10% is for core. I said that's for company. So the numbers which were being discussed was for GEPIL as a company, not just

Yes, I meant is removing the other income part, it's about, which is 22% over the

The normalized.

Correct Correct. Correct.

That's right. That's right. And -- but sorry, we can't give you a range or beyond 10% plus. That is what we have been maintaining that it would be moved the endeavor of the target. We are on track for this year, and we have a good pipeline for next year as well.But I would not be able to give you a real or a certain number beyond that.

Next question is from the line of Sumit Shah from JHP Securities.

Can you call out the exact revenue and EBITDA margins, excluding the one-offs? Because if I calculate it, it comes to somewhere around 13.6% as the EBITDA margin. So can you call out without all the bolt-offs, the exact numbers.

Yes. So actually, everyone has their own way. So I'm sure for me, for the quarter, I would say the 84th year is the primary which we just highlighted in my presentation also are the primary one-offs, right. But important to note that -- the 2 out of 10, 25 and 22 are a part of revenue and INR 137 crores are part of the cost. So we have to take that also into account. Now considering all of this, I'm saying that for the quarter, yes, it is in the range of around 4.5 odd percent for me, the way I calculate the 10% EBITDA, which was telling us for 9 months, not just for the quarter. So for the quarter, yes, it's around 14.5% and for the 9 months.

Okay. Got it. Got it. And can you give us a breakup of the current order book, which is somewhere around INR 1,671 crores right now. Can you give the breakup of this in terms of the core services and upgrades which are there?

So you mean the backlog, not order, but orders in hand

Yes. Yes.

For sure. So we have INR 167 crores worth of orders in hand as 1st December, this considered around INR 450 crores from the EPC side or the new build side and the balance is from the services that noticing the [indiscernible]. So that's the split between the services business and newbuild business.

Sumit, I request you to join back the queue, please. Next question is from the line of Sunil Jain from Nirmal Bang Securities.

Sir, you said that INR 2,500 crores is the target market in India. And out of that, how much is your legacy GE assets and how much is non-GE assets. And apart from that, you have some opportunity in the international market. What could be the market size in that -- just 1 question. And second thing, this INR 2,500 crores, which is the market size is doing to expand this.

So Sunilji, the market, which is our own installed base is about INR 500 crores or so, not more than that. Rest of them are non-GEPIL in the Indian segment of the Indian market. Now getting into the expansion side of it, the expansion side of this market because the new installed base will be coming. We are very selective on selecting the target, please on to which we would like to work which has got various parameters, we use commercial parameters and the return parameters. So it will increase, but not immediately because normally, the installed base, which is coming today, would get ready for the services after some period of operation, which is -- which could vary 5 years to 6 years. So for the time being, the INR 500 crores is our own market out of 250, INR 2,500 crores. And we will be in. Now sports in. Now on the export side of the export side of it that we are very ready on the export market, we are not targeting anything which is non-GEPIL. We are targeting only machines from a boiler perspective, -- so it's not an ever competitive because we are targeting only the site, which around which would be around more or less like INR 450 crores to INR 600 crores or something like that. and that to be only for niche supplier of spare parts, not all the segments of the services business like the overhauling era. I hope that I have answered your question.

Just to continue on that, this INR 2,500 crores is the yearly opportunity.

Yes, it's an early opportunity, which is an average down because one plant may get for -- we'll do a little bit of an outage for some equipment then there would be. Second year second equipment will start coming in. So it's an average. It's not like you just take it as a particular 1 unit divided by the number of megawatts amount. So it's a general average

Sunil, I request you to join back the queue, please, as we have other participants waiting for the

Continuation of what was answered. And the GE assets of INR 500 crores, you will be the sole I mean -- so serving the

I refrain from answering the because it's a dynamic market Yes, we have got a good grip on our whole asset. And we would defend it. We will keep defending

Next question is from the line of Rishikesh Shah from Alchemy Capital.

Congrats on a great set of numbers. Sir, mostly, all my questions are answered. Just one question. The cash that we have on our balance sheet. So what is the plan for that cash, because our company will be growing 5% or something, we will not be requiring that kind of working capital. So what do we plan to do?

Okay. So Rishikeshji, yes, the operation is right. And as we if you would have been following our company for the last few years, we have passed through a very difficult time, and we have now -- we are now standing on this -- so we would like to get more towards our sustainability perspective. And as Ashish has said, that we are moving quarter-by-quarter. So yes, we will be coming out how we will move ahead to make our next quarter and the next strategy more stronger in line with what we have already decided on to what we have tested and it is starting.

Got it. And sir, one more question regarding the margins. Like you said that 60% will be service going to almost 100%. So don't you think that we'll have better margins going forward?

So let me take that. So again, that's the direction. So I say 60% for the next 2 years going to 80%, not 100% number one. Number two, typically, as core services margins are higher than the upgrade the back in the backlog we are getting a healthier backlog now because we are evolving from a in. And so fundamentally, directionally, I would agree. But like I said, we are targeting for a double-digit normalized EBITDA this year, and we will continue to work on our costs, and we will continue to work on that site. But the market is dynamic. So that's why we are refraining from any commitment at this point.

Next question is from the line of Ramakrishnan B we from Equity Intelligence.

How many employees will build in the company after all these restructuring -- and what is the average of turnover on a quarterly basis will be around INR 300 crores to INR 320 crores. Is that right?

So maybe I can take that one. So thank you, [indiscernible], we have not announced any restructuring. I just want to clarify that. We have not announced any restructuring in this company. So yes, we

But you're selling up that today [indiscernible] so [indiscernible] your selling -- now it is clear.

, you're right. Yes. So there are around 170 employees, 170 employees in the perimeter of the transaction. So currently, the number of head count in the company is around 600. And so you can make the math. And two, on your -- sorry, I missed the second question, was that 1 was on employee head count and then 2 on the average quarterly turnover, right?

Yes.

Yes. So that -- your guess is right. We expect between 300 to 350 as the average range quarterly top line.

And you will be sourcing all this equipment for the upgradation of the boiler and all that from the JSW where you are sold?

So it would go like this. We have -- we have signed a multiyear agreement, 5 years agreement with JSW Energy as part of the demerger. So we would have excess for those boilers and milk components for 5 years in a phase-by-phase manner. So it would be in the declining manner. While we have the time to develop our own supply chain, alternate supply chain to the factory. So we would have the exit so that we continue to serve our market. We continue to serve our customers. and have sufficient time to develop an alternate supply chain, but that will not be a permanent solution. So we would work on alternate supply chain.

So you will be outsourcing all the equipment, so rather than manufacturing yourself? you will be focusing only on the service.

No, I think I would like to answer it is we have water make or buy policy stuff. And yes, as we stand with our assets or our footprint, we will take the relevant costs taking care of the specific projects or the specific equipment, which needs to be delivered after day in that.

And just still we are on this topic, I just want to kind of reiterate and remind all the investors and everyone on the call that the demerger transaction is a good driven process. And all of this would only become active once we have the NCLT approval. So there are toolkits which we have to cross. We are working towards it. And post that, all the answers that we have given in respect to the steel maker transaction becomes effective only after the NCLT approvals that we are working towards in the active thing along with to.

next question is from the line of [indiscernible]

So your line is not good. We missed the name and everything.

Mehul Panjwani from [indiscernible].

Sir, when do we expect this -- how long will it take to get to a decision?

This is very difficult to answer, Mr. Mehul honestly, because there are many toolkits in that NCLT is the last step -- but before that, there are other. So it is very difficult to answer. Our expectation is that within the calendar year 2020, we should get it. That is our expectation at this point. But it is a very -- because there are multiple government authorities banking distribution. There are a lot of external parties in more than it -- so difficult to kind of pinpoint, but our expectation is that in the calendar year '26, we will get it more towards the later part of the

Right, sir. And sir, can you just elaborate on the -- what you mentioned about your 5-year contract.

So that was not [indiscernible] so I said as part of the transaction, what we have done is to make sure that we have continuity in the boiler spare part orders that we serve and order market in the country on the cost side that we have and on the upgrade side, we have signed a multiyear supply agreeing with [indiscernible]. That is a part of the transaction. which -- and under that agreement, we have access to the factory for 5 years, where it would be a simple arm length kind of transaction that JSW that the equipment that we get manufactured today in durgapur, we can get it to more or less when bothers effectiveness also. So that is what we have unlocked to this agreement so that we have continued we serve our customers industry-setting today.

We'll take our next question from the line of Nikhil from Toro Wealth Managers LLP

Just wanted to probably get your sense around nuclear, although you have mentioned that you're not actively looking, but recently, we have seen a lot of trust with respect to government on the privatizing this sector, a lot of couple of private is already winning some sort of equipment with respect to that. So isn't it a new lever that especially a company like ours can lever the kind of background and the parentage that we have and try to increase our TAM, which probably seems to be okay for now, considering that we are only focusing on core services now. And in the export also, you mentioned that it is just INR 450 crores to INR 600 crores. So I'm just trying to think the kind of balance sheet we have and the kind of cash that we have on the balance sheet, we should be probably growing at much higher rates probably rather than just mid-single digits or say, double digits?

Nickel, point understood, but I would like to remind you and all the investors on this call that we took a prudent change in our strategy last year. We have seen we got into the short cycle projects. And none of the nuclear projects are short cycle. They range, even the start of the first electrification to come out of -- to the grid would take more or less like 7 to 8 years, which is at this point of time, this is a market which we are not focusing at. So we would still believe that we certainly automatic are working should moved strongly. And as we see the momentum, we have started building it up. So so far, nuclear is not the area where we are focusing. Having said it is coming out of the prudence which we have done last year.

join back the queue, please, as we have other participants waiting for their turn.

I just add one question, like probably I just asked one question. My second question is pending. So yes, so -- so just trying to clarify, you said that we'll be growing probably say mid-single digits, but that is on the overall revenue because our -- other than the core will try to be like the base will keep reducing and that is why. But optically, will look like a mid-single digit, but the services will keep on growing. That is what probably is the correct understanding to understand that

That is a fair assessment.

Yes. Got it. So what you meant is the overall company level.

What I overall GE Power India Limited as a company's Bot got it Yes, because the core services will grow at higher rates maybe. And as and when the share increases, maybe the margin also could be trending higher, which is logical also, yes?

Next question is from the line of Aman Shah, an individual investor.

I just add on the steam turbine upgrade opportunity. Sir, we will not be focusing or we'll be focusing very less on the new opportunities on steam turbine upgrades because it would also fit with the overall theme of making the existing clients much better. So we'll not be focusing on that opportunity?

No,that's not what you have understood,. I'll just give you a little bit of a background that the central electricity authority has already identified about 200-plus units, which are going for the upgrades in the renovation. -- amounting to more like 70 gigawatts or so out of which 1 gigawatt has already been ordered and your company is leading that, which is in [indiscernible] so we have seen the moment which are happening so far into this domain and company is also active in that. We have seen that apart from the [indiscernible], the boiler management systems are also coming up, about more or less like 1 gigawatt, turbines are spin the RFPs for which are getting prepared is more or less again 1 gigawatt or so. And in addition to all these things, I would like to emphasize on this that this is -- this would also give us sort of play to us on our core business moving forward once these new units have been installed. Of course, they are not out of our -- out of our site, [indiscernible] from that, and we are fully working your company is fully working on that.

So for manufacturing for this, will we be using the Durgapur facility or that will be a different question.

We worked with the global ecosystem, and we would be, again, as I said in my one of the earlier answers, we take a very, very relevant call at that point of time for a specific product for a specific commodity or a specific component made by whatever works out the best. It's not only the cost, it's also distributed.

Sir, just on a follow-up on this slide. So this can increase our growth rates of what we said of 5% to 8% range, if we get a big order on steam turbine side upgrade because they are high ticket if it comes

Yes, you're right. It will. Yes. But just on the need, dealer typically long-decision projects. 1 long [indiscernible] from a commercial standpoint. And also, once it is booked, these are not like core services projects where within a year, you have maybe around 40% book-to-bill. You convert 40% of orders into revenue in [indiscernible]. These typically take to 3 to 4 years in commissioning. So these are long-term projects. So we have to keep that in mind and we kind of think about other upgrades.

Next question is from the line of Premal Shah, an individual investor.

Congratulations for a superb set of numbers. I specifically have one question is that the provision that you have made for the Durgapur factory over the last 9 months. Those are going to be reversed as and when the transaction takes place. Is that right? Is my understanding correct?

Principally, yes, not 1:1. So it's not that exactly the same would get reversed. But in principle, these are discontinued operation and the appointed date which is said, 1st July 2025 at the demerger team. So not 9 months, but yes, anything after 1st July 2025. If and when this demerger gets approved by CST and become effective, the economic benefits and project should transfer.

Okay. Yes, that's about it. Because that amount is quite substantial. It's almost more than INR 50 crores.

Yes, but that's a would this caution that for months. 5 Yes, yes, yes. That's 1 way I think that's about it.

Next question is from the line of Vaibhav Kumar, an Individual Investor. Since there is no response, we'll move on to the next question from the line of Suneet Shah, an individual investor. His line is disconnected. The next question is from the line of Smith Shah from JHP Securities.

Yes. Sir, on the upgrade orders that you mentioned that we are not completely be focusing from there. So can you just -- can you just quantify like in the next 1 or 2 years, where can this upgrade-related order book can be?

So we are what you said, we are -- we are fully focused on the upgrades. By the way, it's not to be selective. We would be selective on the solutioning part of it. But yes, the upgrade is in our full focus today. the discussions, the end customers, which are working on ties are both a combination of central and the state side, we have not seen a lot on the IPP side and reason being because IPPs have been the ones which have been -- which are very recent in terms of their installation. So normally, these upgrades starts coming into the picture one. they have consumed a considerable life of the assets. So yes, it's -- at this point of time, it's central advanced state utilities.

Okay. And where do you see the debtor days in the creditor days settling? Because right now, it seems like it's too high.

The debtors, I would say, days are reducing every quarter, and we expect the trend to continue. So we expect for the next 2 quarters at least, we would see -- we'll continue to see that reduction before it kind of normalizes 2 to 3 quarters, I would say, and then it would normalize after that. And creditors would remain also for the next 2 quarters as we continue where in the fag end of the FGD project and the amount of retention of the creditors that we are going to pay -- so that would reduce the overall creditor numbers also. But at the same time, the credit set also and it would also normalize after 2 to 3 quarters. So is the expectation.

Smith, I requested to join back, please. We'll take a last question from the line of [indiscernible], an Individual Investor.

Actually, I got disconnected in between. So I might be repetitive my questions. Please excuse me for that. So what I can see is in terms of this quite particular quarter, as against INR 401 crores, the profit before tax and before exceptional is coming to around INR 131 that translates roughly to -- I mean, around as compared to, say, in the previous quarter being close to around 15%. So -- how do we -- how do we look at it as a normalized way? Would this be the figure be close to 30%, it could reduce because from what I understand, previously, there had been a statement from the management in terms of a decision that the high -- we're going in the asset-light model, and we are going in the higher margin bracket orders, so that we make more money for the -- in terms of ROI. So how do we look at it as -- I mean, as a ballpark, where do we see this settling? Because is this 30%? I mean some -- I mean, compared to the previous being around in the range of 10% to 15%, this looks too good to be true. But is it -- can we consider it as a normalized or it has some one-offs because of which is happening. Could you just throw some light on it?

Yes. No. So actually, there was a lot of questions on this particular aspect. And I will just try to summarize it for you. There are certain one-off items in this quarter. We talked about the most significant ones. We talked about 3 items, which totals to INR 84 crores, and we said this normalized EBITDA for the quarter, I said, of course, everyone has their own way of calling out the normalized. There is no standard definition of normalized. But the range is around 14% to 15% on normalized EBITDA for the quarter, and for 9 months is around 10%. That's our call out, excluding these one-offs that we talked about. So that's where we stand today. And we expect that we are on track for this double-digit EBITDA story for the year and going forward as we

Right, right. The second question is in respect of the rail settlement, how much amount is yet to be received -- and is there any tentative time line? And if any other settlements, which are to be received other than BHEL?

So all the significant settlement, I think we are very prudent in providing the information through investor presentation as well as the most accounts in the financial. So all the key settlements, if any, are a part of it. So what -- there is no significant settlement, a key settlement other than what is already mentioned in the financial results plus the investor presentation. On your question on how much is yet to come around INR 120 crores to INR 125 crores what is as of date or from the quarter end, sorry to interrupt. From the reported date we cored around 200 Yes. We collected around INR 26 crores as on reporting date 11 when we reported our financials -- and around INR 12 -- INR 15 crores is what we expect further to come in the month of February and March. So within this financial year, we will -- we expect around INR 340 crores in total collect from BHEL.

That's the beginning an achievement. All right. And you have some discontinued operations for which there's losses yet to be accounted. When do we see it phasing out?

So loss has already accounted, not yet to be found. It is already counted in the financials. And this continued operation is on account of the demerger transaction that we announced on the [indiscernible] of September. And this -- we discussed this also to, again, deal, right? So I said the demerger transaction is expected to be closed within 2026 more towards later half of the year. or maybe last quarter of the year. But all of this is subject to multiple tollgates, including, but not limited to NCLT approvals. nd the merger scheme will become effective only after that. and this discontinued operation will be carved out from financial prospect.

Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. Puneet for closing comments. Over to you, sir.

Thank you for all the investors for their interest into our investor call. Hopefully, we would have been able to give you a lot of information and satisfy your questions. in case you still have reach out to us, we'll try to support you on those queries. And I would like to reiterate only be one information as we close that we remain disciplined, selective, margin focused and execution conscious as we march ahead with the strong footing and the momentum which we have built so far for the future. Thank you all. Thank you for your time.

Good evening. Thank you. On behalf of GE Power India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.