Genus Power Infrastructures Limited (GENUSPOWER) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Q4 and FY26 earnings conference call of Guinness Power Infrastructures Limited, hosted by Kaviraj Securities Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded. This conference may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Abhijit Mukesh Purohit from Kaviraj Securities. Thank you and over to you, sir.

Thank you. Good afternoon, ladies and gentlemen.

Kaviraj Securities welcomes you all for Q4 and FY26 earnings conference call

of Genius Power Infrastructures Limited. On the call today, we have with us Mr. Kailash Agarwal, Vice Chairman, and Mr. Jitender Agarwalji, Joint Managing Director. Now, without further delay, I hand over the call to Kailasji for his opening remarks and post which we can open the floor for Q&A. Over to you, sir.

Thank you, Abhijit. Good afternoon, ladies and gentlemen. A very warm welcome to the Q4 FY26 earning call of Genius Power. The results, investor presentation, and press release are uploaded on the stock exchanges and company website. FY26 has been a landmark for Genius Power, reflecting the company's strong execution capabilities, deep domain expertise in advanced metering infrastructure services, and sustained momentum in India's smart metering transformation journey, under the RDSS framework. During the idea, we witnessed accelerated execution across multiple projects supported by all 24 AMISP projects. Achieving operational go-live milestones, healthy order book conversion, and strong traction across key state utility programs. For Q4FY26, our stand-alone revenue stood at 1524 crores, representing a strong growth of 63% year-on-year and 36% sequentially. The strong performance was driven by accelerated project implementation across key states, increasing rollout intensity and healthy execution momentum across our smart meeting portfolio. During Q4 FY26, there was some moderation in gross margins, primarily due to change in product mix with a higher contribution coming from project business involving elevated raw material consumption towards hardware, software, communication, infrastructure costs. Additionally, imported raw materials used in meat and manufacturing was impacted by exchange rate fluctuations during the quarter. However, despite these temporary pressures, the company continued to maintain healthy profitability metrics through scale benefits and strong execution efficiencies. On the profitability front, Q4 FY26 EBITDA stood at 284 crores, up 36% year on year, and profit after tax from continuing operations for Q4 FY26 stood at Rs. 181 crores, registering healthy growth of 41% year on year. For the full year of July 26, stand-alone revenue student, Rs. 4738 crore, reflecting a robust growth of 94% year-on-year. The scale-up in revenue was given by sustained acceleration in smart metering project execution, rapid ramp-up across multiple live projects, and strong progress in installations, integration, and commissioning activities. FY 26 EBITDA grew up by 104% year-on-year to Rs. 960 crore. EBITDA margin for FY 26 improved by 102 basis point on year-on-year basis to 20.3%, reflecting operating leverage benefits, discipline, execution capabilities, and efficient cost management, despite higher scale of operations. Fy26 patch stood at Rs.605 crores reflecting sharp growth of 106 crores. 106% year-on-year, pet markings improved to 12.8% during FY26, supported by sustained execution momentum, operating leverage, and improving scale efficiencies. One of the most important milestones achieved during FY26 was that Genus Power crossed installation of more than 1 crore meters under RDSS program, reinforcing our position amongst the leading smart metering players in the country. We continue to maintain a strong manufacturing throughput with current manufacturing capacity now exceeding 18 million meters annually. This capacity enables us not only to support our own AMISP project, but also supplies to utilities and other AMISP operators across the country. As on 31st March 2026, our total order book including all SPV and the GIC platform stands at approximately 25,173 crore net of taxes, attributable primarily to Genus own MISP projects with concession periods extending over 8 to 9 years. This provides strong long-term revenue visibility and a sustainability annuity type business model for the company. The OGL momentum continued to strengthen during the year, and all 24 of our AMISP projects totaling to awarded meter base of 3.61 crore meters have achieved OGL, and this significantly improves our long-term cash flow visibility as recurring O&M revenue starts scaling up over time. Once project transition into operation phases, billing visibility and recurring cash flow will become much stronger. We remain highly confident on the long-term opportunity to escape for the smart meter industry in India. Against an estimated requirement of around 31 to 30 crore smart meters in the country, only around 15.6 crore meters have so far been tendered, and only a small part of the overall opportunity has actually been installed. This clearly indicates a substantial multi-year growth runway for both the industry and Genostar. At the same time, we continue to actively monitor upcoming tenders opportunities under RDSS across various states. However, our bidding approach continues to remain selective and return-focused, prioritizing projects where our integrated MISP capabilities provide strong execution, certainty, and sustainable long-term profitability. The data days have started coming down, have reduced from 187 days. As on 31st March 2025 to 89 days as of 31st March 2026. Inventory days as on 31st March 25 was 127 and 104 respectively. Including the unbilled days, the total working capital days which stood at 343 on March 25 has reduced to 274 days on March 2026. We expect improvement of another 50 to 75 days in this current year. As on 21st March 26th, the company had a total net debt of 1573 crore, which is about 968 crore more than the net debt of INR 605 as on March 25. The increase in net debt is primarily from short-term loans and that will start reducing from FY28 onwards. The expected peak net borrowing of the company will go. As on 31st March 2026, the company had a cash and cash equivalent of approximately 719 crores in the form of fix-up deposits and other current investments. As on 31st March 2026, the company had investment of approximately 487 crores in the joint venture platform and SPV of joint venture platform with GIC. Company expects investment of another 600 to 700 crores in the joint venture platform in next two years, that is FY27 and FY28, and first quarter of FY29. Alongside our core smart metering business, we are also making steady investment in adjusted growth opportunities, including smart gas meters, smart water meters, and exports. In India alone, the gas metering opportunity is estimated at about INR 35,000 to 36,000 crores spread over the next three to four years. Similarly, we believe water metering will emerge as a significant long-term opportunity both in India and globally as digitization and resource optimization become increasingly important for utilities. On the working capital front, we remain focused on balancing rapid growth with prudent financial discipline, simultaneous execution across multiple large-scale projects requires elevated working capital investments, particularly in inventory and free deployment activities. However, as additional project transition into operational phases and recurring revenue scale-up, we expect gradual normalization in working capital intensity and continued improvement in cash flow generation over the coming quarter. Looking ahead to FY27, we remain highly confident of sustaining a strong operational and financial momentum, underpinned by robust execution visibility, a strong and diversified order book and pipeline, and continued acceleration in smart meter deployment across India under the RDSS framework. We expect FY27 to mark another phase of significant scale-up in project execution, with the company well positioned to achieve revenue in the range of approximately 6,000 to 6,500 crore rupees, driven by increasing rollout intensity across existing projects, and continued conversion of the large executable order book into revenues. So the guidance for FY27 is 6,000 to 6,500 crore. Now I open the line for question and answer.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Aditya Avelikar with Axis Securities. Please go ahead.

Yeah, thank you for the opportunity and for the good set of numbers. My question is with respect to our addressable market. So, you stated that it is 31 to 32 CR and almost 15 CR are still remaining. Just to understand how this tendering will happen in this fiscal and in the coming fiscal and what will be our market share you are targeting from that.

The overall market is understood well.

So, as on date, we expect 31 to 32 crore consumer base of meters in the country, out of which around 15 crore has already been tendered and 7 crore has been installed. So, there are more than 24 to 25 crore smart meters to be installed in this country, which is remaining. 15 crore has been already tendered, and further, there are tenders of around 5 crore, which are already out, and more than 4 crore tenders are in the pipeline. So we expect in this financial year, tenders of 9 crore meters will be out, and remaining quantities will come in the subsequent years. This is how we see the whole market, and when it comes to market share, we are confident that whatever the market share we have been maintaining till today, We'll definitely be able to maintain our market share.

Sir, my second question is with respect to the working capital. In this financial era, there is one line item in the working capital which is increasing our working capital, our operating cash flow before working capital has grown handsomely, but because of one line item called increase or decrease in contract assets, almost 36 CR of working capital is getting trapped in that. Which is causing a negative operating cash flow post-working capital. So, if you can explain that part, what exactly is these contract assets, that will be helpful.

Basically, these are all the inventories and whatever the investment that is happening in the platform. So, when we talk about cash flows, one thing we have to understand here is, let us see that, let us compare in two years. Let us compare FY25 and let us compare FY26. In 25, the company made a growth of almost 1200 crore rupees in revenue with a cash outflow. The increase in cash flow was around 950 to 1000 crores. So that is almost 80-85% of the increase in revenue. This year, you will see that company has grown approximately, the revenue has grown by 2300 crores in comparison to FY25. And again, the cash flow which is negative or the cash flow increase or the working capital requirement increase is by almost 900 crores, which comes to around 40% of the revenue what company has been increased. So you will see that from 80, from 80, whatever the revenue done, The amount of working capital required was 80%. Now the amount of revenue done, the working capital requirement is almost 40%. In coming year, this financial year, it will come down to 20%. And next financial year, it will come down to negative. Negative means the positive cash flow starts coming. So, you have to compare it like that. When we say contract assets and everything, that is a part of the whole inventory or the money invested in the SPVs or the platform and all this put together.

Yeah, understood, sir. Just one last question. If you can give us the guidance of EBITDA margin for Fiscal 27 also, that will be helpful, and any tax guidance.

So for this financial year, yeah, Kalar, sir, you can take it.

So, whatever we have achieved in FY26, we are giving a guidance of almost 2-2.5% lesser for this financial year because we are looking at a surge in raw material prices. That is because of this war and everything, petroleum prices going up and chips and all. So, basically, we are looking for an EBITDA of 18% for FY27.

And CapEx guidance, sir?

In capex, there won't be any major capex. The smaller capex, which is a regular capex, 10-20 crores required for regular things, dyes and moles and something like that. Otherwise, there is no major capex in this financial.

Understood. I'll get back in with you. Thank you.

Thank you. The next question comes from the line of Mahesh Patin with ICICI Securities. Please go ahead.

Yeah, sir. Thanks for the opportunity. Can we get the number for the meter installed in Q4 and the total installed the meter bit?

Q4 we installed around 30 lakh meters and in the total we have installed 87 lakh meters under the RDSS program.

So what would be our cumulative installation, and how much of it would be with operational go live?

All the projects are operational go live now. So operational go live is never, it is generally, it has a lag of two months. So whatever the meters installed in last two months, they will start coming under the SAT. So, it is a 60-day runway. So, not every meter it has been stored yesterday. It is the project which comes under Operation Go-Life. So all the projects which Genus is undertaking right now, there are around 24 projects which are Operation Go-Life.

Okay. And sir, can you give us some details on the pipeline? You have mentioned that around 5 crores meters are under Bini Kai.

So, right now, the ongoing tenders are from Haryana, Hempi, Punjab, Tamil Nadu, which are constituting around 5 crore-meters, and further, we expect tenders, more tenders from Haryana, and some more quantities from Punjab, and some large quantities coming from West Bengal, Kerala. So, all put together, I expect tenders of around 9 crore-meters coming this time.

In April 20, sir. Okay. Of this pipeline, right, 3031 CR of meter pipeline that you have elected, around 25 CR is under RDSP, right?

So currently, 25 crores, 23 crores are sanctioned under RDSP. Furthermore, I'm going to get sanctioned. And the total requirement as on date, according to the industry data, is there around 31 to 32 crores consumers who will be replaced with this meter for the period of next 4 to 5 years.

Next question comes from the line of Abhishek Tapparia with MK Global Financial Services. Please go ahead.

Congratulations, sir, on a good set of numbers. My first question is, is it possible for you to share guidance for FY28? Can you speak a little louder, Mr. Abhishek, please? Yeah. Is it possible for you to share guidance for FY28 in terms of revenue and meters? Some ideas, some gist.

Give us one quarter, Mr. Abhishek. We'll let you know in next quarter.

Okay, okay, fine. And second will be the raw material costs have been increased substantially. So, do we have any pass-through clause or can you explain what was the mix impact and what was the commodity impact and which is the main commodity that is impacting the margins?

So, there is no pass-through in our contract. These are all fixed price contracts. So, whatever is increasing or decreasing, it has to be taken care of by the company. So, as we have already given the guidance, which has taken care of all the pressure, it is coming on the raw material. So, that is why we have reduced our guidance from 20-21% to 18%.

Okay, okay, and the... So, how much was the mix impact change, and what was the commodity price change, like the rupee change or rupee deposition change? Can you quantify the change?

We give just as an absolute number or a total number. So, all these will be covered, whether it's an exchange or commodity or any chips or electronics, all is covered in our guidance of the Pbita reduction of almost 2.5%.

Thank you.

A reminder to all participants, you may press star and want to ask a question. The next question comes from the line of Pranjal Mukija with Growth Peer Ventures LLP. Please go ahead.

Yeah, I'm an audible.

Yes, Pranjal, please go ahead.

Hello, Kilash Ji. Hello, Jitendra Ji. Thank you for giving me this opportunity and congrats on a great set of numbers. Sir, sir, I have a couple of questions, slightly business-related questions. In our presentation, we mentioned that, you know, there are some 250 people in our device R&D team and some 225 people in our software development team. If you could provide like a breakup and trajectory of these people and just try to understand like how are they sort of, you know, segregated in different parts of the business, let's say a smart meter division or a HES and RF division or a, you know, software division, if you could just provide some highlight on that.

So, basically... The R&D is divided in two parts, you can say, if you see from the 36,000 feet. So one is the R&D of devices, which takes care of the communication, hardware, firmware, of the beaters. And one is the application software team, which takes care of the HES, MDM, and all the applications, and WFM, all the application-related software work. So as you said, we have around 300 people in the device R&D and around 250 people in the software R&D. From the top, it is divided like this.

But product level, will it be possible to get some details as to like project-wise or like, you know, product-wise, how is this team segregated?

It is not a segregated project. They're all R&D team. They're developing products. The application software team is developing HES, MDN, WFN, all the application-related products. And the device team is developing all the meters, all the hardware, firmware, all the communication products. So this is how we have divided the two. It's not divided by every individual is working in this project. It's not like that.

Right. And so following up on that question, if you could also provide some background of these people and what kind of engineering schools are we hiring these people and attracting them from? I'm asking because this business is inherently shifting from the pure hardware to an increasingly embedded product offering kind of a business with a mix of both hardware and software. So what kind of different schools are we going to attract young talent, especially on the software side?

So, this is very interesting. One thing I can tell you is that this is always a very tech business. It's not that it is moving from a... And we have more than 300 people in the R&D historically from the last 10-15 years. So we have been investing a lot on the R&D. Just to clarify to you, it's not something new what we have been doing. And generally, our focus has always been engineers from the NITs, because they are the people who stay back with us long. We just celebrated our... A few weeks back, and our CTO is with us from last 25 years. All of the R&D engineers are from the NIT then.

This question, because I was recently at the CII Smart Metering Conference that happened in Delhi. So, Shields, sir, was also present there. So, the government there sort of laid down a, you know, proper roadmap for tech and software part. And, you know, how they want to basically increasingly focus on using the smart meter data to sort of unlock actionable intelligence for grid planning. And this can be, you know, forecasting, grid management, some reliability analytics, even the network planning and the optimization in the whole distribution sector. And actually, I mean, the visibility part of distributed energy resources. So, and I just wanted to understand the point of asking these questions was just to understand, like, you know, how are we building our business and positioning our business to also sort of capture these new emerging opportunities? And like, how are we also like trying to sort of, you know, integrate into the whole India energy stack piece? Because that is also an interesting development that's taking place.

I mean, absolutely. That is a very, very interesting development that is taking place, and the good part is that Genus could envisage that being part of the ecosystem. We could envisage that three, four years back. That is the reason. We have one AMISP who started their own software division, and we were very clear that we are not going to stop only at HES MDM. This is the beginning of the software division. We have not created or invested so much money in our software business only for the current HES MDM product. So, very rightly that, and in this energy stack also, AMISPs will play a very important role. All the smart metadata to IES by integration MDMS will be done by the AMISPs, and TSPs will be using this data to create value-added services. We will also play a major role. So, the reason Genus went from a purely hardware company to a solution company, and This is exactly what we have spelled. Thank you.

All right. So I wanted some update on our proprietary RF mesh that, you know, we've been, we've developed and just wanted to understand, you know, what is the on-ground development of that mesh online and what is the sort of proportion of this RF mesh, I mean, that we're going to supply in our own current order book. And just wanted to understand, is it a completely interoperable solution or does it only work with us, with our devices and, you know, with our network?

It is definitely an interoperable solution to whichever the meters. And it is the same whether it is Genus RF or it is the RF from CNOT or from ITRON or from any other company. There's no difference in the sense that Genus is proprietary. RF is only for the Genus meters. It cannot be interoperated with the other meters. So it works the same for the other players also the way it works for Genus. Right now, our media focus has been, of course, China is using its own resolution primarily for its own Well, thanks. Yes, absolutely. We have been talking to different customers, and in the future, we will be selling these solutions too. So we always have a very clear policy as Genus. There's one customer for us is AMISP, which is their own, and one is the AMISP outside the Genus. Currently, we are selling more of non-RF meters, but yes, over the period of time, we will sell them RF meters also.

And we might be, like, on an average, be saving around $1.5 per meter from royalty, right? And this is assuming the meter market selling price will be some 2,300, 2,400 rupees, X of the AMISP bit.

It is a very, very difficult question always to answer because it's a very custom-built product. Different customers have different requirements, different specs. It is not a standard commodity that it is like this.

But, sir, how much would be the... I'm sorry to interrupt, Ranjal. I would request you to rejoin the queue so that other participants could ask the questions. Thank you. The next question comes from the line of Keval Barot with Access Securities. Please go ahead.

Thank you for the opportunity. Sir, I just wanted to ask a question in front of export opportunity status for the company for FY27, and also regarding the gas meter and water meter development for this fiscal year and for the coming fiscal years.

If you go pre-COVID genus, there's almost three figures in the exports, and then there was a lot of focus which went into the domestic market, and COVID also played some major role. But now there has been a significant focus in the international market, a lot of breakthroughs in terms of product certifications, approvals, some orders have started flowing. We have targeted next two to three years, our revenue from export market should be 500 crores, and we are pretty confident of achieving that kind of numbers. And we will start seeing meaningful numbers of export by the end of this financial year. And when it comes to gas meter, the PNG has clearly stated the next three to four years the country have to install 12 crores. Smart gas meters, so we have a clear visibility of at least a 35,000 crore industry in the next four to five years, which is, engineers will definitely play an important role in this industry. And water meters has been at a very nascent stage, but we see beautiful traction happening not only domestically, but more than domestic in the international markets for the water meters. Two to three years down the line, it will become a very, very meaningful business. And future-wise, I see it as big or even bigger than electricity. Cannot comment.

Thank you. Got it. That's it for my sake.

Thank you. The next question comes from the line of Sahil Garg with CCV Fund. Please go ahead. Hello, sir, can you hear me? Yes, sir, please go ahead.

Sir, I have one question on the loans and advances. There has been a tremendous increase in this particular line item from the last year, like 75.000 crores in the last year to 520 approximately crores in this year. And I understand that most of them have been given to the Jamstar platform, which is more like a subsidiary company. So may I know what is the recovery we are looking for this particular amount? And do we have any plan to give any further loans and advances for this particular affiliate?

So these are only the ongoing loans, and when I say that the company has invested 487, almost 500 crores in the Jamstar platform, this includes this number also. So basically, it's an ongoing, whenever the platform requires any capital or both, it comes from the main sponsor, GIC also, and from GINUS also. So it's a part of equity loan, the arrangement that has been happened between the GIC and the GINUS power, where they are 74% and we are 26%.

So every time when you give loans from the GINUS power, there has been an increase in the equity. Is that true?

Basically, it's a combination of equity and loan, that's where the arrangement is working. So when we say investment in the platform, this includes loans and equities and everything.

Thank you. The next question comes from the line of Mahesh Patan with ICICI Securities. Please go ahead.

Yeah, hi, sir. Sir, what is your guidance for meter installation in this financial year?

This financial year, we install more than one road meter.

Okay, so around... Okay.

Thank you. Thank you. The next question comes from the line of Archit Agarwal with Step Trade Capital. Please go ahead. Hello. Yes, Archit, please go ahead with your question.

Sure, of course.

Archit, I'm sorry to interrupt. You're not audible. Arshita, are you there? Yes, please go ahead with your question.

Yes, thank you for giving the opportunity. So, my question is about the order book. So, the current order book is 25,000 crores. Can you give the split, like how much is for CapEx and how much is for CopEx?

So, Arthit Ji, out of this 25,000 crores, you can split it into three parts. One is the orders we get directly from the utilities. One is the CAPEX and the OPEX part from the platform. Out of these 25,000 crores, around 23,000 crores is from the platform. Out of these 23,000 crores from the platform, you can split into two parts. Around 16,000 crores comes from the CAPEX and the remaining comes from the OPEX. And the remaining 2,000 crores is from the regular orders we get from our export, business, gas meter, water meter, other AMISPs and from the utilities. So this is how you can split our order book.

Okay. And what is the timeline for this CAPEX of 15,000 crores?

So timeline is that the whole program has been...

The next question comes from the line of Deepak Podar with Safaya Capital. Please go ahead.

Hello, I'm audible, sir.

Yes, you are. Please go ahead.

Oh, okay. Thank you very much for this opportunity. I just wanted to understand, first up, I mean, you mentioned this year around 9 crore smart meter tenders. We expect it to be out, right? So what sort of order book accretion do you expect for FI27? I mean, any order info target we have?

So we are confident that we will be able to maintain our market share. I don't want to put any numbers to it. It is very, very difficult. At the end of the day, we are into tendering business. But, yes, we have been maintaining the market share historically, and we are confident enough to maintain the same.

And what's our current market share?

So, as an AMISP, we have a market share of around 22-23%, and as a meter manufacturer, an AMISP is more than 30%.

Okay, so AMISP would be about 22-23%, but meter manufacturing would be around 30%. More than that. Okay. And what's the average realization per meter?

This is being a very customized product. We sell metameters, three-phase, single-phase. So it is very difficult to speak on the average realization. It's very customized. There's a lot of disturbance coming suddenly. I don't know. No, it's audible, I mean.

And just one last thing, on the O&M side, you were mentioning, I mean, we expect some time, so any percentage share of revenue that you can expect from O&M in the next two to three years or five years?

So we can't give that number in percentage, so we are expecting in the next two to three years around 800 crores to 900 crores will be coming from O&M.

In the next two to three years, cumulatively, 800 to 900 crores.

No, no. From every year, it will be around 800 crores coming in next 2-3 years per annum, increasing every year. This year, in FY26, it was around 150 crores. Then next 2-3 years, it will reach to a level of 800 crores.

Yeah, that's pretty clear. And what's the margin profile here in O&M?

So we give a blended guidance on this. We don't give the segmental guidance. Okay.

Okay. That would be it from my side. Wish you all the best. Thank you.

Thank you. Thank you. A reminder to all participants, you may press star and want to ask a question. The next question comes from the line of Pranjal Mukija with Growth Spear Ventures LLP.

Please go ahead.

Ranjal, please go ahead with your question and unmute yourself in case if you're on mute.

Yeah, hi. Thank you for giving me this opportunity again. Again, just like continuing to the past question I was asking, sir, just wanted to understand, at least in our single phase meters, I mean, what kind of savings are we doing from the royalty that we were paying earlier because of this, you know, our own mesh?

We were never paying royalty to anybody in the past also. There is no model of royalty being paid by Genus as a RF user in the past also.

Okay. Sir, Tham wanted some idea about the Australia business. Where are we in the go-live of the Australia operation? Is our product sort of ready for the market? Because it has slightly different specs compared to the India business.

Yes, it's a very different product. Australia market is a very difficult market to be part of. The products are ready, all the approvals and everything is on the cards, and it should be in a position to do reasonable numbers. from next two to six months.

What separates us as a company in this market? And again, what is our go-to market strategy? Are we competing basis, price, quality, features? What is it? And if you could also break down the Australia, the market dynamics of the Australia market. How big is it? Like what kind of incumbents are present there? And you know, how much demand are we seeing?

Because increasingly, a lot of things are confidential for the company. I would not like to comment on the specific customer so much in India. Let it remain the purview of the company.

Sir, just one last question. I wanted to understand, you know, there were some news articles regarding our interest for IntelliSmart business. So, if you could just highlight some understanding there.

So that again is not

in the purview of Jesus as we work for the platform and the platform is majority held by GIC. So basically that will be their decision how they are looking at Intel smart opportunity or what are their interests in that. So if anything happens with them, certainly we are offended to that.

But sir, are the company very interested in that business?

Can't say anything.

Okay, sir. Thank you for giving me this opportunity once again, and, you know, good luck for future performance. Thank you.

Thank you. A reminder to all participants, you may press star and 1 to ask a question. The next question comes from the line of Daria Trivedi with DGT Investments. Please go ahead.

Hi, sir. All my other questions are not answered. Just had one question. Are we sticking to our earlier guidance of achieving the positive cash flow from operations by fiscal 27?

I doubt. We will be at par for... We are improving our cash flows on every quarter as we guided that earlier, that from every quarter there will be improvement in cash flow and that is happening. This financial year also there will be improvement in cash flow with every quarter and we are very hopeful that by end of this financial year we will be almost either at cash flow or maybe a little negative, surely not positive. But 28 for sure, first two quarters we will be, from very first or second quarter we will be cash positive. So, I earlier told also that you can see the revenue growth and the cash flow negative. So, it will be just half in financial at 26 from financial at 25 in terms of percentage. And same will happen in these coming years also.

Okay. And what is the peak level of debt that we are targeting?

So, basically, net debt today on the company is around 1500 crores, and I think it won't go more than 1900-2000 crores, the max net debt.

Okay, so what's the reason for this potential 400-500 crore increase in debt?

Yeah, there will be some investments in the platforms also, and when there will be an increase in numbers, there is a possibility of increase in that also.

All right. Okay.

Thank you. Thank you. The next question comes from the line of Sahil Garg with CCV Fund. Please go ahead.

So, earlier on the call, you mentioned that there is no pass-through mechanism in the contracts, and the contracts are fixed-priced contracts. But, obviously, there have been a consistent increasing in the raw material size and other stuff, obviously, in your business, due to some internal external factors, maybe. So, how are we able to cope up on the margins in that case in our contracts or the fixed-priced contracts?

So that's why we have given our guidance letter for this year. We have made an EBITDA of 20.5% this year, and we are expecting EBITDA of 18%. So basically, being a fixed price, it is affecting our margins for sure. But it is a reverse also. Sometimes when it goes down, we get the benefit of that also.

So what's the result saying that we have a group of, you know, Close to 25,000-odd crores, and if all of them are on the fixed contract basis, and obviously we cannot exhibit that at auto-loop in the EZ27 itself. Obviously, 28, 29, 30, it will go like this. And there is a guarantee that the raw metal prices will revert to the normalized level maybe in the future years, because we have signed the contracts today itself, or maybe these contracts have been signed previously, right, at those prices. Thanks, so.

We understand what you're trying to say, and we have been doing this business for the last 25 years. There's not something which is happening for the first time. This is a technology business. There's a lot of work on the field. We have a lot of... Year on year, you continuously keep improving also onto your regular working. So it is not that key. It has not happened in the past. We have seen the COVID period also. So, we can assure you that, yes, there will be some pressure on the margin. That is why we are giving this guidance, but it is not something which will make the thing.

Yeah, yeah.

So, it's hardly 45-50% of that, number one, and that will be completed in next two, two-and-a-half years. The rest part is O&M. O&M doesn't have any impact of the margins on these commodities or anything because of chips or anything else.

Okay. Okay. Perfect. So, thank you so much. Thank you. The next question comes from the line of Chandresh Malpani with Nivashay. Please go ahead.

Hello. Yeah, thank you for the opportunity, sir. My question is with respect to, you know, one of our slides mentioned about ABT and DP meters. So maybe some sense on this product and what is the industry, is it also a tender-based business where utilities come with tender or how is it?

The voice is not very clear. I could not understand. You said something ABT. Can you be more clear, please?

Knowledge clear, sir.

A little better. Some disturbance is there, a little better.

Okay. So my question is with respect to one of your presentation slides, which mentions about DT meters and ABT meters. So just wanted to understand, is it a part of, you know, overall the RDSS scheme, or is it like how does this business work, and what is the market size, and what is genius positioning in this market?

It is part of the RDSS meter. All DT meters, ABT meters are mostly part of the RDSS only.

Second question was on the unit. Noteline item of P&L because of the share of net profit and loss from associate entities. So last quarter, December ended, it was about 11 crore. So this quarter is about 4 crore. So just some sense on this number. How should we see this number? Because basically this is our part of 26% share of the JV profit. So, because the installations are accelerating, but, you know, these numbers are quite fluctuating. So, how should we see this?

Basically, it is not exactly coming only from the platform where we are 26%. It is the trust holding some shares of other entities also. So, notional profit and loss on those numbers also. So, this is all put together. So, basically, if you want to see the numbers of the platform, you can see exact numbers on the website of the platform where you will find that there is no direct losses in the platform also.

Okay, so you are saying that across our 25 projects, the numbers would be there.

So we see it as one project, all 25 projects, we see it as one project, because we are dealing with the platform only, which is one entity, where we are investing 46%.

Okay, sure, sir, I will go through. Thank you and all the best.

Thank you.

Ladies and gentlemen, due to time constraints, we would take that as the last question for today. I would now like to hand the conference over to Mr. Kailash Agarwal for the closing remarks.

Thank you, ladies and gentlemen, for joining us today, for your continued interest and confidence in Genius Power. We assure you that the company is doing good and has done excellent in financial year 26, and you will see the same type of numbers happening in FY27, with a positive cash flow, surely, coming in financial year 28. Thank you very much.

Thank you, everybody. Thank you, sir. Ladies and gentlemen, on behalf of Kaviraj Securities Private Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.