GE Power India Limited (GVPIL) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the GE Power NJ Limited Q4FI26 Investors Conference Call. 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. I now hand the conference over to Mr. Puneet Bhattla. Thank you and over to you, sir.

Thank you. Good morning, good evening, all, whosoever are there over the globe, in case somebody is joining us from the other side of the world. And thank you for joining us for the G-Power India Limited Q4 and the full-year FY26 earnings call. I would like to extend a warm welcome to our investors, analysts, and all the stakeholders. Our financial results for the quarter and the full year has been released and are available on the stock exchanges and on our website. Joining me on this call is our Chief Financial Officer, Mr. Ashish Ghai, who will take you through the financial performance in detail after my remarks. Let me begin with a brief perspective on the business environment. India's power sector continues to be supported by structurally strong demand driven by industrial growth, urbanization, and the need for reliable baseload power. At the same time, customers are increasingly focused on plant availability, efficiency improvement, emission compliances, and lifecycle cost optimization. This continues to create opportunities for the service-led offerings, upgrades, and the targeted performance improvement solutions. Coal-based power generation remains critical for ensuring base load, reliability, and degrade stability, even as the renewable energy capacity continues to expand rapidly. India's approach to energy transition is calibrated, balancing sustainability goals with the energy security. In the environmental and the compliance landscape, there has been a recalibration of emission norms, particularly around the flue gas diesel polarization. The revised framework prioritizes the installation in the high-impact area while excluding certain categories of plant, thereby taking a more practical and a phased implementation approach. While this may impact the near-term ordering, but for affordable, reliable, and sustainable electricity need, Such solutions would remain in the need for the upgrade perspective. Against this backdrop, FY26 has been an year of steady operation and strategic progress for GE Power India Limited. Over the course of years, we remain focused on strengthening the company as more service-led, execution-driven, and financially disciplined business. Our emphasis continues to be higher margin. Shorter cycles and lower working capital intensive opportunities and selective approach to others that do not meet our return and the cash flow threshold. This discipline strategy has supported better business quality, improved execution consistency, and the stronger cash flow visibility. During the year, we saw encouraging momentum across our core services and upgrade portfolio, better project selection, tighter execution, and sustained cost discipline contributed to improved operating performance. At the same time, we continue to expand our offerings across both GE Power India and non-GE Power India installed thermal bases, supporting a healthy flow of service-led orders. Core orders, the backbone, have risen by 32% from FY24-25, with the revenue for the same period with less 12% upside, and for this year, 15% above the budget for the core services. As of March 31, 2026, our order book stood at 1628 crores, which remains healthy and provides visibility for close to two years of execution from continuing operations. Importantly, this order book is now increasingly aligned with our strategic priorities with a higher share of service-led margin-accretive opportunities. During FY26, we also made meaningful progress in strengthening our balance sheet. Resolution of legacy receivables have been a key focus area, and we have seen encouraging movements to destructure. This year, on the portfolio front, we have taken decisive steps to simplify and sharpen our business model. Following the earlier exit from hydro and gas businesses, we are on track for the de-market of Kyrgyzapur Manufacturing Facilities to JSW Energy. This transition marks a significant shift towards an asset-like, service-led structure, reducing fixed-cost exposure, while ensuring continued access to manufacturing and the service capabilities through appropriate commercial arrangements. As a result of these actions, combined with disciplined cash management, our financial position has improved materially, our net worth has strengthened, and we are now operating with more efficient capital structures, better aligned with the nature of our business going forward. From a growth perspective, we have also made steady progress in diversifying our order in close. During the year, we have expanded our presence across multiple international markets, including Saudi, Turkey, Australia, UAE, Malaysia, Indonesia, and Morocco. These engagements support a service across a meaningful install base and reinforce our positioning as a reliable and preferred partner in thermal services and solutions. Additionally, the ER also saw several important milestones across the business. In new build boiler, we achieved contact closure with BHGL, which I've just mentioned, completed three PG tests for the key units, and reached synchronization and stability closure milestones across multiple projects. In AQCS and FGD, we have received seven operational acceptances and completed completion of facilities for four units. In these services, we continued to invest in capability building and delivered first-time products, generator repairs, turbine upgrade control system solution. This year, we have had a pleasure of receiving orders for 80 new first-of-its-kind products, which is remarkable. Our automation and control business also secured and executed multiple orders across the domestic and the international market. The team is highly skilled in executing these projects for ECS, turbine controls, generator excitation, generator health monitoring, with various product lines like Alstom, Mark 6, etc. Looking ahead, our priority remains clear, driving discipline execution, accelerating cash conversion, and sustaining profitability. We will continue to focus on strengthening our core service franchise, improving margins and maintaining financial disciplines. With a streamlined portfolio, improved profitability and order book position, we have closed 2026 on a positive note and are well positioned to build on this momentum as we move forward. We are pleased to also announce that the board has recommended dividend payout of 70% of the face value, which is subject to the approval of the shareholders of the company at the annual general meeting. Thanks for your patience and belief in us for the last four years that your company could not declare the dividend in those tough periods. With that, I will now hand it over to Ashish, who will walk you through the financial performance in much more details.

Thank you.

Over to Ashish.

Thank you, Puneet. Good morning, everyone. Thank you for taking time to join today's service call. And once again, congratulations to all the investors for the strong financial performance for the quarter and year ended March 31st in 2020. I would share a few insights in that context. Starting with commercial updates, during the quarter, your company's fixed-yard orders were 254 crores, compared to 285 crores in the corresponding period of the previous year. These number of prior years, you are going to include this year when them orders worth 52 crores. But notably, your company's pivot to margin and cash-accredited host services, you know, this is on the right track, with orders increasing by 22% quarter-over-quarter from 207 crores to 253 crores. And for the complete financial year, your company has booked orders worth 877 crores. In compared to 2183 crores in the previous financial years. There is a cheap decline, which is contributed by FGD EP orders of JP, Pita and Negri, worth 775 crores, which we booked last year. And also two large complex upgrade orders of Vindachal and Ibanathuri, worth 591 crores, again booked in the previous financial year. But again, on the core services, which, as Puneet mentioned rightly, is the backbone of the current and the future strategy of the company, we have successfully delivered a strong year-over-year 32% growth, which reflects the continued strength of our strategy execution and market positioning in that portfolio. As of March 31st, 2026, your company has an order backlog of 1,628 crores. Down from 2,662 crores 12 months back as on March 31st, 2025. This reduction is driven by the termination of two FGDP contracts of JPB9V3, which we declared or disclosed in the due course. Coming to the financial performance now, revenue for the quarter ended March 2026, stood at 316 crores. Driven by upgrade volumes in the quarter, which is up from 266 crores in the corresponding quarter last year. This marks a 19% quarter-over-quarter increase. Revenue for the full financial year stood at 1269 crores, which is up from 1047 crores. This marks an impressive 21% increase in year-over-year performance, which is driven by core services and upgrades. And it grew by 14% and 24% respectively. Profit before tax and exceptional items from continuing operations for the quarter stood at 119 crores, compared to loss of 15 crores in the quarter ended 31st March 2025. This reflects the sustained efforts in improving the operating performance across the business and transition to a healthier project and portfolio mix. The steep quarter-over-quarter profitability increase is also complemented by certain one-off items like reversal of ECL provision for BHEL collection, which is around 44 crores. I would also like to update our investors that pursuant to the settlement agreement signed with BHEL earlier this year, the company has successfully received 343 crores in the financial year 2526. With receipt of the above stated amount, all the obligations from your company in respect to the projects covered under the settlement agreement stand closed, and both parties have fully released and discharged each other against any and all future claims. Profit before tax and exceptional items from continuing operations for the full year stood at Rs. 340 crores compared to Rs. 22 crores in the previous financial year. This substantial increase also comes from operational excellence, but at the same time, complemented by certain one-off items like diverser of ECL provision for DHL, which was around 115 crores, Sholapwood extension of time and LD settlement around 22 crores, and insurance claims on Sholapwood and Sipat Fires, which was around 18 crores. There have been a certain one-off gain in the financial year which augmented the strong performance. However, I am happy to share that excluding the one-offs, your company delivered 11% EBITDA at the entity level in the current financial year, reflected solely by the operational performance. With an exceptional performance in the financial year, your company has recommended an exceptional dividend of Rs.7 per equity share, which is 70% of the face value, subject to approval of the shareholders at the end-to-end AGM, which is the highest dividend recommended in the last 10 years at least of the company. Your company took certain critical actions in this financial year, such as signing off. Settlements with DHL and JP, plus signing of the merger transaction for Durgapur with JSW and RG. These actions are decisive and reflect our commitment to continue to reduce financial exposure, optimize operational costs, and march towards sustained profitability at the back of core services business and discipline execution. Thank you. Over-quarter profitability in this financial year is a testament to the effectiveness of this strategy. Despite the challenges posed by the limitations on FGD installations, we have managed to maintain a solid financial footing from operations, our ability to secure key core orders position as well for the year ahead. Before I open the forum for Q&A, I humbly want to convey to you all that Jephel's management remains fully committed to drive sustainable growth in strategic areas like core services, focusing on generating consistent profits and cash flow. We have made a significant progress in our financial turnaround journey over the course of this year, and the results delivered reflect the strength of our institution. As we enter the new financial year, we remain focused on sustaining this momentum and continuing to strengthen the business across key operating and financial parameters. I, on personal note, would also like to thank all our investors for their continued support and trust that you have shown in us during the last few years. Your trust motivates the management to drive the results and turn around like the one we are witnessing in the company. I enjoyed every opportunity of engaging with you all through the quarterly calls, and I wish you all the very best. Thank you for joining the call once again, and I now open the forum for you.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the Tuckstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants, you are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question assembles. A reminder to all, you may press star and 1 to ask a question. We will take the first question from the line of Rahil Disani from MAPL. Please go ahead.

Yeah, hi, I'm audible.

Yes.

Yes, sir, you're audible.

Yeah, good morning, sir. First of all, to Angrat on consistently showing such strong numbers. I'm a bit new to the company, so just some basic questions to begin with. We are seeing that all the gas turbine manufacturers are having these large orders, and these turbines also need the HRS. And we have mentioned about these systems a few times over the years. So, if you can please share more on the same and what do we do here exactly, I believe GE used to manufacture for the same in the Dolgahur facility. So, if you can just give me a short outline as to what are we doing here.

Thanks. Thanks, Rahim, for taking time and connecting on to the Armin's call. With respect, yes, you are right that there is a sort of a spurt and there is a spike of the gas plants in the global arena. But as per the business object for the jet bill today, we are not in the gas turbines. First, second, you are asking for a follow-up, which is on the tail side of a gas plant, when you are talking about the HRSGs and others. So that also belongs to gas business. The example is focused only on the team for the thermal business. So that's not your company, which is, at this point of time, working on that.

Okay. Okay. But I believe the HRAD systems are also used in thermal as a part of the combined cycle turbine, right? Along with the normal steam turbine.

So a gas plant normally has a gas turbine. If it is a combined cycle, a gas turbine, an HRSG, a steam turbine. This all entails the gas business of the Berlua, and it is not in the objects or depil at this point of view.

Got it, got it. And if I were to ask this as to how much of the core services order book is executable for us in FY27?

So, typically, these are short cycles. Within 12 months, we execute the orders for co-services portfolio. So, the order in hand that you see as on, say, 31st March 26, expect around 85% to 90% of that to be executed in 2067.

Got it, got it. And a much broader question regarding the maintenance upgrades, decarbonization and on-site repair of coal plants. How should we understand the overall market size or demand for that as of date, considering if I look at the bail order book we have seen in the last three years, what kind of? So, as of date, according to you, how is this market shaping up? How big of a demand are we seeing here annually for our sort of services?

So, Raheel, it's a good observation which you have made, and I think there is a lot of focus which is coming on the thermal power stations. And when we're talking about the power station, its reliability, its PLF, and its availability all. It's becoming very, very important, better to the need of the economy. With that, it means when the PLFs are increasing, I'm putting a simple logic. It means the essence of doing more duties, and when they are doing more duties, the requirement for this. Unfortunately, you cannot fix when a machine is going to fail.

I didn't hear you clearly.

Good morning, everyone.

Get back in the queue. Thank you, and congratulations.

We will take the next question from the line of Tushar Deepak Bhai Bhavaskar from Cognizance 4D.

Good morning, sir. Good morning. I have a couple questions. Yeah, I have a couple questions, right? Like, you know, all the backlogs have declined, right? Because of 200 and I would say like 1,627 crores. So when you say like, you know, 85%, like, you know, we'll be clearing off in the year. So are we expecting like revenues of around 1,300 crores for the year? 27? That's the one question.

We can also ask a second question. Correct.

The other question is, I see that we generated around 469 crores in operating cash from a continued operation, but we have deployed like 450 crores as a loan to some party. What is this loan about?

So maybe you can just explain it to Mr. Tushar.

Yeah, Mr. Tushar, I think you had a follow-up. Maybe you can complain. You said RV. Yeah, yeah.

I didn't get it, sir. Sorry.

So, are your questions complete? Shall we answer?

Yeah, sure. Or, like, you know, one small question is, yeah, one small other question is, like, you know, so once we exhaust this backlog, like, you know, how quickly we anticipate, like, you know, for the backlog to grow, and are we increasing, like, you know... The core sector that we have to only call or like we are expanding it to other areas too.

Sure.

And the services too, yeah. Sure, sure. Thank you.

Thanks for that.

So, I would answer it one by one. Your first and the third question are very interlinked. I'm going to take them together and then we'll talk about your operating cash and the loan which you have. So, yes, the order in hand have declined from previous year, and like I said in the beginning, there are... Two reasons to it. One, we have terminated one of the SGDEP contracts, which was worth 770 crores. So, that we have terminated for reasons which we disclose. So, that's one big driver of it. Number two, if you see the journey of the company, We are in a project closeout or a ramp-down mode on the new-build side while we are endeavoring to grow our core services on the services side. That is the strategy of the company, which we launched in July 2024, and that is what we are implementing for the last two years. As a result of that, at least for this year growth, we've mentioned 32% in core orders in particular, but also over four years, the CAGR is 25%. And so I think that strategy is proving to be quite effective in terms of the growth. But at the same time, there is new build, which when I say new build, I'm talking about the greenfield projects or actually EP installation projects. Those are on the project loading mode, meaning that it would consistently go down and down and down and down because they are closing out those projects. So you will see reduction in order in hand. That's the nature of or that's the effective strategy itself. What remains important is that in the portfolio where we are spending the commercial efforts, where we are going to continue our business and our future performance at the back of that portfolio, which is core services, how are we doing there? And I can tell you that in order in hand for core services alone have increased by around 40% year over year. So what is declining is the new build orders backlog, which is the strategy of the company anyways. But what is increasing is the core orders backlog. So, that message is important. I want you to, you know, take away from this call. Now, why that order in hand is increasing for core is because our orders are also increasing. So, to your third point, yes, we expect and we are working towards growth in core services. At this point of time, I think there is, Punitian, the previous question to Mr. Rahil. I'm sure that there is around 4,000 crores of targeted fleet, which we are working on. And currently, we have roughly 18% of the market share there. Our endeavor is to grow that market share, stabilize for the next year or so, and then think of expanding, if we have to, in other areas. For now, we remain committed on the strategy we had announced, and we are delivering on that one. Coming to the last point, which you said about the operating cash and the loan. The 450 crore loan that you see is a loan or lending to our cash pool account, which is any surplus cash. We either, we have two options. We have taken a kind of a diversification. We have invested in FT. For the working capital surplus with the commercial bank, and we have also benchmarked our internal cash pool, Varnova cash pool, you know, entity, which is benchmarked with HSBC, and we lend that money and earn interest from that, which is reflected in the other income of the financial. So, that is the surplus working capital cash, which is lended to be used as and when we require, you know, by the company. So, that is the 450 crores that you see in the deployment. I hope you have received your answers.

Yeah, maybe I do. I do. Thank you. Thank you. I just remind you with respect to the strategy which we have changed or onto which we have pivoted about a year and a half back, wherein we got into our service-led strategy, and we really understand that the headline for the order intake is remaining muted, but I think this is in line with the strategy which we have taken, and this was taken because we always believe that the relevant metrics. At this stage, for us, it's the earnings quality rather than the order backlog. And I would even like to extend it back. Historically, we have seen in the industries, there are several examples which were largely focusing on the EPC, but they could not translate back into the shareholder value because of the weak margins or the long gestational cycles and the uncertainty. And for that, just to remind everybody that we took a conscious call about a year, year and a half back or two years back and get into a quick short cycle, highly accretive margin opportunities onto which we are working. And I think we have been consistent on that path.

Thank you. Thank you, sir.

Thank you. We will take the next question from the line of Milind Kamarkar from Dalalan Brotcha, Portfolio Managers. Please go ahead.

Hi, thank you very much for taking my question. I had a couple of questions. Basically, I wanted to understand how large is the opportunity for you in core services globally, and while, you know, trying for this opportunity, do we get help from our parent? That was my first question. The second question was that also wanted to understand more about this 450 croats being lent via HSBC. What kind of aid do we get on this and how safe is this type of lending? So these were the two questions which I had.

Thank you, Mr. Melin Mirand. I could not take the last line when you mentioned with respect to the promoters. What was that question? What was that line?

So, what I was saying was that in your endeavor to basically focus on core services globally, do we get some kind of a help from our parents?

Okay. We are a part of the big diva nova, and the JEPIL as a legal entity has got a mandate or a perimeter for the India region. So we are not, for a larger perspective, we have only focused on the India perspective. But then, we are also focusing on 13 countries specifically for the boilers, for Saudi or Turkey or Indonesia. So, that gives you the first answer. With respect to the global or the promoter's support, yes, we have got the support with respect to the IP. But you should also take a pride into this that your company within the overall global G-Varnova perspective is the only company which is working on the G as well as non-G-SX. Normally, G1OA works on GESX, so this is one of the things in the overall global perspective which we are carrying at this point of time. I hope to see you.

Only one more addition here was that when it comes to non-G, then are we restricted to Eurasia or we can sort of service anywhere in the world?

Now, when it is non-G, our perimeter remains only the India for non-G.

Only India? Okay. Got it. Thank you.

There was a second question, India. I'll hand it over to Aish. Aish, yes, Mr. Khabar. So, your second question was to throw more light on the 450 perutes. So, uh, yes. Capital surplus cash, we have a common pool entity within the promoter group, and we lend or we borrow. So in our testing times, we borrowed significant money from that pool, and now when we are cash surplus, we are lending to that entity. So we have, from our shareholders, we have an approval for both lending as well as borrowing from that entity. And that lending and borrowing rates are competitive and benchmarked with a nationalized commercial bank. In this case, we have benchmarked it with HSBC, which is also mentioned. We kind of disclose it in the AGM every year. The range, then we have two points of one on trade and two on the safety of this lending. So the rates vary, of course. Between, you know, as the time goes, also the benchmark rates change, but it remains in the, for the year, it has remained in the range of 5.5 to 6.35% during the year. And it is, like I said, if it is benchmark, we typically get 0.25% higher, typically, higher than what we get in the commercial banks. So, that's what we get here. of the safety. Lending. But by the board of the company and well audited by the auditors also when they come. And we, at our end, we do a thorough financial health check of this company every year. So this is also the entity. Other businesses also, the balance sheet of that company is very healthy. The net worth and the cash formation of that company is healthy. So from a safety standpoint, I think it's a very healthy company, and every year we perform the financial health check of the entity. We have been doing it for... Let's say, when GE took over, and we have operational benefits of that and also financially very competitive pricing with a safe house when we need it. Surplus cash positioning that we do in the company. Okay.

Thank you very much and all the best.

Thank you.

Thank you. We will take the next question from the line of Sunny Shaw, an individual investor. Please go ahead.

Hello. First of all, congratulations to the management for walking the talk and delivering good numbers. So I have a set of three questions, if I may ask one by one.

Sure. Sure.

Right. So, as per what I've read about the government mandate regarding the FGD, that any coal plant having 250 plus gigawatt capacity must install the FGD. So, in that sense, in terms of desulphurization, what scale do we see at GE power, given the fact that we have a technology backing from the parent? And if the opportunity is so, what is the broad range or a ballpark range of a margin expectation in such kind of orders?

Sorry, I'll hand it over to my commercial leader for MGD, Roshan King. Right.

Good morning. So, like, your question is, what is the business currently as per the government mandate on the SGD part? But if you see the recent notification what government has notified last year, July 25, that is... They have categorized. There was already a category of installation of FGD, which was category A, and category B, and category C. It was with respect to the population of the cities. Okay, and going till 11th of July notification, it was mandated that all three categories will be We will have to comfortably install the FGD. However, post this notification, what has happened, category C, which is more than 50% of the install base, that is more than 200 gigawatt, which was supposed to be FGD ready by certain dates, so that was taken out. So, first of all, that specific segment is out. Then the government said category A has to necessarily install, which was... Like 10% of the total installed base. And category B has an option. So that's how category B has an option means they have to review the applicability, then submit to the government, fine, this is what we have found, and we require, we don't require, and if they go ahead for FGD, Then, there is not a pass-through of tariff under certain conditions. So, that's how category B portion has also come out. Only category A has left. And primary, if you see, in totality, it is hardly 8 gigawatts so far has been left, which is supposed to install the FGD with respect to the notification of 11th June's content release file. And to which the progress is quite slow, basically plants are from Tamil Nadu and Maharashtra, and one or two plants in Central India. My answer is?

Yeah, yeah, fair enough. So you are saying that mandate effectively has not much of weightage in the business sense for us, unless obviously it is being done proactively by the power plant itself.

Right.

So I'll come to the second question. We have a net cash of 880 crores in the books. So, I mean, what are we planning? Are we planning to use it in terms of working capital? But at the same time, we have moved from a high capital intensive to a low capital intensive and high margin businesses, what I would understand as per the last one and a half year talk, which we are having with the management. So what are we trying to plan with this 880 crores?

So, Sunny, I think a good observation and I was expecting this thing probably, but let me be very honest and transparent with you. The company is fully aware of the situation and is continuing to evaluate the effective and the efficient deployment of this particular growth. Our perimeter for the growth would still be towards the focus area for us, for cycling at turnaround. Got it.

Sorry to interrupt in between, sir. Your voice is speaking.

Is it audible now?

Yes, sir. Please proceed. Thank you.

Maybe I start from the start. Thanks for this question, and probably I think this is something which I would like to answer and try to give you an understanding onto this aspect. This cache is into our continued evaluation. So that we can effectively deploy it towards our business growth and the operational strengthening, while also creating the shareholder's value. But our strategy still remains the same, which we have been saying for last many, many quarters, that we would be focused on the service, which is high margin, short cycle, and cash accretive perimeter. And as we develop further onto this, we will keep you updated onto the developments which are taking place onto this so that we also share it out with you. And most important for us is the shareholder value creation.

Thank you, everyone. It's best for you. Thank you.

Right. So, I'll come to the last question. I could, I mean, get the, I could understand that the shareholder value in terms of either in the growth of the company or in whatever way is the focus. So, I'll come to my last and third question is if I were to ask you about, you know, GE Power SWOT analysis in terms of, and more focus would be in terms of the opportunity and threats. And these opportunities and threats, let's say, could be highly probable and it could be a low probable thing. But if you could define something in terms of what opportunities lie and what are the threats, if maybe, you know, if you can dwell on that.

Maybe I'll start with the easier one, the opportunities. We are focused on the thermal business of the install base, and as you would have been seeing in the media, etc., the demand is constantly increasing as the economy is rising, and we are in the part of the service, the after-sales services business. This is going to continuously be available to us. So I see that this is one of the big trends for your company. Now coming on to the opportunity, whatever you call it as. On the threat side is, as the renewable is coming in, there could be a little bit of a slowness, but at the same time, let me give you a bag of the envelope calculation, Sunny. Even 100 gigawatt of renewable, you still require 300 gigawatt of the embedded energy, and that embedded energy till the renewable comes in is only coming from the thermal now at this point of time. You can take a threat, but again within this threat there is an opportunity.

If you're patiently answering the questions, you may, I mean, I'm done with my questions. Thank you so much.

Thank you. We will take the next question from the line of Pratish Srivastava from Nivesh Wisdom. Please go ahead.

Yeah, hello, sir, again. Thank you for taking my question, and again, congratulations on wonderful set of numbers.

My question is on the Durgapur JSJW D-Merger.

So, what are the specific regulatory approvals are pending, and what are the realistic timeline for these?

Yeah, Mr. Srivastava. So, right now, where we are in the process is that we have filed with NCAT, and in the due course, there are certain approvals that are needed. One, there are creditors and shareholders with approval. Two, we need regulatory approvals from ADA, which is the real estate regulation in Gurgapur, which is, again, one of the most critical elements in this. So, there are certain approvals, and then, of course, ultimately, NCLT, and we also need NOCs from the government institutions, like the attack institutions and the banks and all that. So, all those are part of the procedure. The procedure is initiated after the filing the petition with NCLT. The realistic timelines, well within 12 months, is definitely there. The target is to close within this calendar year. That's the target. But I can say that within 12 months from, you know, say, 31st March of 26th is definitely the expectation. The target remains three months ahead of that.

Okay. And so, what do, what does, how does it benefit GE and, like, minority shareholders, like, do demergers?

Sure, I can take that. I see, I see a couple of benefits on the company's side, and when I say company, I, you know, the shareholders are part of the company, so I take, you know, all of us together. So, one big benefit is, I believe it gives the flexibility to our shareholders, to our investors, to remain invested in a large power asset of the country. Durgaapur is an asset of 660 acres. Now, this is no small land. This is no small asset. However, the way we have transformed over the large... You know, 65 years, which is the aging of this asset, we are into services business now, and we are entering now on the new business, and hence the asset was underutilized. Now, this is not just unfortunate for the company, this is also unfortunate for the country, that a large asset is being underutilized. Now, with this demerger, it gives you an opportunity that you can choose to remain invested. In the asset, because it is going, and you would get, you know, the equity entitlement ratio of the shares in the resulting company, and also the remaining business, which is Jepil's core strategy, backed by core services. So, and it would unlock value in the shareholder's wealth, which also Pune talked about in the previous response. So, I think it gives you that flexibility, which is one. It gives you, it unlocks value for that asset because it was underutilized, we tried. We tried a few things to not only fill the factory, but at least get some level of profit there, but we could not succeed, honestly. And we have seen quarter over quarter, we have reported losses from that factory or from that business. So, it goes to a partner or it goes to a company, which is, you know, very... Ambitious and which is growing on that and which would be effectively utilizing that factory a lot and they have shared the plans for Durga. So I think it is good for the country, good for the people in Dirkapur, and also at the same time gives the shareholders an opportunity to remain invested or not remain invested as you feel like, but definitely unlock of shareholders' value. From our side, like from management perspective, We are able to focus on the remainder business. We are able to focus and grow on the core services business and in turn deliver better growth and in turn deliver better results operationally, more importantly, and then, of course, as a function of operation financially. So that is the whole idea behind or that was the whole intent behind this demerger proposal, which is, you know, put on the table. And actually, I thank you for this question because it's important that our investors understand the intent of this team so that they can vote with the right level of information and intent when it comes to go for approval.

Thank you, sir. So, now that we are getting into core services, with this deemerger, are we going to lose any manufacturing or fabrication capability which supports our core services contracts?

So, again, thank you for that question. Good question. So, the short answer is no, we will not. And the reason for that is that as the... For boiler, so firstly, why do we need the factory for co-services? Do we even need the factory for co-services? We need manufacturing capabilities, yes. For our boiler portfolio, we need that. There are components, well-identified components for which we need these, you know, the manufacturing capabilities. How are we making sure that as part of this de-merger, our code services is not getting impacted is by signing a long-term service agreement with GHD Energy. We have signed, as part of the deal, we have signed a five-year contract with them, which can be extended as usually convenient to both the parties, but five-year contract with them, under which we have We have reserved the right for, you know, at predetermined schedule and price, the right for manufacturing, not for manufacturing, but the manufacturing will be done by the HW itself, and they will be our better for it. But we have kind of reserved the capacity so that our co-services business is not impacted. For the next five years. Now, five years is a long period where we will then develop an alternate supply chain. We have already started working on that even before the de-merger. We are making good progress there. But I think over the next 18 months, I would say, we would be in a very good shape to have developed an alternate supply chain. You know, post the completion of this long-term agreement, we would be independent of by ourselves for core. But for the next five years, we have secured the order intake or avoided any loss of order intake by signing this long-term agreement.

Great, great. And our final question is on EBITDA margin. So, you showed that 37.6% in Q4 EBITDA margin, and under fact, due to this DHL reversal, that alone, I think, roughly is around 14% as pointed contributes to that. So, including all these, you know, one-time settlement-related charges, provision reversals, and anything other one-time, what would be the underlying EBITDA margin, and what we can take back as for FY2700?

Sure.

So, for 2025-2026, after all these one-offs, I said in my opening remark that the normalized EBITDA or the underlying after all these one-offs remains at the entity level is at 11%. At the entity level for full financial year, I'm talking about. The same at the quarter level is at 80%. Okay, because you mentioned 37% for the quarter. So that remains at 18%. For the full financial, it was at 11%. This is at the entity level, including this continued operation of Turkapur's perimeter. Now, our... Our efforts and our optimization initiatives, both on cost side and then improving the health of our portfolio remains there. So I can safely say that the base is set. And, you know, the effort, it should be, you know, at par, if not more at least, but at least at par for the future year. So, I would not, I can't give you a range or something on the guidance for the future in terms of margins, but I can say that at least the base is set in this year.

So, when you say at par, should I take like around 18% or 11%?

No, no. 18 is for the quarter, sir. We're talking about the financial year, which is 11% for 25-26.

Okay. So, you're getting more from the year, Frank?

Yes.

Yeah. Okay. Thank you. Thank you, sir. Thank you very much.

Thank you. Before we take the next question, a final reminder to all the participants, if you wish to ask a question, please play star and one. We will take the next question from the line of Pradeek Giri from Shublabh Research. Please go ahead.

Hi, good morning, sir.

I hope I am audible. Sir, most of the questions are answered.

I have just one clarificatory point. Sir, I just wanted to check in our reported revenue of probably 316 crore, if I have to arrive at the right number, I'd have to deduct 44 crore, right, the ECL reversion. Sorry. Or is there more to it, sir? Quarter or 316? I hope. No, no, I'm talking about a quarter, Q426. Okay, 316, yes, yes. So, so out of that 316, sir, I'll have to deduct 44, which is probably the ECL revulsion, right?

Yeah, around 41, but yes, in that range.

Got it. Ballpark. Understood. Sir, I was just wondering for how long it may continue further, because probably for the last two, three quarters, we have been commenting about it. But I was just wondering, can FY27 also see these interruptions from previous ECL?

And so, no, you know, I kind of clarified this in my opening remark again, Mr. Giri, that With the last branch in March, with the amount that we have collected, we have fully honoured and executed our settlement agreement with BHGL, and both the parties have duly discharged each other of all the obligations that are the settlement agreement, and the agreement stand closed as on date. So, to your question. You know, BHL agreement impact on ESL, ECL, is done as of the 31st March, 2026.

Understood. Sir, I'm sorry I missed it probably in the opening remarks, but this is helpful. Thank you, and congratulations again for the kind of performance you guys have delivered.

Thank you. We will take the next question from the line of Abhay Jain from Priya. Please go ahead. Abhay, please proceed with the question. As there is no response, ladies and gentlemen, this was the last question. I now hand the conference back to Mr. Puneet Baitla for the closing comments. Thank you, and over to you, sir.

Thanks, everybody, for sparing the time and being available on this earnings call. And as Ashish and myself have said, thank you for your support to us, and thank you for the sort of conviction. I have shown into the company. It has come back onto the track. I would like to close it with saying this thing that we will continue to focus on the strengthening of our core services franchise, improving the margins, and maintaining the financial discipline. Looking ahead, our priority remains a clear driving discipline execution, accelerating cash conversion, and sustaining the profitability. With this, I thank you all once again. Thank you.

Thank you, members of the management. On behalf of GE Power India Limited, that concludes this conference. Thank you all for joining with us today, and you may now disconnect your lines. Thank you.