Genus Power Q1 FY27 Results (NSE: GENUSPOWER)
Signal: Margin pressure
The read
The growth engine remains intact: revenue reached Rs. 1,364.9 crore, up 44.8% YoY, supported by a Rs. 24,020 crore order book, but the margin arc has weakened for the second consecutive quarter, with EBITDA margin down 210bps YoY to 19.1% after falling 400bps in Q4FY26; the key thesis test is whether raw-material pressure reverses while execution and the planned O&M transition improve earnings quality.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,364.9 Cr | 44.8% | N/A |
| Net profit | ₹162.8 Cr | 26.7% | |
| EBIT margin | 19.1% |
P&L walk
Standalone revenue was Rs. 1,364.9 crore, up 44.8% YoY, and EBITDA was Rs. 260.1 crore, up 30.4%, but EBITDA margin fell 210bps to 19.1% as gross margin contracted 260bps to 37.0% from higher raw-material costs; PAT still rose 26.7% to Rs. 162.8 crore.
Key positives
- Revenue was Rs. 1,364.9 crore, up 44.8% YoY, driven by strong execution, smart-meter project ramp-up and increasing rollout intensity.
- Order book including all SPVs and the GIC Platform stood at about Rs. 24,020 crore excluding taxes, with concessions lasting 8-9 years, providing medium- to long-term revenue visibility.
- EBITDA increased 30.4% YoY to Rs. 260.1 crore despite gross-margin compression, while the company retained a 19.1% EBITDA margin.
- The company targets at least 1 crore smart-meter installations in FY27 against manufacturing capacity of over 1.8 crore meters annually.
- Management expects working-capital days to improve by 50-75 days in FY27 and positive operating cash flow from FY28, which could improve earnings quality.
Key concerns
- Gross margin contracted 260bps YoY to 37.0% from 39.6%, with the company attributing the pressure to higher raw-material costs and supply disruptions related to the West Asia geopolitical crisis.
- EBITDA grew 30.4% YoY, slower than revenue growth of 44.8%, and EBITDA margin fell 210bps to 19.1%, indicating that scale-up is not yet translating into incremental operating margin.
- PAT growth of 26.7% to Rs. 162.8 crore lagged revenue growth of 44.8%, reflecting the operating-margin squeeze.
- Current-period working-capital days and operating cash flow were not disclosed, so the projected 50-75 days improvement and positive operating cash flow from FY28 remain forward-looking.
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