Emkay Global Sees Upside in Genus Power Infra, Targets Rs 550

Genus Power Infra Delivers Strong Quarterly Performance

Emkay Global Financial's research report highlights Genus Power Infra's (GPIL) impressive quarterly performance in 4Q/FY26, driven by a strong opening order book and accelerated execution of ongoing smart-meter installation projects. Despite the prevailing inflationary environment, GPIL reported significant YoY growth in revenue, EBITDA, and PAT, at 62.7%, 36.2%, and 41.2%, respectively.

The company's robust execution momentum was underpinned by higher offtake of smart meters from various utilities. Moreover, GPIL's current order book of approximately Rs252 billion, combined with a strong near-term tender pipeline of 80-90 million smart meters (likely to be awarded in the current year), provides the company with strong revenue visibility.

Looking Ahead

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The management of GPIL has guided for revenue of Rs60-65 billion by FY27, with an expected EBITDA margin of 18%. Additionally, the company anticipates becoming cashflow positive by end-FY27, supported by the pick-up in projects achieving a 'go live' status. GPIL remains one of the key beneficiaries of distribution reforms in India.

Recommendation

We maintain a BUY rating on GPIL with a target price of Rs550.

Financial Performance Comparison

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