If you follow the power and infrastructure sector, today turned out to be a strong day for GMR Power & Urban Infra Ltd. The company released its September quarter results, and a sharp rise in net profit pushed the stock up by 6.39% to an intraday high of ₹128.05. After a slight correction, the stock is now trading at ₹127.85.
What Happened in Q2 FY26?
The company reported consolidated revenue of ₹1,810.36 crore from operations this quarter, which is 30.83% higher than the ₹1,383.80 crore recorded in the same quarter last year. On a QoQ basis, revenue grew by 9.82%.
The revenue breakup also highlights that the company’s core power segment remains extremely strong.
- Power Segment: 76.17%
- Smart Meter Infrastructure: 15.62%
- Roads: 2.83%
- EPC: 1.16%
- Other Operating Income: 4.22%
This clearly shows that the company is growing rapidly across multiple verticals with diversified income streams.
Net Profit Jumps 258% YoY
The biggest highlight of the quarter was the net profit, which jumped 258.51% YoY, reaching ₹894.70 crore, compared to ₹249.56 crore last year. Notably, the company had posted a loss of ₹7.18 crore in Q1 FY26, but in Q2 it returned strongly to profitability.
EPS also increased to ₹12.43, reflecting the company’s improved financial strength.
Strong Two-Year CAGR
Over the past two years, the company has delivered:
- Revenue CAGR: 7.24%
- Net Profit CAGR: 16.73%
This indicates steady and sustainable growth.
However, there are certain challenges visible on the balance sheet:
- ROCE: 13.2%
- ROA: -1.73%
- Debt-to-Equity Ratio: 8.23x (very high)
This shows that the company is heavily leveraged, and interest servicing may continue to put pressure on financial performance.
What Does the Company Do?
GMR Power & Urban Infra Ltd operates across multiple sectors ranging from power generation to urban infrastructure development. The company generates power using coal, gas, hydro, solar, and wind energy sources. Along with this, it plays a major role in roads, railways, airstrips, runways, Special Investment Regions (SIRs), and large-scale urban infrastructure projects.
The company is involved in power generation projects in both India and Nepal. It is a subsidiary of the GMR Group, one of India’s largest infrastructure conglomerates.
Conclusion
Q2 FY26 was extremely strong for GMR Power & Urban Infra Ltd. Revenue growth, profit turnaround, and a sharp rise in EPS helped boost the stock significantly. Although the debt-heavy balance sheet remains a challenge, the company’s diversified project portfolio, growing smart meter segment, and strong power base are positioning it for long-term structural growth.
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