GE Power India cash falls to Rs 71.45 crore after loans

GE Power India Limited ended 30 September 2026 with Rs 71.45 crore of cash and cash equivalents from continuing operations, down from Rs 424.46 crore at 31 March 2026, after reporting Rs 291.01 crore of net loans to related parties and paying a Rs 47.06 crore dividend during the six-month period.

Why did GE Power India’s continuing-operations cash fall?

GE Power India’s continuing-operations cash fell because investing and financing outflows exceeded the cash generated or used in operations in the six months ended 30 September 2026. Cash and cash equivalents from continuing operations stood at Rs 71.45 crore at period-end, compared with Rs 424.46 crore at 31 March 2026 in the standalone balance sheet.

The closing cash figure for continuing operations differs from total cash because the Durgapur business was classified as held for sale. The cash-flow statement reported Rs 111.65 crore of total cash and cash equivalents at 30 September 2026, including Rs 40.20 crore associated with discontinued operations and Rs 71.45 crore from continuing operations. Total cash declined by Rs 312.81 crore during the six months from the Rs 424.46 crore opening balance.

The separate presentation follows the proposed demerger of the Durgapur facility to JSW Energy Limited. GE Power India’s board approved the arrangement on 18 September 2025, and the National Company Law Tribunal sanctioned it on 1 October 2026. As the scheme had not become effective by 30 September 2026, the Durgapur business remained classified as held for sale and as a discontinued operation.

How much did GE Power India lend to related parties?

GE Power India reported Rs 291.01 crore of net loans to related parties in investing activities for the six months ended 30 September 2026. This was the largest individual outflow in the continuing-operations cash-flow statement, although it was lower than the Rs 299.98 crore net loan to related parties recorded in the six months ended 30 September 2025.

The balance-sheet movement corresponds with the cash-flow line. Current loans rose to Rs 741.01 crore at 30 September 2026 from Rs 450.00 crore at 31 March 2026, an increase of Rs 291.01 crore. The filing does not identify the related parties, set out loan terms or maturities, or state the intended use of the funds.

Investing activities used Rs 267.19 crore overall in the latest six-month period, less than the lending outflow because GE Power India received Rs 23.39 crore of interest and Rs 2.04 crore of dividend income. Purchases of property, plant and equipment, including capital work in progress and capital advances, were Rs 1.56 crore, compared with Rs 3.88 crore in the prior-year period.

What did operating cash flow contribute at GE Power India?

GE Power India used Rs 2.93 crore in operating activities in the six months ended 30 September 2026, an improvement from Rs 29.91 crore used in the comparable 2025 period. Operating profit before changes in assets and liabilities was Rs 83.05 crore, compared with Rs 14.54 crore a year earlier, while net income-tax payments were Rs 4.40 crore.

Working-capital movements absorbed much of that operating profit. Other current assets used Rs 50.30 crore, current provisions used Rs 35.17 crore and inventory increased by Rs 16.47 crore. Offsetting inflows included a Rs 43.39 crore increase in trade payables, a Rs 9.56 crore reduction in other current financial assets and a Rs 2.63 crore reduction in trade receivables.

The income statement also shows different results between continuing and discontinued activities. Profit before tax from continuing operations increased to Rs 121.80 crore for the six months from Rs 90.12 crore a year earlier. Discontinued operations recorded a Rs 30.42 crore loss before tax, compared with a Rs 25.19 crore loss in the prior-year six months, while their separately disclosed cash flow was a Rs 40.20 crore net inflow.

What other cash outflows affected GE Power India?

GE Power India used Rs 42.69 crore in financing activities in the six months ended 30 September 2026, principally because it paid Rs 47.06 crore in dividends. There was no dividend payment in the six months ended 30 September 2025, when financing cash outflow was Rs 6.18 crore, consisting of lease-liability payments.

The latest-period dividend was partly offset by Rs 12.00 crore of proceeds from bank borrowings. GE Power India also paid Rs 6.33 crore of lease liabilities and Rs 1.30 crore of interest. Finance costs in the continuing-operations income statement were Rs 10.33 crore for the six months, against Rs 11.24 crore in the prior-year period.

Current assets were broadly stable at Rs 1,911.59 crore at 30 September 2026, versus Rs 1,919.94 crore at 31 March 2026, but the composition changed. Loans increased by Rs 291.01 crore and other current assets rose by Rs 52.22 crore, while continuing-operations cash declined by Rs 353.01 crore. Current liabilities fell to Rs 1,365.06 crore from Rs 1,436.25 crore over the same period.

Conclusion

GE Power India’s lower continuing-operations cash balance primarily reflected the Rs 291.01 crore net loan to related parties, alongside the Rs 47.06 crore dividend and a Rs 2.93 crore operating cash outflow. At 30 September 2026, the company reported Rs 111.65 crore of total cash, but Rs 40.20 crore was attributed to the Durgapur business classified as held for sale.

The next disclosed event is completion of the Durgapur demerger to JSW Energy. Management expects the transaction to be completed within 12 months from the end of the reporting period, subject to conditions precedent and filing the certified National Company Law Tribunal order with the Registrar of Companies. The repayment timing and terms of the Rs 741.01 crore current-loans balance remain undisclosed in the filing.