GE Power India Durgapur demerger remains incomplete after sanction

GE Power India Limited’s Durgapur facility transfer to JSW Energy Limited remained incomplete at 30 September 2026, despite National Company Law Tribunal sanction on 1 October 2026, because conditions precedent and Registrar of Companies filing were still required. The facility remained a discontinued operation, with Rs 78.06 crore of standalone assets classified as held for sale.

What has GE Power India approved for the Durgapur facility?

GE Power India approved a Scheme of Arrangement and Demerger Co-operation Agreement on 18 September 2025 to transfer its Durgapur facility to JSW Energy Limited on a going-concern basis. The scheme specifies 1 July 2025 as its appointed date, while the transfer’s legal effectiveness depends on completion steps disclosed after that date.

GE Power India obtained shareholder and creditor approval for the scheme at meetings held on 20 July 2026. Those meetings followed an order of the National Company Law Tribunal, Mumbai Bench, dated 2 June 2026, directing the approval process for the proposed arrangement.

The National Company Law Tribunal sanctioned the scheme through its order dated 1 October 2026. That order completed the tribunal-approval stage, but GE Power India said sanction alone did not make the scheme effective because further conditions and a statutory filing were outstanding.

Why has the Durgapur demerger not become effective?

The Durgapur demerger had not become effective at 30 September 2026 because the scheme requires fulfilment of conditions precedent and filing of a certified copy of the tribunal order with the Registrar of Companies. GE Power India therefore recognised no impact from the scheme in its financial results for the quarter and six months ended 30 September 2026.

The tribunal sanctioned the arrangement on 1 October 2026, one day after the 30 September 2026 reporting date. The company’s statement consequently distinguishes the post-period sanction from the financial position reported at the period end, when the legal transfer had not taken effect.

Management expects the transaction to be completed within 12 months from the end of the 30 September 2026 reporting period. This is an expectation rather than a disclosed fixed closing date, and the filing does not identify which individual conditions precedent remained to be fulfilled.

How is GE Power India accounting for the Durgapur business?

GE Power India classifies the Durgapur undertaking as held for sale and as a discontinued operation under Indian Accounting Standard 105, Non-current Assets Held for Sale and Discontinued Operations. Depreciation on the undertaking’s tangible assets stopped from 18 September 2025, the date on which the board approved the scheme.

The company also re-presented financial results for earlier periods relating to the Durgapur undertaking. This treatment separates the planned demerged business from continuing operations while the transaction remains subject to the completion requirements stated in the scheme.

In the standalone statement of assets and liabilities, assets classified as held for sale rose to Rs 78.06 crore at 30 September 2026 from Rs 34.40 crore at 31 March 2026. Liabilities directly associated with those assets increased to Rs 143.65 crore from Rs 89.27 crore over the same period.

The standalone cash-flow statement separately reported Rs 40.20 crore of cash and cash equivalents from discontinued operations at 30 September 2026. Cash and cash equivalents from continuing operations were Rs 71.45 crore, while the statement showed total period-end cash and cash equivalents of Rs 111.65 crore including the discontinued business.

What were Durgapur’s reported discontinued-operation results?

GE Power India reported a Rs 30.42 crore loss before exceptional items from discontinued operations for the six months ended 30 September 2026, compared with a Rs 25.19 crore loss in the corresponding six months of 2025. The reported loss widened by Rs 5.23 crore year on year.

Total expenses of the discontinued operation were Rs 30.42 crore in the six-month 2026 period, up from Rs 25.19 crore a year earlier. Total income was Rs 12.42 crore, marginally higher than Rs 12.24 crore in the comparable 2025 period, but this income represented internal billing rather than external-customer revenue.

GE Power India said revenue from the Durgapur undertaking arises only from internal billing to the company and does not relate to external customers. The Rs 12.42 crore of internal revenue was therefore deducted in the presentation that arrived at the Rs 30.42 crore loss before exceptional items for the six-month 2026 period.

For the quarter ended 30 September 2026, the discontinued operation reported total income of Rs 7.60 crore and total expenses of Rs 16.98 crore. Its loss before exceptional items was Rs 16.98 crore, compared with Rs 13.44 crore in the preceding quarter ended 30 June 2026 and Rs 12.78 crore in the quarter ended 30 September 2025.

What does the pending transfer mean for GE Power India’s results?

The pending transfer means GE Power India continues to show the Durgapur undertaking separately as a discontinued operation rather than as part of continuing operations. The company identifies power generation equipment and related services as its single operating segment under Indian Accounting Standard 108, but the held-for-sale accounting creates a separate discontinued-operation presentation.

In consolidated results, GE Power India reported net profit after tax from continuing operations of Rs 111.82 crore for the six months ended 30 September 2026, compared with Rs 95.16 crore for the six months ended 30 September 2025. The discontinued business’s Rs 30.42 crore pre-tax loss was reported separately from that continuing-operations result.

The board approved the unaudited quarter and half-year financial results on 13 November 2026. The statutory auditor conducted a limited review and expressed an unmodified conclusion, which addresses the interim financial statements but does not fulfil the conditions precedent or Registrar of Companies filing needed for the scheme to take effect.

Conclusion

GE Power India has received board, shareholder, creditor and tribunal approval for the Durgapur facility’s transfer to JSW Energy Limited, but the transfer remained legally incomplete at the 30 September 2026 reporting date. The accounting result was continued held-for-sale and discontinued-operation treatment, including Rs 78.06 crore of standalone held-for-sale assets and a Rs 30.42 crore six-month loss before exceptional items.

The next disclosed steps are fulfilment of conditions precedent and filing of the certified National Company Law Tribunal order with the Registrar of Companies. Management expects completion within 12 months from 30 September 2026, so subsequent company filings and financial statements will show whether the transfer has become effective and the discontinued-operation presentation has ended.