GE Power India Limited backlog falls 16.3% in Q2 FY2026-27

GE Power India Limited ended the quarter on 30 September 2026 with an order backlog of Rs 1,527.3 crore, down 16.3% from Rs 1,825 crore a year earlier, although management reported that Core Services orders increased 38% year on year in the second quarter of FY2026-27.

Why did GEPIL's order backlog decline in Q2 FY2026-27?

GEPIL's reported order backlog declined because it stood at Rs 1,527.3 crore on 30 September 2026, compared with Rs 1,825 crore on 30 September 2025. That represents a reduction of Rs 297.7 crore, or 16.3%, in work remaining to be executed. The 13 November 2026 announcement does not provide a split of backlog by customer, project, geography or product line, so it does not identify the individual orders behind the decline.

The comparison is between closing order-book positions, rather than quarterly revenue or the value of orders received during the period. GEPIL's total income from continuing operations rose 11.6% to Rs 342.51 crore in the quarter ended 30 September 2026, from Rs 306.96 crore a year earlier. This means the lower backlog coincided with higher income recognised in the quarter, while the announcement does not provide an order inflow and execution reconciliation.

How did GEPIL's Core Services orders grow while total backlog fell?

GEPIL said Core Services orders grew 38% year on year in the quarter ended 30 September 2026, while the total order backlog was 16.3% lower at the quarter-end. The Core Services figure measures quarterly order growth in a specified business area, whereas backlog is the closing value of all unexecuted orders. GEPIL did not disclose Core Services order values for either period or the business area's share of the Rs 1,527.3 crore total backlog.

Management attributed the Core Services order increase to its strategic focus on that area and cited the Shoaiba project win in Saudi Arabia as part of an expanding international footprint. However, the 13 November 2026 announcement does not disclose the Shoaiba contract value, its order-recognition date, or its contribution to the 30 September 2026 backlog. It therefore does not allow calculation of how Core Services growth compared with execution, cancellations or changes in other order categories.

GEPIL reports one operating segment, power-generation equipment and related services. Its Managing Director and board review the operating results as one unit, and the company said its functions do not qualify as separate operating segments under Indian Accounting Standard 108. This reporting basis explains why GEPIL disclosed an overall backlog figure and a Core Services growth rate, rather than a segment-level order-book reconciliation.

What did GEPIL report for income and profitability?

GEPIL reported total income from continuing operations of Rs 342.51 crore for the quarter ended 30 September 2026, up from Rs 306.96 crore in the quarter ended 30 September 2025. Profit before tax and exceptional items from continuing operations was Rs 52.98 crore, compared with Rs 46.10 crore a year earlier. Profit after tax and exceptional items was Rs 32.79 crore, against Rs 30.43 crore in the prior-year quarter.

GEPIL reported earnings before interest, taxes, depreciation and amortisation, or EBITDA, before exceptional items of 18.1% for continuing operations in the September 2026 quarter, compared with 17.7% a year earlier. The increase was 0.4 percentage points. Management linked its view of improved operational profitability to the Core Services focus, but did not disclose separate Core Services revenue, profit or margin figures.

The consolidated cash-flow statement recorded net cash used in operating activities of Rs 2.99 crore for the six months ended 30 September 2026, compared with Rs 29.85 crore used in the corresponding 2025 period. Cash and cash equivalents at 30 September 2026 were Rs 111.70 crore, versus Rs 108.37 crore a year earlier. The latest closing balance included Rs 40.20 crore from the discontinued business held for sale.

What does the Durgapur demerger mean for GEPIL's results?

GEPIL has classified the Durgapur facility as a discontinued operation and held-for-sale business under its proposed transfer to JSW Energy Limited. GEPIL's board approved the Scheme of Arrangement and Demerger Co-operation Agreement on 18 September 2025, with an appointed date of 1 July 2025. The company said revenue at the Durgapur undertaking is solely from internal billing to GEPIL, not external customers.

The Durgapur operation reported a loss before exceptional items of Rs 30.42 crore for the six months ended 30 September 2026, compared with a loss of Rs 25.19 crore in the corresponding 2025 period. Its total income was Rs 12.42 crore and total expenses were Rs 30.42 crore in the latest half year. These amounts are separately presented from continuing operations, including the Rs 342.51 crore of quarterly continuing-operations income.

The National Company Law Tribunal sanctioned the scheme on 1 October 2026, after the 30 September 2026 reporting date. GEPIL said no impact from the scheme had been recognised in the quarter or half-year results because it had not become effective at that date. The board approved the financial results on 13 November 2026 after a limited review by the statutory auditor, which expressed an unmodified conclusion.

Conclusion

GEPIL's September 2026 disclosures show diverging order indicators: the total backlog was Rs 1,527.3 crore, 16.3% below the prior-year level, while Core Services orders rose 38% year on year. Continuing-operations income increased 11.6% to Rs 342.51 crore, and EBITDA before exceptional items rose to 18.1% from 17.7%.

The next disclosed matter to watch is completion of the Durgapur transfer to JSW Energy Limited. Management expects completion within 12 months from 30 September 2026, subject to fulfilment of conditions precedent and filing of the certified tribunal order with the Registrar of Companies. Future disclosures may also show whether Core Services growth changes the total backlog, as GEPIL did not provide segment order values or a reconciliation of the Rs 297.7 crore backlog reduction.