GE Power India Q3 FY26: PBT up 470% on 22% sales

Q3 filing puts turnaround in focus

GE Power India reported a sharp improvement in financial performance for the third quarter ended December 2025 (Q3 FY26). Standalone revenue rose about 22% year-on-year to ₹386 crore, as execution improved and the company leaned further into its services-led strategy. Profit Before Tax (PBT) from continuing operations surged to ₹131 crore compared with ₹23 crore in the same quarter last year, a jump of 470%.

The results have renewed focus on the company’s multi-year pivot toward higher-margin, cash-accretive core services. At the same time, investors are tracking two overhangs highlighted in disclosures and commentary: the timeline for the Durgapur unit demerger to JSW Energy, and a GST demand notice received in December 2025.

Key numbers: revenue up, profitability swings sharply

Multiple data points in the filings and coverage converged on a strong quarter. Revenue for Q3 FY26 was reported at ₹385.62 crore to ₹386 crore, with year-on-year growth of 21.69% to 22%. Sequentially, revenue rose 37.47% from ₹280.52 crore in Q2 FY26.

Profitability improved even more sharply. Net profit (PAT) was reported at ₹72.32 crore in Q3 FY26, versus a net loss of ₹18.58 crore in Q3 FY25. In one disclosure, total income from continuing operations rose 16.5% year-on-year to ₹401.25 crore. Operating profitability also expanded materially, with an EBITDA margin of 35% for the quarter ended December 2025 compared with 9% in the quarter ended December 2024.

Margin expansion and one-off items supported earnings

The quarter benefited from improved operating performance and the impact of strategic settlements. Operating profit excluding other income was reported at ₹124.80 crore, with operating margin (excluding other income) at 32.36%, compared with 9.96% in Q2 FY26.

One set of disclosures also flagged one-off items totaling ₹84 crore during the quarter. These included a reversal of expected credit loss provision relating to a BHEL settlement amounting to ₹37 crore, a Solapur project settlement provision reversal of ₹22 crore, and a Jaypee full-and-final settlement with a positive impact of ₹25 crore.

Separately, the company reported having received ₹216 crore from BHEL year-to-date, and ₹25 crore from Jaypee as a full settlement. These items were part of the broader set of actions that management linked to better cash discipline and improved working capital outcomes.

Core services strategy is driving growth

Management reiterated its focus on expanding the high-margin, cash-accretive core services business, with an aim for double-digit normalized EBITDA. Normalized EBITDA margin for Q3 FY26 was described as approximately 14% to 15%.

Core services orders increased from ₹112 crore in December 2024 to ₹136 crore in December 2025, a 21% increase over that period. Importantly, 53% of core services orders in the quarter came from non-GEPIL assets, indicating expansion beyond the company’s traditional installed base.

Management also indicated that, for the next two years, it expects around 60% of revenue to come from core services, rising to 80% in the longer term as turbine upgrade orders in the current backlog get executed.

Order book provides visibility, but comparisons show decline

GE Power India reported an order book of ₹1,671 crore as of December 2025, which it described as providing around two years of execution visibility. In a comparison table shared in the earnings coverage, the order book was shown against ₹2,662 crore as of March 2025.

Another report pointed to weaker order intake even as profitability improved. It cited overall order intake for Q3 FY26 at ₹481 crore, down 27.5% year-on-year, and nine-month order intake at ₹775 crore, down 59.1% year-on-year. While the strong quarter has reduced near-term pressure on profitability, these order metrics remain relevant for tracking sustainability.

Demerger of Durgapur unit to JSW Energy: what is known

A major ongoing corporate action is the demerger of the Durgapur boiler manufacturing unit to JSW Energy. The transaction was approved by the board with an appointed date of July 1, 2025. Commentary described the demerger as a step to streamline the portfolio and reduce fixed cost exposure, with the potential to create operational synergies for JSW Energy through backward integration.

The company indicated that NCLT approvals are anticipated in the latter half of calendar year 2026. Until regulatory milestones are cleared, investors are likely to treat the demerger as a timing variable rather than a completed catalyst.

GST demand notice adds a near-term uncertainty

GE Power India received a GST demand notice of ₹41.57 crore in December 2025 for alleged non-compliance during FY2018 to FY2021. The company plans to appeal. While the notice does not change Q3 execution performance, it introduces an identifiable financial and compliance risk that markets typically track until resolved.

Stock reaction and what investors are watching next

After the Q3 FY26 results, the stock saw sharp price action in market coverage. One report cited an 18.72% rally to ₹395.70 following the earnings, while another referenced a 20% surge on February 12, closing at ₹399.95.

From an operating standpoint, attention is likely to remain on whether margins stay elevated after a quarter supported by settlements and reversals, and whether execution remains strong enough to sustain quarterly revenue above recent levels. Management guidance discussed targets of 10% plus normalized EBITDA margins going forward and annual revenue growth in the range of 5% to 8%.

Summary table of disclosed metrics

Conclusion

GE Power India’s Q3 FY26 numbers show a clear profitability turnaround on the back of higher revenue, sharp margin expansion, and the impact of settlements and provision reversals. The strategic emphasis on core services is showing up in order growth and a rising share of non-installed base work.

Near-term watch points remain the progress on the Durgapur demerger to JSW Energy, with NCLT approvals expected in H2 2026, and the outcome of the ₹41.57 crore GST demand notice appeal. The next set of results will be closely tracked for confirmation that the improved margins are sustainable beyond one-offs.