/** blogpostTitle: Genus Power FY26: Execution scale-up, order book depth, and the next test on cash flows */

Genus Power FY26: Execution scale-up, order book depth, and the next test on cash flows

Genus Power Infrastructures Limited ended FY26 with a sharp step-up in scale, powered by faster execution across its smart metering portfolio under RDSS-linked programs. On a standalone basis, revenue rose to INR 4,737.5 crore in FY26 from INR 2,442.0 crore in FY25, a 94% year-on-year increase. Operating profit also expanded meaningfully, with EBITDA at INR 960.2 crore, up 104%, while profit after tax from continuing operations increased to INR 605.0 crore, up 106.5%.

The Q4 performance reinforced the same trend. Standalone revenue for Q4FY26 was INR 1,523.7 crore, up 62.7% year on year. EBITDA for the quarter was INR 284.0 crore, up 36.2%, while PAT from continuing operations was INR 180.7 crore, up 41.2%. The quarter, however, also highlighted a key near-term theme for FY27: margin normalization as project mix rises and input cost volatility remains in focus.

What drove FY26 growth

Management attributed FY26 growth to accelerated execution momentum across multiple smart metering projects, with higher rollout intensity and continued scale-up across state-level deployments. The company also crossed a milestone of installing more than 1 crore smart meters in FY26 under RDSS programs, which management positioned as a validation of execution capability at scale.

A second important contributor is visibility. The company disclosed a total order book in excess of INR 25,173 crore net of taxes as on March 31, 2026, including orders across SPVs and the GIC platform. Management characterized this as largely linked to long-duration AMISP projects with concession periods extending 8 to 9 years, creating an annuity-like revenue profile as projects move from installation to operations.

Financial summary

Margin signals: scale is strong, but mix is changing

The company reported moderation in gross margins in Q4FY26, with gross margin at 36.0% compared to 40.6% in Q4FY25. Management linked this to a higher contribution from project business that involves elevated consumption toward hardware, software, communication and infrastructure costs, along with forex-related raw material cost pressures on imported inputs.

This is important because management also clarified during the call that AMISP contracts are fixed price with no pass-through mechanism for raw material inflation. As a result, the company guided for a lower EBITDA margin of about 18% in FY27, around 2% to 2.5% below FY26 levels, citing a surge in raw material prices and related pressures.

AMISP maturity and the cash flow question

FY26 was a scale-up year, but it was also a year where working capital and leverage increased. The management acknowledged that simultaneous execution across multiple projects and geographies requires elevated working capital investments, particularly in inventories and field deployment activities.

At the same time, the company highlighted improving working capital efficiency. Management stated that debtor days reduced from 187 days as on March 31, 2025 to 89 days as of March 31, 2026. Total working capital days (including unbilled days) reduced from 343 days to 274 days over the same period. The company expects a further improvement of 50 to 75 days during FY27.

Leverage trends were also discussed directly. Management stated that net debt stood at about INR 1,573 crore as on March 31, 2026, and that peak net borrowing could reach around INR 2,000 crore. It also indicated that the increase in net debt was primarily from short-term loans and that borrowings would start reducing from FY28 onwards.

A related disclosure was the funding into the joint venture platform and SPVs. Management stated the company had invested about INR 487 crore in the joint venture platform and SPVs as of March 31, 2026, and expects further investment of INR 600 to 700 crore over FY27, FY28 and the first quarter of FY29. On the balance sheet, loans (current) increased materially to INR 228.6 crore at Mar-26 from INR 10.0 crore at Mar-25, and non-current loans to INR 274.2 crore from INR 156.6 crore.

Cash flow timing remains a critical investor monitorable. Management indicated that FY27 should see improvement in cash flows with each quarter, but cash flow may remain around par or slightly negative by the end of FY27. It guided that FY28, in the first or second quarter, should turn cash positive.

Order book composition, OGL milestones, and the annuity ramp

Operational Go-Live is a key milestone for AMISP projects because it supports billing visibility and recurring operations revenue. Management stated that all 24 AMISP projects linked to an awarded meter base of 3.61 crore meters have achieved OGL.

The company also provided an order book split on the call. Out of the INR 25,000 crore-plus order book, management indicated around INR 23,000 crore is from the platform. Within this, about INR 16,000 crore is linked to capex and the remainder to opex. It also stated that the remaining INR 2,000 crore relates to regular meter orders, including exports, gas meters, water meters, supplies to other AMISPs and utilities.

On the annuity side, management stated O&M revenue was around INR 150 crore in FY26 and could reach around INR 800 crore per year in the next two to three years based on the current order book, and remain at that level for five to seven years. The company did not provide segment-level margins for O&M and maintained that guidance is provided on a blended basis.

FY27 outlook: higher revenue, lower margin, and faster installations

Management provided explicit FY27 guidance on the call.

Revenue is guided at INR 6,000 crore to INR 6,500 crore, driven by increased rollout intensity across existing projects and continued conversion of the executable order book. It also guided that the company expects to install more than 1 crore meters in FY27.

On profitability, management guided EBITDA margin at about 18% for FY27, driven by input cost pressures and the fixed-price nature of contracts.

On capex, management said there is no major capex planned for FY27, with regular capex of about INR 10 crore to INR 20 crore for routine requirements such as dies and molds.

Adjacent growth: exports, gas, water, and software stack

Beyond electricity meters and AMISP execution, management reiterated investments in adjacent areas.

Exports are a stated focus area, with management targeting INR 500 crore of export revenue over the next two to three years and expecting meaningful export numbers by the end of FY27. Australia was discussed as a market where approvals are in place and the company expects reasonable numbers over the next three to six months, though management did not provide customer-level details.

For gas, management referenced a government push to install 12 crore smart gas meters over the next three to four years and estimated an industry opportunity of INR 35,000 crore to INR 36,000 crore over the next four to five years. Water meters were described as nascent but showing traction, particularly internationally.

The presentation also emphasized Genus’s in-house software stack including HES and MDMS, alongside utility enterprise integrations such as CIS and GIS-related systems, and communication capabilities across cellular and RF. Management described its proprietary RF solution as interoperable and indicated intent to sell RF solutions to external customers, not only within captive projects.

Takeaways

Genus Power’s FY26 performance shows that execution scale-up is translating into revenue and profit growth, supported by a large order book that offers multi-year visibility. The next phase is likely to be judged on three factors.

First, cash flow conversion as the AMISP portfolio matures and billing and O&M revenues scale. Second, margin resilience in a fixed-price environment, especially in a year where management has already guided EBITDA margin down to about 18%. And third, capital discipline as platform investments and net debt rise toward the guided peak.

With FY27 revenue guidance of INR 6,000 to 6,500 crore and a meter installation target of more than 1 crore meters, the company has set measurable near-term goals. The market opportunity remains large, but the quality of execution and cash flow delivery will define investor confidence in the sustainability of the growth trajectory.