Genus Power Q2 profit rises 11% on associate contribution

Genus Power Infrastructures Limited reported consolidated net profit of Rs 158.61 crore for the quarter ended September 30, 2026, up about 11% from Rs 142.98 crore a year earlier, as its share of associate profit rose to Rs 19.66 crore from Rs 3.77 crore despite revenue from operations declining to Rs 1,132.61 crore.

Why did Genus Power’s Q2 profit rise despite lower revenue?

Genus Power’s reported Q2 profit rose because associate profit increased by Rs 15.89 crore year on year, outweighing a slight decline in profit before that contribution. Revenue from operations fell by Rs 16.39 crore to Rs 1,132.61 crore, while net profit before the share of associate profit was Rs 138.95 crore, marginally below Rs 139.21 crore a year earlier.

Total income increased to Rs 1,165.57 crore from Rs 1,159.84 crore because other income rose to Rs 32.96 crore from Rs 10.84 crore. Total expenses increased to Rs 978.42 crore from Rs 967.93 crore, as a Rs 47.49 crore inventory expense replaced a Rs 201.51 crore inventory credit in the prior-year quarter, partly offset by lower raw-material costs.

How important was associate profit to Genus Power’s result?

Associate profit was the main driver of Genus Power’s year-on-year increase in reported Q2 profit, rising more than fivefold to Rs 19.66 crore from Rs 3.77 crore. It accounted for the difference between the group’s Rs 138.95 crore net profit before associate share and its final Rs 158.61 crore consolidated net profit. Sequentially, however, the associate contribution was below Rs 21.94 crore in the quarter ended June 30, 2026.

Genus Power held a 26% equity stake in Gemstar Infra Pte. Ltd. as of September 30, 2026. The company and Gem View Investment Pte. Ltd. entered a joint-venture agreement during the year ended March 31, 2024 to bid for and operate advanced metering infrastructure service provider, or AMISP, projects. Investments accounted for using the equity method rose to Rs 128.59 crore at September-end from Rs 84.97 crore at March 31, 2026.

For the half year ended September 30, 2026, consolidated net profit rose to Rs 355.25 crore from Rs 280.30 crore a year earlier. Associate profit increased to Rs 41.60 crore from Rs 12.22 crore, while net profit before associate share rose to Rs 313.65 crore from Rs 268.08 crore. The half-year comparison therefore shows higher earnings before as well as after the associate contribution.

What changed in Genus Power’s costs and per-share earnings?

Genus Power’s Q2 raw-material and component cost declined to Rs 651.72 crore from Rs 874.22 crore a year earlier, while employee benefit expense fell to Rs 101.67 crore from Rs 124.31 crore. Other expenses decreased to Rs 107.31 crore from Rs 118.06 crore. The inventory movement changed from a Rs 201.51 crore credit to a Rs 47.49 crore expense, which increased the overall expense base despite these lower cost lines.

Finance costs rose to Rs 49.92 crore from Rs 40.67 crore, and depreciation and amortisation increased to Rs 20.31 crore from Rs 12.18 crore. Profit before tax consequently declined to Rs 187.15 crore from Rs 191.91 crore, while total tax expense fell to Rs 48.20 crore from Rs 52.70 crore. The tax figure included a Rs 2.37 crore deferred-tax charge, compared with a Rs 2.01 crore deferred-tax credit a year earlier.

Basic earnings per share, not annualised, rose to Rs 5.73 in Q2 from Rs 5.17 in the comparable quarter, and diluted earnings per share increased to Rs 5.70 from Rs 5.13. For the six months ended September 30, basic earnings per share was Rs 12.84 against Rs 10.14 a year earlier. Genus Power reports metering business and related services as its single primary reportable segment under Indian Accounting Standard 108.

What do Genus Power’s cash flow and balance sheet show?

Genus Power generated Rs 140.15 crore of net operating cash flow in the half year ended September 30, 2026, compared with Rs 157.70 crore of cash used in the previous year’s first half. Inventories decreased by Rs 103.36 crore, against a Rs 587.69 crore increase a year earlier. Trade receivables nevertheless increased by Rs 491.86 crore, compared with a Rs 221.51 crore increase in the comparable period.

Consolidated total assets were Rs 7,026.67 crore on September 30, 2026, up from Rs 6,343.06 crore at March 31, 2026. Total equity increased to Rs 2,564.01 crore from Rs 2,217.64 crore, while total liabilities rose to Rs 4,462.66 crore from Rs 4,125.42 crore. Current borrowings were Rs 2,035.00 crore at September-end, compared with Rs 1,798.27 crore at the prior financial year-end.

Investing activities used Rs 443.82 crore in the half year, compared with Rs 143.98 crore used a year earlier. The outflow included Rs 494.85 crore of loans and advances to body corporates and subsidiaries, a Rs 234.54 crore net increase in fixed and margin deposits, and Rs 27.67 crore invested in the associate company. Cash and cash equivalents were Rs 32.50 crore at September 30, while bank cash credit was Rs 1,250.55 crore.

What should readers track after Genus Power’s Q2 results?

Genus Power’s board reviewed an executable order book of Rs 22,634 crore excluding taxes as of September 30, 2026. This included Rs 20,970 crore of orders to be executed under the Gemstar Infra joint-venture arrangement. Special purpose vehicles controlled, or to be controlled, by Gemstar Infra are to subcontract those contracts to Genus Power for execution.

On October 26, 2026, Genus Power’s board approved a buyback of up to 47.50 lakh fully paid equity shares, representing 1.56% of paid-up equity share capital. The buyback size is capped at Rs 148.20 crore excluding transaction costs and has a maximum price of Rs 312 a share. The board approved the unaudited September-quarter results on November 14, 2026, and the joint statutory auditors issued an unmodified limited-review report.

Genus Power also disclosed a February 2026 notice from the Prevention of Money Laundering Act Court in Patna, directing appearance for a pre-cognizance hearing relating to a case filed by the Directorate of Enforcement. The filing said the Enforcement Directorate had searched the corporate office and the chairman’s residence on December 3, 2024. Genus Power said it would comply with court directions and was confident it had made due compliances in the matter.

Conclusion

Genus Power’s Q2 figures show that consolidated profit increased to Rs 158.61 crore even as operating revenue declined by Rs 16.39 crore year on year. The rise in associate profit to Rs 19.66 crore was the central reason reported profit exceeded the prior-year level, while the half-year comparison also showed higher profit before the associate share.

Next, readers can watch execution of the Rs 22,634 crore order book, including Rs 20,970 crore related to the Gemstar Infra arrangement, and progress on the approved buyback of up to 47.50 lakh shares at a maximum Rs 312 each. The PMLA Court proceeding disclosed after the February 2026 notice remains an unresolved matter.