Genus Power Confident Of Beating FY26 Margin Guidance On Strong Order Book

Genus Power Infrastructures Ltd., a leading player in the smart metering solutions industry, is confident of surpassing its Ebitda margin guidance of 18-19% in FY26. This will be achieved with the help of a robust order book, according to the company’s Joint MD Jitendra Kumar Agarwal.

“We have given guidance of Rs 4,000 crore for this financial year. And a guidance of 18% to 19% of Ebitda. We are pretty confident that we will cross both these numbers. We will give different guidance if we see things happening in the next three to four months,” he said during a conversation with NDTV Profit on Wednesday.

The company is expecting a 30-40% YoY growth in revenue over the next three years.

“I definitely see Genus growing 30-40% year-on-year for the next two to three years,” he said. 

While exports currently form a small portion of the company’s turnover, significant developments are expected within six to eight months.

“The export business is much smaller. But in three to five years, you will see much meaningful revenue from the export business,” the top executive highlighted.

Agarwal provided a detailed breakdown of the company's order book, which stands at approximately Rs 29,000 crore currently.

He clarified that Rs 2,000 crore of this comprises direct supply orders to other service providers and utilities. The remaining Rs 27,000 crore is for its own Advanced Metering Infrastructure Service Provider (AMISP) business.

Within the AMISP segment, 80% of the revenue flows back under Engineering, Procurement, and Construction (EPC). 

Of this, 55-60% accounts for meter supply and installation. It will be executed within two to three years. The remaining 40% is linked to Operations and Maintenance (O&M), which will generate revenue over seven to eight years, according to Agarwal.

“So, this will give you a very fair idea of how the revenue of Genus is going to look in the next six to seven years. If we don't take any business from today onwards, this will be the minimum revenue that can be looked at in the current scenario,” he noted.

Agarwal addressed investor concerns over the company's high working capital, explaining that the situation is a temporary result of its business model for large-scale smart meter installations.

He said that under an arrangement with Singapore's sovereign wealth fund GIC, a platform named Gemstar has been created to fund the projects.

Payment from the Gemstar platform is only received after a project achieves the "operation go-live" stage.

“Since all the projects have started in the last 12 to 18 months, you will see a lot of these projects are achieving operational efficiency. By the end of this financial year, we are more than confident we will be positive in the cash flow,” he said.

Shares of Genus Power Infrastructures closed flat at Rs 324.7 apiece, down 0.02%, on the NSE, while the benchmark Nifty50 ended 0.42% higher at 24,973.1.