GMR Power and Urban Infra Ltd has released its September quarter (Q2 FY26) results. The company’s net profit has increased more than three times compared to last year to ₹888 crore. The company’s profit in the same period last year was ₹255 crore. That means the company has registered 3.4 times growth on an annual basis.
Revenue also increased, but pressure on margins
GMR Power’s September quarter revenue grew 30.8% to ₹1,810 crore from ₹1,383 crore last year. However, there was some weakness in operating performance. The company’s EBITDA declined by 12.7% to ₹364 crore, compared to ₹416 crore last year. EBITDA margin declined from 30.1% to 20.1% i.e. profitability was affected due to increased expenses and costs.
Corporate guarantee of ₹2,970 crore approved
The board of GMR Power and Urban Infra has approved refinancing loan guarantee of ₹2,970 crore for its subsidiary GMR Kamalanga Energy Limited (GKEL). This refinancing will be done from Power Finance Corporation (PFC) or any other potential lender. This transaction is a material related party transaction and will require shareholder approval.
GMR Energy will also provide support
GMR Energy Limited, a wholly owned subsidiary of GMR Power, will also provide guarantee and security for this refinancing deal. The company clarified that the promoter or the promoter group has no direct financial interest in the transaction, other than their shareholding in GKEL.
According to GMR Power, this step has been taken to provide financial stability to the group’s subsidiary and will not have any immediate financial impact on the listed company.
Status of GMR Power shares
Shares of GMR Power and Urban Infra Ltd closed at ₹120.35 with a marginal gain of 0.17% on Friday. The company has given a return of 9.36% in the last 1 month. At the same time, its shares have increased by 17.07% in the last one year. In the last 5 years the company has given a return of 191.99%. The market cap of GMR Power is Rs 8.61 thousand crore.
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