GMR Power and Urban Infra Limited is an India-based company primarily engaged in the sectors of energy, urban infrastructure, and transportation. The Company's segments include Power, Roads, Engineering, Procurement and Construction (EPC), and Others. The Company was incorporated as a Public Limited Company on May 17, 2019, and was initially incorporated as a wholly-owned subsidiary of GMR Infrastructure Limited.
The Scheme of Arrangement for the Demerger of "Urban Infrastructure Business" and "EPC Business" of GMR Infrastructure Limited into the Company was made effective on December 22, 2021. The National Company Law Tribunal (NCLT) approved the Scheme of Amalgamation and Arrangement on December 22, 2021, which has been effective from April 1, 2021.
As of the most recent data, GMR Power and Urban Infra has a market capitalization of ₹7,462 Crore, representing a 17.0% increase over the past year. The stock has a 52-week high of ₹169.25 and a 52-week low of ₹82.11, with a P/E ratio of 5.29.
The promoter holding stands at 50.6%, while promoters have pledged 75.4% of their holding. The Company is led by promoters Mr. Grandhi Mallikarjuna Rao and GMR Enterprises Private Limited.
The Power segment includes generation of power, transmission of power, mining and exploration, and provision of related services. The company's operating power plants had a gross capacity of 1,679.35 MW as of September 30, 2021, excluding two gas-based power plants having gross capacity of 1,155.18 MW which are currently non-operational due to non-availability of natural gas. Additionally, gross capacity of 1,775 MW of hydropower is under development, of which a plant with 900 MW capacity is in advanced stages of development.
The Roads segment is engaged in the development and operation of roadways. As of September 30, 2021, the Transportation Business held a roads portfolio consisting of four operational roads located in Andhra Pradesh, Telangana, Haryana, Punjab, and Tamil Nadu, with a total length of 349.48 km.
The EPC segment includes handling of engineering, procurement, and construction solutions in the infrastructure sector. The EPC business encompasses operations outside the group, including construction of Dedicated Freight Corridor Corporation projects and Rail Vikas Nigam Limited (RVNL) projects.
The Others segment includes urban infrastructure and other residual activities. GMR Krishnagiri SIR currently holds 1,032 acres of land parcel and is developing the Special Investment Regions (SIR) in phased manner in Krishnagiri District of Tamil Nadu.
For the full year ended March 2025, the company reported a net profit of ₹1,417.53 Crore compared to a net loss of ₹103.03 Crore in the previous year. Sales rose 41.34% to ₹6,343.97 Crore in FY2025 against ₹4,488.57 Crore in FY2024.
- Q4 FY2025: Net profit declined 73.04% to ₹43.72 Crore in the quarter ended March 2025, as against ₹162.18 Crore in the previous quarter ended March 2024. Sales rose 6.31% to ₹1,737.37 Crore in Q4 FY2025 against ₹1,634.19 Crore in Q4 FY2024.
- Q3 FY2025: The company reported a net loss of ₹106.45 Crore in the quarter ended December 2024, as against net profit of ₹45.38 Crore in the previous quarter ended December 2023. Sales rose 46.13% to ₹1,611.51 Crore in Q3 FY2025 against ₹1,102.79 Crore in Q3 FY2024.
- Q2 FY2025: The company reported a consolidated net profit of ₹255.11 Crore in the quarter ended September 2024, as against net loss of ₹105.29 Crore in the previous quarter ended September 2023.
Key financial indicators include:
- Revenue (FY2025): ₹6,344 Crore
- Net Profit (FY2025): ₹1,552 Crore
- The stock is trading at 12.8 times its book value.
- The company has a low interest coverage ratio.
- Contingent liabilities of ₹5,484 Crore.
GMR Power & Urban Infra Ltd is on a strategic transformation path, focusing on asset-light operations and smart energy. Emkay maintains a Buy rating with a target price of ₹180, citing successful debt restructuring and expansion in smart metering and EV infrastructure. The company is divesting stakes to reduce debt significantly, enhancing its balance sheet and operational focus.
GMR Power and Urban Infra announced plans to divest stakes in non-operating and stressed assets for ₹653 Crore, aiming to deleverage its balance sheet by ₹4,400 Crore. The stock surged 15% following the announcement.
According to analyst recommendations, the target price is ₹182, representing a potential upside of 55.05% from current levels, based on 2 analysts' ratings. The company has delivered a return of 57.03% over the last 3 years.
The company's diversified portfolio across energy, transportation, and urban infrastructure positions it well to benefit from India's infrastructure development initiatives. However, investors should note the company's high debt levels and ongoing restructuring efforts as key factors to monitor.
