GVK Power & Infrastructure Limited (GVKPIL) is a holding company primarily engaged in providing operation and maintenance services, manpower & consultancy services, and other incidental services to owners of power plants, airports, and infrastructure companies. The company historically held interests in diverse sectors including Power Generation (Gas, Hydel, Thermal), Roads, Airports, SEZ, Coal Mines, and Oil & Gas. Founded in 1992 and headquartered in Secunderabad, India, it was once the flagship entity of the GVK conglomerate.
Listed in 2006, GVK Power was established to house the conglomerate's prime assets like airports, highways, and power projects. As of FY23, GVK's primary revenue-generating asset was a 330-megawatt (MW) Alaknanda Hydro Power plant in Uttarakhand. The company's business operations span multiple segments, with a historical focus on energy infrastructure and transportation projects.
As of recent financial data, GVK Power & Infrastructure has a reported market capitalization of ₹641 Crore. However, this figure represents a significant decline of 60.4% over the past year, reflecting its distressed state. The company reported a revenue of ₹802 Crore and a profit of ₹598 Crore (Note: these profit figures likely refer to specific past periods or are misreported, as the company is heavily in loss currently, especially considering CIRP). More critically, GVKPIL faces substantial financial distress, evidenced by a low interest coverage ratio and poor sales growth of -26.9% over the past five years.
The most recent quarterly performance highlights ongoing difficulties. For Q3 FY2025, the company's revenue was ₹161.41 Crore, a 4.26% increase year-on-year. Despite this revenue uptick, GVKPIL reported a net loss of ₹14.13 Crore in Q3 FY2025, which, while a significant improvement of 76.17% from the previous year's loss, still indicates substantial financial strain.
For the full year ending March 2025, the company reported revenue of ₹44.10 Crore and a net loss of ₹195.37 Crores in Q4 FY2025. This continued poor financial performance underscores the company's ongoing struggles and diminished operational capacity.
- Market Capitalization: ₹641 Crore (As of Recent Data)
- Revenue (Q4 FY25): ₹44.10 Crore
- Net Loss (Q4 FY25): ₹195.37 Crore
- Revenue (Q3 FY25): ₹161.41 Crore
- Net Loss (Q3 FY25): ₹14.13 Crore
- Promoter Holding: 54.25% (As of March 2025)
The company's historical business segments include:
- Energy: Operations encompassed Combined Cycle Power Plants (gas/naphtha-based), Thermal (coal-based), and Hydro Power Projects.
- Transportation: Previously operated the 542.4 lane-kilometer Jaipur-Kishangarh Expressway road project in Rajasthan. However, as of FY23, with the official term of this asset completed, there is no prospect of its revival.
The company's operational footprint has drastically reduced. GVKPIL had initiated power projects with a combined capacity exceeding 2000 MW, including the Jegurupadu Combined Cycle Power Plant. However, its current operational capacity is largely confined to its hydro power facility in Uttarakhand.
The most critical development for GVK Power & Infrastructure is its entry into the Corporate Insolvency Resolution Process (CIRP). In July 2024, GVK Power and Infrastructure notified exchanges that the CIRP had been initiated by an order from the National Company Law Tribunal (NCLT), dated July 12.
This insolvency process was triggered by ICICI Bank, relating to a loan extended for a coal project in Australia that never materialized. The loan was originally obtained by GVK Coal Developers (Singapore) Pte Ltd over a decade ago, with GVKPIL acting as a guarantor. In September 2011, ICICI Bank, along with other lenders, sanctioned a term loan facility of ₹8,356 Crore and a letter of credit for ₹292 Crore to GVK Coal for the acquisition of coal mines in Australia.
The NCLT's Hyderabad bench declared GVK Power and Infrastructure Ltd bankrupt and initiated the CIRP for defaulting on a loan of approximately ₹18,000 Crore (including interest) owed to ICICI Bank and other lenders. As of January 2025, the CIRP period has been extended by 90 days, and the company continues to be under this resolution process.
Promoter holding in GVK Power & Infrastructure Ltd stood at 54.25% as of March 2025, consistent with June 2024. The company's board was historically chaired by G V Krishna Reddy, with its registered office located at Paigah House, 156-159, Sardar Patel Road, Secunderabad, Telangana-500003.
Due to its financial distress and insolvency proceedings, the company's stock has been placed under additional surveillance measures by both the BSE and NSE exchanges. The ongoing Corporate Insolvency Resolution Process represents a pivotal phase for GVKPIL, as it navigates potential resolutions through acquisition or restructuring under the supervision of a resolution professional.
GVK Power & Infrastructure's trajectory from a diversified infrastructure conglomerate to its current status under insolvency proceedings reflects the significant challenges faced by many Indian infrastructure companies. The ultimate outcome of the CIRP process will determine the future direction and viability of this once-prominent infrastructure player.
