The current order book is over 29300 Cr, out of which 80% revenue will directly comes to the company. This gives the visibility of revenue for 8-10 Yr. 55-60% of Revenue will be realised by next 3-4 Years.
New tenders were opened recently in 4 states Tamil Nadu, Andra Pradesh, Goa and Karnataka, company is taking part in all tendor, results will be announced after closing.
There are many companies which were participating. Genus has 20-25% market share company is expecting 20-25% of tender winning, similar to market share.
Total Market size is of 32-33 Crore Meters with an average revenue of 8000 Rs per meter which is equal to 2.6 Lakhs Crore Market Approximately.
13 Crore Meters order were announced till date and out of which 3 Crores were installed.
Working capital will increases in absolute number but improves in % terms.
Debtor days came down to 140-150 days from 195-200 Days and Inventory days came down to 160-165 days from 170-180 days and continuously improving.
Max working capital required is 40% of total revenue.
Management has guided for 4000 Cr Revenue this year with sustainable 18% margin. But management also said they will further change the guidance after current quarter most probably on upper side.
Being H1 is on lower side, there will be very good chances that company will perform very well in FY26 as whole.
In Q1 company has installed 16 Lakh meters. Till date company has installed 45 lakhs plus meters.
Cumulative Order book is roughly about 3.5 Crores meters and Roughly 3 Crs are unexecuted.
This financial Year company is planning to install 82-90 Lakhs meters and 1.1 -1.2 Cr meters in FY27.
55 Lakhs smart meter tender will be announced this month by Delhi Board.
This FY debt will go up but that will be majorly for working capital, hence it will be lower then % increase in revenue.
Orders from AMISP have higher margins where as Non AMISP has lower margins as per historical data.
2 lakhs meters has started generating Operation and Management Revenue at present it will increase soon. O&M revenue is 25% over contract lifecycle of total meter cost. (2000 O&M from 8000 total cost per meter)
On supply chain front there is no shortage or problem, company is sourcing raw material from both domestic and international market as and when required.
There is good traction from export markets this financial year. Exports will be higher as compared to last year but not very significantly.
Company is supplying to majorly Middle East and African Markets.
Current Capacity of Indian Manufacture is 7-8 Cr smart meters per annum, which is enough to cater demand. But all depends on manufacturing and technology advancement.
This Financial Year company will be cashflow positive.
Management given clarification on Blacklisting from GOA, Company file the plea in Goa high court and won the case. There was no reason for blacklisting, GOA Electricity Board does not have right to blacklist any company without any reason.
There is no change in company’s performance but the stock has reacted more than 25 percent from recent high. Are value investors gone into hiding or only speculation going on in this market? Penny stocks are doubling month after month but such gems are being ignored. Nevermind, we are happy lapping up such stocks, confident that market will wake up sooner then later. Later the better, as it will give us time to increase exposure.
I don’t really think that one run up defines the final price of a stock in the long run.
There are numerous examples of stocks having multiple runs, after intermittent, substantial corrections.
As long as the fundamentals stay strong, order book is healthy and there are sectoral tailwinds the market will give the stock the price it deserves.
The promoters seem to have done most things right over the last few quarters but markets keeps discounting.
Obviously no one can know what will happen but at current prices it remains an attractive investment.
Disc: Invested and thus may be biased.
Genus Power Infrastructures Ltd - Massive Result in Q 2FY26
The company has delivered its highest-ever Revenue, EBITDA & PAT. Beat all the estimates follow with improvement in working capital. Company has done super execution despite monsoon season.
Did they mentioned how many meters they installed during this quarter?. This gives visibility for next 2 quarters.
Just as a reminder their FY26 Guidance
Revenue at Rs.4000 cr
Margins at 18%-20%
The company expects to be cash flow positive by the end of FY '26
Total meters to install is 80-90 lakhs.
in Q1 --16 lakh meters installed
remaining is 64-74 lakhs to be installed in 3 quarters.
Under the RDSS (Revamped Distribution Sector Scheme), total meter demand ~ 25 crore, of which 15 crore awarded, 10 crore pending (states: Tamil Nadu, Punjab, Delhi, Gujarat, Kerala, etc.).
Tenders Live: Tamil Nadu (3.05 crore), Delhi BSES (50 lakh), Punjab (26 lakh).
13 tenders submitted (6 Tamil Nadu, 2 Delhi, 5 Punjab - 4 crore meters). All under technical evaluation .
Next 12-18 months: Additional 10 crore meters expected.
States like Karnataka and Telangana yet to start RDSS - total potential may reach 30–31 crore meters.
Installed so far: 4.5 crore out of 15 crore awarded.
Working Capital and Debt:
Inventory days: Reduced from 187 days (FY25) to 126 days (H1 FY26) .
Further reduction expected in working capital days: 40-50 days every 6 months; target 160-170 daysby FY27.
Gross debt: ₹1,744 crore (Sep 25), up ₹400 crore since FY25; expected peak ₹2,000–2,100 crore. From mid of FY28 company starts paying it’s whole debt.
Cash equivalents: ₹600 crore - Net debt ₹1,150 crore .
JV investment with GIC: ₹318 crore invested so far; another ₹700-800 crore to be invested over FY26–28 (total ₹1,000-1,100 crore cap).
Current capacity sufficient; can ramp up via extra shifts.
FY26 installations target 80 lakh+, and >1 crore meters in FY27.
Genus Meter falls in Category 1 manufacturing (more than 60% is domestic). Genus fully compliant and among the largest local producers. No plans to manufacture relays ; sourced both domestically and from China .
Company is expecting strong growth in next 2–3 years via Exports.
Gas meters: India needs 12–14 crore meters over 5–6 years; Genus to play key role; prepayment model under discussion.
Water meters: Enormous potential—as large or larger than electricity meters within 4–6 years. Pilot Projects with municipalities underway.
Maintaining ~25% market share; aims to sustain or improve.
RDSS phase to continue till FY32, ensuring 5–6 years of clear growth visibility.
Post-RDSS, revenue to come from replacement meters, new service connections, O&M , plus exports, water, and gas meters .
Company will be Cashflow positive by the year end, working capital is improving.
Incremental debt is reducing, everying is going as per plan.
Company is very confident for next 5 year growth and for their growth plans and margin expansion.
I am quite confident that the working capital will improve as per the company guidance but I am worried about these 3 things and I feel this is what is weighing the stock down.
What will be the replacement revenue run-rate once the smart electricity meters are installed? Or what is the replacement revenue for these meters?
What is the outlook for gas or water metering?
In the export market, there will be strong competition from both quality and price perspective. How does the management plans to navigate this given they don’t have much experience in the export market and will have to establish themselves. Plus the product is also not a niche product and many options are available.
