GMR Power And Urban Infra Limited

Energy — Thermal Coal · NSE

₹100.75+₹1.07 (+1.07%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of GMR Power And Urban Infra Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

GMR Power And Urban Infra Limited engages in the energy, urban infrastructure, and transportation businesses in India and internationally. It operates through Power, Smart Meter Infrastructure, Roads, EPC, and Others segments.

IndustryThermal Coal

SectorEnergy

Employees979

Annual revenue₹7,213 Cr

How does it make money?

Turns over ₹7,213 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹26 left at the operating level before interest, tax and depreciation. Each of its 979 employees supports ₹7.37 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin26.4%

Net margin8.3%

Revenue / employee₹7.37 Cr

Who are its competitors?

The closest listed comparisons in its industry are RELIANCE INDUSTRIES LTD, OIL AND NATURAL GAS CORP., BHARAT PETROLEUM CORP LT, INDIAN OIL CORP LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

RELIANCE INDUSTRIES LTDP/E 21.9x · ROE 8.3%

OIL AND NATURAL GAS CORP.P/E 6.4x · ROE 11.7%

BHARAT PETROLEUM CORP LTP/E 7.3x · ROE 17.1%

INDIAN OIL CORP LTDP/E 5.3x · ROE 15.4%

What is its competitive advantage?Some evidence

ROCE of 18.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE18.1%

ROE31.5%

Peer median ROE15.4%

What is the outlook?

1 analysts covering the stock expect revenue to shrink about 15.7% and earnings to grow about 87.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth-15.7%

Est. earnings growth+87.3%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +38% while net margin moved -63% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+38%

Margin effect-63%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 11.4% is steady
✗ Profit has declined at 20.2% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Latest-year revenue growth of 3.4% is below the longer-term trend — momentum is fading
✗ Profit fell 57.6% in the latest year

Quality vs. Valuation

Company Quality

53/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

44/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

12.5x

3Y Median

5.4x

40 monthly readings · mean 5.4x · range 1.3x–12.9x

Sector Median

6.9x

median of 4 sector peers

⚠️Current valuation is approximately 132% above its 3y median of 5.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 82% above the peer median of 6.9x.

vs. its own history

Expensive

5.4x median over 40 months · +132%

vs. sector peers

Expensive

6.9x median of 4 peers · +82%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.5x

P/B

4.13x

EV/EBITDA

9.9x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well0

Nothing stands out as clearly improving on the years of data available.

🔴 What Needs Attention5

Debt is rising
Total debt is up 41% over 3 years — worth checking what it funded.
Return on capital is falling
ROCE has declined from 58.3% to 18.1% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 117% against revenue growth of 38% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 893% against revenue growth of 38% — stock may not be moving.
Valuation above its historical average
At 12.5x the stock trades 132% above its own median of 5.4x.

Red Flags

8 items require attention · 4 high · 4 watch

🔴High leverageFinancial
Debt/Equity of 5.50x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🔴Receivables growing faster than salesFinancial
Receivables up 117% against revenue up 38% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 893% against revenue up 38% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 41% over 3 years.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.3x to 1.5x.
🟡Profit is decliningFinancial
Net profit is down 49% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 29% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 6.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 117% against revenue up 38%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 132% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 9% a year✓ 11.4% CAGR
Latest reported year was 3.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 24%✓ 26.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 6.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹1,022 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹7,869 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.5x

Cheap

Cheap against the generic band

P/B Ratio

4.13x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.08

Profitable

Profitable on a per-share basis

ROE

31.5%

Strong

Strong capital efficiency

ROCE

18.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.50x

High

High leverage

Revenue Growth (YoY)

3.4%

Modest

Modest growth

Profit Growth (YoY)

-57.6%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹1,022 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹100.75

P/E (Forward)

8.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

17.2%

Good

Healthy core-business profitability

Net Margin

7.7%

Average

Average bottom-line conversion

Current Ratio

1.47

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.79

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

99.8 / 96.9

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,219 Cr	₹4,253 Cr	₹6,285 Cr	₹7,213 Cr	+11.4%
EBITDA	₹1,397 Cr	₹1,160 Cr	₹1,868 Cr	₹1,908 Cr	+10.9%
EBITDA Margin	26.8%	27.3%	29.7%	26.4%	—
PAT (Net Profit)	₹1,183 Cr	-₹103 Cr	₹1,418 Cr	₹600 Cr	-20.2%
EPS	₹19.6	₹-1.71	₹20.72	₹8.2	-25.2%
ROE	—	—	241.5%	31.5%	—
ROCE	58.3%	13.2%	29.4%	18.1%	—
Total Debt	₹8,208 Cr	₹13,867 Cr	₹10,250 Cr	₹11,585 Cr	+12.2%
Free Cash Flow	₹1,206 Cr	₹1,592 Cr	₹2,562 Cr	₹1,022 Cr	-5.4%

🟢 Revenue has grown at 11.4% a year over 3 years.

🟢 EBITDA has grown at 10.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 26.4% over 3 years.

🔴 PAT (Net Profit) has shrunk at 20.2% a year over 3 years.

🔴 EPS has shrunk at 25.2% a year over 3 years.

🔴 ROE has fallen from 241.5% to 31.5% over 3 years (-210.0 pts).

🔴 ROCE has fallen from 58.3% to 18.1% over 3 years (-40.2 pts).

🔴 Total Debt has grown at 12.2% a year over 3 years.

🔴 Free Cash Flow has shrunk at 5.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹17,050 Cr

Total Liabilities

₹14,941 Cr

Total Debt

₹11,585 Cr

Cash & Equivalents

₹560 Cr

Operating Cash Flow

₹1,260 Cr

Capex

-₹238 Cr

Shareholding (proxy)

Institutional Holding

3.6%

Insider Holding

70.4%

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹142

+40.9% vs CMP

Target Range

₹142 – ₹142

Peer Comparison

Company	P/E	ROE
RELIANCE INDUSTRIES LTD	21.9x	8.3%
OIL AND NATURAL GAS CORP.	6.4x	11.7%
BHARAT PETROLEUM CORP LT	7.3x	17.1%
INDIAN OIL CORP LTD	5.3x	15.4%

Recent News

1 mixed5 general

GMR Power and Urban Infra (GMRP&UI) Share Price Rises 6.54% Today

Univest, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

GMR Power & Urban Infra (NSE:GMRP&UI) Winds Up Singapore Unit

Kalkine India, 17 Oct

At ₹101, Is It Time To Put GMR Power And Urban Infra Limited (NSE:GMRP&UI) On Your Watch List?

Simply Wall Street, 25 Sept

GMR Power and Urban Infra Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

GMR Power & Urban Infra - Concurrent Gainers: 10 smallcap stocks that gained for 5 days in a row

The Economic Times, 26 Sept

GMR Power & Urban Infra approves all 12 resolutions at 7th AGM

scanx.trade, 22 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.6/20

🟡Financial HealthAdequate9/20

🔴GrowthWeak7.7/20

🟢ProfitabilityStrong11.5/15

🟡ValuationFair8.4/15

🔴RiskHigh4.3/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 9% a year11.4% CAGR
✓EBITDA margin holds above 24%26.4%
✗Debt / EBITDA falls below 3x6.1x
✗Interest cover stays above 3x1.5x
✓Free cash flow remains positive₹1,022 Cr