GVK Power & Infrastructure Limited

Utilities — Utilities - Independent Power Producers · NSE

₹2.18+₹0.04 (+1.87%)

DalalBaazaar Score

19 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, the company is currently loss-making.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, but sales are shrinking. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of GVK Power & Infrastructure Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

GVK Power & Infrastructure Limited, together with its subsidiaries, engages in the operation and maintenance, manpower and consultancy, and incidental services to owners of power plants, airports, and infrastructure companies in India and Indonesia.

IndustryUtilities - Independent Power Producers

SectorUtilities

Employees190

Annual revenue₹81 Cr

How does it make money?

Turns over ₹81 Cr a year. Of every ₹100 of sales, about ₹-1042 reaches shareholders as profit, with ₹84 left at the operating level before interest, tax and depreciation. Each of its 190 employees supports ₹42.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin84.4%

Net margin-1042.5%

Revenue / employee₹42.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD, ADANI POWER LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

NTPC LTDP/E 11.0x · ROE 13.7%

POWER GRID CORP. LTD.P/E 14.6x · ROE 15.8%

TATA POWER CO LTDP/E 29.3x · ROE 9.8%

ADANI POWER LTDP/E 26.5x · ROE 21.9%

What is its competitive advantage?Little sign of one

Returns on capital of -1358.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE-1358.3%

Peer median ROE15.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -96% while net margin moved -1006% 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-96%

Margin effect-1006%

DalalBaazaar Score

19/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

18/ 100

Weak

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

Valuation

30/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

P/E (Trailing)

Not meaningful

P/B

—

EV/EBITDA

14.7x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 64.2% to 84.4% over 3 years.
Debt is being paid down
Total debt is down 86% over 3 years.

🔴 What Needs Attention2

Negative shareholders' equity
Liabilities exceed assets — this is a solvency question that sits above every other consideration here.
Short-term liquidity is tight
Current ratio of 0.80 — near-term obligations exceed near-term assets.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only -44.0x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹840 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.6x to -44.0x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.80 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 64.2% to 84.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 86% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
The debt load needs earnings to hold up
Debt is 10.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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
Micro 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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above 82%✓ 84.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 10.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ -44.0x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 4 neutral · 6 weak

Market Cap

₹344 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-0.04

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

-1358.3%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

-90.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-248.5%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹2.18

P/E (Forward)

-1.8x

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.80

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.08

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

2.4 / 2.3

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

10.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,120 Cr	₹1,080 Cr	₹802 Cr	₹81 Cr	-66.4%
EBITDA	₹1,362 Cr	₹999 Cr	₹736 Cr	₹68 Cr	-63.2%
EBITDA Margin	64.2%	92.5%	91.8%	84.4%	—
PAT (Net Profit)	₹2,439 Cr	₹20 Cr	₹565 Cr	-₹840 Cr	—
EPS	₹15.44	₹0.13	₹3.58	₹-5.32	—
ROCE	106.8%	20.2%	67.8%	-1358.3%	—
Total Debt	₹4,839 Cr	₹4,599 Cr	₹3,370 Cr	₹701 Cr	-47.5%
Free Cash Flow	₹1,620 Cr	₹784 Cr	₹589 Cr	₹2 Cr	-88.5%

🔴 Revenue has shrunk at 66.4% a year over 3 years.

🔴 EBITDA has shrunk at 63.2% a year over 3 years.

🟢 EBITDA Margin has risen from 64.2% to 84.4% over 3 years (+20.1 pts).

🔴 PAT (Net Profit) has turned negative, from ₹2,439 Cr to -₹840 Cr.

🔴 EPS has turned negative, from ₹15.44 to ₹-5.32.

🔴 ROCE has fallen from 106.8% to -1358.3% over 3 years (-1465.0 pts).

🟢 Total Debt has shrunk at 47.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 88.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹570 Cr

Total Liabilities

₹788 Cr

Total Debt

₹701 Cr

Cash & Equivalents

₹46 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

54.3%

Corporate Actions

Ex-Dividend Date

06 Nov 2006

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%
ADANI POWER LTD	26.5x	21.9%

Recent News

6 general

GVK Power & Infra Share Price

Upstox, 16 Oct

GVK Power & Infrastructure Lower Circuit Today: Price, Data and Peers

Univest, 14 Oct

GVK Power & Infrastructure Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

GVK Power & Infrastructure Ltd is Rated Strong Sell

MarketsMojo, 14 Oct

GVK Power & Infrastructure Lower Circuit Streak: Day 4 Price and Data

Univest, 13 Oct

Price Band Hitters | July 23, 2026, 4:00 PM IST

HDFC Sky, 23 Jul

Watch Items

Revenue growth is negative (-90.0%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🔴Business QualityWeak6/20

🔴Financial HealthStretched1/20

🔴GrowthWeak5/20

🔴ProfitabilityWeak1.5/15

🔴ValuationDemanding4.5/15

🔴RiskHigh0.5/10

Avoid until solvency is resolved

GVK Power & Infrastructure Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 82%84.4%
✗Debt / EBITDA falls below 3x10.3x
✗Interest cover stays above 3x-44.0x
✓Free cash flow remains positive₹2 Cr