GE Power India Ltd Management Discussions

Even as the world had begun recalibrating from the disruptions of earlier years, finding a measure of stability in technology- led investment, moderating trade tensions, and a broadening recovery across both advanced and emerging markets, the escalation of the conflict in the Middle East involving Iran, Israel, and the broader West Asia region introduced a fresh and significant headwind that rippled across energy markets, supply chains, and financial systems.¹ This geopolitical development tested the adaptability of policymakers and businesses alike, yet the global economy demonstrated its underlying strength through coordinated responses. Technology-related industrial production continued to accelerate, particularly in Asia and the United States, while global goods trade remained on a steady upward path, with manufacturing export orders reaching multi-year highs in early 2026.1

The global energy system continues to undergo a structural shift as electricity assumes an increasingly central role in economic activity, industrial output, and everyday consumption. According to the International Energy Agency, global electricity demand is projected to grow at an average annual rate of 3.6% during 2026-2030, supported by rising consumption from industry, electric vehicles, air conditioning, and data centres. After growing by 3% in 2025, global electricity demand is expected to remain on a strong upward trajectory, with emerging markets continuing to account for nearly 80% of incremental consumption over the forecast period. At the same time, the electricity sectors carbon emissions are expected to plateau through 2030 as renewable energy and nuclear generation continue to expand, helping meet incremental demand while supporting the transition towards a more diversified and lower-emissions power system. At the same time, renewables and nuclear generation are expected to continue expanding to help meet incremental demand.²

Asia Pacific plays an importantrole in shaping the global energy future, with more than half of the worlds population residing in the region. The region accounted for nearly two- thirds of the increase in global electricity demand in 2025 and is expected to record average annual demand growth of 4.7% over 2026-2030. By 2030, Asia Pacific is projected to represent 56% of global electricity use, up from 53% in 2025, with China continuing to be the largest contributor to regional growth, while India and Southeast Asia also emerge as significant demand centers.²

Within this broader regional trend, India is expected to post average annual electricity demand growth of 6.4% through 2030, supported by robust economic growth, continued electrification, and rising demand from cooling and other end-use segments. Alongside this demand growth, India continues to advance a balanced and diversified energy pathway, with renewable energy capacity expanding steadily and policy focus remaining on ensuring reliability, ensuring

the reliability, affordability, and sustainability of supply. This evolving energy landscape, supported by continued investment in generation, grid infrastructure and system flexibility, helps position Indias power sector for sustained long-term growth.²⁵

Indian economy

Indias macroeconomic performance in Financial Year 2025-26 continued to reinforce the countrys standing as one of the worlds most resilient and dynamic growth engines.

Despite the turbulence in global energy markets and the supply chain disruptions stemming from the conflict in West Asia, Indias fundamental economic structures demonstrated commendable stability and adaptability, with strong domestic drivers helping to offset external headwinds. The International Monetary Fund has raised its growth forecast for FY 2026-27 to 6.5 per cent, up 0.1 percentage point from its earlier estimate, with growth projected to remain steady at 6.5 per cent in FY 2027-28.³ This upward revision reflects strong carryover momentum from 2025, easing external tariff pressures, and robust domestic demand, even amid global spillovers from the Middle East conflict.³ The United Nations projects India to remain one of the fastest-growing major economies, with growth estimated at approximately 6.6 per cent in 2026, underpinned by robust domestic consumption, continued public capital expenditure, a favorable demographic profile, and the governments sustained focus on infrastructure development and manufacturing competitiveness.⁴ The OECD projects Indias GDP growth at 6.1 per cent for FY 2026-27, positioning the country among the fastest-growing major economies globally, even in a challenging external environment.1

The Reserve Bank of Indias accommodative monetary stance, initiated with a policy rate reduction in early 2025, continued to support household consumption and private investment through improved credit affordability. While the external energy price shock introduced some upward pressure on domestic inflation, Indias diversified energy sourcing strategy, having expanded its import sources from 27 to 41 countries over the past eleven years, provided a meaningful cushion and reduced dependence on any single region.⁶ The Government of India moved proactively to address potential supply chain vulnerabilities arising from the West Asia situation by prioritizing the stockpiling of crude oil to maintain energy availability, and official communications confirmed adequate domestic supplies of key inputs, including crude oil, natural gas, coal, and fertilizers.⁵⁶ This proactive approach reflects the deepening of Indias strategic energy management capabilities and underscores the resilience of the countrys energy security framework. Indias Union Budget for 2026-27 maintained its emphasis on infrastructure-led growth, with continued prioritization

of capital expenditure across power, roads, railways and digital connectivity. The governments sustained commitment to the National Electricity Plan, along with the strong implementation of its renewable energy and grid modernization agenda, continues to reinforce confidence in the sectors long-term trajectory.⁵

industry overview

The global energy industry in FY 2025-26 continued to evolve amid a combination of structural demand growth, policy transition, and heightened focus on resilience. While macroeconomic conditions remained mixed, the underlying outlook for the energy sector stayed constructive, supported by technology-led investment, energy diversification, and the need to strengthen system reliability. The OECD observed that global growth remained resilient through much of 2025 before moderating, while policy attention increasingly shifted towards reducing exposure to energy disruptions, improving energy efficiency, and expanding domestic energy sources.¹ In this context, investment priorities across markets remained centred on balancing affordability, security, and sustainability. The energy sector therefore continued to attract capital across a wide spectrum of technologies, including renewables, nuclear, grids, storage, and selected conventional capacities, reflecting a pragmatic transition pathway rather than a single-source shift.^1,8

In India, the energy landscape continues to be shaped by strong underlying demand, expanding infrastructure and a clear policy focus on long-term energy security. The countrys installed generation capacity stood at about 524 GW as on 28 February 2026, representing a substantial rise over the past decade. To support future requirements, the National Electricity Plan projects installed capacity reaching 874 GW by 2031-32. Capacity addition plans span the full spectrum of technologies, with approximately 38,745 MW of thermal capacity under construction, 12,723 MW of hydroelectric projects being developed, 6,600 MW of nuclear capacity under construction with a further 7,000 MW in planning stages, and over 1,54,830 MW of renewable capacity, including solar and wind, under construction or in advanced planning.⁵ The scale and diversity

of this programme reflect the governments commitment to a balanced, secure and growing electricity system. Renewable energy capacity in India has crossed 250 GW and now accounts for approximately half of the countrys total installed capacity of around 520 GW. Indias target of 500 GW of non-fossil fuel capacity by 2030 remains firmly in view, supported by strong policy frameworks and competitive project economics.⁵

Energy and Electricity

Indias electricity sector remains one of the fastest growing among major economies. The IEA forecasts electricity demand growth of around 6.4% annually through 2030, supported by robust economic activity, rising electrification, industrial expansion, and increasing cooling needs. India added close to 430 TWh of net electricity demand in the five years to 2025, with buildings and services contributing around half of this increase, while industry accounted for over one-third. Looking ahead, India is expected to add more than 570 TWh of annual electricity consumption over the next five years. Peak load dynamics also remain significant, with nationwide peak demand having risen from 162 GW in 2017 to 250 GW in 2024, underscoring the growing importance of generation adequacy, transmission connectivity, and grid flexibility. At the same time, India is increasingly focusing on renewable integration, digitalisation, smart metering, and system reliability, indicating that the next phase of power sector growth will be defined not only by capacity addition, but also by stronger network readiness and operational resilience.²⁵

Coal

Globally, coal remains part of the existing power generation mix in several markets, although its share in overall electricity generation continues to moderate over time. In parallel, a number of advanced economies have continued to reduce coal-based generation through policy-led, phase-down measures and increasing renewable deployment.⁷

In India, thermal power continues to play a role in supporting grid stability and baseload supply within the broader energy mix. Coal production reached a record 1000 million tonnes for

the second consecutive year, while coal stocks at coal-based power plants stood at approximately 58.2 million tonnes as of March 2026, supporting supply security.⁵ At the same time, the sectors focus is increasingly centred on reliability, efficiency, environmental compliance, and the optimization of the existing fleet in line with evolving power system requirements.⁵

outlook

Indias power sector is poised for a sustained period of expansion across all technology segments. The dual trajectory of continued coal-fired power generation and accelerating renewable capacity addition creates a large and diverse addressable market for technology providers, equipment manufacturers, and service specialists. Several structural factors underpin this positive outlook. Thermal power plants continue to provide stable, dispatchable generation essential for grid frequency management and reliability. As renewable penetration increases, the role of well-maintained and efficiently operated thermal assets as balancing resources becomes even more important.⁵ Indias sustained emphasis on domestic coal production, diversified energy import sourcing, and strategic inventory management, reinforced by the governments proactive response to the West Asia supply disruptions, helps position the country to manage external shocks without compromising on energy availability.⁵⁶

Recent global policy responses, including strengthened emergency storage and demand-restraint measures, further align with Indias approach to building long-term resilience.⁸ The rapid escalation of peak power demand, expected to reach 270 GW in the near term and potentially 446 GW by FY 2034-35 as projected by the Central Electricity Authority, necessitates the full utilization and optimization of all available generation capacity, including existing thermal assets and new additions across technologies.⁵ As Indias thermal fleet ages, renovation, modernization, and life-extension of existing plants represent a substantial and growing opportunity. Efficiency improvements, emission control retrofits, and turbine upgrades are becoming priority investments for plant operators seeking to extend asset life and meet tightening environmental standards. Stricter environmental regulations continue to drive demand for pollution control technologies across the thermal fleet, with regulatory deadlines creating structured timelines for compliance-driven investment.⁵ The convergence of strong underlying demand, a large installed base requiring ongoing service and upgrades, and a robust pipeline of new capacity additions across thermal, hydro, nuclear, renewable, and storage technologies is expected to position the Indian power sector as one of the most significant growth markets globally in the years ahead.⁵ Government energy spending globally has doubled since 2019, with a

continued focus on affordability, competitiveness, and resilient supply chains, providing additional tailwinds for sustained investment in the sector.⁸

opportunities, performance, risks, and threats

Opportunities

Core Services

Indias power sector continues to offer a meaningful opportunity for core services, driven by the growing need to maintain reliability, availability, and efficiency across a large installed fleet. Electricity demand in India is expected to expand at a healthy pace through 2030, while peak load requirements continue to rise, increasing the importance of planned outages, life extension, refurbishment, spare parts support, and performance improvement interventions across operating assets.¹² In parallel, the power system is becoming more dynamic, with greater emphasis on flexibility, control systems, digital monitoring, and plant responsiveness. These trends support continued demand for services related to steam turbines, boilers, mills, automation and associated balance of plant equipment.i

A further opportunity arises from the age and operating profile of the installed thermal fleet. As power producers seek higher plant availability, improved heat rates, lower forced outages, and better environmental performance, there is a growing requirement for renovation, modernization and upgrade solutions rather than greenfield replacement. This includes efficiency improvement measures, turbine and boiler retrofits, control system upgrades and interventions that improve the ability of conventional assets to operate in a more variable grid environment. For the Company, this creates a broad services-led opportunity aligned with customer requirements for reliability, cost discipline, and operational optimization^²

Business Performance

The Company remains focused on opportunities that are aligned with its strategic priorities of core services growth, selective upgrade opportunities, and disciplined project selection. During FY26, the Company secured orders including a ?430 million order from NTPC for supply of generator parts at Talcher and 500 MW generator stator repair from Monnet Power, while continuing to pursue opportunities linked to part replacement, reliability improvement, and customer support across the installed base. This selective and services- oriented approach is intended to support margin quality, cash conversion and sustained customer engagement in a market where operators continue to prioritise performance improvement and compliance-led investments.

Risks and Threats

The Company operates in a sector that remains exposed to a range of risks and challenges. One of the key risks relates to delays in customer decision-making, tender finalisation, ordering cycles, site readiness, and execution schedules, particularly in retrofit and environmental compliance projects. In the FGD segment, project timelines may continue to be affected by evolving implementation schedules, regulatory developments, and customer-level execution constraints. Such delays can affect revenue visibility, project completion schedules, and working capital cycles.²³

A second area of risk arises from the increasing complexity of power systems and the need for timely investments in grids, flexibility and network readiness. As electricity demand rises and generation mixes evolve, delays in transmission availability, outage planning, equipment delivery, customer capex deployment, or project coordination can affect the pace of orders and execution. These risks may be compounded by supply chain pressures, input cost volatility, competitive intensity, and changes in policy or compliance frameworks, all of which can influence project economics and customer spending behavior.¹²

The business also remains exposed to execution-related risks, including the availability of skilled manpower, the retention of specialized talent, and of specialised talent and the need to maintain strong operational discipline across complex projects and service interventions. In an environment where customers continue to emphasize cost, reliability, and compliance, the Companys ability to remain selective, execute efficiently, manage cash conversion, and maintain long-term customer relationships will remain important in mitigating these risks.

Flue Gas Desulphurization (FGD)

The Indian power sector continues to present a significant opportunity for Flue Gas Desulphurization technology and related services. The need to control sulphur dioxide emissions from thermal power plants remains an important regulatory and environmental priority, and the Ministry of Environment, Forest and Climate Change has provided revised implementation norms for thermal power stations. This continues to support demand for FGD systems, retrofit engineering, balance of plant integration, performance optimization, and long-term service support.³

The opportunity is also supported by the size of the installed thermal base that remains to be equipped with emission control systems. As reflected in the Companys FY25 Annual Report, a substantial portion of thermal capacity was still at

various stages of contracting and implementation for FGD deployment, indicating a continuing addressable market. In addition, increasing domestic manufacturing capabilities, execution experience, and regulatory clarity are gradually improving market readiness. For the Company, this creates opportunities not only in equipment supply, but also in retrofit execution, project management, commissioning support, and aftermarket services.3

internal control systems and their adequacy

One of the key requirements of the Companies Act, 2013, is that companies should have adequate Internal Financial Controls (IFC) and that such controls should operate effectively.

Internal Financial Controls means the policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to the Companys policies, safeguarding of its assets, prevention and detection of fraud and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial information.

The Companys process of assessment ensures that not only does an adequate control exist, but it can be evidenced by unambiguous documentation. The process involves scoping and planning to identify and map significant accounts and processes based on materiality. Thereafter risk is identified, and their associated controls are mapped. These controls are tested to assess operating effectiveness.

The auditor performs independent testing of controls. The Auditors Report is required to comment on whether the Company has an adequate IFC system in place and whether such controls are operating effectively.

The Companys Internal Control System includes documented rules and guidelines for conducting business. The environment and controls are periodically monitored through procedures/ processes set by management, and they are periodically reviewed and updated to reflect the changes in the business and environment.

Management reviews the actual performance of the business on a regular basis. In all, about 78 key controls across the organizations units were identified to be tested on a systematic basis. Design gaps and weaknesses were identified to particular business and to specific process owners, and followed through methodically for closure.

In line with the internal audit program, internal audit of seven (7) processes/areas was done. The implementation of audit recommendations was followed through on a monitored and time bound plan.

The audit committee met ten (10) times during the year. The committee reviewed the adequacy and results of the testing of Internal Financial Controls and Internal Audit actions.

KEY FINANCIAL RATIOS

human resources management

The Companys people strategy remains anchored in building a safe, inclusive, high-performance, and future-ready organization. During FY 2025-26, the Human Resources function continued to align people priorities with business transformation, with a focus on capability development, employee engagement, leadership effectiveness, well-being, and operational excellence.

As the business continues to evolve, the Company remained focused on preparing its workforce for changing business needs through multi-skilling, targeted technical training, leadership engagement, and development interventions. on preparing its workforce for changing business needs through multi-skilling, targeted technical training, leadership engagement, and development interventions. These efforts supported productivity improvement, capability enhancement, and readiness for new products and services.

Industrial Relations

Durgapur manufacturing continues to demonstrate 100% labour compliance adherence, reflecting the Companys sustained commitment to statutory compliance, disciplined people practices, and responsible operations. As part of the transformation of Durgapur manufacturing into a multiproduct manufacturing facility, various people initiatives like multi

skilling, training, and qualification on specific skill sets, etc. for non-coal products and services jobs, resulted in the execution of specialized products featuring advance engineering, improvement of productivity, utilization, and skill sets.

As part of cultural-improvement initiatives, various programs like awareness sessions on the GEV Code of Conduct, programs on Diversity, Equity, and Inclusion (DEI) were organized. Several employee engagement programs were organized to maintain team spirit and foster positivity. Womens Day was celebrated with all cross-sections of diverse employees, and the outbound team building program "Samanaya 2025" was organized for Durgapur employees to build a culture of "ONE Team". A soft-skill development program was also organized covering all permanent workmen. Various wellness initiatives like a mental wellness program including yoga sessions and health awareness programs (like health check-up camps), plantation drives etc. were organized. Also, like every year, Republic Day, Independence Day, and various social occasions and festivals (Vishwakarma Puja, Durga Puja, Holi, etc.) were celebrated.

Culture

The Company remains committed to fostering a culture of trust, inclusivity, and performance excellence. During the year, multiple initiatives were undertaken to reinforce transparency, open communication, and employee connection, including leadership

interactions, People Leader Forums, and business-specific engagement events. These platforms enabled alignment on priorities, encouraged thoughtful dialogue, and strengthened a "One Team" culture across the organization:

• The Company continues to foster a supportive and thriving work environment by prioritizing the holistic well-being of its employees through a series of initiatives organized under five key pillars: Physical, Social, Financial, Mental, and Emotional. This integrated approach reflects the Companys belief that employee well-being is foundational to sustained performance, engagement, and resilience.

• The Company continues to encourage an environment where employees feel comfortable and are open to talking about mental health. In order to maintain positive mental health for our employees, the Company introduced both in-person and online resources to support their journey of self-care, such as the Mental Health Ambassadors Network, Mental Health Education Series, employee trainings, and access to platforms like the Employee Assistance Program (EAP).

• As part of our vibrant and inclusive culture, we celebrated various festivals and occasions in the Company like Independence Day, Diwali, the Fitness Challenge, Christmas, New Year, and International Womens Day.

• The Company also engaged its employees in business- specific meaningful events and summits where employees came together to align their priorities, engage in thoughtful conversations, work together in fun and interactive workshops, and be recognized for their achievements over the past year.

• Employee Resource Groups (ERGs) and related inclusion initiatives continued to support awareness, participation, and development opportunities for employees, while strengthening the Companys efforts to build a workplace where employees from diverse backgrounds feel valued and empowered to contribute. Celebrations such as International Womens Day included broad participation across employee groups and reflected the Companys continued focus on inclusion and belonging.

• Our Employee Engagement Survey also registered an improved engagement index, reflecting our continued focus on building a purpose-driven and collaborative environment.

Capability Development

Capability development remained a strategic priority during the year as the Company continued to invest in building functional, technical, leadership, and future-ready skills. Learning interventions were delivered through a blend of classroom, virtual, and on-the-job formats to improve accessibility and effectiveness.

During the year, the Company emphasized employee development through training programs covering fundamental skills, leadership, Lean, Life Saving Rules, and energy industry skills, delivered through both in-person and virtual learning platforms. Programs focused on data analytics, digital tools, and ESG awareness were also introduced to support business transformation and strengthen organizational readiness for evolving market and customer expectations.

Career conversations between employees and people leaders were encouraged to support individual development planning, growth, and business continuity. The Company also continued the Supervisor Orientation Program for employees deputed at project sites and leveraged People Leader forums to equip managers with the knowledge, skills, and resources required to lead teams effectively and manage key people processes.

Talent Management

The Companys talent strategy remained focused on attracting, developing, and retaining high-performing talent while ensuring continuity in critical roles. Talent review processes during the year emphasized leadership development, workforce planning, and alignment between employee aspirations and business priorities. Internal mobility and cross-functional exposure were encouraged to broaden experience, deepen capabilities, and support organizational agility.

The Company continued to focus on employee connection initiatives and regular leadership interactions to better understand engagement levels, motivation, and development needs. Roundtable conversations with senior leadership provided additional opportunities for dialogue and alignment.

A robust performance cycle remained a priority during the year to identify high-performing employees and support differentiated development. Retention efforts were also strengthened through analysis of attrition drivers and focused interventions to improve employee experience and engagement.

Attrition

As of March 2026, the Company recorded an employee attrition rate of 8.7%, reflecting an improvement over the previous year. The Company continues to monitor attrition closely and has implemented targeted initiatives to improve retention, particularly in critical and specialized roles. These initiatives include strengthening onboarding, enhancing employee wellbeing support, enabling career growth opportunities, and deepening manager-employee engagement.

summary

The global energy market is characterized by a robust and expanding demand across diverse energy sources. Renewable energy is at the forefront of supply growth, complemented by natural gas and sustained contributions from fossil fuels. Notably, the rate of increase in energy-related carbon emissions is slowing, indicating ongoing ongoing efforts to balance consumption with environmental considerations.

A prominent trend is the projected significant surge in worldwide electricity demand, largely propelled by the economic advancement of emerging nations and increasing electrification across multiple industries. This anticipated "Age of Electricity" is underpinned by the growth of energy-intensive manufacturing, particularly in clean energy technologies, greater adoption of climate control solutions, and the escalating energy requirements of digital infrastructure. While low-emission sources

92 GF Powi

are expected to satisfy much of this new demand, established power generation methods continue to play a crucial role.

These overarching trends within the energy sector signal substantial opportunities for service-oriented enterprises. A consistent requirement exists for enhancing the operational efficiency of existing power generation assets and deploying sophisticated emission control technologies to meet evolving environmental standards. Furthermore, the aging global fleet of power plants necessitates comprehensive renovation and modernization services to ensure continued reliability and extend operational lifespans. The extensive growth in electricity generation from varied sources mandates significant investment in upgrading and expanding grid infrastructure to facilitate dependable and efficient power transmission and distribution.

GE Power India Limited stands to benefit considerably from these dynamics. Its deep-seated technological expertise and extensive experience in the power sector position the Company as a key partner in providing critical services for efficiency upgrades, emission control solutions, and the modernization of existing power infrastructure. This established know-how and long track record enable GE Power India to capitalize on the growing demand for specialized services aimed at optimizing performance, ensuring regulatory compliance, and enhancing the reliability of power assets across the evolving global energy landscape.

forward-looking statements

This report contains forward-looking statements, which may be identified by their use of words like plans, anticipate, believe, estimate, expect, intend, will, projects or other words of similar expressions as they relate to the Company or its business and are intended to identify such forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the Companys strategy for growth, development, market position, expenditures, and financial results, are forwardlooking statements. Forward-looking statements are based on certain assumptions and expectations of future events and are subject to risks, uncertainties, and other factors. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company undertakes no obligations to publicly update or revise forward-looking statements, whether because of new information, future events or otherwise. Actual results, performances, or achievements could differ materially from those expressed or implied in such statements. Therefore, as a matter of caution, undue reliance on the forward-looking statements should not be made as they speak only as of their dates. The above discussion and analysis should be read in conjunction with the Companys financial statements included herein and the notes thereto.