Forward-looking Statements
This document contains certain forward-looking statements based on the currently held beliefs and assumptions of the management of GMR Power and Urban Infra Limited (GPUIL) , which are expressed in good faith, and in its opinion and judgment, are fairly reasonable. For this purpose, forward- looking statements mean statements, remarks or forecasts that address activities, events, conditions or developments that the Company expects or anticipates which may occur in the future. Because of the inherent risks and uncertainties in the social and economic scenarios, the actual events, results or performance can differ materially and substantially from those indicated by these statements. GPUIL disclaims any obligation to update these forward- looking statements to reflect future events or developments.
Introduction
FY 2024-25 was a very important year for GPUIL. The Company focused on rationalisation and management of corporate debt and addressing stressed assets while building a platform for growth for the future. During the year, significant steps were taken to reduce debt through monetisation of stressed assets. At the same time, the Company laid groundwork to expand operations in selected areas under our Energy 2.0 strategy. The impact of these new revenue streams from new business areas will become visible in medium term.
In regard to global economic outlook, during the past year inflation has moderated, which gave central banks across the world confidence to cut interest rates, which has in turn given boost to global growth outlook. However, the new US administration has taken up the target to reduce US trade deficit by implementing higher tariffs on imports from various countries. These steps may result in re-organisation of global supply chains, which may result in short to medium term supply chain disruptions resulting in higher inflation.
As a consequence, Governments have prioritised economic security and diversified supply chains, leading to increased protectionist measures and select trade deals. Climate Change and Energy Security issues remained high on the global agenda, with nations competing for dominance in green energy technologies and critical mineral resources. The increasing reliance on digital infrastructure has made cybersecurity a critical geopolitical concern, with potential for state-sponsored attacks and disruptions.
In summary, the past year witnessed a turbulent geopolitical landscape marked by ongoing conflicts and escalating tensions, alongside a significant realignment of global power dynamics driven by super-power competition, economic nationalism, and rapid technological advancements. This complex environment poses both challenges and opportunities for global cooperation and stability in the coming years.
Overall, the geo-political situation remains uncertain, as various flashpoints are present which may flare up intermittently. Macro-
economic outlook also remains uncertain as global repercussions of US tariff policy are still unfolding. Amid these uncertainties, India has been performing relatively well with stable inflation, good GDP growth numbers and increasing financial discipline. In fact, during the year India surpassed Japan to become the 4 th largest economy in the world.
Economic overview Global economic scenario
The Year 2023 was a challenging year for global growth. Growth
was impacted by high inflation, high interest rates across most countries and regional conflicts. Still, there were some bright pockets of growth, due to which global growth remained resilient and grew by ~3.3% during 2023.
As we entered 2024, things looked up with inflation levels normalising across major economies. This gave central banks the confidence to cut interest rates to support growth. As a result, global economy grew at ~3.3% during the year, in spite of various geo-political and trade related tensions. Average inflation levels came down to 5.8% from 6.8% in 2023.
US economy in 2024, was supported by exceptional domestic demand and initial rate cuts by Federal bank. USA recorded a GDP growth of 2.8% in 2024, up from 2.5% in 2023. However, as we enter 2025, consumer spending seems to be on a decline and Federal bank has put a pause on rate cuts. The new US tariff policy is expected to adversely impact inflation levels. As a result, growth outlook for 2025 remains uncertain. IMF projects US growth rate to fall to ~1.8% during 2025.
In the Euro area, domestic demand exhibited tepid growth as the economies digested the impact of energy prices due to Russia – Ukraine conflict and ECB supported growth by slashing interest rates from a high of 4.5% in May 2024 to 2.4% in May 2025. As a result, Euro area GDP grew at 0.9% in 2024 as compared to 0.4% in 2023. IMF projects GDP growth rate for 2025 at ~0.8%.
China continues to face weakness in real estate sector and depressed domestic demand resulting from a weakened consumer confidence. In addition, rising trade tensions with US have also adversely affected Chinese economy. In 2024, Chinas GDP grew by 5%, down from 5.2% in 2023. As per IMF forecast, Chinese economy growth rate expected to further slow down to 4.0% in 2025.
Way forward
Since early 2025, the economic landscape has changed dramatically as governments around the world reoriented policy priorities. A series of new tariff measures by the United States and countermeasures by its trading partners have been announced and implemented, potentially being a major negative shock to growth. The unpredictability with which these measures have been unfolding also has a negative impact on economic activity and the outlook. The swift escalation of trade tensions and extremely high levels of policy uncertainty are expected to have a significant impact on global economic activity.
The above situation is aggravated by the various geo-political tensions. According to the latest IMF World Economic Outlook, the global growth is estimated at 3.3% for 2024 and is expected to significantly decelerate to 2.8% in 2025. On the positive side, headline inflation is expected to decrease further. Global average inflation decreased from 6.8% in 2023 to 5.8% in 2024 and is expected to further reduce to 4.5% by end of 2025.
Recent history has taught us that despite various challenges, global economy tends to perform better than expected. This is mainly because more countries are responding to these challenges with agility and pragmatism. We live in an increasingly multi-polar world characterised by economic nationalism, where countries will change military and economic alliances, when the situation calls for such a change. Even amid many geopolitical fractures, new alliances and partnerships are emerging. Trading partners may change, but global trade should continue to grow. Even regional tensions and temporary flare-ups have failed to make a major dent in global growth forecast.
Going forward, we expect energy prices to remain low, as OPEC nations and US ramp up production. Low energy prices along with further decreasing inflation should provide some room for Central banks to reduce interest rate further. This should act as a major impetus for global growth.
Indian economic scenario
While global economic and geo-political uncertainties have threatened to de-rail global growth, India has remained a positive factor contributing to global growth outlook.
India continues to be the fastest growing major economy in the world. During the year, India overtook Japan to become the fourth largest economy in the world. With its economic growth
trajectory, India is expected to become third largest economy by 2030. According to RBI, Indias GDP growth in 2024-25 was recorded at 6.5% and a similar level of growth is expected for 2025-26, maintaining its position as a major driver of global GDP growth. Such growth has been made possible by strong domestic demand, substantial infrastructure development initiatives, rural consumption coming back and effective government policy measures.
At the start of FY 2025-26, CPI inflation eased to a 6-year low in April 2025 at 3.16% and WPI reached a 13-month low at 0.85% in April 2025 as prices of crude oil fell and food inflation tapered off. This gave RBI confidence to cut repo rate to accelerate GDP growth. RBI has reduced repo rates from 6.5% to 5.5% during the past 12 months. In addition, to shore-up liquidity position, RBI has committed to reduce CRR (cash reserve ratio) by 100 basis points bringing it down to 3% in four tranches starting September 2025. By cutting both the repo and CRR in tandem, the central bank has sent a strong signal that it is ready to inject liquidity and revive demand aggressively, while keeping a close eye on inflation numbers.
While the economic growth has remained stable, Indian rupee has been lately experiencing some pressure due to US tariff risks and wild swings in crude oil prices. Indian Rupee depreciated by
~2.4% against USD during FY 2024-25 after falling by 1.5% in FY 2023-24. Indian currency depreciated significantly against EURO by ~3.2% in FY 2024-25 vs ~ 1.3% in FY 2023-24. Subsequently, Rupee has depreciated further vis-à-vis Euro by ~8.5% reaching a conversion rate of 1 EURO = ~100. However, risk of further depreciation is mitigated to some extent due to Indias rising forex reserves. By June 2025, Indias forex reserves crossed USD 700 Bn, up from ~USD 620Bn in April 2024. This does give RBI some manoeuvring space to protect against any drastic depreciation in Rupee.
With stable GDP growth driven by increased economic activity, Indias GST collections have continued to rise. GST collection in FY 2024-25 stood at 22 Tn, up 9.4% year on year. April 2025 saw the highest-ever GST collection at 2.36 Tn. Other economic indicators have also performed well. Indias index of industrial production continues to exhibit good month on month growth rates. Both India services and manufacturing PMI have also been inching upwards during the year. Such indicators give confidence that economic activity in India will continue to expand.
Indian government has also made a visible effort to rein in fiscal deficit, which had significantly increased during the pandemic, as government tried to support the impacted population and economy through social and other infrastructure spending.
Infrastructure Initiatives
Indian Government to achieve its ambition of Viksit Bharat (India as a developed nation) by 2047, has taken various initiatives. The government has particularly stepped-up infrastructure spending outlay. In FY 2025-26, budget allocation towards infrastructure sector was at 11.21 lakh crore, which is approximately 3.1% of GDP, building on the previous years 10.2 lakh crore.
On the geo-political front, situation heated up as India responded to a terrorist attack in Jammu and Kashmir in April 2025, leading to a 4-day confrontation with Pakistan in May 2025. The conflict escalated quickly, but eventually a cease-fire was reached. While the conflict cemented Indias military prowess and no-tolerance policy towards terrorism, it has resulted in closure of Pakistan airspace for Indian commercial aircrafts.
Amid other geo-political conflicts and increasing political fragmentation, India has followed its philosophy of Vasudhaiva Kutumbakam (The world is one family) to navigate through geopolitical pressures and obligations with sufficient success while maintaining strategic autonomy.
Way forward
In the Union Budget for 2025-26, the Indian government has lowered its fiscal deficit target to 4.4% of GDP for FY 2026. This reduction is supported by increasing GST collections, significant surplus transfer from the central bank to government as dividends and robust economic performance. A reduced fiscal deficit is anticipated to boost foreign investor confidence and enhance Indias chances for a sovereign rating upgrade.
India has emerged as the fourth largest major economy in world. This has been enabled by accelerated pace of economic reforms over the last few years in the domains of fiscal, digital and physical infrastructure. Initiatives like Unified Payments Interface (UPI), creation of National Investment and Infrastructure fund (NIIF), National Single Window System (NSWS), MSME trade enablement and marketing, Production Linked Incentive (PLI) and many more are improving ease and cost of doing business, and positioning India for higher and sustainable growth. In addition, Indias vibrant start-up ecosystem with more than 161,000 DPIIT recognised start-ups and 100+ unicorns are spearheading innovation and fostering opportunities across sectors and becoming catalysts for Indias economic growth.
On the global front, India is improving its competitiveness by establishing bilateral ties with partnering nations. In this direction, India and the UK finalised a landmark free trade agreement (FTA) which will build strategic partnership between both nations and catalyse trade and investments in both economies. Currently bilateral trade between both the nations is about USD 60 Bn, which is projected to double by 2030. Indias trade deal with USA is also expected during FY 2026. Additionally, India is also in conversation with major partners like EU, and ASEAN countries and exploring new agreements with Africa, Latin America, and Middle East as well, aimed at strengthening bilateral and regional trade partnerships.
To increase private sector participation in infrastructure projects, Ministries have been guided to develop a three-year pipeline of projects to be implemented in PPP mode. State Governments are also being encouraged to follow the same path. Additionally, for capital expenditure and to incentivise infrastructure reforms, an outlay of 1.5 lakh crore is allocated for states in the form of 50-year interest free loans. This capital outlay aims to advance logistic ecosystems, focus on industrial development and encourage public private partnership models in the country.
Recognising the role of consumption in economic growth, during the year government made radical changes to the direct tax regime. The government significantly lowered tax rates in the new tax regime translating to a net zero tax for income up to
12 lakhs annually. This major reduction will increase discretionary spending of the growing Indian middle class income group and thus leading to greater urban consumption.
Government also recognises the importance of energy security to attain the objective of sustainable development. In this direction, budget FY 2025-26 increased its thrust on adding more capacity from green, nuclear and traditional sources. Thus, budget allocation for the Ministry of New and Renewable Energy (MNRE) was increased from 19,100 crore during previous year to
26,549 crore in FY 2025-26. Additionally, for the Ministry of Power, 21,847 crore was allocated in this years budget versus
20,502 crore allocated during previous year.
In addition, Government has set a target of 100 GW nuclear energy capacity from the current ~8 GW by 2047. Accordingly, an allocation of 20,000 crore has been made towards nuclear energy mission focusing on R&D of Small Modular Reactors (SMRs) with aim to operationalise at least five SMRs by 2033. Additionally, to encourage private sector participation in nuclear energy, government is proposing amendments in the Atomic Energy Act and Civil Liability of Nuclear Damage Act.
Advancing the momentum towards strengthening of power distribution infrastructure and reducing aggregate technical and commercial losses, Government allotted 16,021 crore in budget towards Revamped Distribution Sector Scheme (RDSS). The scheme also aims to improve operational efficiency and financial stability of State DISCOMS. Moreover, depending on
implementation of specific reforms by State Governments, an additional borrowing of 0.5% of the State Gross Domestic Product (GSDP) can be availed.
Impact on sectors in which GPUIL operates
Introduction of reforms and various initiatives by the government have bolstered the infrastructure sector. Power sector is essentially the fuel on which the Indian economy runs. As the economy grows, so does the power requirement. Hence, major impetus has been given for the power sector growth. Further for the past almost 10 years, government has laid great focus on transition to clean energy to enable the nation to fulfil its decarbonisation goals and achieve energy security.
As a result, power sector has witnessed continuous expansion, with total installed capacity reaching 476 GW by June 2025 compared to 305 GW in 2015-16.
Majority of this power capacity growth has been driven by renewables, where capacity has increased by ~72% since FY 2015- 16 and now contributes to ~49% of Indias total power capacity. This transition to clean energy is expected to happen at a faster pace, as India aims to reach 500 GW of installed capacity by 2030 in line with its commitments announced in COP26.
This transition has been enabled by favourable policy support by the government and increased private sector participation.
While Indias power generation capacity has been increasing significantly, government also recognised a need to improve power distribution network infrastructure. This will result in increased billing efficiency and reduce Aggregate Technical & Commercial (AT&C) losses, which in turn should result in better
financial health of State Power Distribution Companies (DISCOMS). To further this objective, the government has earlier launched the Revamped Distribution Sector Scheme (RDSS) setting an ambitious target to install 250 million smart consumer meters along for all distribution transformers and feeders in India. The projects are being executed in Public Private Partnership in TOTEX (CAPEX+ OPEX) mode. Through bidding process DISCOMs will be selecting advanced metering infrastructure service providers (AMISPs) which will be in charge for handling end to end metering responsibility, covering costs through equity and debt financing under TOTEX model with concession period of 10 years. Till July 2025, approximately 1.30 lakh crore have been sanctioned for smart meters and a physical progress of ~12% has been achieved across India. Contracts of ~120mn meters have already been awarded.
Another step taken by India towards energy security and reduction in carbon emissions was the launch of scheme National Green Hydrogen Mission (NGHM) in January 2023 with an allocation of 600 crore till 2030, with a goal to become global leader in production and export of green hydrogen. By 2030, India expects production capacity to reach to 5MMT per annum.
To supplement this effort towards clean energy and increase self- reliance in renewable energy supply chain, the National Manufacturing mission will support manufacturing related to clean-tech. The policy intends to increase domestic value addition and create the ecosystem for EV batteries, grid scale batteries, Solar PV cells, wind turbines, voltage transmission equipment. Custom duties have also been lowered on solar modules and cells.
Demonstrating its commitment towards accelerating EV adoption in the country, government announced complete exemption of duties on 25 critical minerals that are not available domestically. And to spur lithium-ion battery manufacturing, 35 capital goods are also included in the exempted list. These steps are expected to reduce costs, increase competitiveness and advance Indias battery manufacturing capabilities.
Additionally, Ministry of Heavy Industry (MHI) launched the FAME II scheme that included financial support for development of public charging Infrastructure. Ministry of Power has also taken up several initiatives and developed guidelines to support the acceleration of public charging infrastructure development in the country. Currently, India has over 12,000 operational EV charging stations.
While power sector acts as the fuel for economic growth of India, government also recognises the role of transport infrastructure in growth of the economy. With an aim to reduce logistics costs and time and thus increase economic productivity, Government increased its allocation to Ministry of Road Transport and Highways (MoRTH). As an outcome of governments continuous focus on transport infrastructure, National Highway network in India till December 2024 increased by 60% to 146,195 Km from 2014.
Further, to ensure seamless movement of traffic and increase efficiency in toll operations, the National Electronic Toll Collection (NETC) program was implemented. By December 2024, total 10.3 crore FASTags were issued enabling a 98.5% penetration in total fee collection.
Key Developments at GPUIL
Over the past few years, we have consolidated our position, focused on rationalisation and management of corporate debt and addressing stressed assets while building a platform for growth for the future. We have taken many significant steps in implementing our stated strategy to strengthen the balance sheet through improved cash flows driven by increased profitability, debt reduction through asset monetisation, value unlocking and prudent working capital management while creating avenues for growth.
During the year, your Company has taken up various initiatives in this direction. Some of these initiatives are mentioned below:
1. Conversion of FCCBs with interest waiver
Pursuant to the Demerger of GMR Airports Limiteds (formerly GMR Airports Infrastructure Limited) (GAL) non- Airport business into the Company (GPUIL), during January 2022, the FCCBs (Foreign Currency Convertible Bonds) liability of GAL was split between GAL and GPUIL. Accordingly, USD 275 Mn 7.5% subordinated FCCBs due 2075 were issued to Kuwait Investment Authority (KIA) by GPUIL. KIA, in July 2024 transferred the FCCBs to two new parties, i.e., Synergy Industrials Metals and Power Holdings Limited (Synergy) (USD 154 Mn) and to GRAM Limited (GRAM) (USD 121 Mn) who subsequently exercised their option of converting their respective FCCB holdings into equity shares in GPUIL.
The GPUIL FCCBs were converted into 111,241,666 number
of equity shares of 5/- each, proportionately to both the FCCB holders. As part of the overall commercials, the outstanding interest on the FCCB was waived off. Post the above conversion, Synergy held 8.71% of the equity capital of the Company and GRAM held 6.85% of the equity capital of the Company.
2. Settlement of Hyderabad-Vijayawada toll project disputes
GMR Hyderabad Vijayawada Expressways Private Limited (GHVEPL) had executed a Concession Agreement in October 2009 to construct, operate and maintain a two- lane 181.50 km stretch between Hyderabad and Vijayawada on the NH-65. In view of significant loss of revenue on account of bifurcation of the stretch between two states i.e. Telangana and Andhra Pradesh post the date of commissioning of the project, GHVEPL had raised claims in terms of the agreement with National Highways Authority of India (NHAI), seeking compensation against such losses, arising due to the provisions of change in law. Both parties decided to amicably settle all the disputes without further intervention of court / tribunal. In this regard, a settlement was agreed between GHVEPL and NHAI as per which NHAI agreed to pay an amount of 1,387.21 crore to GHVEPL as claim and project was handed back to NHAI on July 1, 2024.
3. GREL One time settlement
GMR Rajahmundry Energy Limited (GREL), an associate of GPUIL in which GMR Generation Assets Limited (GGAL), a subsidiary of GPUIL held about 45% of the equity share capital and balance 55% was held by the GREL lenders, had set up a 768 MW (2x384 MW) gas based Combined Cycle Power Plant (CCPP) project in Andhra Pradesh.
Despite several attempts of finding alternatives and various representations at appropriate forums to revive the plant, due to non-availability of affordable natural gas, GREL could not commence regular operations and accordingly as a force majeure provision, the Company approached for a One-Time Settlement (OTS) proposal with its lenders. The total amount outstanding by GREL to its lenders including sustainable and unsustainable debt was 837.70 crore of term loan, 261.40 crore of Non-Convertible Debentures (NCD) and 940.60 crore of Cumulative Redeemable Preference Shares (CRPS). The consortium of lenders of GREL approved to accept the One-time settlement (OTS) amount of 657.00 crore towards full and final settlement of entire exposure including Term Loan, NCDs, CRPS, Interest Payable and Equity Shares and for closure of Corporate Guarantees, and your Company accepted the proposal. Post the payment of entire amount as per agreed schedule, the OTS now stands completed.
4. Monetisation of select energy assets
In furtherance to the OTS reached with lenders of GREL, GPUIL decided to divest the Companys non-operating and other non-strategic assets.
In this regard, GMR Energy Limited (GEL), a wholly owned subsidiary of the Company and GMR Generation Assets Limited (GGAL) a subsidiary of the Company, signed a framework agreement with Synergy Investments Holding Limited (Synergy) for the divestment of their respective
stakes in: (a) GMR Bajoli Holi Hydropower Private Limited (Bajoli Holi), (b) GMR Vemagiri Power Generation Limited (Vemagiri) and (c) GMR Rajahmundry Energy Limited (GREL).
According to the Framework Agreement, (a) GEL was to transfer 79.86% of the equity shares of Bajoli Holi and the relevant GMR Group entities were to transfer 100% of the compulsorily convertible debentures issued by Bajoli Holi, to Synergy; (b) GEL was to transfer 51% of the equity shares of Vemagiri to Synergy; and (c) GGAL was to transfer 51% of the equity shares of GREL to Synergy, upon completion of the OTS.
The consolidated consideration for the transfer of securities pursuant to the transactions contemplated (for all the above 3 entities) under the Framework Agreement was 653.00 crore. While significant parts of the divestments have been completed, a balance of 9.86% equity of Bajoli Holi is yet to be transferred and the same is expected to be concluded by September 2025. One of the objective for this transaction as envisaged was to enable the Company to meet the proposed OTS with the lenders of GREL, deleverage the balance sheet by ~ 4,400 crore and spin off the non- operational gas plants and other selected assets of GPUIL, which will further improve the bottom line of the Company.
5. Foray into the Smart Meter Sector
Advancing our Energy 2.0 strategy, GMR won a smart metering project in Uttar Pradesh through competitive bidding and was chosen as the Advanced Metering Infrastructure Service Provider (AMISP) for the project to install 75.69 lakh smart meters across three districts of Uttar Pradesh. The project entails the installation, integration and maintenance of around 75.69 lakh smart meters. In order to implement the whole project, GMR Smart Electricity Distribution Private Limited (GSEDPL), a subsidiary of the Company, incorporated three Special Purpose Vehicles (SPVs). Additionally, GSEDPL entered into an arrangement with Bosch Global Software Technologies (BGSW), the technology partner for the Project. As a part of the arrangement, BGSW will be investing 10% equity capital in each of the three project SPVs, and GSEDPL will hold the balance 90% of the equity capital of these SPVs.
The project is under implementation at a pegged cost of
3,467 crore, to be funded through a mix of debt, equity and internal accrual. Indian Renewable Energy Development Agency Limited (IREDA) has sanctioned a total project loan of 2,128 crore (to be disbursed in tranches) to the three project SPVs.
Energy Sector Outlook and Future Plan Indian Economy - Power Sector Scenario
India continues its march toward becoming the worlds third-
largest economy, backed by a resilient growth trajectory and structural reforms. Despite this progress, per capita electricity consumption in India remains modest at approximately 1,380 kWh in FY 2024–25, still well below the global average and indicating a significant headroom for growth.
The countrys expanding economic base, rapid urbanisation,
manufacturing push under PLI schemes, rising demand from electric mobility, railway electrification, irrigation, AI-driven data centres, and digital infrastructure are collectively driving a structural surge in electricity demand. During FY 2024–25, power demand rose by approximately 4.2% to reach 1,810 Bn Units (BU), maintaining the strong momentum built in the previous fiscal.
Higher demand has also resulted in merchant prices shooting up which resulted in improved profitability and improved PLF for power generating companies. Consequently, Distribution Companies (DISCOMs), in a bid to shield themselves from merchant price volatility, are anticipated to solicit bids for long- term contracts from conventional sources such as thermal power. Additionally, to ensure reliable power supply amidst the growing penetration of intermittent renewables, DISCOMs will continue to rely on thermal power. This strategy involves entering into new long-term contracts and drawing additional power from existing capacities, ultimately contributing to improved average Plant Load Factors (PLFs) in the sector in short period and expansion and addition of generation capacity in the long term.
As of March 31, 2025, Indias total installed power generation capacity stood at approximately 467 GW, reflecting a continuing expansion to meet the nations growing energy needs. Conventional sources, primarily coal-based thermal power, accounted for around 250 GW (54% of total capacity), while renewable energy sources reached a cumulative capacity of approximately 170 GW (36%). The remaining ~47 GW was contributed by nuclear and large hydro installations.
Conventional Power: Resurgence of Thermal
• The increase in power demand and limited storage capacity for renewables resulted in a tight power supply situation, especially during peak summer months. Consequently, merchant market prices surged, improving realisations and profitability for generators.
• Higher demand and pricing triggered a resurgence in thermal PLFs, prompting DISCOMs to seek fresh long-term Power Purchase Agreements (PPAs) from existing and new thermal capacities.
• Given the intermittency of renewables, thermal generation continues to serve as the backbone of grid reliability, particularly during evening peak hours and seasonal demand spikes.
• As per Central Electricity Authority of India (CEA) estimates, India would require an additional 80 GW of coal-based capacity by 2032, reinforcing the transitional role of coal in supporting a reliable energy ecosystem.
Coal Availability and Pricing Trends
• Coal remained the dominant fuel, accounting for over 72% of power generation in FY 2024–25.
• Domestic coal production crossed 1,050 million tonnes, a 5% increase YoY, driven by higher output from Coal India Limited and improved logistics.
• Coal imports moderated, aided by improved domestic supply and a cooling of global coal and LNG prices, which had spiked post-Ukraine crisis. This led to better coal stock positions at thermal plants and helped stabilise PLFs.
• Cost-effective fuel availability supported short-term and merchant market operations, ensuring affordability while maintaining grid stability.
Renewables: Strong Momentum, Global Leadership
• India retained its position as a global clean energy leader, ranking 4th in total RE capacity, 4th in wind, and 5th in solar, according to the International Energy Agency (IEA).
• In FY 2024–25, India added a record 26 GW of renewable capacity, led by solar (over 20 GW), driven by strong policy tailwinds, investor appetite, and improving storage economics.
• The cumulative renewable energy capacity rose to 170 GW, advancing Indias target of 500 GW of non-fossil fuel capacity by 2030 under the Panchamrit commitments.
• The year also witnessed momentum in green hydrogen, with pilot projects announced and progress towards the 2030 target of 5 million tonnes of production supported by 125 GW of RE.
Indias power sector is at an inflection point balancing the growth imperative with the sustainability agenda. As the country moves toward becoming a global economic powerhouse, the energy ecosystem must evolve to:
• Integrate firm RE-backed capacity (including RTC, hybrid, and BESS solutions)
• Modernise grid infrastructure and interregional transmission
• Continue reforming DISCOMs and deepening energy markets (DAM, RTM, GDAM)
• Foster climate resilience and energy security in parallel
In summary, Indias power sector is entering a phase of accelerated transformation, where conventional and renewable sources will co- exist to power economic aspirations. The emphasis will remain on achieving a low- carbon trajectory, while ensuring 24x7 affordable, reliable, and sustainable electricity for all.
Progress on Energy 2.0 Initiative
Indias power and energy sector is undergoing a paradigm shift, with profit pools transitioning from conventional generation to renewables, distributed energy, digitalisation, and consumer- centric models. The sector is also witnessing deeper integration with adjacent domains such as e-mobility, smart metering, energy trading, and technology-enabled services.
GMR Energy remains aligned with this evolving landscape. While continuing to enhance operational performance of the existing assets and pursuing organic growth, GMR Energy has articulated a clear roadmap to expand its presence in next-generation energy opportunities under the Energy 2.0 vision.
The smart metering foray gained strong momentum during the year. GMR Energy continued implementation of its first large- scale AMISP project for UP DISCOMs, covering 7.56 million smart meters. Post receiving the order, it made substantial progress on the ground and started smart meter installation backed up with technology infrastructure. It is actively pursuing adjacent opportunities in analytics, customer engagement platforms, and energy efficiency services to maximise lifecycle value from the
smart metering vertical. It also continues to look for more AMISP opportunities so as to attain economies of scale.
In EV charging infrastructure, it is leveraging synergies with GMR Groups Airport and urban infrastructure assets, positioning itself to serve high-footfall, strategic locations. This vertical will play a key role in enabling green mobility while opening consumer- facing monetisation models.
Additionally, the Energy 2.0 Strategy includes a focus on exploring avenues for expanding the Companys clean energy portfolio with a focus on C&I and hybrid (solar + wind) power supply. This strategy underscores the Companys shift towards sustainable energy solutions, aiming to reduce carbon footprints and promote environmental stewardship. It also intends to explore opportunity to use land bank at the existing projects for this purpose.
Its engagement in power trading is expected to deepen as India transitions to more dynamic and real-time electricity market. It is exploring participation in DAM, RTM, GDAM, and green power corridors with innovative solutions that balance flexibility, cost- efficiency, and compliance. All of the above initiatives are anchored on a strong technology backbone.
The world is entering a new energy era, and India is at the forefront of this transformation— committed to a clean, affordable, and resilient power future. GMR Energy, a key arm of GPUIL, is fully aligned with this transition. Its ambition is to build a resilient Energy 2.0 platform, blending sustainability, innovation and consumer engagement, thus positioning it as a future-ready energy player.
Transportation and Urban Infrastructure Sector Outlook and Future Plan
Transportation Railways
The Group made a big leap into Railway EPC Projects in 2015,
when the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) awarded two packages on the Eastern Dedicated Freight Corridor (EDFC) in the State of Uttar Pradesh. The projects for a total length of about 422 Km between New Bhaupur and New Deen Dayal Upadhyaya junction have been commissioned. As on date about 200+ Gross Million Tonnes (GMT) moved on this EDFC Track.
Subsequently in 2016, two more DFCCIL packages (Contract Package - 301 & 302) on the EDFC were awarded in States of Punjab-Haryana-Uttar Pradesh (Ludhiana –Khurja – Dadri). The projects are already commissioned.
Going forward, the Company will be exploring new projects under DFCCIL/IR in PPP /EPC mode that are expected to come up during FY 2025-26 and beyond. The Company has knowledge and experience in undertaking such big Railway Projects. In addition, Company has heavy plant and machinery and fleet of track machines including fully mechanised NTC (New Track Construction) machines, that can be effectively utilised in future Railway projects as well.
Apart from the construction of railway tracks, Government has opened private participation opportunities in Operation & Maintenance (O&M) of Railway Tracks. Your Company has
requisite track machines and skilled manpower to undertake such O&M opportunities, if they align with the overall Group Strategy.
Highways
For the fiscal year 2024-25, the National Highways Authority of India (NHAI) has been actively engaged in several significant projects and outlook is also aimed at such initiatives expanding and enhancing the national highways infrastructure.
Ambitious Construction Targets
Working relentlessly towards development of the National Highway infrastructure in the country, NHAI, during the FY 2024- 25, constructed 5,614 km of National Highways against the target of 5,150 km for the year.
Currently in FY 2025-26, it targets 10,000 KMs of Highway Construction, continuing its efforts to upgrade Indias road infrastructure and attract private investment.
The Capital Expenditure by NHAI in FY 2024-25 for development of National Highway Infrastructure reached an all-time high of over 2.50 Tn (provisional) against a target expenditure of
2.40 Tn. This highest ever capital expenditure in a financial year by NHAI includes both Government budgetary support and NHAIs own resources.
Monetisation and Private Participation :
During FY 2024-25, NHAI leveraged three modes for monetisation that included Toll Operate Transfer (TOT), Infrastructure Investment Trust (InvIT) and Toll Securitisation. During the financial year, NHAI monetised assets worth 28,724 crore. This includes NHAIs highest ever single round InvIT receipt worth
17,738 crore.
Digital Highway Development
NHAI plans to develop 10,000 km of optic fibre cable infrastructure across India, facilitating internet connectivity in remote areas and supporting the deployment of advanced telecom technologies.
The Delhi-Mumbai Expressway (1,367 km) and Hyderabad- Bangalore corridor (512 km) have been identified as pilot routes for digital highway development. Presently, this initiative is pushed back as the Authority has failed to procure cables from the market.
Project Awards and Construction
The Cabinet Committee on Economic Affairs has approved the development of 8 important National High Speed Corridor projects with a length of 936 km at a cost of 50,655 crore across the country.
Conclusion
NHAIs performance in FY 2024-25 highlights significant achievements in highway construction and project awards, supported by increased budget allocations and financial prudence. Looking ahead to FY 2025-26, NHAI aims to further increase its construction activities, reduce its debt burden, and develop a comprehensive digital highway network. The continued focus on financial management and strategic project execution will be crucial for achieving these goals.
Your Companys current highways portfolio consists of two BOT (Annuity) and one BOT (Toll) projects with a total operating length of 888 lane kilometres. These include Ambala-Chandigarh Highway project, Chennai Outer Ring Road and Adloor – Gundla
- Pochanpalli highway.
Urban Infrastructure
GPUILs subsidiary, GMR Krishnagiri SIR Limited (GKSIR) is developing the Special Investment Region (SIR) in phases. GKSIR has already sold about 504 acres in Phase 1 to M/s. Tata Electronics Private Limited (TEPL). TEPL has established a greenfield mobile phone component manufacturing facility with a projected investment of 4,500 crore and with employment potential of 18,000 persons and commercial production has already started.
In Phase 2, GKSIR has leased ~101 acres of land to TEL Components Private Limited during the current financial year or their greenfield Mobile phone assembly plant. During the FY 2024-25, the Group has sold around 407 acres including around 286 acres to Tamil Nadu State Government Agency (SIPCOT).
GKSIR is planning to develop ~75 acres of land in Phase 3 by creating infrastructure facilities suitable for prospective clients for setting up their industrial units
Integrating ESG into the business.
GPUIL continues to demonstrate its commitment to sustainability and responsible business practices through a structured, policy- driven approach that fully integrates Environmental, Social, and Governance (ESG) considerations across its operations. The Company operates under robust systems and frameworks focused on enhancing its Environment, Health and Safety performance across all facilities. Its major assets are certified under globally recognised standards including ISO 14001 for Environmental Management, ISO 45001 for Occupational Health and Safety, and ISO 50001 for Energy Management. These certifications ensure systematic and responsible environmental and safety performance. The Company continues to report publicly its sustainability and ESG performance through its annual Sustainability Report and the SEBI mandated Business Responsibility and Sustainability Report (BRSR), demonstrating transparency and accountability to its stakeholders.
During the reporting year, GPUIL intensified its efforts to reduce environmental impact. Greenhouse Gas (GHG) emission inventorisation as per ISO 14064 was carried out at both major power assets at Warora (Maharashtra) and Kamalanga (Odisha), underscoring the Companys commitment to rigorous emissions monitoring. Both facilities were also certified under ISO 46001 Water Efficiency Management System, highlighting GPUILs focus on responsible water use and stewardship.
GPUILs Warora plant received significant recognition for its environmental leadership, winning the CII Excellence Award in Water Management for its integrated watershed management approach, becoming Indias first thermal power plant to achieve a Gold Rating under the CII Blue Rating Program, and receiving CIIs National Award for Excellence in Energy Management for the 8 th time (for 7 th consecutive year) along with National Energy Leader status for the 5 th time. Kamalanga was similarly recognised with the National Award for Excellence in Water Management
from CII and received the prestigious Sword of Honor from the British Safety Council for its robust Occupational Health and Safety Management System.
GPUIL has continued to expand renewable energy adoption within its operations, with 642/kW of rooftop solar capacity installed at Kamalanga and 70/kW at Warora. The Company is also working to reduce value chain emissions by maximising fly ash evacuation via rail instead of road, lowering transportation-related carbon impacts. Nearly 100% of fly ash generated at both power plants was utilised or diverted from landfill, supporting a circular economy and reducing environmental liabilities. At Warora, a Biomass Pellet Machine with a capacity of 100/kg/hr was installed to convert horticultural waste into biomass fuel. Extensive greenbelts covering over 33% of land at major assets further support biodiversity while helping to maintain biodiversity and mitigate dust and emissions.
Environmental Stewardship and Resource Efficiency
GPUILs approach to environment management goes well beyond compliance, focusing on long-term resilience, biodiversity protection, and the responsible use of natural resources. The Company maintains a proactive stance on environment monitoring, deploying advanced systems to manage and transparently report performance across its project sites. Circularity is central to its operations, with systematic tracking and nearly 100% utilisation of fly ash for cement and construction materials, eliminating landfill disposal and supporting resource efficiency.
To further minimise emissions, GPUIL prioritised rail transport for fly ash evacuation, reducing road transport emissions, installed a biomass pellet machine at Warora to convert local horticultural waste into usable fuel and adopted Hot-in-Place recycling methods for road maintenance to reduce material consumption for highways business. Air quality initiatives included the deployment of fog cannons to reduce fugitive dust emissions, while energy- efficient LEDs are installed across highway operations to lower energy consumption.
Social Responsibility and Inclusive Development
GPUILs social responsibility agenda is built on its commitment to inclusive and participatory development in the communities where it operates. Through the GMR Varalakshmi Foundation, the Company implements a broad range of programs in education, healthcare, and livelihoods development to improve quality of life. This is supported by participatory rural appraisal tools, structured community engagement, and robust grievance redress mechanisms to ensure responsiveness to local needs. In FY 2025, Corporate Social Responsibility (CSR) efforts of the Company made a significant impact, positively benefiting over seventy thousand lives, with more than 95% of these beneficiaries coming from vulnerable and marginalised communities. This underscores GPUILs commitment to driving inclusive growth and social development in the communities where it operates.
GPUILs commitment to social accountability is further demonstrated through Waroras certification under the SA 8000 Social Accountability Standard, highlighting its adherence to high
standards of employee welfare. Employee well-being and diversity remain central priorities, with ongoing health and safety training, ethics awareness initiatives, and inclusive hiring practices. The Company fosters a work environment that values mental well- being, safety, respect, and continuous professional development.
Governance Excellence and ESG Oversight
Strong governance is central to GPUILs sustainability agenda. The Company has implemented a robust ESG governance framework with dedicated oversight by the ESG Committee at the Board level, ensuring ESG aspects are integrated into strategic decision-making. GPUIL remains fully committed to meeting all regulatory obligations, including compliance with SEBIs Business Responsibility and Sustainability Reporting (BRSR) framework.
Ethical conduct is maintained through mandatory employee training, effective whistleblower mechanism, and rigorous anti- corruption safeguards. On the digital front, GPUIL has implemented strong cybersecurity and data protection protocols, with reviews to ensure operational resilience and safeguard data and information.
Charting a Sustainable Future
GPUILs sustainability strategy is guided by its vision to create long-term value for society through responsible and resilient infrastructure of national importance. By embedding ESG principles across all aspects of its business, from energy transition and operational efficiency to stakeholder engagement and governance, the Company continues to position itself as a leader in Indias evolving energy and infrastructure landscape. These integrated efforts support national and global sustainable development goals while ensuring positive and enduring outcomes for all stakeholders and communities.
Discussion and analysis of financial conditions and operational performance
The consolidated financial position as at March 31, 2025 and performance of the Company and its subsidiaries, joint ventures and associates during the financial year ended on that date are discussed hereunder:
Further, during the previous year ended March 31,2024, the Company on November 21, 2023 acquired 1,051.15 mn equity shares of GMR Energy Limited (GEL) representing 29.14% of the equity share capital of GEL, from Power and Energy International (Mauritius) Limited, a subsidiary of Tenaga Nasional Berhad. With this complete buy-out of Tenaga stake, the Shareholders Agreement with Tenaga stood terminated. The Group accounted for the acquisition of additional stake in GEL by applying acquisition method of accounting in accordance with Ind AS 103 Business Combination thereby enabling control over GEL and subsidiaries and full line-by-line consolidation of Assets, Liabilities, Revenues and Earnings of GEL and subsidiaries with the Group with effect from November 22, 2023 which was earlier done on an equity method in accordance with Ind AS 28 Investment in associates and joint venture. For more details on business combination, refer note 50 of the consolidated financial statement.
1. ASSETS- NON-CURRENT ASSETS
1.1. Property Plant and Equipment (PPE)
PPE has decreased from 7,889.38 crore as at March 31, 2024 to 7,124.94 crore as at March 31, 2025 primarily due to depreciation charged during the year and due to transfer of PPE of GMR Vemagiri Power Generation Limited (GVPGL) to Assets included in disposal group held for sale.
1.2. Right of use asset
Right of use asset has decreased from 284.13 crore as at March 31, 2024 to 275.46 crore as at March 31, 2025 due to amortization during the year.
1.3. Capital work- in -progress
Capital work in progress increased from 357.38 crore as at March 31, 2024 to 505.26 crore as at March 31, 2025, mainly on account of purchase of asset which was not ready to use as on March 31, 2025.
1.4. Investment Property
Investment property has decreased from 339.71 crore as at March 31, 2024 to 165.02 crore as at March 31, 2025 primarily due to transfer of Investment property to Assets included in disposal group held for sale and also sale of stake of subsidiary during the year.
1.5. Goodwill
There is no change in the value of Goodwill amounting
36.93 crore.
1.6. Other Intangible Assets
Other Intangible assets have decreased from 2,387.48 crore as at March 31, 2024 to 564.34 crore as at March 31, 2025 primarily due to full amortization of balance carrying value of carriage ways on account of handover of project pursuant to amicable settlement between GMR Hyderabad Vijayawada Expressways Private Limited (GHVEPL) and NHAI.
1.7. Investments accounted for using equity method
Investments accounted for using equity method has decreased from 197.86 crore as at March 31, 2024 to
4.00 crore as at March 31, 2025 primarily due to transfer of investment in GMR Bajoli Holi Hydropower Private Limited (GBHHPL), to Assets included in disposal group held for sale due to divestment of the stake.
1.8. Other Investments
Other investments have decreased from 215.32 crore as at March 31, 2024 to 113.64 crore as at March 31, 2025 mainly due to transfer of Investment in debentures in GBHHPL to Assets included in disposal group held for sale.
1.9. Non-current trade receivables
Non-current trade receivables have decreased from
110.20 crore as at March 31, 2024 to 31.99 crore as at March 31, 2025 due to reclassification of trade receivables from non-current to current.
1.10 Loans
Loans have decreased from 870.17 crore as at March 31, 2024 to 66.86 crore as at March 31, 2025 due to realisation of loans and conversion of loans into Compulsorily Convertible Debentures .
1.11 Other financial assets
Other financial assets have decreased from 945.68 crore as at March 31, 2024 to 803.06 crore as at March 31, 2025 mainly due to realization from Receivable against service concession arrangements (SCA) and due to receipt of refund of deposit from NHAI in GHVEPL on account of handover of project pursuant to amicable settlement between GHVEPL and NHAI.
1.12. Other non-current assets
Other non-current assets have decreased from 58.85 crore as at March 31, 2024 to 51.07 crore as at March 31, 2025 in normal course of business.
2. ASSETS – CURRENT ASSETS
2.1. Inventories
Inventories have increased from 211.88 crore as at March 31, 2024, to 394.84 crore as at March 31, 2025 primarily on account of inventory of smart meters pursuant to commencement of operations in smart metering companies during the year.
2.2. Financial assets – Investments
Investments have increased from 237.11 crore as at March 31, 2024 to 247.37 crore as at March 31, 2025 primarily on account of investment in mutual fund during the year.
2.3. Financial assets – Trade receivables
Trade receivables has increased from 1,541.04 crore as at March 31, 2024 to 1,704.94 crore as at March 31, 2025 primarily on account of account of increase in trade receivables in group entities in normal course of business.
2.4. Financial assets – Cash and cash equivalents
Cash and Cash equivalents have increased from 430.22 crore as at March 31, 2024 to 688.67 crore as at March 31, 2025 mainly on account of borrowing taken by the group companies.
2.5. Financial assets – Bank balances other than cash and cash equivalents
Bank balances other than cash and cash equivalents increased from 251.59 crore as at March 31, 2024 to
297.68 crore as at March 31, 2025 in the normal course of business.
2.6 Loans
Loans have increased from 19.79 crore as at March 31, 2024 to 25.63 crore as at March 31, 2025 in the normal course of business.
2.7. Other financial assets
Other financial assets have decreased from 2,258.79 crore
as at March 31, 2024 to 2,215.35 crore as at March 31, 2025 is primarily due to decrease in Interest accrued receivable and realisation of SCA receivable in normal course of business.
2.8. Other current assets
Other current assets have increased from 472.87 crore as at March 31, 2024 to 694.24 crore as at March 31, 2025 primarily due to increase in advances to supplier in normal course of business.
2.9. Assets included in disposal group held for sale
Assets classified as held for sale increased from 319.53 crore as at March 31, 2024 to 948.74 crore as at March 31, 2025 mainly due to divestment of stake in GVPGL and GBHHPL pursuant to framework agreement entered with Synergy Investments Holding Limited (Synergy).
3. EQUITY
Increase in equity share capital from 301.80 crore as on March 31, 2024 to 357.42 crore as on March 31, 2025, mainly due to shares issued pursuant to conversion of Foreign Currency Convertible Bonds (FCCBs) into Equity.
Other equity has increased from (3,219.02) crore as at March 31, 2024 to 229.49 crore as at March 31, 2025 primarily on account of increase in securities premium, waiver of interest payable pursuant to conversion of FCCBs into Equity and also due to receipt of claim on account of handover of GHVEPL project to NHAI pursuant to amicable settlement between GHVEPL and NHAI.
Non-controlling interest have increased from (65.09) crore as at March 31, 2024 to 130.82 crore as at March 31, 2025 mainly due to share of profit of minority and acquisition of non-controlling interests during the year ended March 31, 2025.
4. NON-CURRENT LIABILITIES
4.1. Borrowings
Non-current borrowings have decreased from 11,684.16 crore as at March 31, 2024 to 8,770.47 crore as at March 31, 2025 pursuant to conversion of FCCBs into Equity.
4.2. Lease Liabilities
Lease liabilities have increased from 16.22 crore as at March 31, 2024 to 17.16 crore as at March 31, 2025 in normal course of business.
4.3 Other Financial Liabilities
Other financial liabilities have decreased from 1,022.81 crore as at March 31, 2024 to 956.04 crore as at March 31, 2025, mainly due to reclassification of interest payable to current financial liability as per the repayment terms.
4.4. Provisions
Provisions have decreased from 147.87 crore as at March 31, 2024 to 135.92 crore as at March 31, 2025 mainly due to decrease in provision for operation and maintenance in highway entities.
4.5. Other non-current Liabilities
Other non-current liabilities have decreased from 47.01 crore as at March 31, 2024 to 20.52 crore as at March 31, 2025 on account of transfer of Government grant payable of GVPGL to Liabilities included in disposal group held for sale.
4.6 Deferred Tax Liabilities
Deferred tax liabilities have increased from 44.33 crore as at March 31, 2024 to 75.37 crore as at March 31, 2025 mainly due to deferred tax liabilities created during the year.
5. CURRENT LIABILITIES
5.1. Borrowings
Borrowings have decreased from 2,170.72 crore as at March 31, 2024 to 1,467.83 crore as at March 31, 2025 mainly due to repayment of working capital and related party loans.
5.2. Trade Payables
Trade payables have decreased from 2,595.88 crore as at March 31, 2024 to 1,154.96 crore as at March 31, 2025 mainly due to adjustment of payable to NHAI on account of handover of project pursuant to amicable settlement between GHVEPL and NHAI.
5.3. Lease Liabilities
Lease liabilities have decreased from 4.51 crore as at March 31, 2024 to 3.82 crore as at March 31, 2025 in normal course of business.
5.4 Other financial liabilities
Other financial liabilities have decreased from 2,621.10 crore as at March 31, 2024 to 1,864.16 crore as at March 31, 2025 mainly due to decrease in interest payable to FCCB holders pursuant to conversion of FCCBs into Equity and also due to settlement of liability towards put option.
5.5 Provisions
Provisions have decreased from 759.09 crore as at March 31, 2024 to 420.20 crore as at March 31, 2025 mainly due to reversal of provision for loss in associate pursuant to One-time Settlement (OTS) with the consortium of lenders of GMR Rajahmundry Energy Limited (GREL)
5.6. Other current liabilities
Other current liabilities have decreased from 1,276.97 crore as at March 31, 2024 to 1,088.86 crore as at March 31, 2025 mainly due to decrease in advance from customers and Statutory dues payable in the normal course of business.
5.7. Liabilities directly associated with the assets classified as held for sale
Liabilities directly associated with assets classified as held for sale increased from 23.10 crore as at March 31, 2024 to 255.14 crore as at March 31, 2025 mainly due to divestment of stake in GVPGL pursuant to framework agreement entered with Synergy Investments Holding Limited (Synergy).
Overview of our results of operations
The following table sets forth information with respect to the revenues, expenditure, and profit/(loss) on a consolidated basis
( in crore)
| Particulars | March 31, 2025 | March 31, 2024 | |
| Continuing operations | |||
| Income | |||
| Revenue from operations (including other operating income) | 6,343.97 | 4,488.57 | |
| Other income | 513.85 | 344.63 | |
| Total Income | 6,857.82 | 4,833.20 | |
| Expenses | |||
| Revenue share paid / payable to concessionaire grantors | 56.57 | 211.99 | |
| Consumption of fuel | 2,519.23 | 895.09 | |
| Cost of material consumed | 297.13 | 107.51 | |
| Purchase of traded goods | 660.14 | 1,393.35 | |
| Changes in inventories of work-in- progress | - | (9.24) | |
| Transmission and distribution charges | 11.82 | 1.33 | |
| Sub-contracting expenses | 160.92 | 200.39 | |
| Employee benefits expense | 251.89 | 149.12 | |
| Other expenses | 719.17 | 470.55 | |
| Total expenses | 4,676.87 | 3,420.09 | |
| EBITDA from continuing operations | 2,180.95 | 1,413.11 | |
| Depreciation and amortization expenses | 599.85 | 286.27 | |
| Finance costs | 1,571.01 | 1,476.54 | |
| Profit/(loss) before share of loss of investments accounted for using equity method, exceptional items and tax from continuing operations | 10.09 | (349.70) | |
| Share of loss of investments as per accounting under equity method | (133.53) | (154.85) | |
| Loss before exceptional items and tax from continuing operations | (123.44) | (504.55) | |
| Exceptional items | 1,899.72 | 456.00 | |
| Profit/ (loss) before tax from continuing operations | 1,776.28 | (48.55) | |
| Tax expenses | 38.38 | 33.63 | |
| Profit/ (loss) after tax from continuing operations | (i) | 1,737.90 | (82.18) |
| Discontinued operations | |||
| Loss from discontinued operations before tax expenses | (185.65) | (45.29) | |
| Tax expenses | - | - | |
| Loss after tax from discontinued operations | (ii) | (185.65) | (45.29) |
| Total profit /(loss) after tax for the year | (A) (i+ii) | 1,552.25 | (127.47) |
| Other comprehensive income for the year, net of tax | (B) | (73.68) | (10.01) |
| Total comprehensive income for the year, net of tax | (A+B) | 1,478.57 | (137.48) |
Sales/Operating Revenue
The segment wise break-up of the Sales/Operating Revenue are as follows:
( in crore)
| Particulars | For the year ended | |
| March 31, 2025 | March 31, 2024 | |
| Revenue from Operations: | ||
| Power segment | 5,330.85 | 3,176.05 |
| Smart Meter Infrastructure segment | 320.54 | - |
| Road segment | 396.69 | 717.26 |
| EPC segment | 190.75 | 340.88 |
| Others segment | 315.23 | 586.26 |
| Inter segment revenue | (210.09) | (331.88) |
| Total Revenue from operations | 6,343.97 | 4,488.57 |
Operating revenue from power segment
Revenue from our power segment consists of generation and sale of electrical energy from GMR Warora Energy Limited (GWEL), GMR Kamalanga Energy Limited (GKEL) and GMR Gujarat Solar Power Limited (GGSPL). Also, it includes energy and coal trading revenue from GMR Energy Trading Limited (GETL) and GMR Infrastructure (Singapore) Pte Limited (GISPL) respectively. Other major operating energy entities include GBHHPL, which are assessed as Joint Venture.
The operating revenue from power segment has increased 67.85% from 3,176.05 crore in FY 2023-24 to 5,330.85 crore in FY 2024-25 primarily due to consolidation of revenue for full year for major operating energy entities like GWEL, GKEL and GGSSPL in FY 2024- 25. However, revenue of these entities was consolidated only for four months approximately in FY 2023-24 as these were assessed as subsidiaries of the group on acquisition of additional stake in GMR Energy Limited (GEL) with effect from November 22, 2023.
Operating revenue from smart meter infrastructure segment
Revenue from smart meter infrastructure segment mainly consists of revenue from smart meters installation & control and maintenance. The SPVs have started installing the meters at consumer premises meeting all performance obligations outlined in the contract. Accordingly, revenue is recorded in accordance with Ind AS 115 since smart meters are operational and all performance obligations are met.
Operating revenue from road segment
Revenue from our road operations is derived from annuity payments received from NHAI for our annuity projects and toll charges collected from road users of the toll road projects.
The operating revenue from road segment has decreased by 44.69% from 717.26 crore in FY 2023-24 to 396.69 crore in FY 2024-25 mainly due to closure of operation in GHVEPL on account of handover of project pursuant to amicable settlement between GHVEPL and NHAI.
Operating revenue from EPC segment
Revenue from our EPC segment is derived from the execution of engineering, procurement and construction works in connection with railways and road.
During the FY 2024-25, the EPC sector operating revenue has decreased by 44.04% from 340.88 crore in FY 2023-24 to
190.75 crore in FY 2024-25 as DFCC project is completed and track is handed over to DFCCIL for operations. However, certain ancillary works are pending completion, which company is in process of completion.
Operating revenue from Other Sectors
Revenue from other sector includes management services revenue, investment revenue and operating revenue of aviation businesses. During the FY 2024-25, other sector has contributed
315.23 crore to the operating revenue as against 586.26 crore in FY 2023-24.
Expenditure
Revenue share paid/payable to concessionaire grantors
The revenue share paid/payable to various concessionaires has decreased from 211.99 crore in FY 2023-24 to 56.57 crore in FY 2024-25 primarily on account of handover of project pursuant to amicable settlement between GHVEPL and NHAI.
Operating and administrative expenditure Sub-Contracting expenses
The decrease in Sub Contracting expenses is mainly on account
decrease in corresponding revenue in ongoing DFCC project as DFCC project is completed and track is handed over to DFCCIL for operations. However, certain ancillary works are pending completion, which company is in process of completion.
Consumption of fuel
The increase in Consumption of fuel is mainly as the major operating energy entities like GWEL and GKEL are consolidated for full year in FY 2024-25. However, these entities were consolidated only for four months approximately in FY 2023-24 as these were assessed as subsidiaries of the group on acquisition of additional stake in GMR Energy Limited (GEL) with effect from November 22, 2023.
Purchase of Traded goods
The decrease in purchase of traded goods in the FY 2024-25 is mainly on account of decrease in corresponding revenue in coal trading.
Cost of material consumed
The increase in cost of materials consumed in the FY 2024-25 is corresponding to recognizing smart meter revenue for the first time in current financial year.
Employee benefits expenses
The increase in employee benefit costs in the current year is mainly on account of consolidation of GEL and its subsidiaries for full year in FY 2024-25. However, these entities were consolidated only for four months approximately in FY 2023-24 as these were assessed as subsidiaries of the group on acquisition of additional stake in GMR Energy Limited (GEL) with effect from November 22, 2023.
Other expenses
Other expenses include:
• Consumption of stores and spares, electricity and water charges, manpower hire charges, rentals, repairs and maintenance, legal and professional charges, provision for doubtful advances, fair valuation on financial instruments through PL, write off/provision towards investments, travelling and conveyance, communication, foreign exchange differences and other miscellaneous expenses.
There is increase in other expenses in FY 2024-25 mainly on account of consolidation of GEL and its subsidiaries for full year in FY 2024-25. However, these entities were consolidated only for four months approximately in FY 2023-24 as these were assessed as subsidiaries of the group on acquisition of additional
stake in GMR Energy Limited (GEL) with effect from November 22, 2023.
Finance Cost
The increase in finance cost mainly on account of consolidation of GEL and its subsidiaries for full year in FY 2024-25. However, these entities were consolidated only for four months approximately in FY 2023- 24 as these were assessed as subsidiaries of the group on acquisition of additional stake in GMR Energy Limited (GEL) with effect from November 22, 2023.
The same is offset by decrease in finance cost pursuant to conversion of FCCBs into Equity and repayment of borrowings during the year.
Exceptional items
Exceptional items comprise of the impairment of investment in joint venture and associates, reversal of impairment of investments, gain/(loss) on disposal/ liquidation of investment in subsidiaries, share of exceptional item of its associate, write back /waiver of liability, write off/ provision against receivables/ loans, reversal of provision of receivables, settlement of claim and provision / loss on investment property
Share of profit / (loss) of investments as per accounting under equity method.
Decreased in share of loss of JV and Associates mainly due to accounting of share of profit/(loss) consolidation of GEL and its subsidiaries which were assessed as joint ventures of the group till November 21, 2023.
Tax expenses
Tax expense mainly comprises of current tax expense and deferred tax expense .There is increase in tax expenses in 2024-25 as compared to 2023-24 mainly on account of increase in taxable profits in GWEL.
Significant changes in key financial ratios, along with detailed explanations
In compliance with the requirement of listing regulations, details of significant changes (i.e. Change of 25% or more as compared to the immediately previous financial year) in key financial ratios and any changes in return on net worth of the company (on standalone basis) including explanations therefor are given below:
| Particulars | Numerator | Denominator | March 31, 2025 | March 31, 2024 | Variance | Reasons for variance |
| Interest Coverage Ratio | Earnings before interest, taxes, depreciation and amortisation | Interest Expenses | 1.05 | 0.95 | 10.21% | Not applicable |
| Operating Profit Margin | Earnings before interest, taxes, depreciation and amortisation | Revenue | 63.75% | 54.47% | 17.05% | Not applicable |
| Return on Net Worth | Net Profit / (loss) | Equity (excluding fare valuation through other comprehensive income) | 45.14% | 124.25% | (63.67%) | Due to conversion of FCCBs into Equity share Capital |
Also refer note 40 of the standalone financial statements for key financial ratios including reason for variances (other than above), on standalone basis.
Corporate Social Responsibility
GMR Varalakshmi Foundation (GMRVF) is the Corporate Social Responsibility arm of the GMR Group. The Group has been undertaking CSR activities on a significant scale since 1991. GMRVF supports the companies under the Group in implementing their CSR mandates. GMRVFs purpose is to work in the fields of Education, Health and Empowerment such that its activities directly benefit mainly the communities in the immediate neighborhood of the Groups projects. Currently, GMRVF is working with selected communities in about 20 locations in India. The locations are spread across different states namely Himachal Pradesh, Odisha, Maharashtra, Punjab, Tamil Nadu and Telangana.
During the FY 2024-25, GMRVF implemented the CSR activities in the areas of Education, Health and Livelihoods in all its project areas.
Significant achievements of GMRVF in the year FY 2024-25 are as below:
• Initiated CSR activities at Varanasi, Agra and Prayagraj clusters around GMR Smart Meter projects in UP.
• Precision farming program through Drone use and IoT in Agriculture were introduced at Warora demonstrating the Foundations commitment to support farming communities by leveraging advanced technology.
• At Kamalanga, GMRVF facilitated formation of a Farmer Producer Company to facilitate collective initiatives of the farmers.
At Warora, 110 families from 7 villages were supported for construction of Individual Sanitary Lavatories demonstrating the Groups commitment to the cause of Swachh Bharat.
Risk Concerns and Threats Identification, assessment, profiling, treatment and monitoring the risks
The Company, having recognised the need for a comprehensive Risk Management Framework, is in the process of reviewing and revising its existing Group ERM Policy and Framework during the year.
During the year, the Company hired an industry expert to help it review the existing ERM framework and amend and develop a new ERM Policy and Framework. This process is currently in its final phase, with the revised policy and framework being rolled out across the organisation.
The revised policy and framework take into account best practices in Enterprise Risk Management, and amendments have been primarily focused on the following aspects:
• Establish stronger linkage between Corporate Strategy and Risk Management functions which has been designed to help the Company focus on key strategic risks.
• Detailed risk assessment will be seamlessly integrated into the Companys annual exercise of Strategy-setting and Annual Operating Plan, with stronger governance being put into place to track and report key risks across the organisation.
• For organisation to quickly adapt to disruptions while maintaining continuous business operations and safeguarding people, assets and overall brand equity, the Business Continuity Plans (BCP) and Disaster Recovery Plans (DRP) for key assets have been integrated into the framework.
• Companys commitment to sustainability and demonstrable efforts to reduce, eradicate or mitigate the impact of its operations on the environment and community have also become more comprehensive. The Companys ESG program is rooted in materiality that has helped us organise and prioritise relevant ESG factors.
During FY 2024-25, the Company has prioritised the Top Risks among other identified risks that it regards as significant for its business operations and strategies. These top risks have been described hereunder along with existing and proposed mitigation measures:
? Arbitration/ Litigation risks
GPUIL and/or its subsidiaries have ongoing arbitrations/ litigations in both energy and transportation sectors.
• It has outstanding receivables/ arbitrations going on with various DISCOMs and other parties (coal pass- through, change in law, SEPCO, etc.)
• It also has arbitrations/ litigations in its transportation business:
o Two of the highway assets have ongoing litigation with NHAI (Ambala-Chandigarh, case of competing highways and Pochanpalli).
o The DFCC railway project is in arbitration for prolongation claims.
For addressing these risks:
• GPUIL relies on its robust in-house mechanism for dispute risk assessment, which provides the management with an early evaluation of the risks and costs associated with every potential arbitration / litigation, before the same is triggered.
• The Company would typically work with a combination of strong in-house counsel both corporate and sectoral, and specialist external counsel as per the specific requirements.
• Positive outcomes received during FY 2024-25:
o DFCC: DAB (Dispute Adjudication Board) awarded 517 crore against a claim of 1,826 crore, both parties issued notice of dissatisfaction.
o GWEL and GKEL claims against DISCOMs significant amount of long pending regulatory receivables received.
? Financial Risks
• Liquidity Risks
• GPUIL, being the holding company with limited operating cash flows, has been constrained to service or refinance the corporate debt / outstanding loans.
• Additionally, at the subsidiary level, there remains a liquidity risk to meet obligations including debt servicing/ repayment on account of the following:
o Continued outstanding regulatory receivables from DISCOMs
o Any adverse outcome of ongoing litigations
o ESG pressures may increase the funding requirements (e.g. additional capex for Flue Gas Desulfurisation (FGD))
• Liquidity requirements for Smart Meters project, renewable assets at thermal Plants/ airports, other Energy 2.0 and other new business initiatives will need to be arranged.
There have been positive developments during the year that have mitigated some risks and the Company is monitoring other developments:
• Strategic Sale transaction: Framework agreement signed with Synergy for divestment of stake in Bajoli Holi, Vemagiri and Rajahmundry. Divestment has enabled the one-time settlement with the lenders of GREL, reduction of loan and spin off the non- operational gas plants and stressed assets.
• Hyderabad Vijayawada arbitration claim award received: Settlement was agreed between GHVEPL and NHAI as per which NHAI has paid an amount of
1,387.21 crore to GHVEPL as claim and project was handed back to NHAI on July 01, 2024.
• Significant progress has been made on the recovery of regulatory receivables from DISCOMs.
• Significant land monetisation at Krishnagiri SEZ has been achieved so far
• DFCC: PBGs, RBGs & CGs of 294 crore will be released during Q2 FY 2026 after completion of Defect Liability period.
• Government of India has categorised thermal power plants into three categories (A, B, and C) based on their location. Category C is exempted from installing FGD. GWEL is in category C. GKEL, currently category B, has appealed to be considered as category C.
• GWEL and GKEL refinancing targeted in FY 2026; change in debt covenants to enable cash upstreaming to GPUIL.
• Interest Rate risk
• Risk from heightened inflation leading to high interest rates.
• High interest rate for Holding Company Debts.
• Existing Debt at various assets also contribute to interest rate risk.
Some development in the direction of mitigating the interest rate risks are:
o Inflation moderated during FY 2024-25, RBI cut repo rates by 100 bp during last 12 months.
o Refinancing of HoldCo Debt targeted during FY 2025-26; will lead to significant reduction in interest rates.
o Potential Refinancing of Debt at GWEL and GKEL targeted FY 2025-26, will lead to reduction in interest costs.
o Divestment of stake in Bajoli Holi, Vemagiri and Rajahmundry has led to substantial reduction in consolidated debt.
o Company has initiatives to increase operating cash flows and further reduce corporate debt at holding company to sustainable levels. Existing project entities are focused on improving operating cash flows and improve their ratings to access cheaper debt.
• Credit risk
• The Companys exposure to sale of electricity to DISCOMs may expose us to credit risk.
• Although historically, the credit risks from DISCOMs have been materially high, but in recent years, DISCOMs have been relatively regular in making payment for operational dues.
• However, in case of regulatory dues, DISCOMs have been mostly taking the litigation route and delaying the payments (covered under Regulatory Risks).
• Smart Meters business may be exposed to credit risk due to exposure to payments from DISCOMs.
For mitigating Credit Risk:
o All receivables are being closely monitored and reviewed frequently by the top management.
o In order to encourage DISCOMs to clear their current operation dues, the government notified the LPS Rules which substantially raised the
DISCOMs cost for delaying payments to suppliers.
o DISCOMs are now clearing the non-regulatory dues regularly while clearing the regulatory dues only after the conclusion of legal process. The Company has made substantial progress in addressing long overdue regulatory receivables from DISCOMs.
o For Smart Meters business, majority of the payments to be realised through direct debit facility, thus minimising the credit risk. Recently, we have raised first invoice and payment for the same is received.
? Investment Risks
• GREL and GVPGL remain un-operational despite being commissioned, because of unavailability of gas. As such, the Company is exposed to risk of investment impairment.
• Continued uncertainties in outcome of arbitrations pose risk to the Companys investment (SEPCO, DFCC, Gammon).
• Smart Meters being a new business area with significant financing, execution, operational and performance-based risks expose GPUIL to investment risk.
• Kamalanga Power Plant : Investment planned for an additional 4th unit (350 MW).
For mitigating investment risks:
• The portfolio is periodically reviewed and necessary decisions like divestments are explored. In case of material disputes, arbitrations are initiated.
• Gas assets:
o The consortium of lenders of GREL approved to accept the OTS amount of 657.00 crore towards full and final settlement of entire exposure including Term Loan, NCDs, CRPS, Interest Payable and Equity Shares and for closure of Corporate Guarantees.
o Strategic Sale transaction: Framework agreement signed with Synergy for divestment of 51% stake in Vemagiri and Rajahmundry. Divestment will enable reduction of loan and spin off the non-operational gas plants.
• Significant number of regulatory receivables in GWEL and GKEL have been realised.
• DFCC: Dispute Adjudication Board (DAB) awarded
517.00 crore against a claim of 1,826 crore, both parties issued notice of dissatisfaction.
• For Smart Meters, we have partnered with Bosch as financial and strategic investor (10%). Debt funding tied up with IREDA. Payment against initial invoice received.
• The Company is actively pursuing land monetisation in the Krishnagiri SIR and have been able to monetise it to a large extent.
• The Company has strengthened our Go No-Go process evaluation for new opportunities.
? Regulatory Risks
• The Energy sector is under intense scrutiny for impact on climate and environment. The pressure to uphold ESG targets and to implement new procedures in line with global trends poses hurdles in accessing cheaper capital for coal-based projects.
• Further, changes and modifications in regulations related to tariffs and environmental protection under ESG mandate (like Flue Gas Desulfurisation (FGD)), use of 5% blend of biomass pellets along with coal) continued to pose funding and cash flow risks to GPUILs energy business.
• Slow pace of resolution at regulatory forums also delays outcome of several unresolved regulatory matters.
• Change in policies at State Government level:
• Market coupling regulation for power sector may have adverse impact on merchant tariffs.
• New policies on toll collections on highways may affect how revenue is generated.
• The portfolio rationalisation/ monetisation effort at Krishnagiri SEZ will require close co-operation with State Government.
As mitigation measures, the Group actively pursues: o Tracking of all developments in the regulatory
environment.
o Make representations through participation in industry associations to safeguard the business interests from effects of political intervention that have bearings on the businesses.
o Identifying, monitoring and updating the management on regulatory developments and their impact.
o Where necessary, the Group has engaged in arbitration and/or litigation as appropriate, in order to protect its interest in this regard.
o Government of India has categorized thermal power plants into three categories (A, B, and C) based on their location. Category C is exempted from installing FGD. GWEL is in category C. GKEL, currently category B, has appealed to be considered as category C.
o More than 90% of power generated at GKEL and GWEL is tied up in long term fixed tariff PPA; thus, impact of market coupling regulation could be minimal.
o The Energy 2.0 initiative aims to steer the Company towards clean energy businesses, thus
making it increasingly ESG compliant.
o The Company works closely with all relevant stakeholders to mitigate impact of the change in policies due to change in State Governments.
? Operational Risks
• Thermal Power Plants: Any lower side deviation to the project PLFs will impact cashflows; PLFs may be impacted due to any unscheduled maintenance, linkage coal supply, low power demand etc.
• Smart Meter Installation: Low installation rate of smart meters will erode profitability of the project on account of liquidated damages for delay, loss of monthly meter charges etc.
• Highways: Lower traffic will adversely impact earnings.
Over the years, some positive developments have taken place, which mitigate some of the operational risks:
o Plant PLFs have improved considerably due to higher demand for power and better availability of coal which resulted in considerable profitability improvement. During FY 2024-25, both GKEL and GWEL achieved best plant performance since COD with PLFs of 88% and 87% respectively.
o Smart meter installation: The Company has addressed teething issues and has now a well established process for meter installation with materially improved productivity, which will help in scaling up operations and reduce the potential impact of delays.
o Highways: Out of the 3 highway assets, 2 are annuity based and immune to risk on account of lower traffic. Ambala Chandigarh project is already under arbitration on account of loss of traffic due to competing highway.
? Technology Risks
• GPUILs coal-based power plants are exposed to business risks from a shift from fossil-fuel power plants to renewable-energy plants like solar power, wind power and from advancement of technology that is driving the renewable power industry.
• The smart and data driven solutions with in-built intelligence that are influencing how energy is generated, transported, stored and distributed is impacting the overall energy sector. Some of these trends have emerged around smart metering, prosumer model, IOT, energy storage, etc.
• The emerging technologies have brought in a paradigm shift with newer business models being implemented in the energy and utility sectors.
These risks may have only moderate impact on the business/ assets:
o Conventional coal-based power plants have long term PPAs which ensure that they are not directly exposed to material risks from renewable energy. Further, coal-based power plants are expected to continue to play an important role for meeting base load requirements, as Round-the-Clock renewable energy is not yet easily available or viable.
o Energy 2.0 initiative is aimed at adapting to new technologies at early stage to increase efficiency and to be able to enter new business streams in the sector.
o Under Energy 2.0, the Company has scanned and analysed available technologies w.r.t Smart Meters, EV Chargers, etc. and has tried to mitigate technological risk by engaging with / adopting the latest available technology.
GPUIL also partners with leading technology companies for technology partnership in its projects. Bosch joined as technological partner in implementing Uttar Pradeshs smart meter projects.
? Reputation/ Brand Risks
GPUILs businesses do not have noteworthy exposure to reputation and brand risks. However, reputation may have some impact if:
• The energy businesses may be lagging behind in meeting ESG expectations.
• Risk of certain assets defaulting on debt obligations.
• Negative litigation outcomes.
• Smart meter installation is consumer facing business which requires interaction with residents and can pose a brand reputation risk due to potential customer resistance to adoption.
Taking cognizance of increasing pressure on power generation industry to meet ESG expectations, GPUIL has taken proactive action in diversifying its energy portfolio and is taking measures to ensure full compliance with any new regulations that existing businesses may be subjected to.
• To mitigate risks to reputation in broader public perception, GPUIL takes proactive steps to ensure it communicates through PR and Investor teams.
• The Companys policies are continuously being updated to assess, check and enhance brand value with respect to:
o Operational Excellence
o Strong Governance (including ethics standards)
o Strong Sustainability Credentials
o CSR
• The Company is making continuing efforts to meet its debt obligations, improve liquidity and credit profile of GPUIL.
• The Company continues to work proactively with stakeholders for protecting brand name.
• Outsourced manpower installing smart meters are provided training on softer aspects to deal with consumers.
? Cybersecurity Risks
There has been no noticeable breach of cyber security in the companys network. However, due to evolving threats, vulnerability to increasingly sophisticated hacking methods, the Companys businesses may be affected in different ways as below:
o Data loss
o Malware/ Cyber-threat
o Impersonation
• Given the nature of operations at GPUILs assets the Company is not exposed to any severe cybersecurity risk.
• Smart Meters business, being highly digital in nature, may be exposed to cyber attacks
As the energy and road assets do not have any operations that heavily depend on information- sharing or live online transactions, they generally face minimal risk of disruption from online threats.
o GPUIL is part of the group-wide centralised cyber security program in place, covering people, process and technologies aspects of Cyber Protect, Detect, Respond & Recover capabilities.
o 24 x 7 Next Generation Security Operations Centre monitoring all critical infrastructure for any suspicious activity.
o AI/ML based End Point Detection implemented across all computing devices.
o Next Gen Web Application Firewall protecting all public facing websites.
o Periodic Vulnerability assessments and Penetration testing are conducted of the environment along with continuous attack surface monitoring.
o Periodic User awareness communications and trainings are conducted.
o Periodic program maturity assessment is conducted to drive continuous improvement plan.
o For UP smart meter project, BOSCH was appointed as technology partner.
? Competition Risks
Competition risk can be assessed on following dimensions:
• Competition from renewable energy projects.
Due to large amount of capital chasing the renewable energy opportunities in India, the competition for the entry in this segment is high.
• Competition for coal-based power
Due to significant availability of cost effective renewable energy in the market and new thermal power plants coming up, the Company is exposed to risk of non-renewal of PPAs for GWEL/ GKEL.
• Competition for highways/ roads
Intense competition on highways/ EPC with players having low cost of capital
• Aggressive competition from big strategic competitors and financial players in Energy 2.0 growth areas such as Smart Metering/ Transportation projects.
• The Company has to compete with other players having access to potentially lower cost of capital resulting in highly competitive/ unviable bids, thus impacting the growth plans.
The Companys rich experience provides with the options and opportunities to mitigate risks well:
o Overall competencies and rich experience in transportation and energy sectors (including power trading) will enable maintaining competitive position in both sectors.
o The Company is constantly reviewing its business strategy based on assessment of growth prospective in the sectors that the Company operates in.
o The Company is working towards improving cashflows at Holdco through various initiatives like asset monetisation, debt restructuring/ improving Credit rating of the assets to lower the cost of debt; upstreaming of cash from assets to Holdco. These initiatives will help in arranging low-cost capital/ tie up with strategic investors, to be able to bid competitively.
o The Company is always scanning for the best opportunities available in the market and devise the business development strategy accordingly.
• Despite the aggressive competition, the Company has been able to win Smart Meter projects in state of Uttar Pradesh.
• The Company is looking for opportunities with low competition and has installed EV chargers at strategic locations at Group assets.
? Climate Risks
• Changing weather patterns are leading to more probability of extreme weather events such as
o Rainfall, floods, landslides
o Drought conditions
o Earthquakes
• Since, the Company has hydro and road projects in its portfolio, these are exposed to such weather
events.
The Company relies on vast experience from its businesses and internal processes to mitigate climate risks.
• The Business Continuity Plans continue to focus on:
o Operational continuity of the energy assets
o Financial sustainability – cash conservation and reduction of cost structure
o Organisational resilience
• The Company maintains adequate insurance to cover for such contingencies.
? Business Environment/ Macroeconomic risks
The Companys businesses may be exposed to risks in the following ways:
• Power demand has a strong linkage with growth, any slowdown in economy will have direct impact on power demand and may bring down energy prices.
• Volatility in power tariffs and variability in quality and quantity of coal supplied under coal linkage may pose a risk to the power plants.
• Highways are exposed to risk of lower traffic due to unfavorable macroeconomic conditions.
To mitigate the impact of these macroeconomic risk factors, GPUIL relies on diversified portfolio of assets and projects in both energy and infrastructure sectors.
o The Company tries to maximise realisation under linkage coal and use alternate sources (power trading) to meet PPA obligations.
o Since most of the power generated is tied up through long/ medium term PPAs, the risk of volatility in power prices is mitigated.
o Of the three highways assets, two are on Annuity model. Therefore, exposure of the road assets to macroeconomic risks is not significant.
The Power Sector is witnessing strong demand due to buoyant economic growth, resulting in the plants being able to sell all the power generated at good prices. Coal supply has also improved with increased production by Coal India.
? Business Strategy and Growth risks
As a new entity, GPUIL is immediately faced with challenges in:
• Sustaining current diverse portfolio of assets across various sectors.
• Given the capital availability constraints, GPUIL needs to create a long-term sustainable business pipeline to mitigate:
o evolving technologies and related uncertainties (ESG driven tech, smart metering, etc.)
o volatile regulatory environment
o talent optimisation
• Developing a robust pipeline of projects is key to sustainability of GPUIL, given that existing portfolio faces several challenges.
• Ability to finance new projects is impacted due to capital availability constraints.
As mitigation, GPUIL will focus on below initiatives:
o Asset-light, platform-based, and technology- oriented business models.
o Enter strategic partnerships with global reputed majors and institutes of excellence.
o Invest in emerging start-ups in the clean tech ecosystem where there are potential synergies.
o Build on the groups strengths and leverage infrastructure assets and businesses of the group as a launch pad for new offerings.
o Target Smart Metering projects, having already won the bid to install about 75 lakh meters in Uttar Pradesh and now in installation phase.
o Growing the portfolio of renewable projects at available land at thermal plants and Group land banks, explore offering hybrid renewable power.
o Growing the EV charging business with synergies through group businesses.
o Hiring of new talent/ skill-development of existing talent for emerging businesses.
o Working with strategic and financial partners to mitigate the growth risk arising from capital availability constraints.
? Talent risks
• For Companys Energy 2.0 initiative, a pool of trained manpower specialising in handling new technologies, and project management skills for their rollout at large scale, may not be readily available.
• Availability for skilled manpower for new projects in Smart Metering, renewable sector may be impacted if the current pool of talent is depleted due to factors like limited Business Development pipeline, manpower poaching by new players, etc.
For mitigation:
o The Company plans to develop a pool of manpower with specialised skills and management capabilities.
o The Company is working on different strategies like outsourcing/ consulting for meeting critical resource requirements.
o For smart meters there has been significant impact of shifting from agency model to staffing model, which has helped to significantly increase productivity.
Internal control systems and their adequacy
The Companys internal financial control framework has been established in accordance with COSO framework to ensure adequacy of design and operating effectiveness of operational, financial and compliance related controls. The design and operating effectiveness of the internal controls are regularly reviewed by Management Assurance Group (MAG) (Internal Auditors of the Company) during audits.
The Company has put adequate policies and procedures in place, which play a pivotal role in implementation and monitoring of internal controls, which are embedded in various business processes, including IT & SAP. MAG assesses opportunities for improvement in business processes, policies, systems and controls and provides their recommendations to strengthen Companys internal control environment.
Respective Business/Company CEOs are responsible for ensuring compliance with laid down policies and procedures. It helps the Company to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.
MAG is responsible for undertaking internal audits across the group and they are assisted by outsourced audit firms. The internal audit scope covers, inter alia, all businesses and corporate functions, as per the annual audit plan reviewed and approved by the Audit Committee in the beginning of every financial year.
Audit issues identified are addressed through systemic implementation of appropriate corrective and preventive action by the respective functions. Emphasis is always placed on automation of controls within the processes to minimise deviations and exceptions.
MAG presents in quarterly Audit Committee Meeting, key audit issues along with action taken report on pending audit issues. Head MAG provides an assurance to the Audit Committee confirming compliance to prescribed processes while carrying out audits, reporting audit observations, monitoring and implementation of the agreed action plan for closure.
Developments in Human Resources and Organisation Development at GPUIL
Human Resources (HR) being one of the key strategy partners, contributed comprehensively to the Organisational Development over the years. Following are some of the initiatives taken up by HR in the year under review:
Organisational structuring & design
Job evaluation for all roles in Renewables business and building organisation structure for Renewables business and growth businesses.
Other key initiatives for Human Resource development & Engagement:
1. Completed career conversations exercise with employees identified under Merit List, including Internal Job Postings (IJP) transition for employees from the Merit List.
2. Completed Manpower productivity study for GKEL.
3. Recreated competency dictionary for entire Energy sector and T&UI sector.
4. Revisited and revised job descriptions for all unique roles in T&UI sector.
5. Employee Engagement Survey concluded with 95% participation rate and 87% favourable score for Energy Sector. T&UI achieved 89% participation rate and the highest engagement score of 88% in the Group.
6. Concluded organisation diagnosis through the lens of employee engagement for Smart Metering business.
7. Multiple CEO Town halls conducted across Energy sector covering Smart Metering business as well.
8. T&UI redeployed 44 colleagues through IJP within the Group and outplaced 3 employees from GHVEPL project post project handover.
9. R&R Coverage: 32.3% employees covered in Energy Sector. Recognised 30 employees in the T&UI sector with SPOT/ Shabash Awards for their outstanding contributions.
10. Training Sessions - No. of Programs- 139; No. of Workdays- 1917; No. of Workhours- 15336
11. Conducted monthly employee engagement activities across all T&UI locations, including birthday celebrations, training programs, CSR initiatives, and more.
12. Certified 4 mentors from the sector and initiated Mentorship Program actively supporting employee development.
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