GVK Power & Infrastructure's Q1 FY 2025-26 Quarterly Results

Result Summary

• GVK Power & Infrastructure Ltd reported a 10.9% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 65.9%.
• Its expenses for the quarter were up by 83.9% QoQ and 80.0% YoY.
• The net profit increased 863.6% QoQ and decreased 28382.5% YoY.
• The earnings per share (EPS) of GVK Power & Infrastructure Ltd declined at 5.3 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

GVK Power & Infrastructure Ltd operates in the infrastructure sector in India, with a primary focus on power generation, transportation infrastructure, and urban infrastructure development. The company is involved in the construction and management of power plants, airports, highways, and other large-scale infrastructure projects. GVK has been a key player in contributing to India's infrastructure growth, with several projects under its belt. However, recent years have seen the company facing financial challenges and restructuring efforts to manage its debt and operational efficiency. There have been no specific recent developments mentioned that affect the company's operations or strategic direction.

Revenue

The total income for GVK Power & Infrastructure Ltd in Q1FY26 was ₹82.17 crores, reflecting a decrease of 10.9% from the previous quarter (Q4FY25) where the income stood at ₹92.25 crores. Compared to the same quarter in the previous year (Q1FY25), which had a total income of ₹240.98 crores, there is a significant decrease of 65.9%. This decline in revenue over both the quarter and year indicates notable changes in the company's revenue-generating activities. The substantial reduction in total income year-over-year highlights a considerable impact on the company's ability to generate revenue compared to the previous fiscal year.

Profitability

For Q1FY26, GVK Power & Infrastructure Ltd reported a loss before tax of ₹1377.35 crores, which shows an increase in losses when compared to Q4FY25, where the loss before tax was ₹134.52 crores. The profit before tax in Q1FY25 was a positive ₹9.31 crores, indicating a significant year-over-year decline. The tax expense for Q1FY26 was minimal at ₹0.01 crores, down from ₹8.42 crores in Q4FY25 and ₹4.44 crores in Q1FY25. Consequently, the profit after tax for Q1FY26 is a loss of ₹1377.36 crores, compared to a loss of ₹142.94 crores in the previous quarter and a gain of ₹4.87 crores in the same quarter of the previous year. Earnings per share for Q1FY26 also reflect this trend, with a negative ₹5.30 compared to a negative ₹0.60 in the previous quarter and a positive ₹0.10 in Q1FY25.

Operating Metrics

The financial data indicates a significant increase in total expenses for Q1FY26, amounting to ₹416.96 crores, compared to ₹226.77 crores in Q4FY25 and ₹231.67 crores in Q1FY25. This represents an 83.9% increase quarter-over-quarter and an 80% increase year-over-year. The substantial rise in expenses, coupled with declining revenues, suggests challenges in managing operational costs effectively. The increased expenses have contributed to a higher loss for the quarter. The earnings per share, a key metric for evaluating company profitability, has shown a marked decline, reinforcing the challenges faced in maintaining profitability amidst rising operational costs and declining revenues.