GMR Power & Urban Infra Ltd. Q2 FY26 Financial Results & Corporate Update

Executive Summary: GMR Power and Urban Infra Ltd. reported a significant increase in net profit for the second quarter ending September 30, 2025, driven by strong revenue growth. However, operational performance indicators, specifically EBITDA and EBITDA margins, experienced a contraction. The Board has also approved a significant corporate guarantee to support a subsidiary's refinancing, a move classified as a material related-party transaction requiring shareholder approval. Q2 FY26 Financial Performance (Year-on-Year) The company's financial results for the quarter are as follows: Net Profit: Reported a substantial rise in net profit to ₹888 crore, compared to ₹255 crore in the corresponding period of the previous fiscal year. Revenue from Operations: Achieved robust top-line growth of 30.8%, with revenues increasing to ₹1,810 crore from ₹1,383 crore in Q2 FY25. EBITDA: Operational profit faced headwinds, with EBITDA declining 12.7% year-on-year to ₹364 crore from ₹416 crore. EBITDA Margin: Consequently, the EBITDA margin saw a significant contraction, declining to 20.1% for the quarter, down from 30.1% in the prior-year period. Key Corporate Announcement: Subsidiary Refinancing The Board of Directors has provided its approval for a key strategic financial action concerning its subsidiary, GMR Kamalanga Energy Limited (GKEL). Action: Provision of a corporate guarantee for refinancing an existing credit facility. Amount: Approximately ₹2,970 crore. Beneficiary: GMR Kamalanga Energy Limited (GKEL). Lender: The facility is anticipated to be availed from Power Finance Corporation Ltd (PFC) or another potential lender. Governance: This is designated as a material related-party transaction. The transaction is subject to the approval of the company’s shareholders. GMR Energy Limited, a wholly-owned subsidiary, will also provide a corporate guarantee and security for the refinancing.