Are GE Power India Ltd latest results good or bad?

The latest financial results for GE Power India Ltd for the quarter ended December 2025 reveal a notable turnaround in operational performance. The company reported net sales of ₹385.62 crores, reflecting a sequential growth of 37.47% compared to the previous quarter's revenue of ₹280.52 crores. This marks the highest quarterly revenue in at least two years, driven by improved order execution and project completions. Net profit for the quarter reached ₹72.32 crores, representing a substantial increase of 123.49% from the prior quarter's profit. The operating profit margin, excluding other income, expanded significantly to 32.36%, a marked improvement from the previous quarter's margin of 9.96%. This margin expansion indicates enhanced operational efficiency and profitability, attributed to higher volumes and a favorable project mix. Despite these positive trends, the company's historical performance raises concerns. GE Power India has faced operational challenges over the past several years, with cumulative losses exceeding ₹900 crores. The average return on capital employed remains negative at -25.33%, indicating ongoing issues with capital efficiency and value creation. Furthermore, the company's return on equity is at a modest 5.23%, which is below average for the industry. The financial performance in the latest quarter has led to an adjustment in the company's evaluation, reflecting the recent operational improvements. However, the sustainability of this performance remains uncertain given the company's long-term struggles and the competitive landscape of the heavy electrical equipment sector, which is increasingly shifting towards renewable energy solutions. In summary, while GE Power India Ltd's latest results showcase significant quarterly improvements in revenue and profitability, the underlying structural challenges and historical performance metrics suggest a cautious outlook for sustained growth and operational efficiency.