Deck
Powerica is a 42-year-old Mumbai-based industrial that builds Cummins-engined diesel generator sets across India and owns 330 MW of wind power assets in Gujarat under 25-year power-purchase agreements.
Reported PAT looks like a 7× compounder. Adjusted PAT has been flat for two years.
- Two one-offs in three years. FY24 PAT of ₹226cr included an ₹85cr exceptional gain from selling 16 Tamil Nadu wind turbines. Q3 FY26 PAT of ₹98cr included a ₹68cr deferred-tax credit from the new tax regime. Both are clearly disclosed by management — neither is hidden.
- Strip them out and the trajectory flatlines. Adjusted PAT runs ₹141cr (FY24) → ₹172cr (FY25) → ~₹165cr (9MFY26 annualised). Two years of essentially flat earnings, while the headline grew 4×.
- The mechanical lift is real. Post-IPO, ₹525cr of debt has been repaid; finance cost falls from ~₹24cr a year to ~₹6cr — an automatic ₹15-20cr of FY27 PAT, worth roughly ₹500cr of market cap at the current multiple.
Two segments with three-times-different EBITDA margins, glued together by a now-fortress balance sheet.
The genset business — 82% of revenue and structurally one of three Cummins-channel OEMs in India per CRISIL — earns 8-10% EBITDA. The wind business — 18% of revenue under 25-year PPAs at ₹2.40-4.19/kWh with GUVNL and SECI — earns 33%+. The market values the consolidated business at one P/E. The right lens is sum-of-the-parts.
Two abandoned IPOs, eight merged subsidiaries, one new generation in the chair.
Before: Founded 1984 by the Oberoi family in Mumbai. The Cummins partnership was formalised by 1990 and the company built a 19-office, 40-dealer service network across India, becoming one of three Cummins-affiliated DG-set channels. Wind diversification began with Tamil Nadu IPP assets in the 2010s.
Pivot: Two IPO attempts — 2011 and 2019 — were filed and then withdrawn. Between 2021 and 2023, eight group companies were merged into Powerica via NCLT-approved scheme. The Tamil Nadu wind portfolio was sold in FY24 for an ₹85cr gain. In December 2024, a Joint Development Agreement with GE Vernova covering a 2,000MW Gujarat hybrid project was signed.
Today: Listed April 2026; ₹525cr of debt repaid; ₹450cr in cash; promoter holding 77.18%. Bharat Oberoi (Chairman, MD) and Renu Oberoi continue as executives; Jai Ram Oberoi was installed as a Whole-time Director in April 2025. The next chapter is whether GE Vernova converts to a real construction programme — and how disciplined the deployment of the ₹450cr cash turns out to be.
Lean Long, Wait For Confirmation. The mechanical thesis is testable in one Q1 FY27 number.
- For — credit-AA durability is mispriced. AA-rated Indian small-caps trade 35-50× P/E; Powerica trades 27.5×. CRISIL upgraded the credit profile in late 2024 and reaffirmed in November 2025.
- For — GE Vernova optionality. A 51% interest in a 2,000MW Gujarat wind-solar hybrid project under the December 2024 JDA, plus 104MW of wind commissioning expected within 12 months. Long-dated, but any first concrete milestone re-rates.
- Against — the genset margin is deflating. Segment EBITDA margin fell from 12.9% (FY24) to 8.4% (FY25) to 9.3% (9MFY26). Either the FY24 margin was a CPCB-driven pricing window — meaning the moat is narrower than it looks — or competitive pressure is structural.
- Against — capital allocation risk under-priced. ₹450cr cash sits in a promoter-controlled small-cap with no stated framework. Indian small-caps in this position have a mixed record on deployment discipline.
Watchlist to re-rate: Q1 FY27 finance cost (Aug 2026); H1 FY27 wind segment EBITDA margin (Nov 2026); first GE Vernova JDA milestone — RE Park land allotment plus a binding BoP contract.