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Revenue for the quarter rose 30.8% year-on-year to ₹1,810 crore, compared with ₹1,383 crore in Q2 FY25. EBITDA fell 12.7% year-on-year to ₹364 crore from ₹416 crore. The EBITDA margin declined to 20.1% from 30.1% a year earlier.
Also, the company said its board of directors approved the provision of a corporate guarantee for refinancing an existing credit facility of approximately ₹2,970 crore to be availed by its subsidiary, GMR Kamalanga Energy Limited (GKEL), from Power Finance Corporation Ltd or any other potential lender.
Also Read: GMR Power & Urban Infra Q4 net drops 7% to ₹178 crore but revenue up 6.3%
The transaction is subject to the approval of the company’s shareholders and is considered a material related-party transaction. GMR Energy Limited, a wholly owned subsidiary, will also provide a corporate guarantee and security for the refinancing.
The promoters, promoter group, and group companies do not have any direct interest in this transaction other than their shareholding in GKEL. The company noted that it is customary and in the interest of the holding company to support the fundraising initiatives of its subsidiary through a corporate guarantee.
Under the agreement, GMR Power & Urban Infra Limited will provide the corporate guarantee for an amount of around ₹2,970 crore to the lender. The company stated that the guarantee will have no immediate financial impact on the listed entity.
Also Read: GMR Power and Urban Infra board approves ₹3,000-crore fundraising plan
Shares of GMR Power and Urban Infra Ltd ended at ₹120.35, up by ₹0.20, or 0.17%, on the BSE.
