Emkay Sees Rs 180 Target for GMR Power & Urban Infra on Strategic Divestments and Smart Energy Pivot

GMR Power And Urban Infra Share Price Target 2025: GMR Power & Urban Infra Ltd (GPUIL) has emerged on a strategic transformation path, with Emkay Global maintaining a ‘Buy’ rating on the stock and a target price of Rs 180, based on the company's pivot to asset-light operations, successful debt restructuring, and expansion in the smart metering and EV infrastructure segments. The current market price (CMP) stands at Rs 134.

GMR Power And Urban Infra Share Price Target 2025  
In a significant move to streamline operations and reduce debt, GPUIL has signed a framework agreement with Synergy Investments to divest its entire 79.86% stake in GMR Bajoli Holi (in two tranches), 51% stake each in GMR Vemagiri (GVPGL), and GMR Rajahmundry Energy (GREL), post a one-time settlement (OTS). The deal, valued at approximately ₹6.5 billion, includes 100% of the Compulsorily Convertible Debentures (CCDs) of GMR Bajoli Holi and is expected to be completed by September 2025.
Emkay stated, “While we have not valued GVPGL and GREL in our base case SOTP-based valuation, the divestment in GMR Bajoli Holi would lower our TP by ₹8; however, we roll forward our valuation to Mar-26E, keeping our TP unchanged at ₹180.”
 

Why Bullish on this?

The OTS with GREL lenders was settled at 6.6 billion—significantly lower than the total dues of 20.4 billion. GPUIL has already paid 1.7 billion as the first instalment in March 2025. This comprehensive deleveraging exercise is expected to reduce the company’s debt by around 44 billion, strengthening its balance sheet and paving the way for a sharper focus on core operations.
 

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Smart Metering and EV Charging in the Spotlight
GPUIL’s strategic roadmap now centers around a new-age energy model. The company has installed 0.44 million smart meters and is awaiting final approvals for operational rollout. It is also expanding its footprint in EV charging infrastructure, with 40 fast EV charging stations already in place—many of them integrated with GMR's airport assets for better synergy.
“Retaining 49% stake in each of the gas assets offers a potential upside,” Emkay noted, hinting at future monetization prospects and value unlocking from the remaining holdings.

Strong Thermal Operations and Brownfield Expansion
Meanwhile, GPUIL’s thermal power plants at Kamalanga and Warora continue to operate efficiently, with coal linkages secured and over 90% of power purchase agreements (PPAs) already in place. The company is also progressing on a 350MW brownfield expansion at Kamalanga.

GPUIL’s ‘Strategy 2.0’ includes diversifying into adjacent energy verticals and doubling down on operational excellence. Emkay remains bullish on GPUIL’s prospects, attributing confidence to “stable core power assets and scale-up in smart metering and EV business, besides an improved balance sheet and debt metrics.”

With a clearer focus, lighter balance sheet, and rising presence in future-ready energy infrastructure, GPUIL is poised for a re-rating—justifying Emkay’s unchanged target price despite near-term divestment headwinds.

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