GMR Power & Urban Infra Ltd (GMRP&UI) is a diversified infrastructure company under the GMR Group, with significant operations in energy, urban infrastructure, and transportation. The company was formed through the demerger of GMR Infrastructure’s Urban Infrastructure and EPC businesses and has since focused on stabilizing its financials while executing large-scale projects like the Eastern Dedicated Freight Corridor. Despite reporting strong profitability metrics like a 68.71% ROE, the company faces challenges, including high debt, volatile earnings, and a recent sharp decline in revenue. This article provides a clear, fact-based analysis to establish realistic share price targets from 2026 through 2030.
GMR Power and Urban Infra Ltd: Company Overview
- Business Model: Operates across three segments—(1) Energy: owns and operates ~2,840 MW of power generation assets (coal, gas, hydro, renewable); (2) Transportation: manages ~888 lane-km of operational highways; and (3) EPC: executes major railway infrastructure projects.
- Geography: Operates pan-India, with key power assets in multiple states and highway projects across Andhra Pradesh, Telangana, Haryana, Punjab, and Tamil Nadu.
- Key Developments: The company completed its EPC work on the Eastern Dedicated Freight Corridor. It also commissioned its 180 MW Bajoli Holi Hydro Plant, which became fully operational in FY2025.
GMR Power & Urban Infra Ltd: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹101.50 |
| Market Capitalization | ₹7,259 Crore |
| 52-Week High/Low | ₹141 / ₹89.4 |
| P/E (TTM) | 38.34 |
| P/B (TTM) | 3.62 |
| ROE (FY2025) | 68.71% |
| ROCE (FY2025) | 26% |
| Debt/Equity (Mar 2025) | 8.23 |
| FY2025 Revenue | ₹6,344 Crore |
| FY2025 Net Profit | ₹1,552 Crore |
GMR Power & Urban Infra Ltd Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹110 – ₹135 |
| 2027 | ₹125 – ₹155 |
| 2028 | ₹145 – ₹180 |
| 2029 | ₹165 – ₹210 |
| 2030 | ₹190 – ₹240 |
Note: These targets are derived from a synthesis of credible analyst discussions and projections found in the public domain, adjusted for a neutral, educational perspective.
GMR Power & Urban Infra Ltd Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹110 | ₹135 |
- The company’s exceptional ROE of 68.71% and a net profit of ₹1,552 crore in FY2025 provide a strong earnings foundation.
- However, a steep 38% YoY decline in sales and an extremely high debt-to-equity ratio of 8.23 are major concerns that cap near-term upside.
- The successful completion of its flagship EPC project removes a significant execution risk.
GMR Power & Urban Infra Ltd Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹125 | ₹155 |
- Growth will depend on stable cash flows from its operational power and road assets, as the EPC segment winds down.
- As part of the reputable GMR Group, it benefits from strong brand equity and management expertise.
- Investor sentiment will remain cautious until the company demonstrates a clear path to deleveraging its balance sheet.
GMR Power & Urban Infra Ltd Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹145 | ₹180 |
- By this stage, the market will be looking for consistent, asset-backed earnings without the volatility of large EPC contracts.
- Its diversified portfolio of power and toll-road assets provides a degree of resilience against sector-specific downturns.
- A reduction in its P/E multiple from the current 38x would be necessary for the stock to be considered fairly valued.
GMR Power & Urban Infra Ltd Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹165 | ₹210 |
- Long-term investors will be watching for the company to use its strong cash flows to pay down debt and improve its financial stability.
- Any new project wins in the EPC or renewable space could act as a re-rating catalyst.
- Sustained high returns on capital would justify a premium valuation among infrastructure peers.
GMR Power & Urban Infra Ltd Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹190 | ₹240 |
- Sentiment will depend on GMRP&UI successfully transitioning to a stable, asset-heavy utility-like model.
- If it can maintain its high ROE while significantly reducing its leverage, it could command a more reasonable market valuation.
- Its strategic role in India’s infrastructure development makes it a relevant long-term holding, albeit a risky one.
GMR Power & Urban Infra Ltd: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Promoters | 50.56% |
| Foreign Institutions (FII/FPI) | 3.89% |
| Domestic Institutions (DII) | 1.75% |
| Public (Retail & Others) | 43.80% |
The GMR Group holds a controlling 50.56% stake. However, a significant portion of this holding (77.2%) is pledged, which is a major governance red flag for investors.
GMR Power & Urban Infra Ltd: Strengths vs Risks
- Strengths:
- Exceptional Profitability Metrics: An ROE of 68.71% and ROCE of 26% highlight highly efficient use of capital.
- Diversified Asset Base: Operations across power, roads, and EPC reduce reliance on a single business line.
- Strong Project Execution: Successful completion of complex national infrastructure projects demonstrates capability.
- Risks:
- Extremely High Leverage: A debt-to-equity ratio of 8.23 is dangerously high, making the company very vulnerable to interest rate hikes or any disruption in cash flow.
- Collapsing Revenue: A 38% YoY sales decline in FY2025 is a severe concern that overshadows its profit growth.
- High Promoter Pledging: With 77.2% of promoter shares pledged, there is a significant risk of forced selling if the share price falls further.
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Very High (highly leveraged, volatile earnings) |
| Time Horizon | Long-term (5+ years) – turnaround story |
| Volatility | Very High – typical of small-cap infrastructure stocks with high debt |
| Dividend/Income | None – the company does not pay dividends (0% yield). |
| Ideal Investor | Aggressive, speculative investors who have a high conviction in the GMR Group’s ability to manage its debt and stabilize operations. Not suitable for conservative portfolios. |
GMRP&UI is best suited for those who can stomach extreme risk and understand its complex corporate history.
FAQs
What is the target price for GMR Power and Urban Infra Ltd?
Based on our analysis of its fundamentals and sector dynamics, we estimate a 2026 range of roughly ₹110 – ₹135.
Who is the owner of GMR Power and Urban Infra Limited?
The company is owned by the GMR Group, led by its founder, Mr. Grandhi Mallikarjuna Rao. Promoters hold a 50.56% stake in the company.
What is the share price of GMR Power and Urban?
As of January 2026, the stock is trading around ₹101.50.
Is GMR Infra a debt free company?
No, GMR Power & Urban Infra is not debt-free. It has a very high debt-to-equity ratio of 8.23, with total debt of nearly ₹1,908 crore.
Final Verdict
GMR Power & Urban Infra Ltd stands at a critical juncture. Its world-class return ratios are impressive, but they are built on a foundation of extreme leverage and volatile earnings. The completion of its major EPC project is a positive step, but the company must now focus on using its cash flows to pay down debt and prove the sustainability of its profits. For all but the most speculative investors, this stock warrants extreme caution. Our 2026–2030 price targets (₹110–₹240) assume a successful transition to a more stable, lower-leverage business model—a challenging but possible outcome.
Sources
- Screener.in – GMR Power & Urban Infra Ltd. Consolidated Financials (FY2025)
- Groww.in – GMRP&UI Fundamental Data
- Finology Ticker – SCRIP-305653 Company Profile & Ratios
- Angel One – GMR Power & Urban Infra Stock Analysis & Announcements
- BSE/NSE Corporate Filings – Q2 FY26 Results & Debt Refinancing News (Dec 2025)
