GE Vernova T&D

India's transmission sector is poised for significant expansion, requiring 20,000 circuit kilometers of high-voltage transmission lines and 125 gigawatts of substation capacity annually through 2032, translating to an investment exceeding INR9 trillion. GE Vernova T&D is strategically positioned with a fully integrated value chain, from R&D to local manufacturing, to capitalize on this demand. The recent approval of the 6 GW 800 kV Barmer-II to South Kalamb HVDC project signals the beginning of new HVDC corridors, reinforcing the backbone of India's power infrastructure.

The company delivered a strong financial performance in Q1 FY26, with revenue growing by 39% year-on-year to INR13.3 billion, up from INR9.6 billion in Q1 FY25. Order bookings surged by 57% year-on-year to INR16.2 billion, resulting in a healthy book-to-bill ratio of 1.25x. Profit Before Tax (PBT) more than doubled to INR3.9 billion from INR1.8 billion in the prior year's corresponding quarter, reflecting robust operational execution and a favorable business mix.

EBITDA for Q1 FY26 stood at 29.1%, representing a substantial expansion of 1,000 basis points over FY25. This improvement was driven by a combination of factors including higher volumes (up 39% YoY), improved pricing through disciplined underwriting, and enhanced productivity from lean operations, material cost savings, and overhead control. While management noted that the Q1 EBITDA should not be considered a new benchmark due to the long-cycle nature of the business, they expressed confidence in delivering better annual EBITDA than the 19.1% achieved in FY25.

The order backlog expanded to INR129.6 billion as of June 2025, a 2% quarter-on-quarter increase. The backlog composition is highly favorable, with 97% originating from private customers, central utilities, and PSUs, and less than 3% from state utilities. Export orders contributed 14% to the current quarter's bookings, and the export backlog now accounts for approximately 30% of the total, up from 20-25% previously. Management expects export revenues to consistently contribute around 30% on a long-term basis, driven by the global energy transition story.

The company announced a total capital expenditure of INR2.5 billion for FY26, comprising INR1.4 billion for HVDC and STATCOM valves and controls, and INR1.1 billion for debottlenecking existing capacities. This investment aims to strengthen capabilities in critical technologies. GE Vernova T&D maintains a strong liquidity position, generating INR1.7 billion in cash during Q1 and holding INR12.2 billion in cash and cash equivalents with no debt. An additional INR8 billion in cash is available for management to evaluate further investment options or shareholder returns, beyond the INR1.3 billion dividend announced for payment post-AGM.

In Q1, the company made significant contributions to strengthening the transmission network, including adding 3,000 MVA transmission capacity at PGCIL Kotra and Adani Khavda through transformers and GIS. They also commissioned 765 kV and 400 kV GIS substations at Adani Khavda and supplied 315 MB, 400 kV ICT to Aditya Aluminum Lapanga. The company is actively working on localizing new technologies from its parent and introducing them to Indian customers, with SF6-free switchgear being a key focus, though only one pilot project is currently operational in India.