GE Vernova T&D India Limited — Q1 FY26 earnings call

Call held 29 Jul 2025

Management summary

GE Vernova T&D reported a strong Q1 FY26, with robust demand driving a 39% YoY revenue growth to ₹13.3 billion and a 57% increase in order inflow to ₹16.2 billion. Profitability saw significant improvement, with EBITDA margin expanding by 1,000 bps to 29.1% and PBT more than doubling. The company maintains a healthy cash position with no debt and is focused on disciplined underwriting and operational excellence, while also planning strategic investments.

Highlights

  • Revenue grew by a significant 39% year-on-year to ₹13.3 billion, driven by strong execution, including highly profitable export backlog.

  • Order inflow for the quarter was robust at ₹16.2 billion, marking a 57% year-on-year increase and a book-to-bill ratio of 1.25x.

  • EBITDA margin expanded by 1,000 basis points to 29.1%, attributed to higher volumes, improved pricing, and enhanced productivity.

  • Profit Before Tax more than doubled to ₹3.9 billion compared to ₹1.8 billion in the corresponding quarter of the previous year.

  • The company generated ₹1.7 billion in cash during Q1 FY26, resulting in a healthy cash and cash equivalent balance of ₹12.2 billion with no debt.

Concerns

  • Management cautioned that the Q1 EBITDA of 29.1% should not be construed as a new benchmark due to the long-cycle nature of the business, implying potential variability.

  • The company acknowledged that supply chain remains a 'big challenge' in the global energy transition story, though specific teams are working to mitigate risks.

Key financials

  1. Revenue 13.3 Bn +39%YoY
  2. Order Inflow 16.2 Bn +57%YoY
  3. EBITDA Margin 29.1%
  4. PBT 3.9 Bn +116.6%YoY
  5. Cash Generated 1.7 Bn
  6. Cash & Cash Equivalents 12.2 Bn +16.2%QoQ

What they filed

Q1 FY27: revenue up 38.0%, net profit up 24.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,108 1,074 1,153 1,330 1,538 +39%1,701 +58%1,637 +42%1,836 +38%
EBITDA205 180 252 388 396 +93%455 +153%445 +77%461 +19%
Net profit145 143 186 291 299 +106%291 +103%352 +89%363 +25%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹129.6 Bn

as of 2025-06-30 quantified

2% QoQ

Inflow this quarter

₹16.2 Bn

Execution

INR95-100 billion executable over 18-24 months; INR30-35 billion over 3-5 years

Composition

Mix 3 geographies
  • Domestic (Q1 Orders) 86%
  • Export (Q1 Orders) 14%
  • Export (Backlog) 30%

Share of order book by geography· categories overlap, and sum to 130%

Pipeline

L1 awaiting loa

HVDC projects (Khavda-South Olpad, Barmer-South Kalamb) expected to be finalized this financial year. Non-HVDC pipeline strong, expecting single-digit growth (7-8%) in orders compared to last year.

The company's backlog continues to expand, supported by disciplined underwriting and a healthy mix of orders from private customers, central utilities, and PSUs, providing strong visibility for future revenue.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹2.5 Bn
    • Valves and controls for HVDC and STATCOM ₹1.4 Bn
    • Debottlenecking capacities ₹1.1 Bn
    We declared in our press release and also to the stock exchange that INR 1.4 billion for valves and controls for HVDC and STATCOM. And another INR1.1 billion as a regular capex to debottleneck our capacities in the factory. So overall, put together, INR2.5 billion of capex we have already communicated.
  • Debt Debt disclosed
    As a result of this positive cash generation, we now have a healthy cash and cash equivalents of INR12.2 billion with no debt.
  • Liquidity Cash ₹12.2 Bn The company has a healthy cash and cash equivalent balance of INR12.2 billion with no debt, and an additional INR8 billion available for management to evaluate options.
    The cash and cash equivalent balance was at INR12.2 billion as on June 30 versus INR10.5 billion as on 31st March '25. The cash generated in Q1 was INR1.7 billion. ... Excluding the announced utilization plans, now we have an available cash of INR8 billion for which management continues to evaluate the options.

Guidance & targets

Profitability

  • EBITDA Performance Profitability · this year · High confidence better than last year

    From 19.1% today

    Overall, the annual EBITDA performance is a good reflection of our business. So last year, we delivered an EBITDA of 19.1%. This was the high end of the range of mid- to high teens that we called out earlier. And as communicated earlier, the endeavor of the management is to improve and deliver better than last year. With a strong performance in the quarter 1, we have higher confidence to deliver better EBITDA this year.

    — Sushil Kumar

  • Margin Sustainability Profitability · next 2 to 3 years · High confidence sustain
    So our endeavor will be to sustain this margin in the next few years, at least for the next 2 to 3 years because we have a significant backlog with us.

    — Sushil Kumar

Revenue Mix

  • Export Revenue Contribution Revenue Mix · long-term basis · High confidence 30%

    From 20-25% today

    So overall, on the long term, we expect that revenues to the extent of 30% should be contributed by the export on a long-term basis.

    — Sushil Kumar

Order Inflow

  • HVDC Project Finalization Order Inflow · this financial year · High confidence finalized
    So Umesh, we expect that both these orders to be finalized in this financial year.

    — Sandeep Zanzaria

  • Non-HVDC Pipeline Growth Order Inflow · this year · Medium confidence 7-8%
    As compared to last year, we expect a growth at least in some single digits, somewhere between 7% to 8% as compared to last year.

    — Sandeep Zanzaria

Volume

  • Non-HVDC Volume Growth Volume · next 3 fiscal · Medium confidence 15%
    I'm saying next 3 to 4 years without any HVDC order, can GE Vernova India grow in volume terms in 15% on the production numbers, if you have to produce the orders that you take? Or you believe HVDC to grow more than 15% to 20% in volume growth? I will say that it should not be too difficult.

    — Sandeep Zanzaria

What to watch in Q2 FY26

Finalization of Khavda-South Olpad and Barmer-South Kalamb HVDC projects

this financial year (by March 2026)
Current Expected this financial year
Target Announcement of order wins

Why it matters

These are significant HVDC orders crucial for future revenue and market positioning.

So Umesh, we expect that both these orders to be finalized in this financial year.

Risks & concerns

  • Supply chain constraints

    medium

    Global energy transition story presents supply chain as a big challenge, but specific teams are working to mitigate risks and ensure orders are taken without unmitigated risks.

    It is global energy transition story. Supply chain is definitely a big challenge. We have specific teams which keep on working to mitigate those challenges. And when we take orders, we ensure that we are not taking any orders where our risks are not mitigated.

    Management acknowledged

  • HVDC project impact on existing projects

    low

    CEA is evaluating the impact of new HVDC projects, but management believes it will not compromise project requirements given the substantial demand.

    So, CEA is also evaluating and we are also evaluating the impact, if any, it can create on the upcoming HVDC project. But I think looking into the growth aspirations what the country has, obviously, both will be complementing each other, but it does not compromise the project requirement of HVDC in the upcoming time.

    Management acknowledged

  • Quarterly margin variability

    low

    Q1 EBITDA should not be seen as a new benchmark due to the long-cycle nature of the business, implying potential fluctuations.

    While the EBITDA for the quarter is very strong and is reflective of the strong momentum in our business, however, we are in long-cycle business and the EBITDA of the quarter should not be construed as a new benchmark.

    Management acknowledged

Q&A highlights

7 direct
Sustainability of high export contribution and its impact on gross margins Direct
So overall, on the long term, we expect that revenues to the extent of 30% should be contributed by the export on a long-term basis.

Analyst sought clarity on whether the high export contribution and associated margins were sustainable, which management confirmed as a long-term target.

Asked by Umesh Raut

Timeline for finalization of key HVDC projects (Khavda-South Olpad, Barmer-South Kalamb) Direct
So Umesh, we expect that both these orders to be finalized in this financial year.

Provides a clear timeline for significant upcoming orders in the HVDC segment, crucial for future growth.

Asked by Umesh Raut

Comparison of HVDC technologies (LCC, VSC, BSS) and their impact on upcoming projects Partial
So, CEA is also evaluating and we are also evaluating the impact, if any, it can create on the upcoming HVDC project. But I think looking into the growth aspirations what the country has, obviously, both will be complementing each other, but it does not compromise the project requirement of HVDC in the upcoming time.

Analyst inquired about the company's view on competing HVDC technologies, and management indicated that both LCC and VSC would complement each other given the substantial demand.

Asked by Umesh Raut

GE India's product suite for domestic data center opportunities Direct
So, we offer GIS, we offer our projects solutions, we offer grid automation. So, all the products which go in these, power which is required for the data center, we are there. And in India, with these products, we have supplied to multiple data centers, including the ControlS, Capital Land.

Clarifies the company's capability and existing engagement in the growing data center market, beyond just global opportunities.

Asked by Mohit Kumar

Pricing environment and further capacity expansion plans Direct
So, Nitin, I think on margin expansion, I will not be able to comment on the conductor or the cable business part, that industry. But apart from a few pockets, I think in our segment, the prices are stabilizing a bit. That is what I will say. And when I tell prices, it is normally you have to also understand price is also a factor of if there's another increase in input raw material cost. So, I think there is a difference between increasing price and increasing margin today. ... Sushil clearly said that apart from this, we keep on evaluating how to use the cash and how to meaningful look at it if there is any other possibility of capacity expansion and all.

Addresses concerns about pricing stability and indicates that the company is actively evaluating further capacity expansion beyond the already announced capex.

Asked by Nitin Arora

Sustainability of healthy trends (margins, export execution) and importance of large India projects vs global HVDC supplies Direct
So Renu, want to clarify is that we should not look at margins in a particular quarter. Ours is a long-term business. So probably a right benchmark to measure margin will be 12 months rather than quarter-on-quarter. ... So of course, we would be focusing on HVDC projects because of the growth and our Investments. We now expect return on HVDC project are also much better as compared to what used to happen about 8 to 10 years back. So, it will be a focus area for us as well. And wherever possible, even if we are able to support any global HVDC projects, like, for example, what we have done in Korea, that will also remain on our radar and focus.

Management clarified that quarterly margins are not a benchmark and reiterated focus on HVDC projects (both domestic and global) due to improved returns and growth opportunities.

Asked by Renu Baid

Competitive landscape and capacity expansion in transformers, GIS, AIS, and automation segments Direct
Bhavin, on transformer,, you are right that people are expanding capacities, etcetera. But on the other side, also, you have to see that, for example, you did 1 or 2 HVDC projects, a large part of the transformer capacity of a manufacturer gets booked by an HVDC. ... So when I look at 3 years perspective and same is there for GIS, AIS also, we are not seeing any very large expansion of capacities. So going forward on AIS, GIS and Automation, I don't see that the pricing power or the competitive scenario or landscape to change much.

Provides insights into the competitive environment and capacity dynamics across different product lines, indicating varying levels of expansion and pricing power.

Asked by Bhavin Vithlani

How current cycle's EBITDA margins differ from previous peak and their sustainability Direct
In the earlier cycle, in our company, the backlog was more tilted towards projects. And within that, there were also projects for the state utilities and some of the power sector companies, which didn't do well later on. This time, for the last couple of years, we have been communicating our focused and disciplined approach of underwriting projects. The mix has changed towards export and product. So our company's strategy is leading to better margin over and above the industry margin. This probably is one of the industry-leading margin that we are delivering. ... So our endeavor will be to sustain this margin in the next few years, at least for the next 2 to 3 years because we have a significant backlog with us.

Management explained the structural reasons for improved margins in the current cycle (better project mix, disciplined underwriting, export focus) and committed to sustaining these for the next 2-3 years.

Asked by Jainam

3 min read 6 chapters

Detailed narrative

Robust Market Outlook and Strategic Positioning

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.

Strong Financial Performance in Q1 FY26

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.

Significant EBITDA Margin Expansion

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.

Expanding Order Backlog and Favorable Mix

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.

Strategic Investments and Healthy Liquidity

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.

Key Project Contributions and Technology Focus

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.

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