GE Vernova T&D India Limited — Q2 FY26 earnings call

Call held 10 Nov 2025

Management summary

GE Vernova T&D delivered a strong Q2 FY26, marked by robust revenue growth of 39% and significant EBITDA margin expansion to 25.8%. Profit Before Tax more than doubled, supported by strong execution and improved pricing. While bookings were lower YoY due to a high base, the order backlog remains healthy, providing strong revenue visibility. The company also announced an additional ₹8 billion in capex to expand manufacturing capabilities, funded by internal accruals.

Highlights

  • Revenue of ₹15.4 billion in Q2 FY26, up 39% YoY from ₹11.1 billion in Q2 FY25, demonstrating strong execution.

  • EBITDA margin expanded significantly by 700 basis points to 25.8% in Q2 FY26, driven by volume, improved pricing, and productivity.

  • Profit Before Tax (PBT) grew more than 2.1x to ₹4.0 billion in Q2 FY26 compared to ₹1.9 billion in Q2 FY25.

  • Order backlog of ₹131.1 billion provides strong revenue visibility, being more than 3 times the last financial year's revenue.

  • Generated ₹4.3 billion in cash in Q2 FY26 before dividend payment, contributing to a healthy cash and cash equivalents balance of ₹15.2 billion.

Concerns

  • Bookings for Q2 FY26 were ₹16.1 billion, down 66% YoY compared to ₹46.8 billion in Q2 FY25, primarily due to large orders in the prior year.

  • Experienced some softness in the domestic order pipeline, particularly in STATCOM opportunities, though management expects a pickup.

  • Pricing environment is stable but with slight pressure, not showing improvement.

Key financials

3 periods

Headline

  • Revenue
    15.4 Bn
    YoY +39%
  • EBITDA Margin
    25.8%
  • Profit Before Tax
    4 Bn
    YoY +110.5%
  • Cash & Cash Equivalents
    15.2 Bn
    QoQ +24.6%

Q2

  • Cash Generated
    4.3 Bn

H1

  • Revenue
    28.6 Bn
    YoY +39%
  • EBITDA
    27.3%
  • Profit After Tax
    5.9 Bn

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

₹131.1 Bn

as of 2025-09-30 quantified

1% QoQ

Inflow this quarter

₹16.1 Bn

Execution

Typical backlog execution cycle is 18 to 27 months.

Composition

Mix 3 geographies
  • Domestic 83%
  • Outside India (Export) 17%
  • Export Mix in Backlog 30%

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

Pipeline

L1 awaiting loa

National Committee of Transmission identified multiple projects; RPT of ₹3,000 crores for a large project; strong HVDC pipeline.

Demand remained robust, and the healthy backlog provides strong visibility for long-term growth, with a disciplined underwriting approach.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹10.4 Bn New plan — additional investment of BINR 8 focused on advanced grid technologies · internal resources
    • Expand capacities at Vadodra for transformers and reactors
    • Install new lines for bushings and air core reactors at Hosur
    • Expand capacities for AIS and GIS products at Hosur and Padappai

    Previously planned ₹2.4 Cr

    With this growth in mind, we are expanding our engineering and manufacturing footprint with additional investment of BINR 8 focused on advanced grid technologies. This investment will expand our capacities at Vadodra for transformers and reactors. We will install new lines for bushings and air core reactors at Hosur. We will also expand capacities for AIS and GIS products at Hosur and Padappai. The above capacities will support domestic market as well as exports. This investment of BINR 8 is in addition to the BINR 1.4 announced in May this year. Overall, our capex announcements stand at 10.4 BINR.
  • Debt Debt disclosed
    As a result of this positive cash generation, we now have a healthy cash & cash equivalents of 15.2 BINR with no debt.
  • Returns FYTD ₹1.3 Bn
  • Liquidity Cash ₹15.2 Bn Healthy cash balance provides confidence to invest in core business.
    The cash and cash equivalent balance was at 15.2 BINR as on Sep 30, 2025, vs 12.2 BINR as June 30, 2025. The cash generated in Q2 was 4.3 BINR before payment of Dividend. As a result of this positive cash generation, we now have a healthy cash & cash equivalents of 15.2 BINR with no debt.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · this financial year · High confidence mid 20s
    Overall, in first half, we delivered EBITDA of 27.3%. We have higher confidence to delivering EBITDA in the range of mid 20 in this financial year

    — Sushil Kumar

Revenue

  • Annual Revenue Growth Revenue · this year · Medium confidence 35%
    but definitely, if you look at about INR 1,500 crores of quarterly revenue, then we are looking at somewhere between INR5,500 crores and INR6,000 crores of annual revenue this year, which is again going to be close to about a 35% growth over last year.

    — Sandeep Zanzaria

Order Inflow

  • Order Intake Growth Order Inflow · Medium confidence ₹1,000-1,500 crores
    That will also give us growth in the order backlog by more than like INR1000 to INR1,500 crores.

    — Sandeep Zanzaria

  • HVDC Order Wins Order Inflow · High confidence at least one
    For HVDC today, definitely, we can deliver at least one HVDC order with the existing capacities what we have.

    — Sandeep Zanzaria

  • HVDC Pipeline Projects Order Inflow · after Barmer project · High confidence at least 2
    Yes, sure, we see that at least 2 projects more in pipeline after the Barmer. And then maybe in a shorter time after the Barmer once gets floated.

    — Sandeep Zanzaria

Market Opportunity

  • Data Center Opportunity (per 200-300MW) Market Opportunity · High confidence ₹75-100 crores
    I don't know about that, but if I give you a guidance, typically, a 200-300-megawatt data center will have close to about INR75 crores to INR100 crores of opportunity pipeline from our side.

    — Sandeep Zanzaria

Export Mix

  • Export Revenue Execution Export Mix · long term · High confidence 30-35%
    Subhadip, yes, you're right that our backlog has about 30% to 35% of export mix. And on the long term, we expect that revenue execution should be also in the same proportion, where exports will be around 30% to 35% of revenue.

    — Sushil Kumar

What to watch in Q3 FY26

Domestic Order Pipeline Pickup

next quarter
Current Some softness, but expected to pick up
Target Stronger pipeline and increased order intake

Why it matters

Indicates future revenue growth and market demand for core products.

Umesh, we have seen some softness in the pipeline. But I'm expecting it to pick up because the National Committee of Transmission, has identified multiple projects, and we expect this pipeline to be much stronger in the time to come.

Risks & concerns

  • Softness in domestic order pipeline

    medium

    Some softness observed in the pipeline due to ROW issues or slower tendering, but expected to pick up.

    Management acknowledged

  • Slowdown in STATCOM opportunities

    medium

    This year has been a lull for STATCOM opportunities, but management expects them to bounce back next year.

    Management acknowledged

  • Pricing pressure

    low

    Pricing is stable but with slight pressure, not improving significantly.

    Management acknowledged

Q&A highlights

5 direct, 1 evasive
Domestic Order Outlook and Related Party Transactions (RPT) Partial
Umesh, we have seen some softness in the pipeline. But I'm expecting it to pick up because the National Committee of Transmission, has identified multiple projects, and we expect this pipeline to be much stronger in the time to come. On the RPT side of INR3,000 crores, the group entities were bidding for a large project. So, the outcome of that has not yet been finalized. That's why, we have not yet received any order or any confirmation, so the opportunities are live still.

Analyst inquired about the domestic order pipeline and the status of a significant RPT order, which management confirmed is still live but not yet finalized, indicating potential future order inflow.

Asked by Umesh Raut

Breakdown of ₹8 Billion Capex Evasive
Those final details, probably, we will not be able to share. That's why we have shared an overall number with the breakup of what all activities we will be doing in the capex.

Management declined to provide a detailed breakdown of the ₹8 billion capex across specific product lines, limiting investor insight into allocation strategy.

Asked by Umesh Raut

Data Center Market Opportunity Direct
If you see a large data centers which are coming they have substations which will get built from 220 kV up till 765 kV. So, on receiving of the power, we are qualified for all the products, which are there. So, if, for example, there are local EPCs, which are participating, then we support them with gas-insulated switchgear, transformer automation system or at times we directly participate for the project as well. For the international market, definitely we are qualified, but today data center market globally, of course, we know that U.S. and all is a big market.

Analyst sought clarity on the company's role and addressable market in the growing data center segment, with management confirming qualification for various products and international market potential.

Asked by Umesh Raut

Pricing Environment and Margin Sustainability Partial
I would say that it's not improving, at least the prices are not going higher, or I would say, at the same level, there is slight pressure on that, but not a substantial one.

Analyst questioned the sustainability of current pricing power, and management indicated stable but slightly pressured pricing, suggesting limited upside from this factor going forward.

Asked by Mohit Kumar

Impact of Parent's Prolec JV on India Business Direct
No. So Prolec is dedicated to North American market. So, we don't see any impact of that happening in our geography.

Analyst inquired about potential implications of a parent company JV, which management clarified would not affect the India business, removing a potential concern.

Asked by Mohit Kumar

HVDC Pipeline Beyond Current Projects Direct
Yes, sure, we see that at least 2 projects more in pipeline after the Barmer. And then maybe in a shorter time after the Barmer once gets floated. So maybe one is Lakadia and it's going to be from Rajasthan only the next 2 projects.

Analyst probed for future HVDC opportunities, and management confirmed at least two more projects in the pipeline, indicating continued growth prospects in this key technology.

Asked by Subhadip Mitra

GIS Localisation and Import Content Direct
It depends upon different voltage to voltage. So, for example, 145 kV is more localized, 765 kV there's still a process of localization going on. So, it would be like between, on the minimum side, it would be like 55%, 60%. On the higher side, it could be like 75% plus.

Analyst asked about the local content in GIS systems, providing insight into the company's manufacturing capabilities and import dependence across different voltage levels.

Asked by Deepak Pandey

STATCOM Market Slowdown Direct
So, Umesh, there is presently a slowdown at least in the STATCOM opportunities. But I think next year, we expect them to bounce back, and we'll have much more opportunities of STATCOM. This year has been a lull for STATCOM opportunities.

Analyst highlighted a slowdown in STATCOM orders, which management acknowledged but expressed optimism for a rebound next year, indicating a temporary market condition.

Asked by Umesh Raut

3 min read 6 chapters

Detailed narrative

Q2 FY26 Financial Performance Highlights

GE Vernova T&D reported a strong Q2 FY26, with revenues reaching ₹15.4 billion, marking a 39% year-over-year growth from ₹11.1 billion in Q2 FY25. This robust performance contributed to a first-half revenue of ₹28.6 billion, also up 39% YoY. The company achieved a significant EBITDA margin of 25.8% in Q2, expanding by 700 basis points compared to the previous year, and a H1 EBITDA of 27.3%. Profit Before Tax for Q2 surged over 2.1x to ₹4.0 billion from ₹1.9 billion in the corresponding prior-year quarter.

Order Book and Backlog Strength

Despite a 66% YoY decline in Q2 bookings to ₹16.1 billion (compared to ₹46.8 billion in Q2 FY25 which included large orders), the order backlog remained healthy at ₹131.1 billion as of September 2025, representing a 1% QoQ increase. This backlog provides strong revenue visibility, being more than three times the last financial year's revenue. The Q2 orders were predominantly from domestic customers (83%), with 97% of the backlog originating from private customers, central utilities, and PSUs, ensuring a disciplined underwriting approach.

Strategic Capex for Capacity Expansion

The company announced an additional investment of ₹8 billion in advanced grid technologies, bringing the total announced capex to ₹10.4 billion (including a prior ₹2.4 billion). This investment, funded entirely through internal resources, aims to expand capacities at Vadodra for transformers and reactors, install new lines for bushings and air core reactors at Hosur, and increase capacities for AIS and GIS products at Hosur and Padappai. This expansion is designed to support both domestic and export markets, with implementation expected over the next 2-3 years.

HVDC and Digital Solutions Focus

HVDC technology is identified as a critical area for growth, essential for transporting bulk power over long distances and stabilizing the national grid. The company is preparing for a strong HVDC pipeline, with at least two more projects expected after the Barmer project. Significant opportunities are also emerging in STATCOM and digital solutions, although STATCOM has seen a temporary slowdown. Digitalization and asset performance management are key focus areas to optimize Capex and Opex strategies for customers.

Market Outlook and Growth Drivers

India's ambitious energy goals, including 500 GW of non-fossil fuel capacity, are driving a fundamental redesign of the transmission backbone. Peak power demand is projected to climb 80% by 2032, necessitating unprecedented grid expansion. Urbanization, rising per capita energy demand, and investments in industries, data centers, and green hydrogen are creating strong drivers for energy growth. The data center market, in particular, is seen as a significant opportunity, with a 200-300 MW data center potentially generating ₹75-100 crores in opportunities for the company.

Pricing and Margin Commentary

Management noted that prices are stable, neither significantly improving nor deteriorating, with only slight pressure. The improved EBITDA margin of 25.8% in Q2 was attributed to volume growth, better pricing realization from orders booked in prior years, and enhanced productivity through lean execution. The company aims to maintain EBITDA in the mid-20s range for the current financial year and expects to achieve annual revenue of ₹5,500-6,000 crores, representing approximately 35% growth over the last year.

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