GE Vernova T&D

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.

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.

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 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.

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.

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.