GE Vernova T&D

GE Vernova T&D reported robust Q3 FY26 results, with revenue growing 58% year-on-year to INR17 billion and 9-month revenue reaching INR46 billion, up 46% year-on-year. Bookings for the quarter were INR29.4 billion, a 41% increase year-on-year, contributing to a healthy order backlog of INR143.8 billion as of December 2025, a 10% increase from September 2025. Profitability also saw significant improvement, with Q3 EBITDA margin at 26.7% and 9-month EBITDA margin at 27.1%, an 80 basis point improvement year-on-year.

The company is strategically positioned to support India's renewable energy backbone, particularly with HVDC solutions, as India added 38 gigawatts of solar and 6.3 gigawatts of wind capacity in 2025. Management highlighted the importance of HVDC for evacuating power from remote renewable energy sites. While the Adani Khavda HVDC project and the Khavda, South Olpad VSC order are yet to be booked, they are expected to be reported in subsequent quarters upon achieving commercial milestones, with an estimated execution timeline of approximately four years.

The cumulative order inflow for the first nine months of FY26 stood at INR61.6 billion, with 85% originating from the domestic market and 15% from exports. The order-in-hand is predominantly high-quality, with 98% from private customers, central utilities, and public sector enterprises, and less than 2% exposure to state utilities. This composition, coupled with disciplined underwriting, has led to an improved margin profile of the order book compared to the previous financial year.

GE Vernova T&D has a previously announced capital expenditure plan of approximately INR1,000 crores, with implementation timelines extending up to FY27-28, aimed at capacity expansion and new product development. The company maintains a strong liquidity position, with cash and cash equivalents reaching INR15.9 billion as of December 31, 2025, and having generated INR6.7 billion in operational cash during the nine-month period, indicating financial health and capacity for future investments.

India's ambitious energy targets, including 500 gigawatts of non-fuel capacity by 2030 and a projected peak power demand of 446 gigawatts by 2030, are expected to drive significant demand for T&D infrastructure. Management expressed confidence in continued growth in base orders for the current and next fiscal years, anticipating a much stronger order inflow in FY27. The company also sees substantial opportunities in the data center and AI infrastructure market, leveraging its global teams.

The significant increase in EBITDA margin to 26.7% in Q3 and 27.1% for 9M FY26 was attributed to increased volume, price improvements, and enhanced execution productivity. Management confirmed that they expect to achieve the higher end of their mid-20s EBITDA margin guidance for FY26 and do not foresee any major dilution in margins in the foreseeable future, reinforcing confidence in their operational strategies and cost management.