GE Vernova T&D India Limited — Q3 FY26 earnings call

Call held 28 Jan 2026

Management summary

GE Vernova T&D reported a robust Q3 FY26, with revenue growing 58% YoY to INR17 billion and bookings increasing 41% YoY to INR29.4 billion. The order backlog expanded 10% QoQ to INR143.8 billion, driven by strong domestic demand and HVDC projects. Profitability remained strong with a 26.7% EBITDA margin, and PBT grew over 2.4x YoY to INR4.6 billion. The company also maintained a healthy cash balance of INR15.9 billion despite a provision for retiral benefits and a delayed export order.

Highlights

  • Revenue for Q3 FY26 stood at INR17 billion, up 58% year-on-year from INR10.7 billion in Q3 FY25.

  • Bookings for Q3 FY26 were INR29.4 billion, a 41% year-on-year increase compared to INR20.8 billion in Q3 FY25.

  • The order backlog expanded to INR143.8 billion as of December 2025, a 10% increase from INR131.1 billion in September 2025.

  • EBITDA margin for Q3 FY26 was 26.7%, with the 9-month FY26 EBITDA margin at 27.1%, representing an 80 basis point improvement year-on-year.

  • Profit Before Tax (PBT) before exceptional items for Q3 FY26 was INR4.6 billion, growing more than 2.4x compared to INR1.9 billion in the corresponding quarter of the previous financial year.

  • Cash and cash equivalents stood at INR15.9 billion as of December 31, 2025, with INR6.7 billion generated operationally during the 9-month period.

Concerns

  • A provision of INR693 million was made for retiral benefits due to new wage codes, reported as an exceptional item in the profit and loss statement.

  • A significant export order from the parent is still in the pipeline due to customer-side delays and is now expected to be decided in the second half of the next financial year.

  • Media reports regarding potential Chinese competition in the T&D market, though management views these as speculation without government clarification.

Key financials

3 periods

Headline

  • Cash and Cash Equivalents
    ₹15,900 Cr

Q3 FY26

  • Revenue
    ₹17,000 Cr
    YoY +58%
  • EBITDA Margin
    26.7%
  • PBT (before exceptional items)
    ₹4,600 Cr
    YoY +140%

9M FY26

  • Revenue
    ₹46,000 Cr
    YoY +46%
  • EBITDA Margin
    27.1%

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

₹14,380 Cr

as of 2025-12-31 quantified

10% QoQ

Inflow this quarter

₹2,940 Cr

Execution

Execution timeline for HVDC projects is about 4 years.

Composition

Mix 2 client types
  • Private/Centre Utilities/Public Centre Enterprises 98%
  • State Utilities 2%

Share of order book by client type

Pipeline

other

HVDC Adani Khavda project and HVDC Khavda, South Olpad VSC order from Adani Group to be booked in subsequent quarters upon achieving defined commercial milestones.

Cancellations & deferrals

  • deferred: One export order from the parent is delayed due to customer side issues and is now expected to be decided in the second half of the next financial year.
Healthy order-in-hand gives a strong visibility of continuing strength in our business.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹10,000 Cr
    • Capacity expansion and new product development
    So, we announced the capex of close to INR1,000 crores, all put together. They have respective time lines of implementation, which will go up to financial year '26-'27 in some cases and '27-'28 in the other cases.
  • Liquidity Cash ₹15,900 Cr
    The cash and cash equivalent balance was at INR15.9 billion as of December 31 versus INR15.2 billion as on September 30.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · FY26 · High confidence higher end of mid-20s

    Previously mid-20s → higher end of mid-20s

    Amit, so earlier we talked about this year's expectation of delivering mid-20s kind of EBITDA, so now with the first 3 quarters of good performance, we expect, we will be delivering EBITDA at the higher end of this range.

    — Sushil Kumar

  • EBITDA Margin Profitability · upcoming years · High confidence mid-20s
    We don't expect a major dilution happening on the margin front in the foreseeable time.

    — Sandeep Zanzaria

Market Demand

  • Peak Power Demand Market Demand · by 2030 · High confidence 446 gigawatts
    The peak power demand is projected to touch 446 gigawatts by 2030.

    — Sandeep Zanzaria

Consumption

  • Per Capita Electricity Consumption Consumption · by 2030 · High confidence 2,000 kilowatt hour

    From 1,460 kilowatt hour today

    The Draft NEP 2026 sets a target of 2,000 kilowatt hour per capita electricity consumption by 2030, rising to over 4,000 kilowatt hour by 2047, a significant leap from the current 1,460 kilowatt hour.

    — Sandeep Zanzaria

  • Per Capita Electricity Consumption Consumption · by 2047 · High confidence 4,000 kilowatt hour

    From 1,460 kilowatt hour today

    — Sandeep Zanzaria

Capacity

  • Non-fuel Capacity Capacity · by 2030 · High confidence 500 gigawatts
    In conclusion, as India races towards a target of 500 gigawatts of non-fuel capacity by 2030, we're building the network through which this energy will flow.

    — Sandeep Zanzaria

Project Timeline

  • HVDC Project Execution Project Timeline · for HVDC projects · High confidence ~4 years
    Execution timeline is very near to what has been defined by the TBCB development requirement, it is very near to that, about 4 years.

    — Sandeep Zanzaria

Project Finalization

  • HVDC Barmer and South Kalamb Finalization Project Finalization · Q2 FY27 · High confidence Q2 FY27
    So, we expect that order to get finalized in Q2 of '26- '27 for the developers and then whatever time additional it requires for the OEM to take.

    — Sandeep Zanzaria

Order Inflow

  • Base Order Growth Order Inflow · this year and next year · High confidence growth
    we are pretty confident on achieving the growth in base orders in this year as well as next year.

    — Sandeep Zanzaria

  • Export Order from Parent Decision Order Inflow · Sep-March next financial year · High confidence decision
    So, it is expected to be decided from September to March of the next financial year.

    — Sushil Kumar

  • Overall Order Inflow Order Inflow · next year · High confidence much stronger
    I expect that, yes, next year is going to be a much stronger year than what we had this year.

    — Sandeep Zanzaria

Capex

  • Capex Implementation Capex · up to FY27-28 · High confidence INR1,000 crores
    So, we announced the capex of close to INR1,000 crores, all put together. They have respective time lines of implementation, which will go up to financial year '26-'27 in some cases and '27-'28 in the other cases.

    — Sushil Kumar

What to watch in Q4 FY26

Adani Khavda HVDC project booking

Subsequent quarters
Current Excluded from Q3 bookings, awaiting commercial milestones
Target Booking in subsequent quarters

Why it matters

This is a significant HVDC order whose booking will materially impact future order inflow and backlog.

The numbers exclude the Adani Khavda HVDC project, which will be reported in subsequent quarters on achieving defined commercial milestones.

Risks & concerns

  • Delay in a significant export order from the parent

    medium

    A significant export order from the parent is still in the pipeline due to customer-side delays and is now expected to be decided in the second half of the next financial year.

    Management acknowledged

  • Potential impact of Chinese competition in the T&D market

    medium

    Media reports about potential Chinese players entering India are considered speculation without government clarification, with management emphasizing their strong 'Make in India' supply chain.

    Analyst downplayed

  • Forward-looking statements subject to risk and uncertainties

    low

    Today's discussion may contain a few forward-looking statements which are subject to risk and uncertainties.

    Management acknowledged

  • Minor project execution delays due to Right of Way (ROW) issues

    low

    ROW issues can sometimes cause 1-2 month delays in material dispatch, though developers make alternate provisions to mitigate this.

    Management acknowledged

Q&A highlights

4 direct, 1 evasive
HVDC Adani order exclusion reason and scope Direct
As per company's processes, there are certain milestones defined. Once we reach that milestone, that order would be booked and yes, the transformers for the HVDC are included as part of the order.

Clarifies the booking mechanism for large HVDC orders and confirms the scope includes transformers, impacting future revenue recognition.

Asked by Mohit Kumar

Impact of FTA with Europe on competitiveness and raw materials Evasive
Mohit, we are yet to get the details of the FTA. Once we have the FTA details available with us, then only we will be able to make an assessment on what is the impact both on export side and also on the cost side. It will be too premature for us to comment on FTA.

Management defers comment on a potentially significant policy change, indicating uncertainty or lack of detailed assessment.

Asked by Mohit Kumar

Chinese competition and 'Make in India' policies Partial
It's a media reporting, so the government has not issued any clarification on that. Without any government clarification, if we comment, it will be purely speculation. But we don't think that government is going to dilute its Make in India criteria and for example, we have built a very strong supply chain in the country...

Addresses a market concern about potential Chinese competition, highlighting the company's established local supply chain and 'Make in India' advantage, but acknowledges the lack of official government stance.

Asked by Amit Anwani

Export opportunity in data centers Direct
Yes, definitely, we are working with the global teams and India being a strong manufacturing base. ... If you look at the data centre or the IT company's announcement of close to about $80 billion of data centre and AI factory by 4 major U.S. companies to be invested in the next 4 to 5 years, this itself is going to present a huge opportunity in terms of data centre and AI for the Indian market as well. We'll be concentrating on those opportunities as well.

Reveals a new growth avenue and strategic focus on the burgeoning data center and AI infrastructure market, leveraging global collaborations.

Asked by Amit Anwani

Sustainability of 27% EBITDA margin Direct
Amit, so earlier we talked about this year's expectation of delivering mid-20s kind of EBITDA, so now with the first 3 quarters of good performance, we expect, we will be delivering EBITDA at the higher end of this range. ... We don't expect a major dilution happening on the margin front in the foreseeable time.

Reassures investors about the sustainability of current high margins, revising previous more cautious guidance for FY26 upwards.

Asked by Amit Anwani

Local content for HVDC projects Partial
So these are very specific information, Parikshit, and these are commercially sensitive information. So we don't share it, these information, but I can only tell you that the whole order has been taken by GE Vernova T&D India Limited, and we will deliver the order.

Management declines to provide specific details on localization for a key HVDC project, citing commercial sensitivity, which might leave some questions unanswered for analysts.

Asked by Parikshit Kandpal

Overall ordering in transmission space and FY27 outlook Direct
I believe last fiscal ordering was in excess of INR1 lakh crores. We are significantly lower in this year so far. ... I expect that, yes, next year is going to be a much stronger year than what we had this year.

Provides a forward-looking view on the transmission sector's order inflow, indicating a potentially stronger FY27 after a relatively slower FY26.

Asked by Subhadip Mitra

2 min read 6 chapters

Detailed narrative

Strong Financial Performance and Order Growth

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.

HVDC and Renewable Energy Integration Focus

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.

Order Book Composition and Quality

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.

Capital Expenditure and Liquidity

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.

Market Outlook and Policy Tailwinds

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.

Operational Efficiency and Margin Expansion

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.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Capital Goods earnings calls