GE Vernova T&D India Limited — Q4 FY25 earnings call

Call held 23 May 2025

Management summary

GE Vernova T&D reported a strong Q4 and full-year FY25, driven by robust demand, significant revenue growth, and expanded EBITDA margins. The company saw a substantial increase in order bookings and backlog, supported by strategic investments in HVDC manufacturing and a focus on profitable product orders. Cash generation was also strong, leading to a healthy cash balance, though provisions for litigation impacted other expenses.

Highlights

  • Q4 FY25 revenues of ₹11.5 billion, up 26% YoY, and FY25 revenues of ₹42.9 billion, up 35% YoY.

  • Q4 FY25 EBITDA at ₹2.5 billion (21.9% of revenue) and FY25 EBITDA at ₹8.1 billion (19.1% of revenue), exceeding mid-to-high teen guidance.

  • Q4 FY25 order bookings of ₹29.9 billion, up 124% YoY, with total order backlog reaching ₹126.6 billion, doubling YoY.

  • Profit Before Tax & exceptional items for FY25 stood at ₹8,197 million, a 3x increase from ₹2,631 million in FY24.

  • Cash and cash equivalent balance at ₹10.5 billion as of March 31, 2025, a substantial increase from ₹2.8 billion a year prior.

Concerns

  • Other expenses in Q4 FY25 included ₹150 million in provisions for certain litigation matters, contributing to a slightly higher expense ratio of 12.6% of sales.

Key financials

2 periods

Q4 FY25

  • Revenue
    11.5 Bn
    YoY +26%
  • EBITDA
    2.5 Bn
  • EBITDA Margin
    21.9%
  • PBT & Exceptional Items
    2.561 Bn
    YoY +153%
  • Gross Margin
    42.3%

FY25

  • Revenue
    42.9 Bn
    YoY +35%
  • EBITDA
    8.1 Bn
  • EBITDA Margin
    19.1%
  • PBT & Exceptional Items
    8.197 Bn
    YoY +211%
  • Gross Margin
    40.4%
  • Royalty Payment
    640 Mn

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

₹126.6 Bn

as of 2025-03-31 quantified

102% YoY

Inflow this quarter

₹29.9 Bn

Execution

INR 85 billion executable within 1.5-2 years, INR 38-40 billion has 3-5 years tenure.

Composition

  • Central Utilities (Power Grid) (client type)
  • Transformers & Shunt Reactors (product)
  • HVDC & FACTS (product)
  • Export (large orders) (geography) ₹22 Bn
  • Digital Software (product) ₹8 Bn
  • Central Utilities (share of order book) (client type) 34%

Pipeline

L1 awaiting loa

HVDC projects (Khavda, South Olpad, Rajasthan package) are in the upfront ordering timeline. One HVDC project is under bidding (Khavda to South Olpad). Another HVDC project proposed in National Committee of Transmission is delayed.

The order book momentum is strong, with significant growth across diversified customers and product categories, including large export and digital software orders.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹240 Cr
    • New manufacturing line for critical HVDC Thyristor and VSC Valves at Pallavaram facility & new HVDC Controls facility in Noida ₹140 Cr
    • Debottlenecking existing business lines and maximizing asset utilization ₹80 Cr
    Recognizing this opportunity and our role in enabling India's energy transition, earlier this month we announced a strategic investment of INR 1,400 million. This capital will be directed towards establishing a new manufacturing line for critical HVDC Thyristor and VSC Valves at our existing Pallavaram facility in Chennai, and developing a new HVDC Controls facility in Noida. ... And just to add on to what Sandeep said, this capex announcement is in addition to INR80 crores to INR90 crores that we communicated earlier. So INR80 crores to INR90 crores is for our existing business lines to debottleneck to take the maximum, benefit of the assets that we have and deliver more from the existing factory. So overall put together, INR140 crores plus roughly INR80 crores, we have now announced overall capex in the range of INR240 crores to INR250 crores.
  • Dividend ₹5/share (final)
    the Board has recommended a dividend of INR5 per share. Once approved by the shareholders, that will lead to an outflow of roughly INR130 crores.
  • Liquidity Cash ₹10.5 Bn Cash generated was ₹1.9 billion in Q4 and ₹8.3 billion during FY24-25. The company also invests surplus cash into a cash pool managed by the GEV Group, earning interest and providing flexibility.
    The cash and cash equivalent balance was at 10.5 BINR as on March 31, 2025 vs 2.8 BINR as at March 31, 2024. The cash generated was 1.9 BINR in Q4 and 8.3 BINR during the FY 24-25. ... We have taken shareholder approval regularly to invest surplus cash to the cash pool, which is managed by the GEV Group. Any surplus, which is available with the company to the extent of limit approved by the shareholders is invested there. So this investment is actually the cash pool that we have given to the cash pool leader. Just as a reminder, our entity borrowed from the cash pool for quite a number of years when we were in debt.

Guidance & targets

Capacity

  • Power Transmission Capacity Increase Capacity · by FY32 · High confidence 35%
    India is aiming to increase its power transmission capacity by 35% by FY32, focusing on integrating renewable energy and securing 24x7 power supply.

    — Sandeep Zanzaria

  • HVDC Contract Capacity Capacity · future · High confidence ₹20,000-25,000 crores
    Let's say, if Power Grid comes up with INR20,000 crores or INR25,000 crores of HVDC contracts, wherein the transmission opportunity is roughly INR10,000 crores to INR12,000 crores kind of the opportunity. So do you have that kind of capacity? Yes, we have that capacity.

    — Sandeep Zanzaria

Profitability

  • EBITDA Margin Profitability · ongoing · High confidence mid to high teens
    have made communication about our aim to achieve mid to high teen of EBITDA. Happy to announce that we have actually delivered a higher end of this range that we have been communicating regularly.

    — Sushil Kumar

  • Gross Margin Profitability · going forward · High confidence sustain current level
    And we believe that our endeavor is to sustain this kind of gross margin and EBITDA going forward.

    — Sushil Kumar

Order Inflow

  • HVDC Project Decisions Order Inflow · during this year · Medium confidence 1-2 projects
    But we expect at least 1 to 2 projects to get decided during this year.

    — Sandeep Zanzaria

Pricing

  • Pricing Environment Pricing · ongoing · High confidence stable
    So I would say that the pricing is stable as of now. Maybe we don't see much improvement coming there. If there is an increase in raw material prices, we are able to pass on. But now the incremental growth in pricing is not so much there. But it is still not going down and we are looking at a stable pricing environment.

    — Sandeep Zanzaria

Order Book Composition

  • Export Mix Order Book Composition · ongoing · High confidence 30%
    Understood. Sir, but would it be fair to assume that it should be somewhere around that 30% kind of a mix, which is what we are seeing currently? That is what is always our endeavor to maintain that kind of a ratio.

    — Sandeep Zanzaria

Market Outlook

  • Energy Transition Market Stability Market Outlook · next 3-5 years or 10 years · Medium confidence stable market
    Apart from that, what I see is that I think energy transition story globally is something which is not going to go away just like that. So from a demand or market perspective, we don't see that there should be a challenge at least for the next 3 to 5 years or maybe 10 years. It should be a much stable market. That is what we are anticipating.

    — Sandeep Zanzaria

What to watch in Q1 FY26

HVDC Project Decisions

next quarter / during this year
Current 1-2 projects expected to be decided this year
Target Announcement of specific HVDC project wins

Why it matters

HVDC is a key growth area, and securing these projects will validate the company's strategic investments and market positioning.

But we expect at least 1 to 2 projects to get decided during this year.

Risks & concerns

  • Supply Chain Management

    high

    Supply chain is a big challenge due to demand explosion globally and political situations, requiring constant mitigation efforts by dedicated teams.

    Management acknowledged

  • Global Political Situation

    medium

    Political situations globally can impact supply chain and overall market dynamics.

    Management acknowledged

  • Competition and Increasing Capacities

    medium

    Analysts raised concerns about increasing capacities by competitors and its impact on demand-supply realization, though management believes the energy transition market is stable for the next 3-10 years.

    Analyst acknowledged

  • Litigation Matters

    low

    ₹150 million in provisions made for certain litigation matters in Q4 FY25.

    Management acknowledged

Q&A highlights

6 direct
Execution timeline for existing order backlog Direct
So as I explained, INR38 billion or INR40 billion of this INR127 billion, largely are the projects which have a longer tenure, as we communicated earlier. These have a tenure of 3 to 5 years of execution. Excluding that, we have about INR85 billion of order, which is executable within 1.5-year to 2-year time frame as per the contracts with the customer.

Clarifies the execution visibility and duration for the substantial order backlog, indicating a mix of short-to-medium and long-term projects.

Asked by Umesh Raut

Sustainability of strong gross margins and EBITDA Direct
I think the right reference is to look at the gross margins for the full financial year. On a full financial year, we did deliver 40.4% of gross margin, and this is about 5%, 6% improvement versus the last financial year. And we believe that our endeavor is to sustain this kind of gross margin and EBITDA going forward.

Addresses analyst concerns about the sustainability of high margins, attributing it to better pricing, improved product mix (towards profitable product orders and exports), and strong execution, with a commitment to maintain these levels.

Asked by Mohit Kumar

Necessity of new HVDC factory for upcoming opportunities Direct
No, Mohit, it is not it was not a condition. The condition is basically for the whole project, you need to meet the minimum criteria for Make in India. But this is going to help us in, of course, localizing, improving the competitiveness and also giving more comfort to the customer that we are more local in terms of technology as well.

Clarifies that while not a mandatory condition, the new HVDC factory enhances localization, competitiveness, and customer confidence, aligning with 'Make in India' criteria.

Asked by Mohit Kumar

Overall TAM growth for non-HVDC and exports Direct
I think, yes, of course, what we are looking at the government plan of about INR9 lakh crores up till FY '32. So that gives a lot of confidence. And also, what we see is that there's a lot of growth in terms of the energy transition story globally. So first the Europe opened and then Australia and then now even Middle East is also opening up. So yes, definitely the TAM for the export potential is also growing.

Provides a positive outlook on market growth, citing government plans for transmission capacity and global energy transition trends driving export opportunities in new geographies.

Asked by Subhadip Mitra

Mix between products and projects for FY25 closing backlog Partial
Renu, I don't have that information readily available. Maybe we can probably share it subsequently on another call.

Management could not provide a specific breakdown of the product vs. project mix for the backlog, indicating a potential area for future investor inquiry.

Asked by Renu Baid Pugalia

Related party loans (cash pool) in the balance sheet Direct
We have taken shareholder approval regularly to invest surplus cash to the cash pool, which is managed by the GEV Group. Any surplus, which is available with the company to the extent of limit approved by the shareholders is invested there. So this investment is actually the cash pool that we have given to the cash pool leader. Just as a reminder, our entity borrowed from the cash pool for quite a number of years when we were in debt.

Explains the nature and rationale behind the related party loans, clarifying it as an investment in a group cash pool for efficient working capital management and liquidity, approved by shareholders.

Asked by Inderjeet Bhatia

Capacity for large HVDC contracts (₹20,000-25,000 crores) Direct
Let's say, if Power Grid comes up with INR20,000 crores or INR25,000 crores of HVDC contracts, wherein the transmission opportunity is roughly INR10,000 crores to INR12,000 crores kind of the opportunity. So do you have that kind of capacity? Yes, we have that capacity.

Confirms the company's readiness and capacity to handle large-scale HVDC contracts, which is crucial given the anticipated growth in this segment.

Asked by Dhavan Shah

Asset turns for the new ₹240-250 crores capex Partial
Asset turn is difficult to give. As Sandeep explained in the earlier question that a significant part of capex is for HVDC. So HVDC projects are very large contracts. For an HVDC project, this is not the entire investment.

Management found it difficult to provide a specific asset turn for the HVDC-focused capex, indicating the long-term, complex nature of these projects and the challenge in quantifying immediate returns.

Asked by Jainam

3 min read 6 chapters

Detailed narrative

Strong Financial Performance Driven by Robust Demand

GE Vernova T&D reported a robust financial performance for Q4 and full-year FY25. Q4 revenues grew 26% YoY to ₹11.5 billion, contributing to a full-year revenue of ₹42.9 billion, a 35% increase YoY. Profit Before Tax & exceptional items for FY25 surged threefold to ₹8,197 million, reflecting strong operational leverage. The company achieved an EBITDA margin of 21.9% in Q4 and 19.1% for the full year, reaching the higher end of its mid-to-high teens target.

Doubled Order Backlog and Strategic Order Inflows

The company witnessed exceptional order booking, with Q4 FY25 bookings up 124% YoY to ₹29.9 billion. This strong inflow led to a doubling of the order backlog to ₹126.6 billion as of March 31, 2025, compared to ₹62.7 billion a year ago. The backlog includes significant orders from Power Grid Corporation of India for transformers and shunt reactors, as well as large export orders worth ₹22 billion and digital software orders of ₹8 billion. Approximately ₹85 billion of the backlog is executable within 1.5-2 years, with the remaining ₹38-40 billion having a longer 3-5 year execution tenure.

Strategic Investments in HVDC and Capacity Expansion

GE Vernova T&D announced a strategic investment of ₹1,400 million to establish a new HVDC manufacturing line and controls facility in Chennai and Noida, respectively. This investment is part of a larger capex plan totaling ₹240-250 crores, which also includes ₹80-90 crores for debottlenecking existing business lines. The new HVDC capacity is designed to meet the 'Make in India' criteria, enhance competitiveness, and support both domestic demand and export opportunities, with the company confirming capacity to handle ₹20,000-25,000 crores in HVDC contracts.

Improved Gross Margins and Stable Pricing Environment

The company achieved a Q4 gross margin of 42.3% and a full-year gross margin of 40.4%, representing a 5-6% improvement over the previous financial year. Management attributed this to better pricing, an improved product mix favoring more profitable product orders over turnkey projects, increased export revenue, and strong execution. The pricing environment is currently stable, with the ability to pass on raw material increases, and the company aims to sustain these improved margin levels going forward.

Market Outlook and Diversification Strategy

India's power transmission capacity is projected to increase by 35% by FY32, providing a strong domestic growth outlook. Globally, the energy transition story is driving demand in new export markets like Europe, Australia, and the Middle East. The company is actively working to diversify its portfolio beyond transformers to include switchgears, STATCOM, HVDC, and control & automation products. While the data center market is growing (50-60% YoY), it is not yet a substantial part of the order book compared to the rapid growth in the TBCB transmission segment.

Cash Generation and Capital Deployment

The company generated ₹1.9 billion in cash during Q4 and ₹8.3 billion for the full year FY25, leading to a significant increase in cash and cash equivalents to ₹10.5 billion. The Board has recommended a dividend of ₹5 per share, resulting in an outflow of approximately ₹130 crores. Surplus cash is also invested in a cash pool managed by the GEV Group, providing liquidity and earning interest, reflecting a balanced approach to capital deployment for growth and shareholder returns.

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