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    GE Vernova T&D

    GVT&D
    Capital Goods·19 May 2026
    Management Summary

    GE Vernova T&D reported a strong Q4 and full year FY26, marked by robust revenue growth, significant margin expansion, and a record order backlog. The company achieved zero debt and a healthy cash position, supporting substantial capital investments for future growth. While Q4 order finalization was noted as 'dull' and HVDC revenue conversion is long-cycle, the overall outlook remains positive with a de-risked business model and strategic focus on India's energy transition.

    Highlights

    5

    • Full year FY26 revenue stood at ₹62.1 billion, up 45% year-on-year, demonstrating strong top-line growth.

    • Full year FY26 Profit Before Tax (PBT) increased 2.1x to ₹17.1 billion, reflecting improved profitability.

    • Q4 FY26 EBITDA margin reached a record 27.2%, driven by disciplined underwriting and favorable product mix.

    • Order backlog expanded to ₹214.6 billion as of March 31, 2026, a 49% year-on-year increase, providing strong visibility.

    • The company ended the year with ₹25 billion in cash and cash equivalents and zero debt, enabling self-funding of capex programs.

    Concerns

    3

    • Q4 FY26 order finalization was 'slightly dull', though management attributed it to a conscious decision.

    • A mark-to-market loss of ₹500 million on foreign currency derivatives impacted other expenses in Q4 FY26.

    • Revenue conversion from long-cycle HVDC projects is expected to start from FY28-29 onwards, implying a lag in revenue recognition for these large orders.

    Key financials

    Metrics

    14

    Periods

    3

    Headline

    2
    • Order Backlog (March 31, 2026)
      $214.6B
      YoY+49%
    • Cash & Cash Equivalents (March 31, 2026)
      $25B
      YoY+138%

    Q4 FY26

    6
    • Revenue
      $16.4B
      YoY+42%
    • Order Intake
      $86.1B
      YoY+1.9%
    • Profit Before Tax
      $4.6B
      YoY+76.9%
    • EBITDA Margin
      27.2%
    • Exceptional Item Reversal
      $0.057B

    FY26

    6
    • Revenue
      $62.1B
      YoY+45%
    • Order Intake
      $147.76B
      YoY+37%
    • Profit Before Tax
      $17.1B
      YoY+108.5%
    • EBITDA
      $17B
      YoY+112.5%
    • Cash Generated
      $15.8B

    Order Book

    high confidence

    Total Value

    ₹ 214.6 billion

    as of 2026-03-31

    quantified
    49.0% YoY

    Inflow this qtr

    ₹ 86.1 billion

    Execution

    Long-cycle HVDC projects will have meaningful execution conversion starting from financial year '28-'29 onwards.

    Composition

    Mix2 client types
    • Private Customers, Central Utilities, PSUs98.0%
    • State Utilities2.0%

    Share of order book by client type

    Pipeline

    L1 awaiting loa

    More than 33 projects under bidding under TBCB, including 21 projects of 765 kV and over 10 HVDC projects listed.

    "The order book provides exceptional multi-year visibility, particularly with the layering in of long-cycle HVDC projects alongside core product and service offerings. The company is confident in achieving its base order numbers."

    Source:
    Prepared remarks

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    ₹10 billion

    self-funded through cash surplus

    Debt

    Gross ₹0 billion · Net ₹0 billion · 0.0x EBITDA

    Dividend

    ₹10/share (final)

    Liquidity

    Cash ₹25 billion

    Cash surplus provides a clear runway to self-fund the capex program.

    Guidance & targets

    6
    CategoryTargetPriority
    Margin
    EBITDA Margin
    mid-20s, with endeavor to improve further
    		Medium
    Export Growth
    Base Export Orders Growth
    15% to 20%
    		High
    HVDC Projects
    HVDC Order Wins
    roughly one project per year
    		Medium
    Market Growth
    Indian Data Center Market Growth
    to a meaningful number
    		Medium
    Market Growth
    Data Center Capacity Addition
    4-5 gigawatts every year
    		Medium
    Order Finalization
    TBCB Order Finalization
    improve
    		High

    HVDC Project Pipeline Conversion

    Next quarter/FY27
    CurrentBarmer tender live, 33 TBCB projects under bidding
    TargetLOA/order wins for Barmer or other HVDC projects

    Why it matters

    HVDC is a key growth driver and long-term opportunity for the company.

    only one tender which is live today, which is Barmer. So the tender has been issued. The TBCB developers are working to submit their bid. Presently, it is getting extended. So we are not very sure that what will be the time line for the ultimate submission. So once that is done, then obviously the opportunity will be there for us to secure that order.

    How to verify

    order_book.pipeline

    Risks & concerns

    4
    RiskSeverity

    Long execution cycle for HVDC projects

    HVDC projects have longer execution cycles, with meaningful revenue conversion starting from FY28-29, which may impact near-term revenue growth from large orders. — Management acknowledged

    medium

    Raw material price volatility

    Management stated that transformer business has price escalation clauses, and for other businesses, cost inflation is estimated and included in tender costs to protect margins. — Analyst acknowledged

    low

    Mark-to-market loss on foreign currency derivatives

    A one-time, non-operational mark-to-market loss of ₹500 million was recognized in Q4 FY26, impacting other expenses. — Management acknowledged

    low

    Slightly dull Q4 order finalization

    Management confirmed Q4 order finalization was 'slightly dull' but characterized it as a 'conscious decision', implying strategic selectivity. — Analyst acknowledged

    low

    Q&A highlights

    8

    “The rate may be different depending on each financial year because in our backlog, there are long-cycle HVDC projects, typically, which have a longer execution cycle. So those contracts will have a meaningful execution conversion starting from financial year '28-'29 onwards.”

    Clarifies that while the backlog is strong, revenue recognition from large HVDC projects will be back-ended, impacting near-term growth rates.

    asked by Jason Soans

    2 min read6 chapters

    Detailed Narrative

    01

    India's Power Sector Transformation and Market Opportunity

    India's power sector is undergoing a historic transformation, driven by ambitious renewable energy targets of 800 GW by 2035 and a planned 900 GW non-fossil capacity. This necessitates a robust transmission and distribution network, with peak demand projected to nearly double by 2035. GE Vernova T&D's portfolio, including high-voltage transmission equipment, grid solutions, digital capabilities, and HVDC technologies, is well-aligned to these structural opportunities, enabling India's energy transition.

    02

    Strong Financial Performance and Profitability

    For the full financial year 2026, GE Vernova T&D reported a revenue of ₹62.1 billion, marking a 45% year-on-year growth. Profit Before Tax (PBT) and exceptional item📎s for FY26 stood at ₹17.1 billion, a 2.1x increase over the previous year. The fourth quarter alone saw revenue of ₹16.4 billion (up 42% YoY) and PBT of ₹4.6 billion (up 1.8x YoY). The company achieved a record EBITDA margin of 27.2% in Q4 FY26, attributed to disciplined underwriting, a favorable mix of export and high-value services, and the resolution of low-priced legacy contracts.

    03

    Robust Order Book and De-risked Backlog

    The company secured robust order intake in Q4 FY26, totaling ₹86.1 billion, an impressive 188% year-on-year increase. This surge propelled the total order backlog to a record ₹214.6 billion as of March 31, 2026, representing a 49% growth from the previous year. The backlog is significantly de-risked, with 98% comprising orders from private customers, central utilities, and PSUs, and less than 2% from state utilities. This shift ensures more predictable cash conversion and margin protection.

    04

    Strategic Capital Investments and Localization

    GE Vernova T&D initiated over ₹10 billion in capital investments across various product lines and facilities during FY26. The Board recently approved an additional investment of ₹550 million to establish new capacities for disconnectors and drives at a facility in Vallam, Tamil Nadu. These investments are critical for future growth and support the company's localization strategy, particularly for HVDC components like thyristor valves and controls, which will be manufactured in India.

    05

    Strong Cash Position and Shareholder Returns

    The company concluded the financial year with a strong financial position, reporting zero debt and a cash and cash equivalent balance of ₹25 billion as of March 31, 2026. This robust liquidity provides a clear runway to self-fund the announced capex programs. Demonstrating its commitment to shareholders, the Board recommended a dividend of ₹10 per equity share for FY26, subject to shareholder approval.

    06

    Export Expansion and HVDC/Data Center Opportunities

    GE Vernova T&D's products are exported to over 60 countries, reflecting its 'India for the World' strategy focused on localization and increasing high-value export orders. HVDC technology remains strategically important for integrating renewable energy from remote locations. The Indian data center market, currently around 1.5 GW, is projected to grow significantly to 6-7 GW in the next 4-5 years, presenting a meaningful opportunity, especially for 400 kV and 765 kV solutions.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.