Summary
GE Vernova T&D India Limited - Q3 FY 2025-26 Earnings Call Summary Wednesday, January 28, 2026, 4:00 PM
Event Participants
Executives 5 Abhishek Srivastava, Kanika Arora, Megha Gupta, Sandeep Zanzaria, Shweta Mehta, Sushil Kumar
Analysts 9 Amit Anwani, Aniket Mittal, Garvit Goyal, Mahesh Bendre, Mahesh Patil, Mohit Kumar, Nitin Arora, Parikshit Kandpal, Puneet Gulati, Subhadip Mitra, Umesh Raut
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Order Bookings | ₹2,940 crores | +41% YoY; highest quarter in FY26, excludes Adani Khavda HVDC project. |
| Order Backlog | ₹14,380 crores | +10% QoQ; provides strong visibility, less than 2% exposure to state utilities. |
| Revenue | ₹1,700 crores | +58% YoY; driven by ramped-up execution and 28% export contribution. |
| EBITDA Margin | 26.7% | +80 bps YoY (9M basis); driven by volume growth, pricing, and productivity. |
| Profit Before Tax | ₹460 crores | +142% YoY; substantial increase due to operational leverage and mix. |
| Cash Balance | ₹1,590 crores | +₹70 crores QoQ; company remains debt-free with ₹670 cr generated in 9M. |
| Exceptional Items | ₹69.3 crores | Provision for retiral benefits impact due to the new wage code. |
Geographic & Segment Commentary
- Domestic Market: Accounts for 85% of 9M FY26 orders and 72% of Q3 revenue. Growth is driven by Power Grid (PGCIL) projects, renewable energy evacuation, and the emerging TBCB (Tariff Based Competitive Bidding) pipeline from states like Maharashtra and Karnataka.
- Export Market: Represents 15% of 9M orders and 28% of Q3 revenue. Management noted that international margins are generally higher, though decision-making processes in global markets remain slower than domestic cycles.
- HVDC Segment: A critical growth pillar with the Adani Khavda VSC order and Chandrapur refurbishment. Management is targeting upcoming opportunities like the Barmer-South Kalamb project (expected Q2 FY27) to support the government’s 500 GW non-fossil target.
Company-Specific & Strategic Commentary
- Commercial Discipline: Focus remains on high-margin underwriting and improved terms, with state utility exposure limited to <2% of backlog to ensure cash flow security.
- Capacity Expansion: Progressing on a ₹1,000 crore capex plan through FY27-28 to meet rising demand for transformers and HVDC components.
- Operational Productivity: Margin expansion to 27% is attributed to the phasing out of old low-margin legacy orders and the execution of the high-margin export backlog.
- Make in India: Significant investment in local supply chains (60-70% localization) provides a competitive moat against potential new entrants or regulatory shifts in imports.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| EBITDA Margin | Higher end of mid-20s (FY26) | Upgraded trajectory following strong 9M performance (27.1%). |
| Order Inflow | Strong growth (FY27) | Expected to be a “much stronger year” driven by a robust TBCB pipeline. |
| Large Export Order | H2 FY27 | Delayed at the customer end; expected to be finalized between Sep '26 and Mar '27. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory/Import Risk | Speculation regarding the relaxation of Chinese import norms; management believes “Make in India” criteria and testing rigors (400/765kV) act as significant entry barriers. |
| Project Delays | Right of Way (ROW) issues in transmission lines can occasionally delay material lifting at substations, though impact is currently mitigated by developer storage. |
| Execution Timelines | HVDC projects carry 4-year execution cycles; revenue recognition is subject to hitting specific commercial milestones. |
Q&A Highlights
Order Booking & Adani Project
- Question: Why was the Adani HVDC order not included in the current quarter’s bookings? (Mohit Kumar)
- Answer: Internal processes require reaching specific commercial milestones before booking; this order includes both terminals and transformers (Sandeep Zanzaria).
Margins & Sustainability
- Question: Is the 27% EBITDA margin sustainable given commodity inflation? (Subhadip Mitra/Aniket Mittal)
- Answer: Margins are supported by price variation clauses in large contracts and built-in cost assumptions for firm-price orders. Management expects no significant deterioration in the foreseeable future (Sushil Kumar).
Competition & China Policy
- Question: What is the impact if the government relaxes rules on Chinese manufacturers? (Nitin Arora/Amit Anwani)
- Answer: It is currently media speculation. Even if approved, local manufacturing and rigorous testing for high-voltage equipment take years to mature. GE Vernova has already built a robust local supply chain (Sandeep Zanzaria).
Export Pipeline
- Question: What is the status of the large export order from the parent company? (Amit Anwani)
- Answer: The order is delayed due to customer-side decisions and is now expected in the second half of the next financial year (Sushil Kumar).
Key Takeaway
GE Vernova T&D India delivered a standout performance in Q3 FY26, characterized by a 58% YoY revenue jump to ₹1,700 crores and an EBITDA margin of 26.7%. The company capitalized on the structural shift in India’s energy mix, securing ₹2,940 crores in new orders, excluding the massive Adani Khavda HVDC project which awaits milestone-linked booking. Strategic focus on commercial discipline has successfully reduced state utility exposure to under 2%, while a healthy cash balance of ₹1,590 crores supports the ongoing ₹1,000 crore capex cycle. Management remains confident in maintaining margins at the higher end of the mid-20s. Looking ahead, the company is well-positioned to benefit from the Draft NEP 2026 targets and a surge in TBCB tenders, despite potential macro-regulatory uncertainties regarding the entry of Chinese competitors.
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