GE Vernova T&D India LtdQ2 FY25
GE Vernova T&D India Ltd Q2 FY25 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹5,043P/E: 99.5Market Cap: ₹1.1L CrSector: Electrical Equipment
Management growth scorecard
Revenue
Category 1
Margin
Category 1
Fundraise
N/A
Order
Yes
Capex
Yes
4 of 4 growth signals are positive — a strong management growth story.
Full analysisRevenue guidance
Category 1- →The company expects continued strong growth with a 39% year-on-year revenue increase already observed in Q1 FY '25-'26.
- →Export contribution to revenues is targeted at about 30% in the long term, with export backlog currently around 30% of total backlog.
- →Pipeline growth for non-HVDC orders is expected to be in the single digits, approximately 7-8% over last year.
- →The company sees potential to grow volumes by around 15% over the next 3 years, even without large HVDC orders.
- →Execution of backlog valued at about INR130 billion supports revenue visibility for the next 3 years.
- →Demand across domestic and export markets remains strong, supported by energy transition trends globally.
- →Capacity expansions and debottlenecking efforts are ongoing to support growing volumes and orders.
- →Pricing environment is stabilizing, aiding sustainable margin and revenue growth.
Margin guidance
Category 1- →The company demonstrated strong financial performance in Q1 FY '25-'26 with 40% revenue growth and significant EBITDA margin expansion (29.1%, up 1000 basis points from previous year).
- →Last year’s EBITDA was 19.1% (high end of mid- to high teens range); management aims to improve upon this in the current year.
- →Positive cash flow of INR 1.7 billion generated in Q1 with cash balance of INR 12.2 billion and zero debt supports growth.
- →Backlog of INR 130 billion gives revenue visibility for next 3 years; 30% expected from exports long term.
- →Export orders have grown to around 30% of backlog, supporting profitable growth.
- →Margin expansion expected to continue driven by volume, price realization, and productivity improvements.
- →Management confident of sustained earnings and operating margin improvement over the coming years with growth driven by both domestic and export markets including HVDC and non-HVDC projects.
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Fundraise plans
- →No current indication of new fundraising through debt or equity was mentioned in the call.
- →The company reported a strong cash position with INR 12.2 billion cash and cash equivalents and no debt.
- →Management announced a planned capex of approximately INR 2.5 billion and a dividend payout of INR 1.3 billion.
- →They have about INR 8 billion of available cash beyond announced utilization plans and are evaluating options for its use.
- →Any decisions regarding capacity expansion or additional investments will be communicated when the timing is right.
- →Focus remains on using cash for a combination of shareholder returns and meaningful business investments without explicit mention of external fund raising.
Order book
Yes- →As of June 30, 2025, GE Vernova T&D India's order backlog stands at INR129.6 billion, up 2% quarter-on-quarter.
- →The backlog represents approximately 3 times the revenue of the previous year, providing visibility for the next 2-3 years.
- →About 30% of the backlog is from export orders.
- →Approximately 30-35 billion INR of the backlog is long-term with execution cycles of 3 to 5 years; the remaining INR95-100 billion has an execution timeline of 18 to 24 months.
- →Order inflows during Q1 FY 2025-26 were INR16.2 billion, a 57% year-over-year increase.
- →14% of Q1 orders were from exports, with 86% domestic.
- →The company expects steady export growth and continues to focus on disciplined underwriting and selectivity in order booking.
Capex plans
Yes- →GE Vernova T&D India Limited has announced a capex of approximately INR 2.5 billion.
- →This includes INR 1.4 billion allocated for valves and controls for HVDC and STATCOM projects.
- →An additional INR 1.1 billion is planned as regular capex to debottleneck factory capacities.
- →The company continues to evaluate options for utilizing available cash of INR 8 billion for further strategic investments or capacity expansion.
- →Management regularly assesses the timing and scale of future capacity expansions based on demand.
- →No concrete new large-scale capex plans have been disclosed beyond the current announced investments; decisions will be communicated as made.
How does GE Vernova T&D India Ltd rank vs peers in Electrical Equipment?
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