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Strong execution; margins resilient

GE Vernova T&D India (GVTD) reported a strong Q2FY27 performance, with revenue growing 32% YoY to INR20.3bn and EBITDA margin expanding by 135bps YoY to 27.1% at the higher end of mid-20s guidance. Order intake increased 52% YoY to INR24.4bn with momentum expected to carry over in H2 FY27 supported by a healthy pipeline of domestic TBCB projects and export opportunities while the Barmer-Kalamb HVDC order is expected to be booked in the current quarter. Pick up in STATCOM orders, large data centre projects and upcoming 2-3 HVDC projects bidding next year further strengthens order pipeline visibility. Export momentum remains healthy, with H1 export inflows of INR10.4bn already exceeding the INR11.8bn recorded in FY26, supported by broad-based demand across North America, Europe, the Middle East and Africa. While two large RPT opportunities remain delayed, the proposed US data-centre-related order of US$151mn (~INR13bn) is expected to conclude in H2FY27. Progress on INR 10bn capex programme remains on track while focus on higher localisation of HVDC transformers, valves and controls, along with improved supply-chain integration following the Trench acquisition, is expected to strengthen execution capabilities. Despite supply-chain constraints, particularly long lead times for high-voltage bushings, and potential competitive intensity in HVDC, GET&D remains well positioned to capitalise on rising investments in grid expansion, renewable integration, HVDC, STATCOM and data centres, supporting sustained revenue growth and profitable execution over the medium term. Long-term growth will also be supported by increasing adoption of digital grid solutions and monitoring systems, alongside localisation of critical HVDC components and supplier development. The stock is trading at a P/E of 53.2x/37.6x on FY28/29E. We maintain our ‘BUY’ rating with an unchanged TP of INR5,928 (same as earlier) valuing the stock at a PE of 65x Sep’28E (same as earlier).

We believe GVTD’s long-term growth prospects remain intact given

1) its strong order book, which provides multi-year strong revenue visibility

2) it being strongly positioned to capitalize on the robust HVDC pipeline in India

3) its “Asia for Asia” strategy driving localization efforts and high-margin export orders

4) ongoing capacity expansion plan

5) it being positioned to benefit from the energytransition-led transmission capex cycle.

Healthy Execution drives profitability despite high base: Revenue rose 31.8% YoY to INR20.3bn (PLe: INR20.9bn) driven by robust execution. Gross margin expanded by 91bps YoY to 44.5% (vs PLe: 42.6%). EBITDA grew by 38.7% to INR5.5bn (PLe: INR5.2bn). EBITDA margin expanded by 135bps YoY to27.1% (Ple:25.0%) primarily led by gross margin expansion further aided by operating leverage. PBT (exc. Extra-ordinaries) increased by 44.5% to INR5.8bn (PLe: INR5.3bn) aided by sharp increase in other income (INR503mn vs INR186mn in Q2 FY27). Adj. PAT grew by 44.0% to INR4.3bn (PLe: INR3.9bn) as effective tax rate increased marginally (+26bps YoY to 25.6%).

Robust order book at INR214.4bn (3.0x TTM revenue): Q2FY27 order inflow came in at INR24.4bn increased by 52% YoY aided by 44.2% YoY increase in Domestic Order Inflow to INR19.2bn and export order Inflow growing by a sharp +89.5% YoY to INR5.1bn. Order book stands healthy at INR214.4bn (3.0x TTM revenue) with a mix of Private/State Utilities/Central Utilities at ~78%/2%/20%.

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