GE Vernova T&D India Powers Up: Strong Q2 FY26 Performance and Strategic Capex

GE Vernova T&D India Limited, a key player in India's power transmission sector, has reported a robust financial performance for the second quarter and first half of Fiscal Year 2026. The company's latest investor presentation and earnings call highlight significant revenue growth, impressive EBITDA expansion, and strategic investments aimed at capitalizing on India's evolving energy landscape. The results underscore the company's disciplined execution and its commitment to strengthening the nation's transmission backbone amidst ambitious energy transition goals.

Financial Highlights: A Quarter of Strong Growth

For Q2 FY26, GE Vernova T&D India recorded revenues of INR 1,540 crore, marking a substantial 39% year-over-year increase from INR 1,110 crore in Q2 FY25. The first half of FY26 also demonstrated strong momentum, with revenues reaching INR 2,868.6 crore, maintaining a 39% growth rate compared to H1 FY25. This growth was not just top-line; the company's profitability saw a significant boost. EBITDA for Q2 FY26 stood at 25.8%, and for H1 FY26, it was an even stronger 27.3%. This represents an impressive expansion of approximately 700 basis points over FY25, driven by a favorable combination of increased volumes, improved pricing, and enhanced productivity.

The company's profit before tax (PBT) for Q2 FY26 surged to INR 401.3 crore, more than doubling from INR 193.8 crore in the corresponding quarter of the previous year. Similarly, H1 FY26 PBT reached INR 791.3 crore, up from INR 373.7 crore in H1 FY25. This strong operational performance translated into healthy cash generation, with INR 430 crore generated in Q2 before dividend payments and INR 590 crore in H1. As a result, the company maintains a robust cash and cash equivalent balance of INR 1,520 crore, with no debt.

Order Book and Strategic Initiatives

The company's order book remains a significant strength, with a healthy backlog of INR 13,110 crore as of September 2025. This backlog is more than three times the revenue of the last financial year, providing strong visibility for long-term growth. The order intake for Q2 FY26 was INR 1,610 crore, with domestic orders accounting for 83% and exports for 17%. For H1 FY26, total orders stood at INR 3,226 crore, with 85% from domestic and 15% from exports.

To support this growth trajectory and meet future demand, GE Vernova T&D India has announced a substantial capital expenditure of INR 806 crore. This investment, funded through internal accruals, will be utilized to expand existing capacities for Transformers and Reactors at its Vadodara facility by over 50%. Additionally, new manufacturing lines for Air Core Reactors and Bushings will be established at the Hosur facility, and capacities for GIS and AIS products at Hosur and Padappai will be expanded by up to 25%. This expansion is expected to be completed between 2026 and 2028.

Market Outlook and Management Commentary

Management highlighted the robust outlook for the transmission segment, driven by India's ambitious target of 500 GW of non-fossil fuel capacity by 2032 and an expected 80% climb in peak power demand by 2032. This necessitates an unprecedented expansion of the grid, with significant opportunities in HVDC, STATCOM, and digital solutions. The company is strategically positioning itself to leverage these trends, including the growing demand from data centers, which are expected to become a much larger opportunity in FY27 and FY28.

While acknowledging some softness in the domestic order pipeline and a slowdown in STATCOM opportunities, management expressed confidence in a rebound, citing multiple identified projects. The finalization of a large INR 3,000 crore related party transaction order is anticipated by Q4 FY26. The company expects to maintain EBITDA margins in the mid-20s range for the current financial year and projects annual revenue between INR 5,500 crore and INR 6,000 crore, representing approximately 35% growth over the last year.

GE Vernova T&D India's Q2 FY26 performance reflects a company in strong growth mode, strategically investing to meet future demand in a rapidly expanding power transmission market. The focus on operational efficiency, disciplined capital allocation, and a healthy balance sheet positions it well for sustained growth and value creation for its stakeholders.