GE Vernova Stock Surges 11% on Adani Energy Order Win

Introduction

Shares of GE Vernova T&D India surged by more than 11% on December 22, reaching an intraday high of ₹3,251.80. The significant stock price movement followed the company's announcement of a large, multi-year contract secured from AESL Projects, a subsidiary of Adani Energy Solutions. This landmark deal reinforces GE Vernova's position in India's growing renewable energy infrastructure sector and provides a substantial boost to its long-term revenue visibility. While the stock pared some of its initial gains, it closed the day approximately 5% higher at ₹3,060.10, reflecting strong investor confidence in the company's growth prospects.

Details of the Landmark Contract

In an exchange filing, GE Vernova T&D India detailed the scope of the contract awarded by AESL Projects. The project involves the design, supply, and establishment of a 2,500 megawatt (MW), ±500 kilovolt (kV) High Voltage Direct Current (HVDC) Voltage Source Converter (VSC) terminal station. This critical infrastructure, comprising two 1,250 MW units, is designed to evacuate renewable power from the KPS 3 renewable energy hub in Khavda, Gujarat, to South Olpad. The company confirmed that the project will be executed over several years, though it did not disclose the specific financial value of the contract. This project represents one of the most significant domestic orders for the company in recent years.

Financial Implications and Analyst Estimates

While GE Vernova did not disclose the order value, several brokerage firms have provided estimates, highlighting the project's substantial scale. The total project value is widely estimated to be in the range of ₹7,500 crore to ₹12,000 crore. Emkay Global Financial Services projects the order value to be between ₹7,500 crore and ₹8,000 crore, with an execution timeline of four to five years. Meanwhile, brokerage Prabhudas Lilladher anticipates the total project value could be as high as ₹12,000 crore. This win significantly enhances GE Vernova's credentials in advanced HVDC-VSC technology, strengthening its competitive position for future tenders in the power transmission sector.

Strengthening an Already Robust Order Book

The Adani Energy Solutions contract adds to an already healthy order book for GE Vernova T&D India. Prior to this announcement, the company's order backlog stood at a strong ₹13,100 crore, up 33% year-on-year. This growth has been supported by consistent order inflows from both domestic and international markets. Recently, the company also secured a notable order worth ₹1,230 crore from the Power Grid Corporation of India Limited (PGCIL) for the refurbishment of the 2x500 MW HVDC Chandrapur back-to-back link. These back-to-back large-scale wins provide clear and strong visibility for the company's future revenue and earnings growth.

Market Reaction and Brokerage Outlook

The market's reaction was immediate and positive. The 11% surge in GE Vernova's stock price underscores investor optimism about the company's strategic direction and operational capabilities. The stock has been a strong performer, gaining nearly 50% year-to-date. Brokerages have maintained a positive outlook on the company. Emkay Global reiterated its 'Buy' call with a target price of ₹3,350 per share, implying an upside of over 14% from the previous close. Similarly, Antique Stock Broking maintained a 'Buy' rating with a target of ₹3,596, citing the company's strong balance sheet, superior earnings growth potential, and high return ratios as key investment drivers.

Competitive Positioning and Future Outlook

This contract win solidifies GE Vernova's leadership in the Indian HVDC market, particularly in the advanced VSC technology segment. Analysts suggest that GE Vernova and Hitachi Energy are well-positioned to win upcoming HVDC tenders. In contrast, the addressable market for competitors like Siemens Energy, which focuses primarily on VSC technology, may narrow in the near term for certain types of projects. Reflecting this sentiment, Siemens Energy India's shares closed nearly 5% lower on the day of the announcement. Looking ahead, GE Vernova's announced capital expenditure of approximately ₹1,000 crore signals its readiness to scale operations to meet the demands of large domestic and export opportunities, aligning perfectly with India's energy transition goals.