GE Vernova T&D Profit Doubles to ₹299 Crore in Q2 FY26

Introduction

GE Vernova T&D India Limited has reported a strong financial performance for the second quarter of fiscal year 2026, ending September 30, 2025. The company's consolidated net profit more than doubled, driven by robust revenue growth, significant margin expansion, and strong execution of its large order book. These results highlight the company's key role in India's ongoing grid modernization and energy transition, positioning it to capitalize on sustained demand in the power transmission and distribution sector.

A Surge in Financial Performance

The company's financial results for Q2 FY26 showcased impressive growth across all key metrics. Net profit surged by 107% year-on-year to ₹299 crore, compared to ₹145 crore in the same quarter of the previous fiscal year. Revenue from operations grew by a substantial 39% to ₹1,538 crore from ₹1,108 crore in Q2 FY25. This top-line growth was accompanied by a remarkable improvement in profitability. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at ₹397 crore, with the EBITDA margin expanding to 25.8% from 18.5% in the year-ago period. This expansion was attributed to higher volumes, better pricing on recent orders, and internal productivity improvements.

Record Order Book Underpins Future Growth

A key factor supporting GE Vernova T&D's outlook is its record-high order backlog, which stood at ₹13,100 crore as of September 2025. This backlog is more than three times the company's revenue for the previous fiscal year, providing strong revenue visibility for the coming years. While order inflows for the quarter were ₹1,610 crore, lower than the high base of the previous year, the company continues to secure significant contracts. Notable wins include projects for high-voltage direct current (HVDC) technology from Adani Energy Solutions and a refurbishment contract from Power Grid Corporation of India. The backlog is well-diversified, with 97% of orders from private customers, central utilities, and public sector units, minimizing exposure to state utilities.

Strategic Capacity Expansion

To meet the anticipated rise in demand, GE Vernova T&D's board has approved a significant capital expenditure of ₹806 crore. This investment will be used to expand existing manufacturing facilities over the next three years. The plan includes increasing the capacity for transformers and reactors at the Vadodara facility by over 50% and establishing new production lines for air-core reactors and bushings at its Hosur plant. Capacities for Gas-Insulated Switchgear (GIS) and Air-Insulated Switchgear (AIS) products at its Hosur and Padappai locations will also be expanded by up to 25%. This strategic investment will be funded through internal accruals, supported by a strong, debt-free balance sheet and a cash balance of ₹1,520 crore.

Management's Vision for Grid Modernization

Sandeep Zanzaria, Managing Director and CEO of GE Vernova T&D India, stated that the company's results were fueled by the accelerating pace of India's grid modernization. He emphasized that these upgrades are essential for improving reliability, integrating large-scale renewable capacity, and meeting the nation's growing power requirements. Zanzaria also highlighted the company's disciplined focus on securing margin-accretive orders, a strategy intended for long-term stability and success. The planned capacity expansions are designed to ensure the company is prepared to support India's energy transition and solidify its market position.

India's Energy Transition as a Growth Catalyst

GE Vernova T&D is a direct beneficiary of structural tailwinds in the Indian power sector. The government's target to achieve 500 GW of non-fossil fuel capacity by 2030 and a projected 80% increase in peak power demand by 2032 necessitate massive investments in the country's transmission infrastructure. This creates a multi-year demand cycle for the high-voltage equipment and grid solutions that GE Vernova T&D specializes in. The company's technological expertise and comprehensive product portfolio position it favorably to capture a significant share of this expanding market.

Stock Performance and Market Valuation

The company's strong operational performance has been reflected in its stock price, which has delivered exceptional returns. The stock has surged over 47% year-to-date and has generated multi-fold returns for investors over the past three to five years, significantly outperforming market benchmarks. This has led to a premium valuation, with the stock trading at a high price-to-earnings (P/E) multiple. While the valuation reflects high expectations for future growth, analysts remain optimistic, citing the strong order book, robust industry outlook, and the company's debt-free status as key justifications.

Conclusion

GE Vernova T&D India's second-quarter performance underscores its strong execution capabilities and strategic positioning within a high-growth sector. With a robust order book providing clear revenue visibility, a significant investment in capacity expansion, and a favorable industry environment driven by India's energy goals, the company is well-equipped for sustained growth. While trading at a premium, its leadership in the power transmission space makes it a key player to watch as India continues to build its energy infrastructure for the future.