GE Vernova T&D Shares Surge 9% on Stellar Q3 Results

Introduction

Shares of GE Vernova T&D India surged up to 9% in early trading on Thursday, January 29, continuing a strong upward trend. The stock had already gained nearly 7% in the previous session on Wednesday. This significant investor interest follows the company's announcement of outstanding financial results for the third quarter ending December 2025, which comfortably surpassed market expectations and demonstrated robust operational efficiency.

Stellar Quarterly Performance in Detail

GE Vernova T&D reported its most substantial revenue growth in five quarters, a clear indicator of accelerated project execution and strong market demand. The company's revenue from operations for Q3 FY26 stood at ₹1,700 crore, a remarkable 58.35% increase compared to the ₹1,073.6 crore recorded in the same quarter of the previous fiscal year. This performance was also 17% higher than consensus analyst polls, which had projected revenue of around ₹1,453 crore.

The growth in revenue was accompanied by a sharp expansion in profitability. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by an impressive 152.95% year-on-year to ₹454.30 crore. Consequently, the EBITDA margin expanded significantly to 26.72%, a substantial improvement from the 16.73% margin reported in Q3 FY25. The company's Profit After Tax (PAT) more than doubled, rising 104.23% to ₹290 crore from ₹142 crore in the corresponding period last year. The financial statements also noted an exceptional impact of ₹69.3 crore due to the implementation of the new wage code.

Financial Performance Summary

Management Upgrades Margin Guidance

Following the strong results, the company's management expressed confidence in its future performance during the post-earnings conference call. A key highlight was the upward revision of its margin guidance for the fiscal year 2026. The management raised its forecast from the mid-20s to the higher end of the 20s, signaling sustained profitability and operational control. This upgrade reflects a positive outlook on project execution, pricing power, and cost management strategies moving forward.

Order Inflows and Export Strength

The company's order book remains healthy, providing strong revenue visibility. Management clarified that the reported order inflows for the quarter do not yet include a recently secured High-Voltage Direct Current (HVDC) order, suggesting further strength in the pipeline. The South Olpad HVDC project, for instance, is expected to be formally accounted for in the fourth quarter of FY26. Export orders were a bright spot, constituting 14% of total order inflows and growing by 32% year-on-year. The current export mix in the overall order backlog stands between 24% and 27%. While management noted no slowdown in domestic ordering activity, it cited some decision-making delays from export customers, with these orders now expected to materialize in the second half of FY27.

Market Reaction and Stock Movement

The market responded positively to the impressive earnings report. After closing Wednesday's session 6.52% higher at ₹2,909.05, the stock continued its rally on Thursday. Over the past five trading sessions, the stock has delivered a return of approximately 13%, reflecting strong investor confidence. The robust performance has positioned the stock as a key focus in the capital goods and electric equipment sector.

Analyst Perspective: Nomura Maintains 'Buy' Call

Brokerage firms have taken note of the company's strong performance. Nomura maintained its 'Buy' rating on GE Vernova T&D, setting a price target of ₹4,000 per share. The brokerage highlighted that the company delivered an all-round performance that resulted in a 41% beat on its earnings estimates. Nomura's positive stance is supported by the upward revision in margin guidance and a buoyant demand outlook for the transmission and distribution sector. In response to the results, Nomura raised its FY28 earnings per share (EPS) estimates for the company by 9%, factoring in a faster ramp-up in HVDC project execution.

Valuation and Future Outlook

Currently, the stock is trading at a valuation of approximately 40 times its estimated FY28 earnings. The strong quarterly performance, coupled with a robust order backlog and positive management guidance, provides a solid foundation for future growth. The company's strategic position in the power transmission and distribution sector, particularly with its expertise in HVDC technology, allows it to capitalize on India's growing infrastructure and renewable energy needs.

Conclusion

GE Vernova T&D India's third-quarter results have set a high benchmark, driven by excellent execution and expanding margins. The subsequent stock surge and positive analyst ratings underscore the market's confidence in the company's growth trajectory. With an upgraded margin guidance and a strong order pipeline, the company appears well-positioned to sustain its momentum in the coming quarters.