GE Vernova T and D India: Profitability expands as electrification demand builds

GE Vernova T and D India Limited met investors in Mumbai in late September 2026 with a simple message: demand is rising, execution is improving, and the company is investing in capacity without stretching the balance sheet. The numbers in FY 2025-26 support that claim. Revenue rose to ₹62.1 billion, EBITDA increased to ₹20.3 billion, and the EBITDA margin expanded to 27.1 percent. Cash flow reached ₹15.8 billion and the company remained debt free.

The presentation also carried an early read on the new fiscal year. In Q1 FY 2026-27, revenue grew 38 percent year on year to ₹18.4 billion and profit before tax increased to ₹4.9 billion from ₹3.9 billion. Orders in the quarter were ₹11.4 billion versus ₹16.2 billion in the prior year quarter, and the order backlog moved from ₹214.6 billion at March 2026 to ₹209.3 billion at June 2026. Management framed the quarter as disciplined execution rather than a demand problem, highlighting cash generation of ₹4.3 billion and an available cash balance of ₹29.3 billion.

Behind the headline results sits a business positioned at the intersection of India’s power buildout and the global energy transition. The company laid out a market map shaped by AI driven data centers, industrialization, electrification, electric vehicles, and green hydrogen. It also stressed that grid complexity is rising and that this complexity is creating larger opportunities in HVDC, grid stability solutions such as STATCOM, grid digitization, and substation expansion.

A long cycle market in India, with more export headroom

India’s renewable expansion is now translating into a transmission build cycle. Using data from the Central Electricity Authority’s National Electricity Plan II, the company cited renewable generation growth from 281 GW in 2025 to 500 GW by 2030 and 786 GW by 2035. On the transmission side, the renewable linked buildout was shown rising from 276 GW in 2025 to 537 GW by 2030 and 914 GW by 2035. The investment requirement attached to this transition is substantial: $65 billion in 2026-30 and$88 billion in 2031-35, with average investment per year above $15 billion and an addressable market estimated at about$8.5 billion per year.

That backdrop matters because much of the company’s portfolio is tied to long cycle infrastructure orders. It supplies high voltage AC products such as power transformers up to 1200 kV, compact GIS from 72.5 kV to 800 kV, instrument transformers up to 1200 kV, and air circuit breakers up to 800 kV. It also offers AIS products including HV bushings and air core reactors, and it has turnkey substation capability. In DC, it highlighted end to end HVDC capabilities across LCC and VSC technology, with examples that include winning a 2.5 GW Khavda VSC based HVDC project, winning a 1 GW Chandrapur HVDC LCC based refurbishment project, and commissioning the 6 GW Champa to Kurukshetra HVDC project.

The company’s growth plan is not limited to India. Management positioned exports as a second growth lever, pointing to current exports to more than 60 countries and an ambition to add new countries in Asia, the Middle East, and Europe. The product list for exports included GIS components, HV circuit breakers, air core reactors, OIP bushings, instrument transformers, and drives and associated equipment. The broader market narrative was supportive too: global investment in clean energy was shown increasing from $3.2 trillion in 2025 to$5.6 trillion by 2030, and global generation was shown rising from 32,000 TWh in 2025 to 45,000 TWh by 2030, a 1.4x increase.

Financial execution: backlog growth, margin expansion, and cash conversion

GE Vernova T and D India’s FY 2025-26 results show a mix of scale and profitability. Revenue grew from ₹42.9 billion in FY 2024-25 to ₹62.1 billion in FY 2025-26. EBITDA rose from ₹11.1 billion to ₹20.3 billion over the same period. The EBITDA margin moved from 19.1 percent in FY 2024-25 to 27.1 percent in FY 2025-26, extending a multi year trend that started at negative 3.6 percent in FY 2021-22, improved to 3.7 percent in FY 2022-23, and then to 10.1 percent in FY 2023-24.

Orders and backlog also expanded sharply over the cycle. Total orders were shown rising from ₹22 billion in FY 2021-22 to ₹148 billion in FY 2025-26, implying a 62 percent CAGR. The order backlog grew from ₹37 billion in FY 2021-22 to ₹215 billion in FY 2025-26, implying a 55 percent CAGR. Management tied this to disciplined commercial underwriting, the advantage of a significant backlog in supporting revenue growth, and margin expansion driven by operational excellence and lean execution.

The early FY 2026-27 datapoint is mixed but not necessarily negative. Q1 orders declined to ₹11.4 billion from ₹16.2 billion in Q1 of the previous year, and backlog dipped 2.5 percent from March 2026 to June 2026. But revenue growth remained strong at 38 percent year on year, and profit before tax increased to ₹4.9 billion. The most important support line in the quarter was cash. The company reported cash generation of ₹4.3 billion, taking available cash balance to ₹29.3 billion.

A key feature of the profit story is that it is presented as structural, not a single year event. The company attributed margin expansion to volume and product mix, execution efficiencies through productivity and cost out, and operating leverage as fixed costs are diluted on a larger revenue base. It also noted that mix improved with higher exports, better product mix, and a higher share of private sector customers.

Capacity expansion without balance sheet stress

The investor presentation leaned into a capex narrative that is cautious in tone but meaningful in size. The company announced fresh capacity expansion of about ₹10 billion, spread across multiple sites and phased timelines up to December 2028. The theme is not just adding machines, but increasing throughput through lean manufacturing, expanding critical product lines, and building engineering depth.

The plan includes a 50 percent increase in transformer and reactor capacity in Vadodara. Hosur is slated for a 25 percent increase in AIS capacity plus new lines for bushings and air core reactors. Padappai is targeted for a 25 percent capacity increase for GIS and AIS. Pallavaram is adding new lines for HVDC valves in LCC and VSC STATCOM valves, a direct tie to the stated ambition to strengthen DC network credibility. Noida Sector 63 will see a new engineering and test lab for system design and validation. Vallam will host a new plant with AIS 765 kV disconnector, GIS GIB components assembly, and dead tank 362 FK assembly.

Capital allocation is framed around balancing shareholder returns and organic growth. As of 31 March 2026, cash and cash equivalents were ₹25.0 billion. Committed capex was presented as about ₹10.1 billion including maintenance capex, incurred in phases from 2026 to December 2028. The company also proposed a dividend of ₹2.6 billion to be paid in September 2026, described as about one fifth of profits, with a payout ratio of 28.3 percent. Dividend payout trends show ₹0.5 billion in FY 2023-24, ₹1.3 billion in FY 2024-25, and ₹2.6 billion in FY 2025-26.

The result is a balance sheet message that matters in a long cycle project business. Debt free status combined with growing cash generation gives the company flexibility to manage working capital swings while keeping capacity expansion on schedule.

Strategy for the next phase: DC networks, data centers, digital grids

The forward strategy is expressed through a set of priorities that align with the macro demand forces described earlier.

First, DC networks are becoming more central. The company plans to strengthen localization, engineering depth, and execution credibility in DC networks. This is consistent with its HVDC project references and with the broader electrification opportunity that includes large scale power evacuation through HVDC.

Second, the company aims to build early presence in the emerging data center market. The presentation grouped data centers with AI as a major demand force and also discussed a growing addressable market across data center, HVDC plus STATCOM, digital, and conventional markets. It also highlighted the need for grid stability and flexibility through STATCOM and for grid modernization via asset performance management and smart network management.

Third, exports remain a focus. Qualifying Indian factories for growth in the Americas, Europe, and the Middle East is explicitly stated. In practice, this tends to require consistent quality systems, testing capability, and delivery performance. The company’s capex in test labs and manufacturing lines supports this direction.

Fourth, grid digitization is positioned as both a product opportunity and a service led growth lever. The portfolio cited includes substation automation systems, asset performance management, substation SCADA and telecontrol, digital substations, and cybersecurity. The company also referenced GridOS software, Grid Beats, and service led digital grid solutions as areas to scale.

Finally, there is a clear reminder to maintain the core. Lead times, cost control, and margin discipline are described as priorities. For investors, this line is important because it acknowledges that growth alone does not protect returns in project businesses. Execution discipline does.

Takeaways for investors

The investor meeting materials show a company leaning into an electrification cycle with improving operating fundamentals. The FY 2025-26 step up in revenue, EBITDA, and margin is supported by a large backlog and strong cash conversion. Q1 FY 2026-27 reinforces that profitability and cash generation remain healthy even when quarterly orders fluctuate.

The strategy is also coherent. Capacity is being added in specific bottleneck areas such as transformers, GIS and AIS, and HVDC valves. Engineering and validation capabilities are being strengthened. Exports are being treated as a scalable leg rather than a side business. And digital offerings are positioned as a response to rising grid complexity.

The key theme running through the presentation is disciplined execution. If the company brings committed capacity online on time and sustains margin discipline while scaling, it can remain well placed in a long cycle market shaped by India’s renewable buildout and the global push toward clean energy and grid modernization.