Nomura Sets ₹6,000 Target for GE Vernova T&D

Market Action & Rating Outlook Despite a minor intraday dip of over 2% in GE Vernova T&D India Ltd. shares on Thursday, September 24, global brokerage Nomura has reaffirmed its high-conviction "Buy" rating. Nomura maintains a bullish target price of ₹6,000 per share, signaling strong long-term upside potential driven by the company's robust order book and significant structural tailwinds in the power transmission sector. IndiaIPO HVDC Pipeline & Expanding TAM Following a recent management meeting, Nomura highlighted the company's formidable High Voltage Direct Current (HVDC) pipeline. Capacity Expansion & Export Growth To effectively capture this surging demand, GE Vernova T&D is executing an ambitious ₹1,000 crore capital expenditure plan. By December 2028, the company expects to increase its transformer manufacturing capacity by 50%, alongside a 25% scale-up in both air-insulated switchgear (AIS) and gas-insulated switchgear (GIS) lines. Additional capacity for HVDC and VSC STATCOM valve lines is slated for early 2027. Furthermore, export opportunities serve as a strong secondary growth lever. Management projects an 18% CAGR in export opportunities between CY25 and CY30, with FY26 export inflows of ₹1,200 crore expected to compound at 10% to 15% annually. Financial Visibility & Margin Trajectory The historic order book provides exceptional long-term revenue visibility, though Nomura notes that HVDC revenue realization will be back-ended due to extended execution cycles (48–54 months compared to 18–24 months for standard transformers). Financially, management reiterated confident guidance for mid-20% EBITDA margins by FY27. While the increasing mix of large-scale HVDC orders may introduce slight gross margin dilution, sustained operating leverage and strong pricing power are expected to shield and support profitability well beyond FY27.