GVT&D

: Strong Execution, Robust Margins, Growth Priced In

’s shares rose 8% after securing a major order from to set up two 1.25 GW HVDC substations for renewable energy evacuation in Gujarat. Estimated at ₹8,000–10,000 crore, the order significantly boosts the company’s order backlog and earnings visibility. With strong domestic demand, rising exports, and planned capacity expansion, GE Vernova is positioned for sustained growth. However, valuations appear stretched at current levels, with much of the optimism already priced in. The Adani award adds materially to GE Vernova’s ₹13,000 crore Q2FY26 backlog. Execution is expected over 3–4 years, potentially driving 20–30% upside to FY28–29 earnings, according to Nuvama Institutional Equities. GE Vernova also won a . order for HVDC refurbishment in Maharashtra. With two more HVDC projects expected in the next 12–18 months, the company is well placed as one of only two contenders in this niche. India’s transmission sector is expanding rapidly to evacuate power from high solar intensity regions. Globally, GE Vernova’s parent is seeing strong outsourcing demand, with exports rising to 30% of sales. The parent targets doubling its backlog to $60 billion by 2028. GE Vernova announced ₹800 crore capex in November to enhance product capacity and localize HVDC components, funded by internal accruals. Strong cash flows (₹600 crore in H1FY26) and cash equivalents of ₹1,520 crore provide balance sheet comfort. H1FY26 revenue grew 39% YoY to ₹2,900 crore, with EBITDA margin up 860 bps to 27.3%. Management guides FY26 margins at ~25%. Antique Broking projects 41% earnings CAGR (FY25–28). Yet, at 60x FY27e P/E, valuations suggest growth is largely priced in, with further upside contingent on continued HVDC order inflows.