GE Vernova T&D India surges 47% in 2025 on record orders and strong growth outlook

ET Intelligence Group: The shares of GE Vernova T&D India have risen 47% so far this year including 31% gain in six months driven by traction in order pipeline. Such a strong momentum has resulted in a higher trailing price-earnings (P/E) multiple of 86 compared with some of the peers. The premium valuation reflects better expected growth over the next two years, implied by FY28 forward P/E between 44 and 60 calculated by broking firms. The company, which provides products and automation solutions to the power sector, reported its highest-ever order backlog of ₹13,100 crore as of September 2025. It is over three times FY25 revenue of ₹4,292 crore.

On December 22, the company announced winning a contract from Adani Energy Solutions to supply high-voltage direct current (HVDC) technology for the 2.5-gigawatt (GW) Khavda-South Olpad renewable power transmission corridor in Gujarat. While the order value has not been disclosed, analysts expect it to be between ₹7,500 crore and ₹10,000 crore to be executed over the next 4-5 years.

The company reported another large order-win (worth ₹1,230 crore) from Power Grid Corporation of India on December 18 for refurbishment of 2x 500 megawatt HVDC Chandrapur back-to-back link between northern and southern India. These orders coupled with the existing strong order book strengthen the company’s long-term revenue visibility.

The company expects FY26 revenue to rise by over 35% year-on-year to ₹5,500-6,000 crore. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin is projected to stay around mid-20%, supported by a 30-35% export mix.

The company announced a capital expenditure of ₹800 crore in the September quarter. It will be spread over the next 2-3 years to expand the engineering and manufacturing footprint. The investment will boost transformer and reactor capacities at Vadodara and add new lines for bushings and air-core reactors at Hosur. The latest announcement is over and above ₹240 crore announced previously to cater to domestic and export opportunities. The management expects robust demand as India targets 500 GW of non-fossil fuel capacity and peak power demand likely to rise by 80% by 2032.

“With a three-to-four-year execution profile, we estimate there could be a 20-30% upside to our FY28-29 estimated earnings with consequent upside to our current target price of ₹3,680 (60x FY28E earnings per share),” said Nuvama Institutional Equities.

Emkay Global Financial Services has pegged the target at ₹3,350, while PL Capital’s target is ₹3,531. Shares of GE Vernova T&D India closed 0.2% higher at ₹3,078 on the BSE from Friday’s closing price.