GE Vernova T&D Q2 FY27 Earnings Call — Analysis (NSE: GVT&D)
GE Vernova T&D India delivered 32% YoY revenue growth with strong 27.1% EBITDA margins while maintaining a ₹21,440 Cr backlog and guiding to sustain ~30% revenue CAGR over the medium term.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q2FY27 Revenue ₹2,030 Cr ( +32% YoY ) . New story: Execution Excellence and Deep Localization .
Results
Q2 revenue grew 32% YoY to ₹2,030 Cr, with EBITDA of ₹550 Cr (27.1% margin) and PAT of ₹430 Cr (21.3% margin); order intake rose 52% YoY to ₹2,440 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue | ₹2,030 Cr | +32% | yoy · Q2FY27 |
| Revenue | ₹3,860 Cr | +35% | yoy · H1FY27 |
| Order Intake | ₹2,440 Cr | +52% | yoy · Q2FY27 |
| Order Intake | ₹3,580 Cr | +11% | yoy · H1FY27 |
| Order Backlog | ₹21,440 Cr | point_in_time · Q2FY27 · Sep-26 | |
| Gross Margin | 44.5% | none · Q2FY27 | |
| EBITDA | ₹550 Cr | none · Q2FY27 | |
| EBITDA Margin | 27.1% | none · Q2FY27 | |
| EBITDA Margin | 26.2% | none · H1FY27 | |
| Profit Before Tax | ₹580 Cr | +45% | yoy · Q2FY27 · 1.4x YoY |
| Profit After Tax | ₹430 Cr | none · Q2FY27 · 21.3% of revenue | |
| Cash Generation | ₹1,010 Cr | none · H1FY27 | |
| Cash and Cash Equivalents | ₹3,250 Cr | point_in_time · Q2FY27 · Sep-26 |
Guidance
Management maintained its full-year EBITDA margin guidance in the mid-20s range and expects revenue to compound at >30% on average over the next three years.
What management committed to
- Minimum 2 to 3 [HVDC] projects to come (awarded / tendered) next year [FY27-28]. — 2 to 3, FY27-28
- Conclude the [U.S. data center related party order] in H2 [of FY26-27]. — concluded, H2 FY26-27
- Total order intake for [FY26-27] will be a much stronger year than [FY25-26]. — stronger than FY25-26, FY26-27
- Booking of [Barmer HVDC order] will make [Q3 FY26-27] a significant quarter. — booked, Q3 FY26-27
- [Domestic TBCB project] pipeline will remain strong for the next 4 to 5 months [through Q3/Q4 FY26-27]. — strong, Q3/Q4 FY26-27
Key themes
Transmission capex tailwinds and operating leverage
How the narrative shifted
- Grid Expansion and Energy Transition: Management frames the sector at an inflection point driven by renewable expansion, grid digitalization, and net-zero ambitions, creating a structural tailwind for transmission equipment.
- Execution Excellence and Deep Localization: Management consistently prioritizes mega-project execution (HVDC), expanding local manufacturing, and growing services/software to reduce supply-chain exposure.
- Export Market Expansion and Related Party Orders: The setback of the two lapsed large RPT orders is downplayed by highlighting record growth in smaller non-material related party export orders and the $151M U.S. order still under discussion.
- Supply Chain and Geopolitical Risk: The Trench Group acquisition by the parent is framed as a positive strategic move to gain direct control over the HVDC supply chain, turning a vulnerability into a competitive advantage.
Operational commentary
- Commissioned key network assets including 400 kV NEA substation in Nepal, 400 kV GIS for GETCO at Babarzar, 765 kV reactors for PGCIL at Bidar and Resonia at Beawar, 765 kV generator transformer for NUPPL at Ghatampur, and export installations in Spain and Senegal.
- Secured key orders including 400 kV generator transformer and 420 kV GIS for a 1,500 MW pumped storage hydro project in Maharashtra, along with 800 kV and 420 kV GIS packages in Andhra Pradesh and Himachal Pradesh.
- Progressing on the ~₹1,000 Cr brownfield capex program (>90% in existing plants) with roughly 20% already incurred to expand capacity across high-voltage transformers and switchgear.
- Related party approval of ~₹3,100 Cr for high-voltage switchgear exports lapsed after 1 year due to customer-side operational planning delays (not in backlog), while a $151M US data center transformer RPT is active for closure in H2 FY27.
- Global parent acquired Trench Group; management anticipates supply chain control synergies in critical bushings and coils for HVDC and STATCOM offerings.
Analyst Q&A
Q. What is the status and expected closure of the $151M US data center related party order?
The approval is valid till May 15, 2027, the order is in discussions with customers, and management expects to conclude it in H2 FY27.
Q. Will HVDC orders carry lower gross margins due to sourcing semiconductor components (like IGBTs from Mitsubishi Electric)?
Sourcing IGBTs or thyristors externally is standard assembly practice and does not dilute HVDC project gross margins, as complete design and valve manufacturing is done in-house.
Q. What is the breakdown of software and services revenue and long-term targets for the segment?
Company reports under a single high-voltage transmission segment and does not disclose a separate revenue breakup for services and software, though both are growing YoY while total equipment share expanded faster.
Q. Are domestic transformer prices under pressure due to industry capacity expansions?
Most industry capacity additions are aimed at exports; domestic pricing shows slight pressure taking into account copper inflation, but nothing significant.
Research and educational content only. Not investment advice.