GE Vernova T&D Q1 FY27 Results (NSE: GVT&D)
Signal: Steady quarter
The read
The key trajectory is strong demand momentum with revenue at ₹18,361.4 million, +38.0% YoY, but a material input-cost headwind: gross margin compressed 710bps to 41.3% as raw material and project costs rose to 59.3% of revenue, limiting PAT growth to 24.7%; confirmation of pass-through and margin recovery is now central.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,836.14 Cr | +38.0% | +12.2% |
| EBIT | ₹49.06 Cr | N/A | |
| Net profit | ₹362.99 Cr | +24.7% | |
| EPS | ₹14.18 | +24.7% | |
| EBIT margin | 27.4% |
P&L walk
Standalone revenue was ₹18,361.4 million, +38.0% YoY and +12.2% QoQ, but gross margin fell to 41.3% from 48.4% YoY as raw material and project costs rose to 59.3% of revenue; PAT still grew 24.7% to ₹3,629.9 million, helped by operating scale and higher other income.
Key positives
- Revenue reached ₹18,361.4 million, growing 38.0% YoY and 12.2% QoQ, indicating continued execution momentum in transmission products, projects and systems.
- Employee benefits expense rose 15.5% YoY to ₹1,123.4 million versus 38.0% revenue growth, while other expenses rose 16.7% to ₹1,859.7 million.
- EPS tracked PAT at ₹14.18, +24.7% YoY, with no evidence of equity dilution or minority-interest drag.
Key concerns
- Gross margin fell 710bps YoY to 41.3% as raw material and other project-related costs increased 51.1% YoY to ₹10,897.7 million, rising to 59.3% of revenue from 54.2%.
- Revenue grew 38.0% YoY while raw material and project-related costs grew 51.1% YoY, indicating that the company absorbed part of the cost increase rather than fully passing it through.
- PAT growth of 24.7% lagged revenue growth of 38.0%, showing that margin pressure is offsetting part of the operating momentum.
Research and educational content only. Not investment advice.