Accumulate GE Vernova T&D India; target of Rs 3,531: Prabhudas Capital

Prabhudas Capital recommended accumulate rating on GE Vernova T&D India with a target price of Rs 3,531 in its research report dated November 04, 2025.

Broker Research

November 05, 2025 / 15:44 IST

Accumulate

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Capital's research report on GE Vernova T&D India

We revise our FY27/28E EPS estimates upward by +7.4%/+12.1%, factoring in strong execution momentum and margin gains led by manufacturing efficiencies and a favorable product mix. GE Vernova T&D India (GVTD) reported a strong quarter with 38.9% YoY revenue growth and a 729bps YoY improvement in EBITDA margin to 25.8%. Management remains confident of sustaining mid-20s margins in FY26, supported by continued operational efficiencies and product mix advantages. With a healthy execution ramp-up and robust HVDC prospects (4 projects lined up over the next two years), GVTD is well placed for multi-year growth, with any HVDC project conversions likely to further improve company’s profitability. To leverage the expanding T&D opportunity, the company has announced additional Rs8.1bn capex to augment manufacturing capacity of transformers, reactors and AIS/GIS supporting sustained growth momentum.

Outlook

We believe 1) a healthy order pipeline in the power market, 2) a robust order book (Rs 131.1bn), and 3) the management’s focus on margin improvement augur well for strong revenue & profit growth of GVTD. The stock is trading at a P/E of 65.5x/52.7x on FY27/28E. We roll forward to Sep’27E and maintain our ‘Accumulate’ rating with a revised TP of Rs 3,531 (Rs 2,706 earlier) valuing the stock at a PE of 65x Sep’27E (60x Mar’27E earlier) given the margin accretive product mix and strong multi-year T&D pipeline.

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