Accumulate GE Vernova TD India; target of Rs 2005: Prabhudas Lilladher

Accumulate

Prabhudas Lilladher's research report on GE Vernova TandD India

GE Vernova T&D India (GVTD) delivered a strong quarterly performance, registering a 26.2% YoY revenue growth alongside a notable adj. EBITDA margin expansion of 1,103bps YoY to 23.2%. Continued investments in grid modernization and the energy transition have driven the strong domestic performance of GVTD, further supported by robust opportunities and pipeline of HVDC projects in India. Meanwhile, sustained order momentum from group companies and increased traction in international markets such as Europe, the Middle East, Australia, and Latin America are expected to drive export growth. Management’s focus on product orders may improve product mix in the revenue, further aiding the margin sustenance. Furthermore, the company’s announced capex of ~Rs2.4bn towards new capacity addition and debottlenecking of existing capacity paves way for execution ramp up.

Outlook

We believe 1) a healthy order pipeline in the power market, 2) a robust order book (Rs126.6bn), and 3) the management’s focus on margin improvement augur well for strong revenue & profit growth. The stock is trading at a P/E of 61.4x/47.0 on FY26/27E. We roll forward to Mar’27E and maintain ‘Accumulate’ rating with a revised TP of Rs2,005 (Rs1,950 earlier) valuing the stock at a PE of 50x Mar’27E (55x Sep’26E earlier).

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GE Vernova TD India - 27052025 - prabhu