Accumulate GE Vernova TD India; target of Rs 2706: Prabhudas Lilladher

Prabhudas Lilladher's research report on GE Vernova TD India

We revise our FY25/26E EPS estimates by +11.8%/+12.5% factoring in improved EBITDA margins driven by strong execution of profitable orders and favorable revenue mix. GE Vernova T&D India (GVTD) delivered a strong quarterly performance, reporting 38.8% YoY revenue growth alongside a significant 1,013 bps YoY EBITDA margin expansion to 29.1%. The company remains wellpositioned to capitalize on growing demand for grid modernization, HVDC systems, and automation solutions. Its increasing focus on export markets— targeting 30% of total revenue—with rising traction across Europe, Australia, the Middle East, Latin America, and Southeast Asia further strengthens its global competitiveness. Domestically, greater adoption of the TBCB route by Indian states is expected to broaden the opportunity pipeline beyond the current 3% contribution from state projects. HVDC remains a key growth driver, with the Khavda–South Olpad and Barmer–South Kalamb HVDC projects expected to be tendered in FY26. To support this growth trajectory, GVTD has outlined a Rs2.5bn capex pipeline focused on HVDC, STATCOM, and other capacity debottlenecking initiatives.

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 of GVTD. The stock is trading at a P/E of 72.1x/54.8x on FY26/27E. We maintain our ‘Accumulate’ rating with a revised TP of Rs2,706 (Rs2,005 earlier) valuing the stock at a PE of 60x Mar’27E (50x Mar’27E earlier) factoring in strong HVDC order prospects.