Buy GE Vernova TD India; target of Rs 4050: Prabhudas Lilladher

Prabhudas Lilladher is bullish on GE Vernova T&D India has recommended buy rating on the stock with a target price of Rs 4050 in its research report dated January 29, 2026.

Broker Research

January 29, 2026 / 12:53 IST

Buy

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

We revise our FY26/27E EPS estimates upward by +9.9%/+2.0%, factoring in strong execution momentum and margin gains led by strong growth in volume, better pricing and execution of higher margin order backlog. GE Vernova T&D India (GVTD) reported a strong quarter with 58.4% YoY revenue growth and a 1000bps YoY improvement in EBITDA margin to 26.7%. On the back of sustained execution strength over the past few quarters, management has upgraded its FY26 EBITDA margin guidance to the higher end of mid-20s (mid20’s earlier). During the quarter, GVTD secured a VSC-HVDC order (Khavda– South Olpad), which is expected to be booked in subsequent quarters having a ~4-year execution timeline. Domestic order pipeline remains robust, led by TBCB opportunities generating across states, while export order in pipeline experienced a delay from the customer side now expected in H2FY27. Adequate existing capacity provides headroom to execute HVDC KhavdaSouth Olpad projects alongside potential new HVDC wins. Ongoing capex of ~Rs10bn through FY28 and effective raw-material pass-through mechanisms support operating leverage and margin resilience.

Outlook

We believe 1) a healthy order pipeline in the power market, 2) a robust order book (Rs143.8bn), 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 51.7x/42.6x on FY27/28E. We maintain our ‘BUY’ rating with a revised TP of Rs4,050 (Rs4,005 earlier) valuing the stock at a PE of 65x Sep’27E (same as earlier).

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