India has set an ambitious target of 500 Gigawatt of non-fossil fuel capacity, thereby redesigning the transmission backbone of its energy goals. With peak power demand set to climb around 80% by 2032 it necessitates unprecedented expansion of the power grid in the country. The government has sensed the urgency and is planning to add 36 gigawatt of Hydro PSP storage, 90-100 gigawatt of conventional storage capacity by 2035 as well as nearly 100 gigawatt of nuclear capacity by 2047.
GE Vernova T&D India Ltd is in the forefront of the transmission and distribution segment and present in all stages of the supply power chain providing comprehensive electrical solutions, building voltage substations and developing technologies to manage power grids worldwide. The business outlook for the transmission and generation segment remain extremely positive to be one of the most stable and growth oriented sector in the country over the future years.
The HVDC technology is considered to be the most efficient and reliable way to transport bulk power over long distance connecting remote renewable energy to consumption centres as well as stabilising the national grid. Stat Com. HDVC solutions along with digitalisation are going to create significant opportunities and play key roles in driving overall growth for GE Vernova T&D India Ltd. The company is therefore expanding its engineering and manufacturing footprint to enhance the grid technology by enhancing the transformer and reactor capacity at its Vadodara facility, installing new lines of bushings and reactors at its Hosur facility as well as expanding capacities for AIS and GIS products at its Padappai manufacturing facility.
GE Vernova posted a strong Q2FY26 financial quarter with robust demand, significant revenue growth, strong cash generation and EBITDA margin expansion. The order book saw strong bookings of Rs 16.1 billion, revenue at Rs 15.4 billion and profit before tax at Rs 4 billion for the September quarter. Similarly, the quarter also saw strong energy growth on the back of rising per capita energy demand, rising urbanisation, increasing investments in data centres and green hydrogen along with combining technology to strengthen the transmission network across the country.
During the September quarter, GE Vernova T&D India completed the 1.6 gigawatt THDC Khurja thermal power plant making it fully functional for the state of Uttar Pradesh. Another highlight has been the completion of a 300 MW wind power substation in Karnataka. The company has also been partnering with other developers and commissioning products like AIS, GIS, reactors and circuit breakers at various locations around the country and abroad. The company also reported a strong EBITDA of 25.8% during the quarter as well as EBITDA expansion of around 700 basis points over the last fiscal year on the back of 3 components such as volume, price and productivity. GE Vernova has no debt and a healthy cash balance of Rs 15.2 billion giving it confidence to invest in its core businesses as well as spend on capital expenditure going forward. The GE Vernova T&D India Ltd stock price is currently quoting at Rs 3030 on the bourses and is a strong buy in the portfolio for long term investment.
