GE Vernova T&D India (GVTD IN) – Q2FY26 Result Update – Strong execution; poised for multi-year growth – Accumulate

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. We believe 1) a healthy order pipeline in the power market, 2) a robust order book (Rs131.1bn), 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 Rs3,531 (Rs2,706 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.