Shares of GE Vernova T&D India Ltd witnessed a significant surge of approximately 8% following the announcement of a major order win from the Adani Group. The order, awarded by Adani Energy Solutions Ltd, marks a pivotal development in India's renewable energy infrastructure push.
A Mega Order for Green Energy Evacuation
The core of the deal involves setting up a high-voltage direct current (HVDC) substation. This critical infrastructure is designed for the evacuation of renewable energy generated at the massive Khavda renewable park in Gujarat to the Olpad region. Brokerage firms estimate the order's value to be in the range of ₹8,000 to ₹10,000 crore.
This substantial contract significantly bolsters GE Vernova's order book. It adds to the company's September quarter-end (Q2FY26) order backlog of ₹13,000 crore. Analysts at Nuvama Institutional Equities noted that with an execution timeline of 3-4 years, this order could lead to a 20-30% upside to their FY28-29 earnings estimates, pending final clarity on the order size.
Broader Momentum in Transmission and Exports
The Adani order is not an isolated event for GE Vernova. The company recently secured another order from Power Grid Corporation of India Ltd (PGCIL) for refurbishing an HVDC substation in Maharashtra. Furthermore, the transmission sector is poised for strong growth, driven by the need to evacuate power from new renewable energy capacities in high solar intensity areas to consumption centres.
Nuvama's report indicates that two more HVDC orders are expected to be awarded over the next 12-18 months, and GE Vernova is one of only two serious contenders for these projects. The company is also benefiting from global renewable energy momentum, which has increased outsourcing from its global parent. This has led to the share of exports rising to about 30% from 20% a couple of years ago.
Strong Financials and Lofty Valuations
Backed by this robust demand, GE Vernova announced a capital expenditure (capex) plan of ₹800 crore in November. This investment aims to enhance capacity across all product lines and increase the localization of HVDC components. The expansion, funded by internal accruals, is slated for completion by FY28.
The company's financial performance has been strong. For the first half of FY26 (H1FY26), revenue grew 39% year-on-year to ₹2,900 crore. Its Ebitda margin expanded sharply by 860 basis points to 27.3%, aided by moderated input cost inflation and better operating leverage. The management has guided for an FY26 Ebitda margin of around 25%.
Antique Stock Broking highlighted GE Vernova's strong cash generation, with ₹600 crore in operating cash flow in H1FY26 and a robust cash equivalent position of ₹1,520 crore. The brokerage expects the company to deliver an earnings CAGR of 41% over FY25-28.
Reflecting this positive outlook, GE Vernova's stock has rallied over 50% so far in 2025. However, this growth appears to be largely priced into the current valuation. According to Bloomberg data, the stock is trading at a steep 60 times its estimated FY27 earnings. The key trigger for the stock going forward will be the continued inflow of orders from both domestic and export markets, including the anticipated additional HVDC projects.
