Adani order lifts GE Vernova—but it comes at a price
Continued order inflow across domestic and export markets, including another HVDC order, is a trigger for the GE Vernova stock going ahead
GE Vernova T&D India Ltd’s shares have risen about 8% after it announced a big-ticket order award from Adani Energy Solutions Ltd on Friday.
The order pertains to the setting up of two high-voltage direct current (HVDC) substation of 1.25 GW capacity each for the evacuation of renewable energy from Khavda to Olpad in Gujarat.
Various brokerages estimate the order value at ₹8,000-10,000 crore, adding significantly to the transmission & distribution equipment manufacturing company’s September quarter-end (Q2FY26) order backlog of ₹13,000 crore.
“With a 3-4 year execution profile, we estimate there could be a 20-30% upside to our FY28-29 estimated earnings (await clarity on order size, etc.)," said a Nuvama Institutional Equities report.
Last week, GE Vernova also received Power Grid Corp. of India Ltd’s order for the refurbishment of another HVDC substation in Maharashtra. Two more HVDC orders are expected to be awarded over the next 12-18 months, as per Nuvama, potentially benefiting GE Vernova, as it is one of the only two contenders.
The domestic transmission sector is seeing strong growth for the evacuation of power from upcoming renewable energy (RE) capacity in high solar intensity areas to load centres.
Besides, similar RE momentum globally means GE Vernova is also seeing higher outsourcing from its global parent, with exports share rising to about 30%, from 20% a couple of years ago. The parent entity expects its order backlog to double to $60 billion by 2028.
Bolstered by the increasing demand, GE Vernova announced capital expenditure (capex) of ₹800 crore in November, for enhancing capacity across all product lines, and increasing localization of HVDC components.
The expansion, expected to be completed by FY28, would be funded by internal accruals. “GE Vernova has maintained a strong cash flow generation trajectory of ₹600 crore in H1FY26, leading to robust cash equivalent of ₹1,520 crore," said an Antique Stock Broking report.
Amid strong performance and outlook, GE Vernova’s shares have risen over 50% so far in 2025. H1FY26 revenue grew 39% year-on-year to ₹2,900 crore, reflecting robust execution. Ebitda margin rose 860 basis points to 27.3%, aided by slower growth in input prices and better operating leverage.
The management expects FY26 Ebitda margin at about 25%. Antique expects GE Vernova to clock earnings growth of 41% CAGR over FY25-28.
Growth, however, appears priced in. The stock trades at 60 times FY27 estimated earnings, as per Bloomberg. Continued order inflow across domestic and export markets, including another HVDC order, is a trigger for the stock ahead.
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