GE Vernova T&D India Ltd Soars 4% After Securing ₹500 Cr Order from Power Grid Corporation
Stock Gains as Power Transmission Giant Secures a Landmark Deal
The shares of GE Vernova T&D India Ltd witnessed a strong rally, climbing up to 4% intraday after the company bagged a significant ₹500 crore order from the Power Grid Corporation of India Limited (PGCIL). This order, which involves the supply and installation of transformers and reactors under bulk procurement, has fueled investor confidence in the stock, leading to bullish momentum.
Stock Performance & Market Movement
With a market capitalization of ₹35,653.20 crore, GE Vernova T&D India’s stock was trading at ₹1,392.45 per share, marking an increase of 2.39% compared to its previous closing price of ₹1,360.00. The surge in stock price was primarily driven by positive sentiment surrounding the newly secured contract, reinforcing the company’s strong position in the power transmission sector.
Why is the Stock Rising?
The ₹500 crore order from Power Grid Corporation is a testament to the company’s expertise in power transmission and infrastructure development. This contract win adds to the firm’s already robust order backlog, ensuring revenue visibility and future growth prospects.
Additionally, with the Indian government’s continued focus on power sector modernization and transmission efficiency, companies like GE Vernova T&D India Ltd are expected to play a crucial role in strengthening the national grid infrastructure.
Financial Performance & Analysis
The company recently released its Q3FY25 results, showcasing strong year-on-year (YoY) growth despite minor quarter-on-quarter (QoQ) declines.
| Financial Metric | Q2FY25 | Q3FY25 | QoQ Change | Q3FY24 | YoY Change |
|---|---|---|---|---|---|
| Revenue | ₹1,108 Cr | ₹1,074 Cr | -3% | ₹839 Cr | +28% |
| Net Profit | ₹145 Cr | ₹143 Cr | -1% | ₹49 Cr | +191% |
While revenue dropped slightly by 3% QoQ, the company posted a significant 28% YoY revenue growth, driven by strong execution of existing projects and new contract wins. Net profit also witnessed a massive 191% jump YoY, reflecting improved operational efficiency and cost management.
Industry Outlook & Growth Prospects
The power transmission sector is experiencing an investment super cycle, driven by:
- The need for modernized grid components.
- Increasing grid reliability requirements.
- India’s growing role in energy infrastructure advancements.
- Heightened focus on cybersecurity measures to protect power assets.
These trends indicate sustained long-term growth potential for companies operating in the transmission and distribution space.
Order Book & Operational Highlights
Despite a 12% YoY decline in order bookings for Q3FY25 (₹20.8 billion), the company’s order backlog surged by 72% to a record ₹107.8 billion, ensuring a healthy revenue pipeline for the coming quarters.
Additionally, the company has successfully executed key power transmission projects, including:
✅ Reliance Jamnagar Phase 1 – New energy complex.
✅ 400 kV GIS project with Adani – Khavda region.
✅ 400 kV AIS switchyard at Lohardaga – Power Grid Corporation.
✅ 400 kV GIS project in Dhalkebar – Strengthening Nepal-India transmission connectivity.
These operational successes reinforce the company’s technical expertise and execution capabilities.
Future Growth & Expansion Plans
Looking ahead, GE Vernova T&D India Ltd is evaluating capacity expansion opportunities, with a proposed capital expenditure (Capex) of ₹800 million for FY25-26. The company is also exploring:
- Brownfield expansions to boost production efficiency.
- Participation in ₹3,000-₹3,500 crore STATCOM market.
- Expanding exports to create a balanced domestic and international order book.
Such initiatives indicate the company’s strategic focus on market leadership and sustainable growth.
Company Overview & Key Financial Ratios
GE Vernova T&D India Ltd specializes in power transmission and distribution, offering products, projects, and systems for electricity transmission.
| Metric | Value |
|---|---|
| Market Cap | ₹35,563 Cr |
| Current Price | ₹1,388 |
| 52-Week High / Low | ₹2,243 / ₹801 |
| Stock P/E | 72.8 |
| Book Value | ₹53.8 |
| Dividend Yield | 0.14% |
| ROCE (Return on Capital Employed) | 23.1% |
| ROE (Return on Equity) | 15.7% |
| Face Value | ₹2.00 |
| Promoter Holding | 51.0% |
| Debt-to-Equity Ratio | 0.03 |
| Industry P/E | 47.2 |
| Intrinsic Value | ₹90.5 |
| EPS (Earnings per Share) | ₹19.1 |
| PEG Ratio | -20.1 |
| Free Cash Flow (3 Yrs) | ₹419 Cr |
| Debt | ₹38.1 Cr |
With low debt levels (₹38.1 Cr) and strong free cash flow generation, the company is in a solid financial position to fund its expansion and new project acquisitions.
Final Thoughts
GE Vernova T&D India Ltd’s recent contract win, strong financials, and robust order book position it as a leading player in India’s power transmission sector. With a clear roadmap for expansion, investment in new technologies, and a growing presence in the export market, the company is well-poised for sustained long-term growth.
As the government continues to push for grid modernization and energy efficiency, GE Vernova T&D India Ltd is expected to remain at the forefront of India’s power transmission evolution.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.