GVT&DBSEGE Vernova T&D India LtdMediumNeutral
Announced Tue, 26 May · 15:40 IST

Earning Call Transcript

Mgmt Guided Margin ImprovementOrder Pipeline DisclosedAnalyst Day Multiyear TargetsInvestor Communications View source PDF

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AI summary

GE Vernova T&D India reported exceptional Q4 FY26 results with order intake of INR86.1 billion (up 188% YoY) and full-year revenue of INR62.1 billion (up 45% YoY). The company secured its first-ever VSC HVDC order from Adani during the quarter. EBITDA more than doubled to INR17 billion for the full year, with Q4 EBITDA margin hitting a record 27.2%. The order backlog reached INR214.6 billion (up 49%), providing multiyear revenue visibility. The company reduced state utility exposure to under 2% and maintains zero debt with INR25 billion cash. A capex program exceeding INR10 billion is underway through 2028, including INR550 million for a new disconnector facility in Tamil Nadu. Management guides for mid-20s EBITDA margins going forward with room for further improvement.

Likely market impact

The strong order backlog growth and margin expansion signal durable earnings growth ahead. The company's strategic shift away from low-quality state utility customers toward private/central utilities and PSUs should improve cash flows and profitability. The record Q4 margin demonstrates operational leverage as revenue scales.