Recommendation from Infrastructure Sector

This column gives you scrip chosen by the research team during the fortnight that is fundamentally strong and expected to give good capital appreciation over a time period of 1 year. [EasyDNNnews:PaidContentStart]

GE Vernova T&D India Ltd : POWERING INDIA’S GRID TRANSFORMATION

HERE IS WHY
✓ Strong Order Book & Revenue Visibility
✓ Structural Grid Capex Tailwinds
✓ Margin Expansion with Debt-Free Balance Sheet

The global power infrastructure landscape is undergoing a structural transformation, driven by accelerating electrification, renewable energy integration, and rising focus on grid resilience. India stands at the forefront of this transition, with record electricity demand and an ambitious renewable energy target of 500 GW by 2030. Peak power demand touched 249.9 GW in FY25 and is expected to rise to 277 GW in FY26. Hence, for this issue of the magazine in Choice Scrip, we recommend GE Vernova T&D India Ltd. (GEVTDIL).

It is a leading player in the power transmission and distribution equipment space. With a legacy of over six decades, the company offers an end-to-end portfolio of solutions across power Transformers, gas-insulated and airinsulated switchgear, HVDC systems, FACTS solutions, substation automation, and digital grid technologies. GEVTDIL delivered a strong financial performance in Q3 FY26, reflecting robust execution momentum and sustained margin expansion. Revenue for the quarter stood at ₹1,701 crore, registering a 58.4 per cent YoY growth compared with ₹1,074 crore in Q3 FY25 and a 10.5 per cent QoQ increase over ₹1,539 crore in Q2 FY26.

EBITDA for the quarter rose sharply to ₹455 crore, compared with ₹180 crore in Q3 FY25. Profit after Tax rose to ₹290.8 crore, compared with ₹142.68 crore in the corresponding period last year. This is a growth of 103.81 per cent. GEVTDIL’s order book provides strong medium-term revenue visibility. The order backlog stood at ₹14,384 crore as of December 2025, reinforcing confidence in sustained execution momentum.

Operational execution during the quarter was broad-based, spanning renewable evacuation projects, EHV substations, GIS bay expansions, reactors, and export commissioning. Notable milestones included multiple 765 kV reactor installations for PGCIL, GIS bay commissioning for state utilities, and export breaker commissioning in international markets. This execution depth reinforces management’s confidence in handling complex, large-scale projects. HVDC has emerged as a central growth vector.

Importantly, GEVTDIL’s scope excludes transmission lines and civil works, limiting execution and right-of-way risks. Management has also confirmed adequate internal capacity to execute current and incremental HVDC orders. Looking ahead, the company expects HVDC, STATCOM, and digital grid solutions to drive incremental growth, supported by a ₹10,000+ crore national transmission capex pipeline under NEP-II. Export opportunities remain selective, with India positioned as a manufacturing hub to support global demand when overseas capacities are constrained. Margin guidance has been tightened upward, with management now expecting full-year EBITDA margins to trend toward the higher end of the mid-20s range. No meaningful near-term dilution is anticipated. Over the medium term, GEVTDIL is well positioned to benefit from structural tailwinds in renewable integration, grid modernization, and cross-border transmission. Strong order visibility, disciplined underwriting, improving project mix, and a debt-free balance sheet provide a solid foundation for sustained earnings growth.

The company is currently trading at a P/E of 85x, which is below its 3-year median P/E of 139x. The PEG ratio is 0.98x, which reflects its growth momentum and is also lower than most of its peers, which makes it attractive. The company's interest coverage ratio is 113x. Over the last three years, the company has achieved compounded revenue growth of about 11.9 per cent, with compounded profit growth of 81 per cent. ROCE of the company is 54.74 per cent. Considering above we recommended BUY.

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