1. Opening HookWhen the rest of India was arguing about who’ll light up Diwali cheaper — coal or solar — GE Vernova quietly lit up its own scoreboard. The power transmission major didn’t just plug into growth; it cranked the voltage up to record levels. With an ₹8 billion capex plan and 39% revenue surge, it’s safe to say the grid’s got a new guru. And yes, the CEO just dropped “HVDC” more times than influencers drop “collab.” Stick around — it gets juicier than a high-voltage short circuit.
2. At a Glance
- Revenue up 39%– Clearly, electrons aren’t the only things surging through their wires.
- EBITDA margin at 25.8%– A jolt of profitability even Tesla would admire.
- Order book ₹131 billion– Enough backlog to power the next three financial years.
- Cash balance ₹15.2 billion– CFO flexes: “Debt-free and fully charged.”
- Order inflow ₹16.1 billion– Down 66%, but who cares when margins are glowing.
- Capex announced ₹8 billion– Because transformers aren’t going to build themselves.
3. Management’s Key Commentary
Sandeep Zanzaria (CEO):“India’s peak power demand is set to jump 80% by 2032.”(Translation: The country’s going to need more wires, and we’re selling them by the mile.)⚡
“Transmission remains the most stable and growth-oriented segment.”(Translation: Generation may fluctuate, but transmission’s the power couple that never breaks up.)
“We’ll invest ₹8 billion for advanced grid tech at Vadodara, Hosur, and Padappai.”(Translation: While others dream of smart cities, we’re building smart substations.)
Sushil Kumar (CFO):“We reported an EBITDA of 25.8% this quarter, up 700 bps YoY.”(Translation: Even Excel sheets are blushing at this operating leverage.)
“97% of backlog from PSUs and private players, just 3% from state utilities.”(Translation: We prefer clients who actually pay on time.)😏
“Generated ₹5.9 billion cash in H1 and still debt-free.”(Translation: We’re the rare power company where cash flows faster
than electrons.)
Abhishek Srivastava (Ops Head):“Commissioned key substations for THDC, Power Grid, and Vivid Renewables.”(Translation: If it buzzes, hums, or shocks, we probably built it.)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Growth | Commentary |
|---|---|---|---|
| Revenue | ₹15.4 Bn | +39% | Grid upgrades turned into gold. |
| Order Intake | ₹16.1 Bn | -66% | Blame last year’s mega deals. |
| Order Backlog | ₹131.1 Bn | +1% QoQ | Still 3x FY25 revenue. |
| EBITDA Margin | 25.8% | +700 bps | Efficiency finally paid its bills. |
| PBT | ₹4.0 Bn | 2.1x | Grid gains meet lean ops. |
| Cash & Equivalents | ₹15.2 Bn | +25% QoQ | Wallet heavier than transformers. |
Margins zapped up, orders cooled off — but hey, stability never looked this profitable.⚙️
5. Analyst Questions
Nomura:“What’s the domestic order outlook?”Mgmt:“Soft patch, but National Committee’s about to plug it in again.”
ICICI Sec:“Margins beyond FY25?”Mgmt:“Mid-20s — we like our profits medium-rare.”
PL Capital:“Capex split details?”Mgmt:“Classified. Transformers know but won’t tell.”
Nuvama:“EBITDA to stay above 20%?”Mgmt:“We care about absolute watts — not percentages.”
IIFL:“Have margins peaked?”Mgmt:
