At a Glance
GE Vernova T&D just lit up the street: Q1 FY26 revenue ₹1,330 Cr (+39%), PAT a staggering ₹291 Cr (+116%), and OPM at 29% – an electrifying jump from last year’s tepid 17%. ROCE at 54% and ROE at 40% make competitors sweat harder than transformers in peak summer. But at a P/E of 83x, is this stock pricing in perfection or just high-voltage hype?
1. Introduction
GE Vernova T&D India, part of GE’s global energy empire, connects generation to grids like the Wi-Fi you wish worked this well. The company’s Q1 numbers are a masterclass in turnaround – rising orders, stronger margins, and a PAT growth that screams “bull market darling.” But with promoter holding down to 51%, retail needs to ask: Is the parent slowly unplugging?
2. Business Model (WTF Do They Even Do?)
- Power Transmission & Distribution Solutions: Substations, switchgear, transformers – all the boring but vital stuff keeping your lights on.
- Grid Solutions: Helps integrate renewables, smart grids, and digital monitoring.
- EPC & Service: From design to commissioning, they handle end-to-end projects.
Roast: Not sexy like EVs, but hey, without them your EV charger is just wall art.
3. Financials Overview
Q1 FY26 Highlights
- Revenue: ₹1,330 Cr (+39% YoY)
- EBITDA: ₹388 Cr (+54% YoY)
- PAT: ₹291 Cr (+116% YoY)
- EPS: ₹11.4
Comment: Operating leverage working like a charm – margins up, profits skyrocket.
4. Valuation
- P/E: 82.9x – nosebleed territory.
- P/B: 35.7x – practically priced like a luxury fintech.
- Fair Value Range: ₹2,100 – ₹2,500.
Investor Humor: At this valuation, even the grid lines feel premium.
5. What’s Cooking – News, Triggers, Drama
- Mega Wins: Multiple project commissions and strong order inflows in Q1.
- Parent Factor: GE Vernova global reorganization could impact Indian arm’s autonomy.
- Promoter Stake: Down to 51% – the market is watching closely.
6. Balance Sheet
| (₹ Cr) | Mar 2024 | Mar 2025 |
|---|---|---|
| Total Assets | 3,584 | 4,661 |
| Borrowings | 42 | 35 |
| Net Worth | 1,243 | 1,773 |
Auditor Remark: Almost debt-free – they run leaner than a start-up’s coffee budget.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating Cash | 518 | 904 | 339 |
| Investing Cash | -172 | -496 | -496 |
| Financing Cash | -259 | -69 | -69 |
Remark: Healthy operating cash, but capex keeps burning pockets.
8. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 8% | 23% | 40% |
| ROCE | 8% | 23% | 54% |
| OPM | 10% | 19% | 22% |
| D/E | 0.0x | 0.02x | 0.0x |
Verdict: Ratios hotter than the transformers they sell.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 2,773 | 3,168 | 4,292 |
| EBITDA | 121 | 332 | 819 |
| PAT | -1 | 181 | 608 |
Observation: From losses to booming profits – a classic turnaround.
10. Peer Comparison
| Company | P/E | ROE | OPM |
|---|---|---|---|
| ABB India | 62.5 | 28.8% | 18.9% |
| Siemens India | 58.2 | 17.7% | 12.0% |
| CG Power | 104.2 | 27.6% | 12.8% |
| GE Vernova T&D | 82.9 | 40.3% | 21.9% |
Comment: Best ROE and margins in the pack, but valuation remains sky-high.
11. Miscellaneous – Shareholding
- Promoters: 51% (falling)
- FIIs: 14.5% (rising)
- DIIs: 26.8%
- Public: 7.7%
Sarcasm: FIIs are loving the voltage, promoters seem to be switching off slowly.
12. EduInvesting Verdict™
GE Vernova T&D India is now a profit machine with enviable margins and a near debt-free balance sheet. Its smart positioning in the energy transition theme makes it irresistible to institutional investors. However, the high valuation and promoter stake decline keep it from being a no-brainer.
SWOT
- Strengths: High ROE, global parentage, booming order book.
- Weaknesses: Low promoter skin, volatile cash flows.
- Opportunities: Renewable integration, digital grid solutions.
- Threats: Policy changes, parent restructuring.
Final Word: A high-voltage growth story, but at this price, you’re paying for perfection – and maybe even the electricity bill.
Written by EduInvesting Team | 29 July 2025
SEO Tags: GE Vernova T&D Q1 FY26, Grid Solutions, Power Transmission, Renewable Energy
