GE Vernova T&D India Limited (GVT&D) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the conference call hosted by GE Vernova T&D India Limited for quarter one of financial year 2026-27. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Megha Gupta from GE Vernova T&D, India Limited. Thank you, and over to you, Ms. Gupta.

Thank you, Robin. Good evening, everyone, and welcome to GE Vernova T&D, India Limited earnings call for quarter one of financial year 2020-27. I am Megha Gupta from investor relations team. During the call, we will discuss company's financial performance, including operational highlights and will share key updates. I am joined by Niktar Sandeep Zandaria, CEO and MP of the company, Niktar Krishir Kumar, longtime director and CEO of the company, Niktar Adhishek Shivastav, head business operations, Ms. Kanika Arura, communications leader, and Ms. Shweta Mehta. I would like to highlight that today's discussion may contain few forward-looking statements which are subject to risk and uncertainties. These statements are based on our current expectations and actual results may differ materially from those expected or implied. Now, I will hand over the call to Mr. Kandeep Ranzarya to initiate the discussion.

Thank you, Megha. Good evening, everyone, and welcome to our first quarter early school. India is currently executing one of the most ambitious grid expansion plans in the world, with the target of 500 gigawatt of non-fuel fossil fuel capacity emission by 2030 and the roadmap towards 800 gigawatt by 2035. The transmission bottleneck is being addressed with unprecedented urgency. Peak power demand is expected to rise meaningfully over the next several years, and the government estimates Now, attributable or material part of that increase is going to come from near category of loads, which is AI, data center, and EGs, which are expected to add around 30 gigawatts of India's peak demand over the next five to six years. At the same time, distribution losses remain a persistent drag on the system. The national AT&T losses average stood at just over 15% in FY25. Still well above the government's own project of bringing this down to 10% by 2030. We are successfully translating our order book into revenue through an enhanced manufacturing throughput. Our India for the World strategy continues to yield results as we balance domestic and grid opportunities with strong demand from global markets. The grid aging and renewable integration are creating similar infrastructure pressure. Our recent investment of all our manufacturing facilities are tracking on schedule. These capex investments are a strategic necessity to ensure that we can meet the delivery timelines demanded by our customers. Coming to financial performance during the first quarter, we saw order rates at 11.4 billion, down 30% year-on-year, compared to 16.2 billion in the quarter-end June 25. The primary reason for the lower order intake was because of the lower realization of TGCV market in Q4-2526. Our Q1 revenue stood at $18.4 billion versus $13.3 billion, a growth of 38% year-on-year. Education outpaced new orders, because of which the order backlog moderated to $209.3 billion as of June 26 versus $214.6 billion. As of March 26, down by 2.5% quarter on quarter. The order backlog stands at more than 3 years of our revenue for FY2526. Our profit before passing exceptional items of the quarter on the June 26 was at 4.9 billion INR compared to around 3.9 billion INR in the corresponding quarter of the previous financial year, growing by more than 1.25x. We have had a solid start with the financial year positioning as well to serve India's ambitious energy transition goal. As the nation's power landscape evolves, we remain committed to a disciplined strategy of pursuing margin-accredited growth while maintaining operational excellence. We remain committed to the margin profile we established. I'd like to extend my gratitude to our teams on the ground who are executing the increased scale with discipline and safety standards. That represents Jeev Vermeer. I will now turn over to Abhishek to walk us through specific operational highlights for this quarter. Abhishek.

Thanks. Thanks, Kundip. Good afternoon, everyone. So I will just take you through the key highlights or the key achievements for our company in the last quarter. So in our continuous journey towards the strengthening of transmission network for India and its neighboring countries, the journey continued for the last quarter. We had commissioned the first 400kV substation in Nepal for NEA at Gheemti site, which is going to be the first is shown in the backbone of 400kV in Nepal. For that, we have also partnered with Adani and have been building substations for evacuation of renewable power from the solar parks in Kavra. In addition to that, we have been partnering with our key customers in terms of augmenting the power transformation capacity at various existing substations, and in this journey, we commissioned or added transformation capacity for PGCR, Resonia, NLP, and similarly, a lot of new days have been commissioned for our customers like Renew, Tata Projects, Adani, BGC. We remain committed and have been working continuously in terms of honoring our commitment through timely completion of these projects and continue in the journey of extending of the transmission network for the country and other neighboring countries. So this was our performance for last quarter. Now I would hand over to Sushin for further updates.

Thank you, Rishik. Good afternoon. Good evening, everyone. Now, let me move to our order booking highlight for the quarter. While the headline order intake moderated, I want to emphasize the quality and diversity of what we did. We secured CTs and CVTs from G-Vanova entity in North America. This order is different from the material RPT approval that we had secured from the shareholders. For that material RPT order, the group entities are still under discussion and negotiation with the head. And how we expect that decision to get finalized in the next three to six months. We also secured the 400kb GIS order from GE Vanooa entities in Spain and Morocco, 155 MVA 245kb transformer for a semiconductor customer, multiple orders for supply of grid automation packages from state utilities, EPCs, and data centers. This export diversification, which now stands at 46% of our Q1 order, is a trend we have been building forward and had flagged in our earlier calls. Our order backlog stood at $209 billion as of June 2026, down a modest 2.5% sequentially from the record $214 billion as we closed financially 26 weeks. I will characterize this as a healthy number, given the pace at which we are converting that back-loading to revenue. Turning now to the financial performance for the quarter. Revenue for the quarter came in at $18.4 billion, up 38% year-on-year, from $18.3 billion in the same quarter last year. I do want to address the margins directly here, rather than leave it for the question and answer. Gross margins moderated to 41.3% from 48.4% a year ago and 47% in the last quarter. However, in our business, comparison with annual margin is a better reference point. During financial year 2526, we achieved a gross margin of 45.3%. This quarter gross margins are lower at 41.3%, representing a delta of 4%. This can be classified into three categories. Number one, on account of lower export revenue. So in this quarter, we had 30% of revenues from export, whereas last financial year was 33%. And also the execution of very high profitable export order in the last financial year. So this resulted in 1 to 1.5% of reduction in the gross margin. Number two, there is some impact of elevated commodity prices, impacting lower savings in execution compared to initial plans. While we are still executing within our expected margin, but the savings that we anticipated during execution are lower versus the anticipation earlier made by the company. And number three, about two to two and a half percentage points, a reduction is on account of ramping up of revenues. For a part of our HV business, which has lower gross margin compared to the rest of the business, but overall beneficial at the EBITDA level due to better operating leverage. So this kind of washes out in the EBITDA. Accordingly, we see that 50% of... Overall gross margin impact gets mitigated at the EBITDA level, and we delivered an EBITDA of 25.1%. In line with mid-20s, brands we have consistently guided earlier. Going to profit before tax, profit before tax for the quarter was $4.9 billion, up from $3.9 billion in the quarter one of financial year 26, with PANA's cost remaining negligible, and it was still as continuous zero debt position. On the balance sheet and capital allocation side, we generated 4.3 billion of cash during the quarter, taking our total available cash, including funds that we lent to the cash pool, to IRR 29.3 billion. Out of this cash balance, the company has announced a utilization plan of approximately 13 billion, which includes 10 billion of capacity expansion program announced in the last financial year, and approximately 2.5 billion INR of dividend in quarter 2, subject to the approval of shareholders. The management continues to evaluate various options for utilization of balance cash to optimize the returns to the shareholders. I would also like to highlight the continued quality of our service. Private customers now account for 77% of our backlog, with central utilities and PSUs contributing another 21%, and state utilities exposure just down to 2%.

This is consistent with the

out-of-party derisking trend we have discussed in prior calls. So, to summarize, before I hand back for the question, order intake for the quarter-mortative that will remain great. Execution phase, cash generation, and backlog quality all remain strong and consistent with our full-year expectation, and we are confident of converting our to 209 billion backlogs profitability over the coming year. So with that, I'll hand over for the question and answer.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Samir Thakur with Ambit. Please go ahead.

Hi, thanks. So, just wanted to check on this U.S. data center order for which you had RCT approval of up to 1,300 crores. So, just want to check, have you booked a part of it in this quarter, or we should expect more orders, or the entire order in the second quarter?

Yeah, thanks.

That's the question.

As I highlighted in my opening remarks. We have not booked any part of that order as of now. That order is yet under discussion by our Group Entities event customers. And now we expect the timeline to be quarter two or quarter three of this financial year.

Okay, fine. And the 3,000 kronor approval which you already had, and that is, I think, supposed to get converted in H2 of this year. So that is still in place, right? And probably you have to get...

So, we had two approvals. I would like Sandeep to answer that.

So, Samir, thanks for the question. So, basically, the approval what we took for 3,000 crores as project has been put under hold as of today by the customer. When the customer re-initiates the process, then at that point of time, We will again be back to the shareholders. If by that time, and because the agent is going to happen in September itself, so I think I don't see any order getting closed in like by September. So probably when that opportunity becomes live, we'll have to again be back to the shareholders for re-evalidation.

Okay, thank you. And the second question is, how do you see the HVDC pipeline? It looks like the Lacadia project is on hold now, and the Begunia was converted to EHVC, and again this South Column project is still not awarded. So what is your view here? Do you see any risk of delays or cancellations here?

So South Column bidding has already happened for the developers, and I think the first-stage bidding has been submitted by the developers. So this should happen probably in August or September. It should get divided on the developers. So that's a good thing. Secondly, I think we are expecting maybe one or two more projects to come in the upcoming entities. So I'm not saying that the HODC pipeline is going anywhere. The HODC pipeline remains strong. Of course, the pace at which we would like it to come, it's slightly getting delayed, but it's not going away.

Okay, thank you. I will get back in the queue. Thank you.

Thank you. Our next question is from the line of Parikshit Kanpal with HDFC Securities. Please go ahead.

Well, hi, sir. Congratulations on a decent quarter. So our first question is on the export orders in this quarter. It used to be on a very high run rate. Typically, third-party export used to be about 800,000 crores, excluding RPTs. So what is driving this? I know some of these are GNTTs. So if you can help us understand in this quarter, how are these orders driven? Is it certification? Is it like, so what is basically driving this new mandate?

So, I think, so, if I understand the correction, sorry, if I understand the question, Parishit, is that normally the overall yearly order intake from exports, the third party and the smaller ones is not so high, but this quarter we have seen a much higher run rate, right? That's what you're saying, right?

Yeah, yeah, yeah. So, your voice is also not clear. Please, if you can come closer to the mic, I'm not willing to understand. I'm missing a lot of part of the interaction. Is it better now? Yeah, slightly better.

Okay.

So, it

should basically see that it all depends upon the opportunities which are coming, and you know that not only from data center opportunities, apart from that, when the data center opportunities are being developed in the US, then there is a lot of utility pipeline also getting generated in the US. So I think there's a lot of orders which have come from utility customers in the U.S. as well, which is, and then, of course, we have close to some two packages of 400 kg GIS with customers in different countries as well. So, of course, the data was fixed kind of a target for a quarter, so whatever comes and whatever is. Whatever comes when we are able to win, those others get big into the system. So, this time the opportunity pipeline for the last quarter was much better, and accordingly the instrument transformer, a big pipeline got converted. So, thankfully, yes, it's about $550,000 what we did around for the experts.

I'm also not able to understand it. The voice is really unclear. I don't know.

Can we disconnect and reconnect?

Check with operator.

Are you able to hear us? Ma'am, I will reconnect your line.

One moment, please.

Ladies and gentlemen, we have reconnected with the management.

Over to you, sir.

Harishit, is it better now?

Yeah, I am much better. Thank you. Thanks for the commitment.

So, the pipeline this time, because of the utility customers in U.S., the requirement for instrument transformer was much better. And then we had a few opportunities of 400kb GIS, decent side opportunities. So everything contributed to a much better pipeline and other realization in the export side.

And so, I mean, these RPTs and back-to-back there has been delay in both the RPTs, the bigger one, 3,000, I mean, you said now it's put on hold and if the client decides it's come back for again approval. And same thing is happening for data centers. So, is it the overall concern around, is it the geopolitics or is it concerns around data centers? So, why is this delayed decision making from the customer end? And how is the RPT pipeline looking for the rest of the new pipeline for the rest of the year?

So, the first one, it was like into the 3,000 crore was into much advanced stage of discussion and negotiation, and that is why we went for the RPT approval of the shareholders. But then suddenly, because of budget issues, et cetera, at the last minute, the utility has kind of, I will not use the word backtrack, but that has put it on under hold for some time. So, we are just waiting for them to. To resolve the internal things and then re-initiate the process of it. Regarding the data center opportunities in the US, etc., because we were very close to the final negotiation going, but then there were certain other aspects like change of location, change of state. And so when the state changed, when the complete solution is to be reworked because of different voltages, etc. So I think there were certain factors which were beyond the control of G. Varnova. That is why the whole opportunity has got shifted.

Okay. So, but both of them are shifted, but can come back. So, as of now, limited clarity, but as and when they come back, then it will be initiated or re-approved.

Both of them are not lost. Okay.

And just the last thing on the, what are the, how's the now new RPT pipeline developing? So, any color on that for the upcoming approval this season?

I think the RPT pipeline, once a large project gets identified, then automatically it comes up. So, as of today, it will be difficult to comment on the new RPT pipeline, but as and when it comes, we'll be coming to the shareholders.

Okay. Just one thing I just wanted to check on domestic ordering. I mean, we have seen soft quarters. Q4 was a soft quarter. This was again a soft quarter. So if we can give some color on domestic ordering, when do you expect to pick up? We have also not seen this bulk order for power grid coming. I mean, they were there in the last couple of years, but they say we have not seen for some quarters. So how is the demand shaping upon the domestic ordering?

If you look at January to March, the TBCP pipeline was a pretty soft pipeline, and because of that, you see the order intake, which is impacting the April to June order intake, which is there. But we are seeing now the TBCP pipeline or decisions now getting much better. Last few, if you really look at June, July, the pipeline is much better than what it was in January to March. Only thing is that with a large pipeline getting decided in July, we'll have to see that when the ordering happens, whether it happens in this quarter or it spills over to the next quarter. So, that is something to be seen yet.

Sure, sir. Thank you, Anishra. That was both my questions.

Thank you, Parish.

Thank you. Our next question is from the line of Vidhi Shah with C.R. Kothari and Sons. Please go ahead.

Vidhi, your line has been unmuted. You may proceed with your question.

As we're not receiving a response from the current participant, we will move to the next questioner in queue, which is Amit Anwani from PL Capital. Please go ahead.

Thanks for the opportunity, sir, and congrats for the good set of numbers. My question, one is on the data center. I just wanted to understand what is the data center portion in your current order book, and second, How is the data center pipeline building up for you? What is the addressable market in the data center capix for you, if you could elaborate more on this side?

So, Amit, in the present order intake, the data center ordering is not significant, I would say, that it's few product orders which are there in the data center. Of course, what we are seeing is that now. On the drawing board, we are seeing much larger data center capacity is being planned, which will be at higher voltages. So, we are working with the customers on those data center opportunities, but is it going to materialize in next quarter or maybe next two or three quarters? This is something yet to be seen.

Second, sir, I want to again follow on the domestic ordering question. You did highlight that the ordering during Jan to March, the tender pipeline was soft, and that's why the conversion got impacted. But how one should look for the full year in terms of base order, especially the domestic one for this year? Will it be double-digit growth or if you could give some medium to long-term sense as to how much you're factoring in for this year?

So, when we talk about market, I don't expect a double-digit growth, but I'm not looking at a slowdown of the market as well for the year. So, markets will either remain at the same level, or we might see about 6-7% growth in the overall market, which will be realized this year on the TBC side.

Right. Lastly, sir, on margin, you did explain the margin variation for this quarter, and you have been guiding mid-20s for the full year. So, are we sticking to that, or is there any change to the guidance for this year on margin?

So, Amit, we maintain our guidance of mid-20s EBITDA for a year. There is no reason that we should deviate from that right now.

Understood, sir. Thank you. Thank you so much.

Thank you. Our next question is from the line of Jason Soans with IDBI Capital. Please go ahead.

Yes, sir. Thank you so much for taking my question. So my first question just pertains to the, I mean, of course, the notification of the four Chinese players which have been added. And of course, it increases competition, particularly on the GIS side. So, I just wanted to know, you know, GIS is definitely the core product for us as well. So, I just wanted some color from you on the side of how this can probably play on the margins or the orders. How do you see this shaping up for us going right?

So, thanks, Jason. We are also watching because it has just got approved, and subsequent to that, so normally whatever power grid bidding happened had happened before that. So, they were all with the domestic, the non-Chinese GIS mix had been considered, and the bidding had happened in power grid. Regarding with the private, so whatever private has won the TBCP bids, they have not yet started the discussion. So the impact of the Chinese on the GIS will come to know once the thing will start, the negotiation process will start. But we'll also have to understand one thing that the government has approved. And if you look at Chinese, Before they got, before they were restricted from participating in the Indian market, the make in India clause of like 60-65% local content was not there. So what will be the Chinese leverage to? Go down on prices with 60-65% or 70% local content is also to be seen in the market, and if they were not present or they were not operational in the country for like last 3-4 years and then suddenly to take orders and deliver in 18 months with 60-70% local content, that capability also needs to be understood.

Next question, sir, pertains to, I mean, your voice was a little bit muffled as an earlier participant had spoken. So, you did mention, you know, the reason for the lower gross margins. I got one aspect of it that it was due to lower exports and execution of a higher profitability export orders in the last quarter. But the other two reasons that you mentioned were not audible. Could you just repeat that for just for clarity's sake?

Thanks, Jason. I'll answer it again for the benefit of all the participants. So, we are comparing our current quarter gross margin with the entire financial year, 25-25, because in our business, a full financial year makes a better representation rather than comparing on each quarter basis. So, my financial year, we achieve 45.3% gross margin, and this quarter, we are achieving 41.3%. So, there is a delta of 4%. I highlighted three broader reasons for this. 2% to 2.5% of the impact is due to the ramping up of higher revenue from the part of the HP business, which gives a lower gross margin compared to the rest of the business, but also it enables a better operating latency because we are growing volume with the help of this business. And hence, that impact largely gets eliminated at the EBITDA level. That is why you said that overall EBITDA is 25.1% compared to 27.1% in the last financial year. Now, other two reasons are approximately 1 to 1.5% of the impact on account of relatively lower export share in the current quarter and also execution of high profitable export order in the last financial year. That's you rightly highlighted. And the third reason I mentioned is the elevated commodity prices. Resulting into the lower execution savings that we anticipated compared to our initial plan.

That's very clear. Thank you so much for repeating that and that's all from my side. Thank you so much.

Thank you. Our next question comes from the line of Anuj Jain with Globe Capital. Please go ahead.

Hi, Jen. Good evening.

I just have one question. I mean, apart from a group level, what is our order book? The overall order that we booked for the quarter

was 5.5 billion, and out of this, roughly 5.5 billion was from the export side. And our business largely, I don't have exact split for the quarter, but 90-95% of orders are coming from the group entries. So we can assume roughly 5 billion of the order on a broader basis coming from the group entries. So excluding that, we can consider 6.5 billion of orders. Coming from the third parties, which includes large portion of the domestic customer and small portion from third party customer in the fourth segment.

And total order book, since you are saying about the quarter, I am talking about the total order book of 28,900 or something. Out of that.

Okay, so that is the order backlog this year.

Yeah, right, order backlog. We generally do not give a breakup of the backlog in, you know, export versus domestic, but I'll give you some broader color. The export in the total order we handle backlog should be about 10 to 15 percent in that range.

Okay, sir. Got it. Got it. That's it from my side, and wish you all the very best.

Thank you. Our next question is from the line of Ankush Khandelwal, an individual investor.

Please go ahead. Ankush Khandelwan, your line has been unmuted. You may proceed with your question.

As there's no response from the current participant, we will move to the next participant in the queue,

which is Sherom Kapoor with Jefferies. Please go ahead.

Hi, sir. Thanks for the opportunity. Just one quick clarification on the RPT approvals that you have. So, you have the 1,300 crores, which is for the U.S. data center order. That is not part of the total 3,000 crore RPT approvals you've taken, right? Could you clarify what that balance 3,000 RPT approval is for? Is that one single project or is that multiple projects?

So, that was one project, and that was not a U.S. project. That was a different project altogether.

So, currently, you've got 4,300 crores of RPT approvals where the orders are still pending, just to clarify.

Yeah, but out of that, 3,000 is going to expire by this AGM. So, then it will be only 1,300 which will be left.

Understood, sir. And secondly, just, you know, in your last earnings call, you discussed, you know, being confident around base order flows of, you know, 7,000 to 8,000 crores a year. And, you know, this quarter, you've done around 1,100 crores. So, of course, you mentioned that pipeline TBC is a little soft for this quarter, but it's picking up. So, do you remain confident on the 7,000 to 8,000-curve base orders coming through for the full year, or are you expecting to miss that guidance?

No, we remain confident.

Got it. And just lastly, on the commodity prices, so you mentioned that, you know, versus FY26, your margins in the first quarter, 400 bits lower. You explained that about 300 to 400 is from the export mix as well as ramp up in the high voltage business where gross margins are lower. On the elevated commodity price, do you see this continuing to impact us for the next few quarters? Are you taking any kind of price hikes or being able to pass through this to the customers? Just want to understand how that is working out.

Thanks, Shroom. I will answer it a little differently and break it into two pieces, just to explain the nature of our business. So, first is that, yes, definitely the commodity prices are elevated and quite volatile given the geopolitical and other challenges. And in our business, there is a transformer business, whether it is a standalone supply of transformer to the customer or it is a part of HVDC project. In that scope, we get a price escalation. So, all the commodities like, yeah, geo, steel, etc. There is a formula embedded in the contract basis which we get the compensation. So, that part of the business is not impacted. Then the other part of business, the rest of the business is switchgear, GIS, turnkey portfolio, etc., where we have our approach of building the estimated cost. of commodity prices. This is our past trend and the future expectation of the commodity prices. Now, with this approach, we have been very successful in the past, and as we see, our order to execution cycle has a gap of, say, 18 to 24 months when we take the order and when we execute the order. So, which effectively means, yes, now, as we build for the new tender, we will continue to improve the new prices. But the impact is likely to come in the execution in the future period. And I can just give you confidence that we have a very disciplined policy in terms of costing and going to the market.

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The same has been really maintained over the period of years.

Thank you. Our next question is from the line of Subadit. I'm sorry, that's Subadit Suchit Mitra. Yes, ma'am, you are still connected.

Let's take a confirmation that my answer to the last question was really audible to everyone.

Sir, you are audible. The participant from the queue has dropped.

All right. Thank you.

Our next question is Subadit Suchit Mitra from Novama.

Please go ahead. Good evening, sir, and thank you for the opportunity. Just wanted to understand that on the export front, do we see more optionalities opening up, especially with GE1OVA Global acquiring 100% in Prolet and some larger, I think, you know, transformer orders that Prolet has received over there? Do we see an optionality that the global factories, including the India factories, will likely benefit from these large orders in the US?

Yes, it will verify, Shivadig.

Okay, any ballpark, you know, time that can come in India's direction?

That will all depend upon what kind of order, what kind of rating. So it will be a mix. Difficult to predict because that will all depend upon individual opportunities.

Understood. Also on the margin side, do we see any lumpiness in margins possible going ahead? So while we understand that this quarter, there were multiple reasons for margins to have come off, but similar peaks and drops can happen in future. So would you expect a range of margins somewhere between the mid to high 20s or you would still want to stick to the mid 20s?

So, Sudhadeep, as I mentioned earlier, even a margin of the quarter is in line with the mid-20s that we have been consistently guiding for, and obviously last quarter when we guided for, we had seen the commodity prices going up and have the guidance over there. So, we continue to maintain that band for the financial aid, 26, 27, as of now.

Thanks, thanks. That's very clear. One last question from my side is... Are you able to see the commodity cost pass through, you know, carry on through pricing in the existing order and flows?

Shudanit, thanks for this question. I answered this to the previous caller. So, as I explained, there are two parts of our business. Transformers business gets the price escalation clause, which is expected of whether it's a direct supply or as a part of HVDC business. And it's a well-defined formula by EMA, which gets good compensation of the commodity price increase. For the rest of the business, which is non-transformer business, we anticipate the cost of commodity prices. This is our past experience and future expected prices. So we'll continue to work with that same disciplined approach, and as I mentioned, that generally there's a lag between the new prices and the executions. So, which means that if, for the current orders, we build in the new cost in our tender, those projects will come in execution with a higher compensation in the future, which is a lag of, say, one year to two years in the execution cycle.

Okay, perfect. That amply answers the question. Thank you so much.

Thank you. Our next question is from the line of Abraham, an individual investor. Please go ahead.

Hi, my question was on order inflow for this quarter. So we have seen that order inflow as compared to last year as well as compared

to previous quarter, the order inflow was less. So, I've heard that you have covered in the start of the call, but your voice was not clear.

So, what gives you confidence that the auto inflow will increase from your own? Thank you.

So the pipeline for TBCP project is now getting better, so that gives the confidence, because when we see from January to March, the pipeline for the TBCP was muted, and now from, like, May onwards, or June onwards, not May, but I would say June onwards, the pipeline has picked up, so that gives us the confidence that the order numbers will be better now. Thanks. Thanks a lot.

Thank you. Our next question comes from the line of Venkatesh S from Logic Tree. Please go ahead.

Hi, Salvar Asanand. I wanted to check with you on a kind of a big picture view, considering the opportunity in HVDC as well as data centers plus exports. If you take a three- or four-year view, is there a vision that you have for GE Vernoa, and are you looking at some kind of a number, and how can the split be, say, data center exports and domestic HPTC? Can you give me a big picture view?

Sorry, I think this is not the forum because this will be like kind of a forward-looking statement, so we will not be able to share any big picture view on the call.

But would you be able to give me a kind of a proportion in terms of these three key businesses, what could the contribution of exports, domestic HPDC, and data centers, would that be a possibility?

Yeah, I have a still previous issue on the side. Maybe I'll try to give some color and answer it differently. First of all, the break-up that we are seeking, typically we don't give it because we look at this as a one integrated portfolio, and we see the past trend, this break-up changes significantly year-on-year, quarter-on-quarter, depending on the execution of different types of projects, but on an overall basis, we have a revenue growth of 38% in this quarter, driven by the ramping up of the execution of the high backlog, so a backlog stands for $209 billion now. Now, so this high backlog gives us a confidence that we have the potential to grow at a significant pace in the future also, because the current backlog is roughly 3.5 times so far revenue, and it's a multi-year high, and the backlog is a multi-year visibility. However, the growth will not be linear, meaning, Financial aid 27 and 28 will continue to see a healthy growth in terms of our core portfolio, which is projected, products, exports, all put together. But the HVDC backlog, that has a back-ended execution as per the typical structure of the HVDC project, and we see a meaningful growth from the financial aid 29 onwards. So our growth trajectory overall is over. Meaningful in the next couple of years, but has significant improvement in the financial year 29 onwards. This is the execution of HVDC.

Right, sir. Sir, two more questions. One is, based on the predictions for the future, over the next 12 to 24 months, what is the capex that you would probably be planning?

So we already announced the capex of about 10 billion in the last financial year. And we have 29 billion of surplus cash available. As we mentioned in the beginning, 10 billion is there for capex that we already announced.

2.5 billion for today.

So we have roughly another 16 billion off. Such as cash over and above the announced plans. So, as I said in the beginning, management and the board continuously evaluate what are the options available for the company for maximizing the returns to the shareholder. As of now, there are different options at the evaluation, nothing is concrete, and as per the requirement also, we need to inform to the patients in case of such, it is difficult to call out a number in this call because nothing is firmed up as of now.

Right, sir. Last question from my side. If you look at the competitive scenario, apart from the Chinese suppliers, et cetera, the three or four major players in the Indian markets, Siemens or Hitachi or yourself, et cetera, what do you think can be GE Varunovar's competitive advantage compared to the other serious players?

So, of course, technology, lean.

And then we talk about localization. So these three, we feel, are the distinct advantages what we have.

Okay, sir.

Thank you very much.

I'll join the queue.

Thank you. The next question is from the line of Samir Thakur with Ambit. Please go ahead.

Hi, thanks for taking the question again. I just have one. Just coming back to the competitive scenario here. Are you seeing any competition from tier two suppliers? Has that increased recently? And are you seeing any risk of risk to market share in domestic market from tier two suppliers? Not the big ones.

So, it's not that the competition from TA to supplier is only now. The competition from TA to supplier has been for some time, but that also depends upon product to product. For example, when you look at circuit breakers or when you look at, for example, gas-insulated studios, et cetera. You don't have automation products, et cetera. You don't have a software site. You don't have much of a competition coming from tier two suppliers. So in some domain, it is there. It is not. Some domain, it is not there. But in the other domains, it has been there for some time now.

Okay, thank you. I'm not sure that it's a repeat because I got disconnected in between. But for pricing in the new orders, so how do you see that? Is that flattish over a year or has that increased? Because commodity prices have increased, like copper has increased by more than 50% over a year. But how do you see the pricing in the orders? Has that stabilized over a year or that is also increasing?

So the transformers and also whatever is the impact of the material which is there has been, they're able to pass on to the customers, but they've not been able to pass on like extra margins, etc. to the customer.

In order to what Sandeep said, I would like to highlight that this commodity price increase is a market phenomenon. It is available to all the competitors. Obviously, everyone has to factor in the increased level of commodity price and their costing while making the bid. So overall demand supply dynamics doesn't change because of changing the commodity prices.

Okay, thank you. Thank you. The next question is from the line of Omer Sharaoth with Nomira. Please go ahead.

Hi, sir. Good evening. Thanks for this opportunity. My first question is pertaining to Synchronous Mendelsor packages which are being floated recently. There were, I think, a couple of packages, and each having project cost of about 7,000 to 8,000 crore. So, what could be our scope of work in these projects? What we can supply from India operations?

So, Synchronous, thank you, Amesh, and good evening. So, Synchronous Condenser is manufactured by GE Vernova, but that is not part of grid portfolio. But the transformer and the bay which comes with the Synchronous Condenser, that can be our part of the scope, which is a very small as compared to the Synchronous Condenser scope.

Okay, okay. So if I understand correctly, that portfolio is available in the parent entity. Is that fair as a result?

Yes. Normally synchronous condensers are basically a type of a generating equipment. So we are a TND player, so that generating manufacturing capacities are not available with this entity.

Understood, understood. Second question is pertaining to StatCom. I think there were a couple of cases in Gowda in the month of June, May as well, and I think there were some certain instabilities in the grid, and now there is an urgency in terms of floating out tenders for StatCom. So do you think these tenders materially pick up in the next few months?

Yeah, it should pick up. I think what you're saying is right that with the amount of generation we lost, I think this should create more opportunities for good stability. Opportunities.

Understood, understood. Last question is pertaining to capacity allocation. I mean, we kind of cater to domestic demand and at the same time to exports and then with respect to our parent entities as well. So, how do you assess capacity which is kind of available for three different type of opportunities? And considering that there were a couple of RPD approvals which were in free for near term in terms of, I think, the order awarding, so would that be a case where you were slightly more selective in domestic market in the last six months while going into bidding?

So, thank you, Mesh, and I think we have to find a balance. So, basically, we keep on a very close watch, and the opportunities that do come in, like, for example, if it is an RPT opportunity, then what kind of time frame the order is getting decided, what kind of deliveries they are looking forward to, what kind of domestic opportunities are coming up, they're overlapping in terms of deliveries, not overlapping. So we have a constant mechanism by which these opportunities are tracked, and accordingly the decisions are taken that, for example, in RPT also, what is the maturity stage, for example, suppose the maturity stage is not there, but it's just like 24 months delivery, then whether it's going to be 24 months from now or it is going to be 24 months after six months. That's a conscious call we take, and then, accordingly, we target whether it is export or whether it is domestic, but that challenge is always there in terms of domestic as well, because, for example, if you're putting a bid where you have a three-month validity, and then you have other places where bids are going, so if there, again, you have a three-month validity, you have to take a conscious call what is more targeted where to put more aggressive. And how to plan the capacities.

Understood, understood. Last question pertaining to current capacity utilization, how it is varying as of now?

I would say it is consistent with whatever we have been explaining in the last few calls that a few of the factories we have loaded pretty well, and a few factories we still have opportunity to grow. So that remains our position, and I think that is...

Understood. Okay. Thank you. Thank you so much.

Thank you. Our next question comes from the line of Mahesh Patil with ICICI Securities. Please go ahead.

Yeah, thanks for the opportunity. So my first question is on this power grid mentioning that the TPCB project timelines, they have, the operables have gone up from 18 to 24 months earlier to now around 24 to 30 months. So, how does that impact us or our calculation in terms of our order cycling and, you know, capacity utilization and capex plans? You can just throw some color on it.

On the CAPEX side, it is not going to impact anything on the capacity utilization. Of course, whatever orders we have, they are with a definite time frame, the orders what we have received. I think the impact which can come on the ordering part is that suppose it goes to a few projects have gone to 30 months. So, there the customer, so for example, earlier when it was 18 to 24 months, as soon as the customers were winning in like one to two months, they were deciding the order in the market. But as it becomes 30 months, then they have come probably a quarter like maybe three to four months where they can take a decision. So, the ordering cycle gets slightly stretched in the case when it becomes 30 months.

Got it. And sir, second question is on the margin profile. If you can throw some color on the margin profiles of key market segments, let's say data center is picking up, then they're doing also transmission. So if you can just throw some color subjectively, how does that vary between our key market segments?

Yeah, hi, Mahesh. So, margins by market segment or customer type is something that we don't share. It's a very confidential part of our business strategy. However, we do have shared in the past that exports generally have better margins to the extent of 4 to 6% compared to the domestic orders.

Okay. Yes.

Got you.

Thank you.

Thank you. The next question is from the line of Arunachalam, an individual investor. Please go ahead.

Good evening, sir. First of all, congratulations on your numbers.

See, I just wanted to know an update on the Valnam project, the 55 crore project, which he had decided to roll out sometime in December 2026. Is it the deadline is likely to be met, or how is it?

So, we are working on that project. I think part of the capacity we should be able to come up with in Q1 of 27, that is there, but the balance capacity will come, I think, probably by end of 27, so we're working towards it. Thank you.

Thank you. Our next question comes from the line of Vidhi Shah with C.R. Kothari and Sons. Please go ahead.

Hello, sir. I know what to do. I wanted to understand what kind of margin profile and asset term can we look at in the next seven years.

The answer is that for the financial year 26-27, we continue to maintain our beta guidance of mid-20s.

Okay, and asset terms?

So asset terms, we

don't typically calculate it that way because in our Business assets can be utilized differently because capacities are fungible. For instance, if we use the assets for HVDC projects, the assets have become quite significant because HVDC projects have a lot of bought-out components, etc. So internally, as an internal management, we are not working on capacity utilization in terms of assets, but as we look forward to specific projects that we can execute using our existing capacities.

Okay. Thank you.

Thank you. Our next question comes from the line of Shivang Pandya from Upper Crust Wealth. Please go ahead. Hello, am I audible? Yeah. You're audible.

Yeah. With all the dividends scaling rapidly and cash is also growing. How are you thinking about the balance between shareholder returns, funding capacity

expansions, especially as global peers like Quality Power Itachi are actively acquiring niche capabilities to capture the same HPDC and FACS demand wave? So, Shivang, I already mentioned in the call in the beginning as well as answer to one of the investors that out of the 29 billion cash we have, we have already announced utilization of almost 45% of that cash in the form of dividend as well as CapEx. So, we have already announced 10 billion of CapEx and about 2.5 billion of dividend. And as I mentioned, we continuously as management and board look forward to the balance between shareholder return and next type of return on the investment. The amount which remains unutilized is parked in the cash flow facility and fixed deposit. And we continuously look forward to all the investment options. A good part for us is that our business to a large extent is already comprehensive. We have almost all the product range in terms of The HV equipment portfolio, and wherever we could do the capacity expansion, we have already announced. One important point you will note is that most of the capacity investment that we have announced, 10 billion, is largely within our existing plants, where we already have the surplus land, which means that we don't need to invest in land, but we can have better return to the shareholder. By investing in the existing facility, and the land was taken a long time ago, so it's at a very low rate as compared to the current prices. So that is how we try to maximize the shareholder return by making maximum utilization of our assets. And the last point is that we have been continuously communicating in large multiple calls, and we also have a very good mechanism of working on leads, which means continuous improvement in our existing facilities, while the capex may not look to be significant, but the output of that investment is very significant in terms of revenues and return to the shareholders.

Right, right.

Thank you so much. Thanks. Thank you. Our next question comes from the line of Pratik Dharmshi with Union Mutual Fund. Please go ahead.

Yes, sir. Many congratulations for a great set of numbers. Just one question from my side. Considering so much of capacity additions from the competition expected over the next couple of years, Do we reckon the demand-supply dynamics to be in an oversupply zone maybe after two, three years, or you are confident on the cycle? How should one look at it?

I think you are right that if you look at the only domestic demand, that definitely, if the capacities which are expanding are going to feed only the domestic market, then yes, we look at the oversupply situation, but today we look at energy transition which is happening globally, and there's a big shortfall in the availability of the equipment globally. So, my assessment is that a large part of this capacity will also be used to feed the export market or the global demand. I think there will be, and of course, we look at India market also growing. So, with this growth and the exports, we should still be in a position to retain the balance of demand and supply.

Thank you.

Thank you. Our next question is from the line of Jason Soans with IDBI Capital. Please go ahead.

Yes, sir. Thanks for taking my question again. Just basically, it might sound very basic, but sir, just wanted to understand because this figure kind of, you know, varies from project to project. So just some clarity on that. So of course, when an HVDC project comes through Bama, South Carolina, probably 25,000 crore odd worth project costs, what is the typical size of our addressable market from this? You could just give me a ballpark number. I mean, I understand project-to-project is different, but just as a ballpark, what will be GE share from this 25,000 growth order?

Sir, Jason, this project is under bidding, so as of today, we will not be able to share any numbers on this.

Okay, sir, for a typical order, probably then you can share what percentage of, can we are addressable size?

No, sir, but again, you said that it will be different, I can suppose similar projects, somewhere it is a thousand kilometer line or a two thousand kilometer line, the share will change, you know.

Okay. Sure, sir. Sure. Thanks for that. Thank you.

Thank you. We have no further questions, ladies and gentlemen. I would now like to hand the conference over to Ms. Megha Gupta for closing comments. Over to you, ma'am.

Thank you all for joining the call today. We hope the insights provided by our speakers have been informative and valuable to you. We value the trust and support of our investors and analysts and ensure to remain committed to maintain transparent communication and fostering strong relationships. If you have any further questions or require additional information, please do not hesitate to reach out to me or our communications leader. Thank you.

Thank you. On behalf of GE, Vernova, TND, India Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.