Power Transmission Stock to Buy Now for an Upside of 20%; Recommended by Trade Brains Portal
India’s power transmission sector serves as a vital pillar of national economic growth, driven by rising electricity demand, rapid clean energy integration, grid digitalisation, infrastructure modernisation, and the expansion of high-voltage transmission corridors across domestic and global markets. Trade Brains Portal has recommended a “BUY” call on a premier power transmission and distribution stock with an upside potential of 19.71 per cent.
The recommended company, GE Vernova T&D India Limited, is a leading provider of power transmission and distribution solutions with over 65 years of presence in India, serving utilities, renewable energy developers, and industrial customers.
Through its comprehensive portfolio spanning 765 kV AC and 800 kV GIS systems, 800 kV HVDC technology, power transformers, circuit breakers, FACTS devices, digital substations, and GridOS software solutions, the company leverages robust engineering capabilities, expanding local manufacturing facilities under the Make in India initiative, strategic platform innovations, and sustainable, value-driven grid electrification solutions.
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Why it’s recommended:
Macro Sector Evolution & Strategic Pillars
The Indian power transmission sector is experiencing a historic inflexion point as it rapidly transitions toward a digitalised, decarbonised, and dynamic grid architecture. To meet rising national energy demand and support net-zero ambitions, the industry relies on three main strategic pillars: expanding long-distance High Voltage Direct Current (HVDC) and Alternating Current (AC) corridors for large-scale renewable integration, adopting smart substations and predictive software to reduce AT&C losses, and deploying Flexible AC Transmission Systems (FACTS) and energy storage solutions to stabilise grid intermittency.
Strong Financial Performance & Profitability
The company demonstrated strong commercial momentum throughout H1 and Q2 FY26-27, pairing solid top-line growth with high profitability and a clean balance sheet. Q2 order intake surged 52% YoY to Rs 24.4 billion (pushing H1 intake to Rs 35.8 billion), while Q2 revenue expanded 32% to Rs 20.3 billion. Operating performance remained exceptionally profitable, with a 44.5% gross margin, EBITDA of Rs 5.5 billion (27.1% of revenue), and PAT of Rs 4.3 billion. Strong cash generation of Rs 10.1 billion in H1 raised total cash reserves to Rs 32.5 billion, maintaining net-zero debt with negligible finance costs.
HVDC Leadership, Localisation & Trench Synergies
The company is aggressively strengthening its supply chain and local manufacturing capabilities to capture high-value HVDC infrastructure opportunities. As the L1 bidder for Power Grid’s Barmer project, the management anticipates major HVDC revenue realisation from FY28 onwards as new tenders enter the market. Core HVDC components like transformers, thyristor valves, and controls are already localised in India, with active efforts underway to source long-lead items like 765 kV bushings locally. Additionally, parent company GE Vernova's global acquisition of Trench Group will enhance local supply chain control and cost competitiveness for HVDC and STATCOM products, even as decisions on merging Trench India into the listed entity remain under evaluation.
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Key Project Executions & New Commercial Orders
Operational execution remains robust across major domestic utilities and selective international export destinations. Key commissionings include a second 400 kV substation for the Nepal Electricity Authority, a 400 kV GIS for GETCO at Babarzar, 765 kV reactors for PGCIL and Resonia, a 765 kV generator transformer for NUPPL, a GIS package at Narela, and international projects in Spain and Senegal. Fresh order wins comprise a 400 kV generator transformer and 420 kV GIS for a 1,500 MW hydro project in Maharashtra, 800 kV and 420 kV GIS packages in Andhra Pradesh, 400 kV reactors for a TBCB project in Himachal Pradesh, and a 765 kV shunt reactor package in Andhra Pradesh.
TBCB Market Dynamics, Exports & RPT Status
Commercial activity reflects steady demand across Tariff-Based Competitive Bidding (TBCB) projects, international exports, and key related-party transactions. While domestic TBCB pipelines remain healthy, developer delivery windows have widened to 24-30 months, leading developers to award equipment orders 3 to 5 months post-bid win without eroding core pricing discipline. Exports contributed 21% of Q2 orders and 32% of Q2 revenue. On the Related Party Transactions (RPT) front, a Rs 31 billion export RPT approval lapsed due to customer delays, but a $151 million (Rs 1,300-1,500 crore) RPT approval for US data centre transformers remains active for expected closure in H2.
Emerging Opportunities & Long-Term Revenue Visibility
The company’s growth trajectory is anchored by a massive Rs 214.4 billion order backlog, providing solid revenue visibility for over three years. While data centre orders currently represent less than 2% of the backlog, the industry shift from 220 kV facilities to ultra-large 400 kV / 765 kV data centre architectures will significantly expand the company's Total Addressable Market starting late Q4 and into next year. Furthermore, executing this extensive backlog against a modest INR 10 billion capex outlay (20% spent to date) will generate strong operating leverage, driving absolute earnings growth and expanding return on equity.
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Key Monitorables and Potential Growth Risks
Despite steady overall performance, certain execution and market risks require close observation. H1 order intake of Rs 35.8 billion trailed revenue of Rs 38.6 billion, keeping the backlog flat at Rs 214 billion, while Rs 31 billion of related-party export orders to the Middle East and France remain on hold with no timeline; sustaining the current 30%+ revenue growth pace will require fresh inflows and the pending HVDC order to pick up.
Additionally, management cites supply chain bottlenecks as the biggest operational risk, as critical components like 765 kV bushings are largely imported and take 15-18 months to arrive. Lastly, margin pressure remains a key watchpoint: H1 gross margin fell to 43% from 46% and EBITDA margin to 26% from 27% due to mild pricing pressures and copper prices rising over 50% in a year, while higher-value HVDC orders will not contribute meaningfully to revenue until FY28.
Financial Track Record
Between FY24 and FY26, operational revenue jumped 95.9% to Rs 6,206.3 Cr, while PAT skyrocketed 581.1% to Rs 1,233.2 Cr (margin up from 5.7% to 19.6%) and EPS reached Rs 48.2. Strong operational control expanded EBITDA margin to 27%, alongside a 48.1% drop in finance costs. Total equity doubled to Rs 2,690.2 Cr with zero borrowings. Cash flow from operations surged 229.9% to Rs 1,709.8 Cr, funding a 547.4% capex rise to Rs 188.4 Cr and boosting cash reserves to Rs 1,525.2 Cr.
About the Company
GE Vernova T&D India Limited is a leading electrical infrastructure and power transmission solutions provider with over 65 years of presence in India. As a listed entity in GE Vernova’s Electrification segment, it offers high-voltage equipment, digital grid automation, and turnkey system integration up to 1200 kV. Operating across five domestic manufacturing locations, the company has delivered over 800 units of 765 kV transformers and reactors and 100+ smart grid control centres. It supports the "Make in India" vision by exporting to over 60 countries worldwide.
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What's recommended?
With a market capitalisation of Rs. 1,06,957 crore, GE Vernova T&D India Limited is currently trading at a price of Rs. 4,177 per share. Trade Brains Portal has recommended a "Buy" call on the stock with a target price of Rs. 5,000 per share, implying an upside potential of 19.71% from its current trading price. The company's future growth is expected to be driven by India’s transmission capex cycle, HVDC leadership, data centre demand and strong operating leverage from a large backlog executed on modest capex, which drives earnings growth and higher return on equity.