GE Vernova T&D India Limited delivered robust top-line growth in the first quarter of FY27, with revenue rising 38% year-on-year to ₹1,840 crore from ₹1,330 crore in the corresponding period of FY26. The company’s execution pace outstripped new order intake, driving a significant expansion in profitability even as gross margins faced headwinds from mix shifts and commodity costs.

Financial Performance

Profit before tax and exceptional items for the quarter ended June 2026 reached ₹490 crore, compared to approximately ₹390 crore in the same quarter of the previous financial year, marking a growth of more than 1.25x. This operational leverage was achieved despite a moderation in gross margins, which fell to 41.3% from 48.4% a year ago and 47% in the preceding quarter.

*Note: FY26 full-year gross margin was 45.3%; EBITDA margin comparison based on management commentary regarding mid-20s guidance.

The company maintained its EBITDA margin at 25.1%, consistent with its mid-20s band guidance. Management attributed the gross margin compression to three primary factors: a lower share of high-margin export revenues (30% of total revenue in Q1FY27 versus 33% in FY26), elevated commodity prices reducing execution savings, and the ramp-up of higher-voltage business segments which carry lower gross margins but offer better operating leverage at the EBITDA level.

Order Book and Backlog

New order intake moderated to ₹1,140 crore in Q1FY27, down 30% year-on-year from ₹1,620 crore in Q1FY26. This decline was primarily due to lower realization of transformers, circuit breakers, and busbar (TBCB) market opportunities in the fourth quarter of FY26. Consequently, the order backlog decreased by 2.5% quarter-on-quarter to ₹20,900 crore as of June 2026, from ₹21,460 crore at the end of March 2026.

Despite the sequential dip, the backlog represents more than three years of FY26 revenue, providing multi-year visibility. Private customers now account for 77% of the backlog, central utilities and PSUs contribute 21%, and state utilities exposure has reduced to just 2%, reflecting a continued de-risking of counterparty concentration.

What the Numbers Show

A critical divergence exists between the company’s top-line momentum and new order inflows. While revenue surged 38% driven by the conversion of existing backlog, new orders contracted significantly. However, this divergence is mitigated by the sheer scale of the remaining order book (₹20,900 crore), which acts as a buffer against short-term demand volatility. Furthermore, the shift in customer mix towards private entities (77% of backlog) suggests improved credit quality and potentially faster realization cycles compared to state-owned utilities, enhancing the predictability of future cash flows.

Balance Sheet and Capital Allocation

GE Vernova T&D India remains debt-free, maintaining a zero-net-debt position. The company generated ₹430 crore in cash during the quarter, bringing total available cash—including funds lent to the cash pool—to ₹2,930 crore.

Management outlined a utilization plan for approximately ₹1,300 crore of this surplus, comprising:

• ₹1,000 crore for capacity expansion programs announced in the previous financial year.
• ₹250 crore for dividend payout in Q2FY27, subject to shareholder approval.

The remaining cash balance is under evaluation for further shareholder return optimization. Export diversification continues to strengthen, with exports constituting 46% of Q1 orders, including secured deals from GE Vernova entities in North America, Spain, and Morocco.

Operational Highlights

The company commissioned its first 400 kV substation in Nepal for the NEA Khimti site, marking a key milestone in regional grid infrastructure. Domestically, it partnered with Adani to build substations for renewable power evacuation from the Khavda solar park and augmented transformation capacity for key clients including PGCIL, Resonia, and NLP. Management noted that while the domestic TBCB pipeline was soft in the first half of the year, visibility has improved since June, with expectations for better order conversion in subsequent quarters.

GE Vernova T&D India has scheduled its 70th Annual General Meeting (AGM) for Wednesday, September 9, 2026, at 3:00 pm. In compliance with Ministry of Corporate Affairs (MCA) and SEBI circulars, the meeting will be held exclusively through Video Conferencing or Other Audio-Visual Means (VC/OAVM). The primary agenda includes the ratification of the final dividend recommendation for the financial year ended March 31, 2026 (FY26).

The Board of Directors had previously approved a final dividend of ₹10 per equity share during its meeting on May 18, 2026. This payout represents a 500% return on the face value of ₹2 per share. If approved by shareholders at the AGM, the dividend will be disbursed electronically within 30 days of the meeting's conclusion.

Key Dates and Eligibility

Shareholders registered in the company’s books as of the record date will be eligible to receive the dividend payment. The company has fixed the record date for determining eligible members as Friday, August 21, 2026.

E-Voting and Participation

The company is providing remote e-voting facilities through National Securities Depository Limited (NSDL). The remote e-voting period commences on Wednesday, September 7, 2026, at 9:00 am and concludes on Tuesday, September 8, 2026, at 5:00 pm. Members holding shares in dematerialized or physical form can cast their votes electronically before the AGM. Those who do not vote remotely can participate in the AGM via VC/OAVM and vote electronically during the meeting.

The AGM notice and Annual Report for FY25-26 have been dispatched electronically to members with registered email addresses. Shareholders requiring a hard copy may request it from the Registrar and Transfer Agent (RTA), MUFG Intime India Private Limited (formerly MFS Securities Private Limited), by sending an email to investor.helpdesk@mfs.mufg.com with their folio number or DP ID and Client ID.

Tax Deduction at Source (TDS) Guidelines

The final dividend is taxable under the Income-tax Act, 2025, for the tax year 2026-27. GE Vernova T&D India will deduct Tax at Source (TDS) at applicable rates before making payments.

Resident Shareholders

For resident individuals, the standard TDS rate is 10% if a valid PAN is submitted and total dividend income exceeds ₹10,000 during the tax year. Failure to provide a valid PAN or link it with Aadhaar results in a higher deduction rate of 20%. Shareholders can claim exemption from TDS by submitting Form 121 along with their PAN card or by providing a lower/NIL withholding tax certificate issued under Section 395 of the IT Act.

Non-Resident Shareholders

Non-resident shareholders, including Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs), are subject to a default TDS rate of 20% plus applicable surcharge and cess. They may avail of beneficial rates under Double Taxation Avoidance Agreements (DTAA) between India and their country of residence, provided they submit necessary documentation, including a Tax Residency Certificate (TRC), Form 41, and a self-declaration confirming beneficial ownership. Sovereign Wealth Funds and Pension Funds notified under Schedule V of the IT Act are exempt from TDS (Nil rate) upon submission of valid notifications. Non-residents from Notified Jurisdictional Areas face a higher TDS rate of 30%.

Documentation Deadline

Shareholders must submit all requisite documents for TDS determination or KYC updates by Monday, August 24, 2026. Documents can be uploaded via the RTA portal or sent physically to their Kolkata office. Submissions received after this deadline will not be considered, and tax will be deducted at the maximum applicable rate. Physical folio holders must ensure their KYC details, including PAN, nomination, and bank account information, are updated to avoid withholding of dividend payments. Demat account holders are advised to update bank details directly with their Depository Participants.