# 1. Financial Performance ## A. Key Figures * **Revenue:** **₹1,640 Cr** Q4 (+42%) · **₹6,210 Cr** FY26 (+45%) * **Order Intake:** **₹8,600 Cr** Q4 (+188%) * **PBT (Before Exceptional):** **₹460 Cr** Q4 (+1.8x) · **₹1,710 Cr** FY26 (+2.1x) * **Cash Balance:** **₹2,500 Cr** as of March 31, 2026 ## B. Revenue & Bookings * **Record Order Momentum:** Unprecedented growth in order intake continues to outpace revenue, resulting in a significantly expanding backlog across domestic and export markets. * **Strategic Order Accounting:** Full revenue realization from the major **Adani HVDC order** will be recognized within the Indian entity, irrespective of component sourcing from the U.K. affiliate. * **Growth Drivers:** Robust top-line expansion is underpinned by healthy demand and disciplined execution across the company's core segments. ## C. Profitability & Margins * **Margin Expansion Drivers:** Record quarterly profitability was fueled by disciplined underwriting, the roll-off of low-priced legacy contracts, and a favorable mix shift toward exports and high-value services. * **Non-Operational Impacts:** Reported margins were dampened by a **₹50 Cr** notional mark-to-market loss on foreign currency derivatives and a **₹69 Cr** exceptional item related to new wage code retirement obligations. * **Royalty Structure:** Payments to the parent entity totaled **₹190 Cr** (approx. 3% of revenue), reflecting a slight percentage decrease from the prior year despite the absolute increase. * **Operational Efficiency:** Gross margin improvements were further supported by the implementation of lean productivity measures across manufacturing units. ## D. Cash & Capital Allocation * **Liquidity & Solvency:** The company maintains a debt-free balance sheet with substantial cash generation, providing a strong foundation for future scaling. * **Self-Funded Expansion:** Management plans to utilize the cash surplus to fully fund a **₹1,000 Cr** capex program aimed at increasing manufacturing capacity through 2028. * **Shareholder Returns:** The Board has recommended a dividend of **₹10 per equity share** following the record fiscal performance. * **Governance & RPTs:** Future order translations for FY27 are being influenced by significant Related Party Transaction approvals, including a **₹2,900 Cr** AGM approval and specific U.S./U.K. grid projects. --- # 2. Order Book & Backlog ## A. Record Backlog Growth * **Unprecedented Visibility:** The order backlog reached record levels, providing multi-year revenue visibility through a strategic mix of long-cycle HVDC projects and core products. * **Strategic Selectivity:** Despite massive annual growth, management described Q4 as "slightly dull" in finalizations, citing a conscious decision to prioritize margin expansion over volume. * **Major Wins:** Quarterly intake was bolstered by the significant **VSC order from Adani** alongside various domestic HVAC/HVDC transmission schemes. ## B. Domestic & Export Mix * **Domestic Dominance:** New bookings were overwhelmingly domestic, representing **92%** of the total intake for the year. * **Normalized Export Growth:** While headline export figures declined due to a high base of one-off orders, base export orders demonstrated robust double-digit growth of **15% to 20%**. * **Localization Strategy:** Under the "India for the World" initiative, the company is leveraging Indian facilities to serve over **60 countries**, with exports currently contributing nearly one-third of total revenue. ## C. Project Execution Timelines * **Operational Milestones:** The company successfully commissioned high-voltage AIS and GIS projects for major clients including PGCIL, ReNew, and NTPC during the final quarter. * **HVDC Execution Profile:** Revenue from the Adani HVDC project will be back-ended, with the first two years focused on engineering and supply chain security; execution is expected to be **below 30%** prior to FY29. * **RPT & Regulatory Updates:** A major project awaiting Related Party Transaction (RPT) approval is delayed until **H2 FY27**, while a separate U.S. entity order is expected to be finalized within the **current quarter**. ## D. TBCB Bidding Pipeline * **Robust Base Guidance:** Management expressed confidence in a base order intake of **₹7,000 Cr** for the upcoming fiscal year. * **High-Voltage Pipeline:** The current bidding landscape includes **33 TBCB packages** awaiting final auction, with a heavy concentration (**21 projects**) in the 765 kV segment. * **Future HVDC Prospects:** Beyond current bookings, the company is tracking a pipeline of **more than 10** upcoming HVDC projects, including the Lakadia-Alephata scheme. --- # 3. Manufacturing & Capacity ## A. Key Figures * **Total Capex Program:** **>INR10 billion** across multiple product lines and facilities; **INR550 million** for disconnectors and drives facility * **Vallam Facility Investment:** **₹55 Cr** for disconnectors and drives for tank circuit breakers ## B. Facility Expansion Plans * **Strategic Capacity Ramp-up:** Establishing new capacities in Vallam and restarting disconnector manufacturing at Padappai to address renewed domestic demand and quality requirements. * **Product Portfolio Focus:** Expansion includes new valve, controls, and air core reactor facilities to enhance local content; however, management is avoiding the distribution transformer sector due to unattractive margins. * **Revenue Decoupling:** Future top-line growth may not scale linearly with internal capacity due to the high proportion of **manpower and third-party equipment** required for HVDC execution. ## C. Localization & Technology * **HVDC Localization Shift:** Regulatory frameworks now permit **100% domestic supply** for transformers in current tenders, a significant increase from the one-third limit seen in previous cycles. * **Strategic Compliance:** Capex is specifically directed toward manufacturing thyristor valves and controls locally to meet Government of India requirements. * **VSC Technology Exception:** The localization mandate for the **Khavda-Olpad project** was waived (set to zero) by the government following bidder requests regarding VSC technology. ## D. Supply Chain Management * **Cost-Efficient Sourcing:** Management maintains that importing transformers from U.S. facilities is commercially unviable at current Indian market price levels. --- # 4. Product & Segment Performance ## A. HVDC & Grid Solutions * **Strategic Pivot to VSC:** Executing the second Voltage Source Converter project in India for Adani; establishing a localized **HVDC control platform** for testing and dispatch. * **Market Leadership & Technology Shift:** Anticipating a structural market shift from AC to DC; monitoring the **Barmer tender** and upcoming opportunities in the **Brahmaputra Basin**. * **Global Supply Chain Integration:** Vietnam facility focused on East Asian HVDC capex; Indian entity supplying key components for **B. K. Grid Solutions** projects. * **Lifecycle Management:** Secured a major refurbishment project from **Power Grid**; management notes that LCC-to-VSC conversions significantly increase CAPEX and shutdown requirements. ## C. Data Center Opportunities * **High-Value Transition:** Strategic focus on data centers due to **superior price realization** compared to traditional ultra-mega power projects. * **Future Order Book Driver:** While currently a minor portion of the backlog, the segment is expected to become a meaningful contributor as requirements scale to **400 kV and 765 kV**. * **Export Synergy:** Supplying high-voltage products to the **C. S. market** in coordination with Prolec to capture evolving distribution demand. ## D. Services, Software & Customer Strategy * **Software & Monitoring:** Participating in new software tenders with a focus on the domestic market and **wide area monitoring systems**. * **Strategic Client Re-alignment:** Deliberate shift away from state-level entities toward **central and private customers** to improve execution efficiency. * **Pure-Play Transmission Focus:** Company remains strictly a transmission entity; non-core products like synchronous condensers or nuclear collaborations are handled by **separate legal entities**. --- # 5. Industry Trends & Demand ## A. Key Figures * **Transmission Planning:** **900 GW+** non-fossil capacity support requirement * **National Electricity Plan (NEP):** **500 GW** schemes in implementation · **400 GW** additional by 2035 ## B. Renewable Energy & Grid Evolution * **Grid Transformation:** Historic shift driven by rapid renewable additions and deepening electrification, requiring a more resilient grid to manage **intermittent generation** and **long-distance evacuation**. * **Infrastructure Build-out:** Massive capacity targets necessitate a rapid evolution of the Indian power grid to handle increased operational complexity. ## C. Global Transmission & Data Center Demand * **Global Tailwinds:** Grid equipment demand is surging globally, fueled by **D. S. data center investments**, Middle East industrial projects, and aging infrastructure replacement in developed markets. * **Export Strategy:** GE Vernova T&D India is positioned to capture global demand through **product supplies** rather than turnkey projects, specifically targeting the U.S. and international data center markets. ## D. National Electricity Plan (NEP) & Market Outlook * **Conservative Projections:** Management views official NEP capex estimates as conservative, as they exclude transmission needs for **85-90 GW** of thermal capacity, green hydrogen, and industrial capex. * **Demand Drivers:** Peak demand is projected to nearly double by 2035, underpinned by urbanization, manufacturing expansion, and the proliferation of data centers. ## E. Pricing & Cycle Longevity * **Structural Upcycle:** The current cycle is viewed as a sustainable, long-term global phenomenon across the --- # 6. Risks & Operational Factors ## A. Key Figures * **State Utility Exposure:** **<2%** of total order backlog * **Private/PSU Backlog Mix:** **98%** comprised of private customers, central utilities, and PSUs ## B. Risk Mitigation & Exposure * **Strategic De-risking:** The portfolio has been fundamentally insulated from credit risks by pivoting away from state utilities toward high-quality central and private entities. * **Inflation Protection:** Management utilizes price escalation clauses in the transformer and HVDC segments, alongside cost-inflation indexing in tenders, to hedge against raw material and geopolitical volatility. * **Geopolitical Insulation:** Operations remain shielded from direct Middle Eastern regional instability due to minimal business exposure in that geography. ## C. Supply Chain & Localization * **Import Dependency:** While core manufacturing is localized, a critical dependency remains on imported hardware for **VSC panels** due to a lack of domestic supply chains. * **Localization Roadmap:** Transitioning to local component sourcing is viewed as a long-term strategic process requiring extensive supplier development and rigorous testing. --- # 7. Guidance & Outlook ## A. Key Figures * **Export Revenue Benchmark:** **₹1,200 Cr** previous year total * **Pending RPT Order Value:** **₹1,400 Cr – ₹1,500 Cr** ## B. Margin & Revenue Visibility * **Stabilizing Profitability:** Management targets mid-20s margins for FY27, following several upward revisions in the prior year, supported by productivity and cost-control initiatives. * **Backlog Execution:** Long-term revenue visibility remains robust, though conversion of high-value **HVDC projects** is back-ended, with meaningful execution expected in **FY 2028-29**. ## C. Export & Order Strategy * **Accelerated Export Growth:** Securing the pending RPT order in **Q1** would result in the company surpassing its entire previous year's export performance in a single quarter. * **Bullish Global Outlook:** Management maintains a positive stance on international markets for the remainder of the year, though they acknowledge exports are unlikely to match the massive scale of the **domestic Indian market**. * **Selective Order Intake:** The company expects an uptick in **STATCOM awards** in FY27; bidding remains disciplined, prioritizing cash flow and margins over geographic volume.