GE Vernova T&D India Ltd Forensic Report - SOIC x StockScans Report

as of Aug 2026

GE Vernova T&D India’s audited record is clean on its face: seven consecutive unqualified opinions and a profitable, cash-generating core business. But the company’s own filings describe a business that is increasingly lending its cash to a fellow subsidiary, selling more to related parties, and carrying a backlog that has grown six-fold in four years. The most important question for a shareholder is what happens when the parent guarantee behind that lending expires on 31 December 2026.

Key findings

  1. “Debt-free” while lending ₹5,783 crore to a group cash pool Major - The company reported “no borrowings” and surplus cash of ₹1,051.16 crore as at 31 March 2025, while simultaneously holding an inter-corporate deposit of ₹5,783.4 crore in a cash pool with fellow subsidiary LM Wind Power Blades (India) Pvt Ltd. That lending is secured only by a parent guarantee from GE Vernova Inc. that automatically terminates on 31 December 2026. The FY2025-26 AGM notice seeks shareholder approval to lend up to ₹5,100 crore more and to raise Section 186 lending limits to that amount, exceeding the current statutory limit of ₹2,868.41 crore.
  2. Captive lender to the group, with related-party sales at 29% Major - Unsecured loans granted to LM Wind Power Blades under the cash pool rose from ₹14.29 crore in FY2021-22 to ₹3,843.08 crore in FY2025-26, with ₹971.04 crore outstanding and repayable on demand at 31 March 2026. Related-party sales rose to 29.01% of total sales in FY2025-26 from 18.3% the prior year. The CFO confirmed in the Q1 FY27 call that total available cash, “including funds that we lend to the cash pool,” stood at ₹2,930 crore, meaning the cash is not fully held by the company.
  3. Backlog grew sharply, revenue concentrated in two customers Major - Remaining performance obligations rose from ₹3,720 crore at 31 March 2022 to in excess of ₹21,455.7 crore at 31 March 2026. Two customers account for approximately 21% and 11% of FY2026 revenue, and the company does not disclose their identity. Revenue recognition on long-term projects was flagged as a Key Audit Matter in FY2021, FY2023, and FY2026.
  4. Clean opinions, but the same exceptions recur year after year Major - Deloitte Haskins & Sells issued an unqualified opinion for FY2025-26 and disclosed Key Audit Matters, including revenue recognition. The auditor has flagged the same Chennai leasehold title defect every year since FY2022. In FY2024-25, the auditor reported a ₹4.03 crore fraud where an unauthorized person obtained a sales tax refund; a criminal complaint is sub-judice.
  5. A large litigation load, mostly routine tax disputes Minor - Contingent liabilities at 31 March 2026 include sales tax/GST demands of 266.9 crore, direct tax demands of 33.2 crore, and custom/excise/service tax demands of 136.2 crore. The Chennai land lease of 4.84 acres expired in 1989; the Supreme Court dismissed the company’s appeal on 3 September 2024, and the company sent a representation seeking a fresh lease on 7 November 2024. A draft income tax order dated 25 April 2025 increased liability by INR 37,25,42,623 plus interest; objections were filed the same day.
  6. Policy choices have turned asset sales and rule changes into gains Minor - The company recognised a ₹123.14 crore gain on the slump sale of GEOD to a fellow subsidiary in FY2021-22, a policy choice in the absence of explicit Ind AS 103 guidance. It booked a ₹63.57 crore provision for four Labour codes as an exceptional item in FY2025-26. Deferred tax assets of ₹36.38 crore were recognised against carry-forward losses based on management’s own projection of future taxable profits.
  7. Promoter stake halved to 51%, remuneration limits breached in loss years Minor - Promoters diluted their collective holding from 75.00% to 51.00% during FY2024-25 through open-market sales, with no encumbrances reported. In FY2019-20, managerial remuneration of ₹5.56 crore exceeded statutory limits by the full amount due to inadequacy of profits, requiring shareholder approval. The same happened in FY2021-22, with an excess of ₹0.74 crore.
  8. One impairment only, and it was a one-off Minor - The company recognised a ₹53.56 crore impairment on its Naini facility in FY2019-20, assessed as nil recoverable value. The facility was under a business transfer agreement to sell for ₹25 crore, subject to conditions precedent. No goodwill or intangible balances have been written down since.
  9. Auditor rotated in 2021, reappointment proposed through 2031 Clean - Shareholders approved Deloitte Haskins & Sells as statutory auditor in 2021 with 99.9999% votes in favour. The Board approved a second five-year term from the 70th AGM to the 75th AGM, subject to shareholder approval. No auditor resignation appears in any year from FY2021-22 through FY2025-26.

What to watch

Bottom line: This is a disclosed, audited record with a real cash-generating core. The risk is concentrated in one place: the company’s role as the group’s lender, with ₹5,783 crore placed in a cash pool secured by a guarantee that lapses at the end of 2026. Watch the shareholder vote on the new lending limits, and whether the guarantee gets renewed before it expires.