Power T&D Growth Still Visible – Initiate GE Vernova T&D (Hold)

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Power T&D Growth Still Visible – Initiate GE Vernova T&D (Hold)

India | Diversified Industrials EquityJuneResearch22, 2026

KEY STOCKS FEATURED INCLUDE:Power T&D Growth Still Visible – Initiate GE

TICKER RATING PRICE TARGETVernova T&D (Hold)

GVTD IN HOLD INR6,000

We believe power T&D equipment will see strong growth in FY26E-30E POWERIND INBUY INR43,145

backed by transmission projects. Data center will only add to this demand ENRIN IN BUY INR4,500

as 30% of capex cost is linked to power T&D equipment. We retain Buy on

Hitachi Energy (Hitachi) and Siemens Energy (SE) given their strong 40%+

earnings CAGR on operating leverage backed by strong revenue visibility.

KEY CHANGES INCLUDE:

We initiate coverage on GE Vernova T&D (GE) with a Hold.

TICKER RATING PRICE TARGET

T&D equipment demand to double – supply to lag: Transmission project bids have doubled ENRIN IN BUY INR4,500 (INR4,300)

from an annual run-rate of Rs390-400 bn in FY24 to Rs800 bn+ from FY25. Power Grid

(PWGR IN, Rs293, Buy) and Adani Energy (ADANIENS IN, Rs1,511, Buy) managements have

maintained that FY27E-28E pipeline should remain at Rs800 bn+ and could cross Rs1 trn

sustainably also. Supply is rising at 80-90%, implying shortages should continue and pricing

should remain firm. High Voltage Direct Current (HVDC) projects have 3 key players including

Hitachi, SE and GE and give these companies better visibility on earnings and margin trajectory.

GE – order book at 3.5x FY26 sales: GE’s order book rose 70% YoY in FY26 to Rs215 bn led by

two large HVDC orders in India. Execution of these orders should drive 29% revenue CAGR over

FY26-29E. Operating leverage should lead to fixed costs declining 403 bps to 7.5% in FY29,

driving 35% EPS CAGR. Export margins are better than domestic and growth here is largely