GVT&D — earnings call

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Prepared remarks

GE VERNOVA · c 4

MR. SANDEEP ZANZARIA – CHIEF EXECUTIVE

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

CHIEF FINANCIAL OFFICER · MR. ABHISHEK SRIVASTAVA – HEAD, BUSINESS

MR. ABHISHEK SRIVASTAVA – HEAD, BUSINESS

OPERATIONS · MS. KANIKA ARORA – COMMUNICATIONS LEADER

MS. KANIKA ARORA – COMMUNICATIONS LEADER MS. SHWETA MEHTA – COMPANY SECRETARY MS. MEGHA GUPTA – INVESTOR RELATIONS •

Questions and answers

15:12:29 +05'30' · Research Analyst

“GE Vernova T&D India Limited Quarter 1 Financial Year 2026-'27” August 07, 2026

GE VERNOVA · c 4

c 4 O GE Vernova T&D India Limited August 07, 2026

Moderator · Conference Operator

Ladies and gentlemen, good day, and welcome to the conference call hosted by GE Vernova T&D India Limited for Quarter 1 of Financial Year 2026-'27.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchtone phone.

Please note that this conference is being recorded.

I now hand the conference over to Ms. Megha Gupta from GE Vernova T&D India Limited.

Thank you, and over to you, Ms. Gupta.

T +91 120 5021500 · Research Analyst

Thank you, Dorwin.

Good evening, everyone, and welcome to GE Vernova T&D India Limited Earnings Call for quarter 1 of financial year '26-'27.

I am Megha Gupta from Investor Relations team.

During the call, we will discuss company's financial performance, including operational highlights and we'll share key updates.

I'm joined by Mr. Sandeep Zanzaria, CEO and MD of the company; Mr. Sushil Kumar Whole- Time Director and CFO of the company; Mr. Abhishek Srivastava, Head Business Operations; Ms. Kanika Arora, Communications Leader; and Ms. Shweta Mehta.

I would like to highlight that today's discussion may contain a few forward-looking statements, which are subject to risks and uncertainties.

These statements are based on our current expectations, and actual results may differ materially from those expressed or implied.

Now I'll hand over the call to Mr. Sandeep Zanzaria to initiate the discussion.

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Thank you, Megha.

Good evening, everyone, and welcome to our first quarterly earnings call.

India is currently executing one of the most ambitious grid expansion plans in the world.

With the target of 500 gigawatt of non-fossil capacity addition by 2030 and the road map towards 800 gigawatt by 2035, the ‘transmission bottleneck’ is being addressed with unprecedented urgency.

The peak power demand is expected to rise meaningfully over the next several years, and the government estimates now attribute a material part of that increase to a newer category of load - which is AI, data center and EVs, which are expected to add around 30 gigawatt of India's peak demand over the next 5 to 6 years.

At the same time, distribution losses remain a persistent drag in the system.

The national AT&C losses average stood at just over 15% in FY25, still well above the government's own target of bringing this down to 10% by 2030.

We are successfully translating our order book into revenue through an enhanced manufacturing throughput.

Our India for the World strategy continues to yield results as we balance domestic and grid opportunities with strong demand from global markets.

The grid aging and renewable integration are creating similar infrastructure pressures.

Our recent investment of all our manufacturing facilities are tracking on schedule.

These capex investments are a strategic necessity to ensure that we can meet the delivery timelines demanded by our customers. •

GEVERNOVA · Research Analyst

GE Vernova T&D India Limited August 07, 2026 Coming to financial performance during the first quarter, we saw order book at INR11.4 billion, down 30% year-on-year compared to INR16.2 billion in the quarter ended June '26.

The primary reason for the lower order intake was due to lower realization of TBCB in market in Q4 '25-'26.

Our Q1 revenue stood at INR18.4 billion versus INR13.3 billion, a growth of 38% year-on-year.

Execution outpaced new orders because of which the order backlog moderated to INR209.3 billion as of June '26 versus INR214.6 billion as of March '26, down by 2.5% quarter-on-quarter.

The order backlog stands at more than 3 years of our revenue for FY25, '26.

Our profit before tax and exceptional items for the quarter ended June 26 was at INR4.9 billion compared to around INR3.9 billion in the corresponding quarter of the previous financial year, growing by more than 1.25x.

We have had a solid start to the financial year, positioning us well to serve India's ambitious energy transition goals.

As the nation's power landscape evolves, we remain committed to a disciplined strategy of pursuing margin accretive growth while maintaining operational excellence.

We remain committed to the margin profile, we have established.

I'd like to extend my gratitude to our teams on the ground who are executing the increased scale with discipline and safety standards that represents GE Vernova.

I will now turn over to Abhishek to walk us through specific operational highlights for the quarter.

Abhishek?

T +91 120 5021500 · Research Analyst

Thanks, Sandeep.

Good afternoon, everyone.

So I will just take you through the key highlights or the key achievements for our company in the last quarter.

So in our continuous journey towards the strengthening of transmission network for India and its neighboring country, the journey continued for the last quarter.

We had commissioned first 400 kV substation in Nepal for NEA Khimti site, which is going to be the first stone in the backbone of 400 kV in Nepal.

Post that, we have also partnered with Adani and had been building substations for evacuation of renewable power from the solar park in Khavda.

In addition to that, we have been partnering with our key customers in terms of augmenting the power transformation capacity at various existing substations.

And in this journey, we commissioned or added transformation capacity for PGCIL, Resonia, NLP and similarly, a lot of new bays have been commissioned for our customers like Renew, Tata Projects, Adani, DVC.

We remain committed and have been working continuously in terms of honoring our commitment through timely completion of these projects and continue in the journey of strengthening of the transmission network for the country and other neighboring countries.

So this was our performance for last quarter.

Now I would hand over to Sushil for further updates.

Sushil Kumar

Thank you, Abhishek.

Good afternoon, good evening, everyone.

Let me move to our order booking highlights for the quarter.

While the headline order intake moderated, I want to •

GEVERNOVA · Research Analyst

GE Vernova T&D India Limited August 07, 2026 emphasize the quality and diversity of what we booked.

We secured CTs and CVTs from GE Vernova entity in North America.

This order is different from the material RPT approval that we have secured from the shareholders.

For that material RPT order, the group entities are still under discussion and negotiation with the end customer and we expect this to get finalized in the next 3 to 6 months.

We also secured 400 kV GIS order from GE Vernova entities in Spain and Morocco.

155 MVA 245 kV transformers for a semiconductor customer.

Multiple orders for supply of grid automation packages from state utilities, EPCs and data centers.

This export diversification, which now stands at 46% of our Q1 orders is a trend, we have been building forward and had flagged in our earlier calls.

Our order backlog stood at INR209 billion as of June 2026, down a modest 2.5% sequentially from the record INR214 billion that we closed financial year '26 with.

I will characterize this as a healthy number given the pace at which we are converting that backlog into revenue.

Turning now to the financial performance for the quarter.

Revenue for the quarter came in at INR18.4 billion, up 38% year-on-year from INR13.3 billion in the same quarter last year.

I do want to address the margins directly here rather than leave it for the question-and-answer.

Gross margins moderated to 41.3% from 48.4% a year ago and 47% in the last quarter.

However, in our business, comparison with annual margin is a better reference point.

So during financial year '25-'26, we achieved a gross margin of 45.3%.

This quarter, gross margins are lower at 41.3%, representing a delta of 4%.

This can be classified into three categories.

Number one, on account of lower export revenue.

So in this quarter, we had 30% of revenues from exports, whereas last financial year was 33% and also the execution of very high profitable export order in the last financial year.

So this resulted in 1 to 1.5 percentage of reduction in the gross margin.

Number two, there is some impact of elevated commodity prices impacting lower savings in execution compared to the initial plan.

While we are still executing better than expected margins at tender award, but the savings that we anticipated during execution are lower versus the anticipation earlier made by the company.

And number three, about 2 to 2.5 percentage points reduction is on account of ramping up of revenues for a part of our HV business, which has lower gross margin compared to the rest of the business, but overall beneficial at the EBITDA level due to better operating leverage.

This effect is largely offset at the EBITDA level.

Accordingly, we see the 50% of overall gross margin impact gets mitigated at the EBITDA level, and we delivered an EBITDA of 25.1%, in line with mid-20s band we have consistently guided earlier.

Moving to profit before tax.

Profit before tax for the quarter was INR4.9 billion, up from INR3.9 billion in the Q1 FY 26 with finance costs remaining negligible, and with continuous zero debt position. •

GE Vernova T&D India Limited August 07, 2026 On the balance sheet and capital allocation side, we generated INR4.3 billion of cash during the quarter, taking our total available cash, including funds that we lend to the cash pool, to INR29.3 billion.

Out of this cash balance, company has announced utilization plan of approximately INR13 billion, which includes INR10 billion of capacity expansion program announced in the last financial year and approximately INR2.5 billion of dividend in Q2, subject to the approval of shareholders.

The management continues to evaluate various options for utilization of balance cash to optimize the returns to the shareholders.

I would also like to highlight the continued quality of our order book.

Private customers now account for 77% of our backlog with central utilities and PSUs contributing another 21% and state utilities exposure just down to 2%.

This is consistent with the counter-party derisking trend, we have discussed in prior calls.

So, to summarize before I hand back for the questions, order intake for the quarter moderated, but revenue growth, execution pace, cash generation and backlog quality all remained strong and consistent with our full year expectations.

And we are confident of converting our INR209 billion backlog profitably over the coming years.

So, with that, I'll hand over for the question and answer.

Moderator · Conference Operator

Our first question comes from the line of Sameer Thakur from Ambit Capital.

Please go ahead.

T +91 120 5021500 · Research Analyst

So, I just wanted to check on this US data center order for which you had RPT approval up to INR1,300 crores.

So just wanted to check, have you booked a part of it in this quarter or we should expect more orders or the entire order in the second quarter?

Sushil Kumar

Yes.

As I highlighted in my opening remarks, we have not booked any part of that order as of now.

That order is yet under discussion by our group entities with the end customer.

And now we expect the time line to be quarter 2 or quarter 3 of this financial year.

T +91 120 5021500 · Research Analyst

Okay.

And the INR3,000 crores approval, which you already had, and that , I think, supposed to get converted in H2 of this year.

So that is still in place, right?

And probably you have to renew that approval in the AGM in September.

Is that right?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

So, Sameer, thanks for the question.

So basically, the approval what we took for INR3,000 crores that project has been put under hold as of today by the customer.

So, when the customer reinitiates that process, then at that point of time, we will again go back to the shareholders because the AGM is going to happen in September.

I don't see any possibility of order getting closed by September.

So probably when that opportunity becomes live, we'll have to again go back to the shareholders for revalidation..

T +91 120 5021500 · Research Analyst

Okay.

And the second question is, how do you see the HVDC pipeline?

It looks like the Lakadia project is on hold now and Begunia was converted to EHVAC.

And again, this South Kalamb project is still not awarded.

So, what is your view here?

Do you see any risk of delays or cancellations here? •

GEVERNOVA · Research Analyst

GE Vernova T&D India Limited August 07, 2026

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

The bidding has already happened for the developers.

First phase bids have been submitted by the developers.

So, this should happen probably in August or September, it should get decided on the developers.

So that's a good thing.

Secondly, I think we are expecting maybe 1 or 2 more projects to come in the upcoming NCT.

So, I'm not saying that the HVDC pipeline is going anywhere.

The HVDC pipeline remains strong.

Of course, the pace at which we would like it to come, it's slightly getting delayed, but it's not going away.

T +91 120 5021500 · Research Analyst

Okay, thank you.

I'll get back in the queue.

Thank you.

Moderator · Conference Operator

Our next question is from the line of Parikshit Kandpal with HDFC Securities.

Please go ahead.

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

So, my first question is on the export orders in this quarter seems to be on a very high run rate.

Typically, third-party exports used to be about INR800 crores to INR1,000 crores, excluding RPT.

So, what is driving this?

I know some of these are GEV entities.

So, if you can help us understand in this quarter, how are these orders driven?

Is it certification? what is basically driving these new mandates?

If I understand the question, Parikshit, is that normally, the overall yearly order intake from exports from the third party and the smaller ones are not so high.

But this quarter, we have seen a much higher run rate, right?

That's what you're saying, right?

Yes, yes.

So, the pipeline this time because of the utility customers in US requirement for instrument transformers, etcetera, was much better.

And then we had a few opportunities of 400 kV GIS decent side opportunities.

So, everything contributed to a much better pipeline and order realization in the export side.

Okay. sir, I mean, these RPTs and back-to-back, there has been delay in both the RPTs, the bigger one, 3,000, I mean, you said now, it's put on hold, and if the client decides to come back for again approval.

And same thing is happening for data centers.

So, is it the overall concern around -- is it the geopolitics or is it concerns around data centers?

So why is this delayed decision-making from the customer end?

And how is the RPT pipeline looking for the rest of the new pipeline for the rest of the year?

So, the first one, it was like the INR3,000 crores were into much advanced stage of discussion and negotiation.

And that is why we went for the RPT approval of the shareholders.

But then suddenly, because of budget issues, last minute, the utility has kind of put on hold.

So, we are just waiting for them to resolve the internal things and then reinitiate the process of it.

Regarding the data center opportunities in U.S., etcetera, so yes, we took the RPT approval because we were very close to the final negotiation.

But then there were certain other aspects like change of location, change of state.

So, when the state changed and the complete solution is to be reversed because of different voltages, etc etera.

So, I think there were certain factors which were beyond the control of GE Vernova, that is why the whole opportunity has got shifted. •

GEVERNOVA · Research Analyst

GE Vernova T&D India Limited August 07, 2026

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Okay.

So both of them have shifted, but can come back.

So as of now, limited clarity.

But as and when they come back, then it will get reinitiated or reapproved.

Both of them are not lost.

Okay.

And just the last thing on the -- what are the -- how is the new RPT pipeline developing?

So, any color on that for the upcoming approval season?

I think the RPT pipeline, once a large project gets identified, then automatically it comes up.

So as of today, it will be difficult to comment on the new RPT pipeline.

But as and when it comes, we'll be coming to the shareholders.

Okay.

Just one thing, sir, on domestic ordering, I mean, we have seen some soft quarters.

Q4 was a soft quarter.

This was again a soft quarter.

So if you can give some color on domestic ordering, when do you expect to pick up?

We have also not seen these bulk orders for Power Grid coming.

And they were there last couple of years, but this year, we have not seen for some quarters.

So how is the demand shaping up on the domestic ordering?

If you look at January to March for TBCB, pipeline was soft.

And because of that, you see the order intake, which is impacting the April to June order intake.

But we are seeing now the TBCB pipeline or decisions are getting much better.

The last few months if you really look at June, July, the pipeline is much better than what it was in January to March.

Only thing is that, with the large pipeline getting decided in July, we'll have to see that when the ordering happens, whether it happens in this quarter or it spills over to the next quarter.

So that is something to be seen yet.

Okay, sure sir.

Thank you so much and wish you all the best

Thank you, Parikshit

Moderator · Conference Operator

Thank you.

Our next question is from the line of Vidhi Shah from C R Kothari & Sons.

Vidhi, your line has been unmuted.

You may proceed with your question.

As we're not receiving a response from the current participant, we will move to the next question in queue, which is Amit Anwani from PL Capital.

T +91 120 5021500 · Research Analyst

Thanks for the opportunity, sir.

And Congrats for the good set of numbers.

My question, one is on the data centers.

Just wanted to understand what is the data center portion in your current order book?

And second, how is the data center pipeline building up for you?

What is the addressable market in the data center capex for you?

If you could elaborate more on this side?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

So Amit, in the present order intake, the data center ordering is not significant, I would say, that it's a few product orders which are there in the data center.

Of course, what we are seeing is that now on the drawing board, we are seeing much larger data center capacities being planned, which will be at higher voltages.

So we are working with the customers on those data center opportunities, but is it going to materialize in next quarter or maybe in next 2 or 3 quarters, this is something yet to be seen. •

GEVERNOVA · Research Analyst

GE Vernova T&D India Limited August 07, 2026

T +91 120 5021500 · Research Analyst

Second, sir, I want to again follow on the domestic ordering question.

You did highlight it that the ordering during Jan to March, that tender pipeline was soft, and that's why the conversions got impacted.

But how one should look for the full year in terms of base orders, especially the domestic one for this year?

Will it be a double-digit growth?

Or if you could give some medium- to long-term sense as to how much you're factoring in for this year?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

So, when we talk about market, I don't expect a double-digit growth, but I'm not looking at a slowdown of the market as well for the year.

So, market will either remain at the same level or we might see about 6%, 7% growth in the overall market, which will be realized this year on the TBCB side.

T +91 120 5021500 · Research Analyst

Right.

Lastly, sir, on margin, you did explain the margin variation for this quarter.

And you have been guiding mid-20s for the full year.

So, are we sticking to that?

Or is there any change to the guidance for this year on margin?

Sushil Kumar

So Amit, we maintain our guidance of mid-20s EBITDA for the year.

There is no reason that we should deviate from that right now.

T +91 120 5021500 · Research Analyst

Understood sir.

Thank you, thank you so much.

Moderator · Conference Operator

Our next question is from the line of Jason Soans from IDBI Capital.

Jason Soans

Sir, my first question just pertains to the -- of course, the notification of the four Chinese players, which have been added.

And of course, it increases competition particularly on the GIS side.

So I just wanted to know, GIS definitely is a core product for us as well.

So I just wanted some color from you on the side of how this can probably play on the margins or the orders?

How do you see this shaping up for us going ahead?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

So thanks, Jason.

We are also watching because it has just got approved.

And subsequent to that, so normally, whatever power grid bidding had happened before that, so they were all with the domestic, the non-Chinese GIS mix had been considered and the bidding had happened in power grid.

Regarding with what private has won the TBCB bid, they have not yet started the discussion.

So the impact of the Chinese and the GIS will come to know once the negotiation process will start.

But we'll also have to understand one thing that the government has approved.

So, if you look at Chinese before they were restricted from participating in the Indian market, -- the Make in India clause of like 60%, 65% local content was not there.

So, what will be the Chinese leverage to go down on prices with 60%, 65% or 70% local content is also to be seen in the market.

And if they were not present or they were not operational in the country for like last three, four years and then suddenly to take orders and deliver in 18 months with 60%, 70% local content, that capability also needs to be understood.

Jason Soans

Sure sure sir.

So my next question, sir, pertains to -- I mean, your voice was a little bit muffled as an earlier participant had spoken.

So you did mention the reason for the lower gross margins.

I got one aspect of it that it was due to lower exports and execution of a higher profitability •

GEVERNOVA · Research Analyst

GE Vernova T&D India Limited August 07, 2026 export orders in the last quarter.

But the other two reasons which you mentioned were not audible.

Could you just repeat that for -- just for clarity sake?

Sushil Kumar

Yes.

Thanks, Jason.

I'll answer it again for the benefit of all the participants.

So we are comparing our current quarter gross margin with the entire financial year '25-'26 because in our business, a full financial year makes a better representation rather than comparing on each quarter basis.

So last financial year, we achieved 45.3% gross margin.

And this quarter, we are achieving 41.3%.

So there is a delta of 4%.

I highlighted three broader reasons for this.

2% to 2.5% of the impact is due to the ramping up of higher revenue from the part of the HV business, which gives a lower gross margin compared to the rest of the business, but also it enables a better operating leverage because we are growing volume with the help of this business.

And hence, that impact largely get eliminated at the EBITDA level.

That is why you see that overall EBITDA is 25.1% compared to 27.1% in the last financial year.

Now other two reasons are approximately 1% to 1.5% of the impact on account of relatively lower export share in the current quarter and also execution of high profitable export order in the last financial year that you rightly highlighted.

And the third reason I mentioned is the elevated commodity prices resulting into the lower execution savings than we anticipated compared to our initial plan.

Jason Soans

Sure, sir.

That's very clear.

Thank you so much for repeating that.

That's all from my side.

Thank you so much.

Moderator · Conference Operator

Thank you.

Our next question comes from the line of Anuj Jain from Globe Capital.

Anuj Jain

Hi sir, good evening.

I just have one question.

I mean, apart from a group level, what is our order book?

Sushil Kumar

Anuj, overall order that we booked for the quarter was INR 11.4 billion.

And out of this roughly INR5.2 billion was from the export side.

I don't have exact split for the quarter, but 80% - 90% of export orders are coming from the group entities.

So we can assume roughly INR 5 billion of the order on a broader basis coming from the group entities.

So excluding that, we can consider INR 6.5 billion of orders coming from the third parties, which includes a large portion of the domestic customers and small portion from third-party customers in the export segment.

Anuj Jain

And total order book, you are saying about the quarter, I'm talking about the total order book of INR20,900 Crore.

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Okay.

So that is the order backlog which we have.

Anuj Jain

Yes, right.

Order backlog.

Yes.

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Right.

It's about INR20,900 crores.

Sushil Kumar

We generally do not give a breakup of the backlog in export versus domestic, but I'll give you some broader color.

So the export in the total orders in hand or backlog should be about 10%- 15% range. •

GEVERNOVA · Research Analyst

GE Vernova T&D India Limited August 07, 2026

Moderator · Conference Operator

Our next question is from the line of Ankush Khandelwal, an individual investor.

As there's no response from the current participant, we will move to the next participant in the queue, which is Shirom Kapur from Jefferies.

Shirom Kapur

Thanks for the opportunity.

Just have one quick clarification on the RPT approvals that you have.

So you have INR1,300 crores, which is for the U.S. data center order, that is not part of the total INR3,000 crores RPT approvals you have taken, right?

Could you clarify what that balance INR3,000 crores RPT approval is for?

Is that one single project?

Or is that multiple projects?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

So that was one project, and that was not a U.S. project.

That was a different project altogether.

Shirom Kapur

Understood.

So currently, you have about INR4,300 crores of RPT approvals where the orders are still pending, just to clarify.

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Yes.

But out of that INR3,000 crores is going to expire by this AGM.

So then it will be only INR1,300 crores, which will be left.

Shirom Kapur

Understood, sir.

And secondly, just in your last earnings call, you discussed being confident around base order flows of INR7,000 crores to INR8,000 crores a year.

And this quarter, you have done around INR1,100 crores.

So of course, you mentioned that the pipeline in TBCB is a little soft for this quarter, but it's picking up.

So do you remain confident on INR7,000 crores to INR8,000 crores base orders coming through for the full year?

Or are you expecting it to miss that guidance?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

No, we remain confident on.

Shirom Kapur

Got it, sir.

And just lastly, on the commodity prices.

So you mentioned that versus FY '26, your margins in the first quarter, 400 bps lower.

You explained about 300 to 400 bps from the export mix as well as ramp-up in the high-voltage business where gross margins are lower.

On the elevated commodity price, do you see this continuing to impact us for the next few quarters?

Are you taking any kind of price hikes or being able to pass through this to the customers?

Just want to understand how that is working out?

Sushil Kumar

Thanks, Shirom.

I will answer it a little differently and break it in two pieces, just to explain the nature of our business.

So first is that, yes, definitely, the commodity prices are elevated and quite volatile given the geopolitical and other challenges.

And in our business, there is transformer business, whether it is a stand-alone supplier of transformer to the customer or as a part of HVDC project.

In that scope, we get a price escalation.

So all the commodities like CRGO steel, etcetera, there is a formula embedded in the contract with which we get the compensation.

So that part of the business is not impacted.

Then the other part of business, the rest of the businesses which has CRGO Steel, turnkey portfolio, etcetera., where we have our approach of building the estimated cost of commodity prices, basis past trend and the future expectation of the commodity prices. •

GEVERNOVA · Research Analyst

GE Vernova T&D India Limited August 07, 2026 Now with this approach, we have been very successful in the past.

And as we see our order to execution cycle has a gap of, say, 18 to 24 months between when we take the order and when we execute the order.

So this effectively means, yes, now as we build for the new tenders, we will continue to improve the new prices. but the impact is likely to come in the execution in the future period.

And I can just give you confidence that we have a very disciplined policy in terms of costing and going to the market and same has been duly maintained over the period of time.

Moderator · Conference Operator

Our next question is from the line of Subhadip Sujit Mitra from Nuvama

T +91 120 5021500 · Research Analyst

Just wanted to understand that on the export front, do we see more optionalities opening up, especially with GE Vernova Global acquiring 100% in Prolec and some larger, I think, transformer orders that Prolec has received over there.

Do we see an optionality that the global factories, including the India factories will likely benefit from these large orders in the U.S.?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Yes, it will benefit Subhadip.

T +91 120 5021500 · Research Analyst

Okay.

Any ballpark TAM that can come in India's direction?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

That will all depend upon what kind of order?

What kind of rating?

So it will be a mix.

Difficult to predict because that will all depend upon individual opportunities.

T +91 120 5021500 · Research Analyst

Understood.

Also on the margin side, do we see any lumpiness in margins possible going ahead?

So while we understand that this quarter, there were multiple reasons for margins to have come off, but similar peaks and troughs can happen in future.

So would you expect a range of margins somewhere between the mid- to high 20s or you would still want to stick to the mid-20s?

Sushil Kumar

So Subhadip, as I mentioned earlier, EBITDA margin of the quarter is in line with the mid-20s that we have been consistently guiding for.

And obviously, last quarter when we guided for, we had seen the commodity prices going up and accordingly the guidance was given.

So we continue to maintain that band for the financial year '26,'27 as of now.

T +91 120 5021500 · Research Analyst

That's very clear.

One last question from my side is, are you able to see the commodity cost pass through carry on through pricing in the existing order inflows?

Sushil Kumar

Subhadip, thanks for this question.

I answered this to the previous participant, in the previous question.

So as I explained, there are two parts of our business.

Transformer business gets the price escalation clause respective of whether it's a direct supply or as a part of HVDC business.

And it's a well-defined formula by IEEMA, which gives a good compensation of the commodity price increase.

For the rest of the business, which is non-transformer business, we anticipate cost of commodity prices, basis our past experience and future expected pricing.

So we will continue to work with that same disciplined approach and as I mentioned that generally there is a lag between the new pricing and the execution, which means that if, for the current orders, we build in the new cost in our tenders, those projects will come in execution with a higher compensation in the future, which is a lag of, say, 1 year to 2 years in the execution cycle. •

GEVERNOVA · Research Analyst

GE Vernova T&D India Limited August 07, 2026

Moderator · Conference Operator

Our next question is from the line of Ibram an individual investor.

Ibram

My question was on order inflow for this quarter.

So we have seen that order inflow compared to last year as well as compared to previous quarter, the order inflow was less.

So I heard that you have covered in the start of the call, but your voice was not clear.

So what gives you confidence that the order inflow will increase from here on?

Thank you.

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

So the pipeline for TBCB project is now getting better.

So that gives the confidence because when we see from January to March, the pipeline for the TBCB was muted.

And now from June onwards, , the pipeline has picked up.

So that gives us the confidence that the order numbers will be better now.

Moderator · Conference Operator

Our next question comes from the line of Venkatesh S. from LogicTree.

T +91 120 5021500 · Research Analyst

Good afternoon.

I wanted to check with you on a kind of a big picture view, considering the opportunity in HVDC as well as data centers plus exports.

If you take a 3 year, 4 year view, what is there a vision that you have for GE Vernova?

Are you looking at some kind of a number?

And how can the split be, say, data center exports and domestic HVDC?

Can you give me a big picture view?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

So sorry, I think this is not the forum because this will be like kind of a forward-looking statement.

So we will not be able to share any big picture view on the call.

T +91 120 5021500 · Research Analyst

But would you be able to give kind of a proportion in terms of these three key businesses, what would the contribution of exports, domestic HVDC and data centers?

Would that be a possibility?

Sushil Kumar

Hi, Venkatesh.

This is Sushil.

Maybe I will try to give some color or answer it differently.

First of all, the breakup that you are seeking typically, we do not give it because we look it as one integrated portfolio.

And if you see the past, breakup changes significantly year-on-year quarter- on-quarter depending on the execution of different types of projects.

But on an overall basis, we have a revenue growth of 38% in this quarter driven by the ramping up of the execution of the high backlog.

So our backlog stands at INR209 billion now.

Now this high backlog gives us a confidence that we have a potential to grow at a significant pace in the future also.

The current backlog is roughly 3.5x of our last FY revenue and this is multiyear visibility.

However, the growth will not be linear meaning financial year '27, '28 will continue to see healthy growth in terms of our core portfolio, including projected products, export, all put together.

But the HVDC backlog, that has a back-ended execution as per the typical structure of the HVDC project, and we see a meaningful growth from the financial year '29 onward.

So our growth trajectory overall is robust, meaningful in the next few years, but have significant improvement in the financial year '29 onward through execution of HVDC. •

GEVERNOVA · Research Analyst

GE Vernova T&D India Limited August 07, 2026

T +91 120 5021500 · Research Analyst

Right, sir.

Sir, two more questions.

One is the guidance what is the kind of, based on the projections for the future, over the next 12 to 24 months, what is the capex that you would probably be planning?

Sushil Kumar

So, we already announced a capex of about INR10 billion in the last financial year.

And we have INR29 billion of surplus cash available.

As we mentioned in the beginning INR10 billion is for capex that we already announced.

INR2.5 billion for dividends.

So we have roughly another INR16 billion of surplus cash over and above the announced plan.

So as I said in the beginning, management and the Board continuously evaluates what are the options available for the company for maximizing the returns to the shareholders.

As of now, there are different options under evaluation but nothing is concrete.

And as per the requirement also, we need to inform the stock exchange in case of such decision.

So it is difficult to call out a number in this call because nothing is firmed up as of now.

T +91 120 5021500 · Research Analyst

Last question from my side.

If you look at the competitive scenario apart from the Chinese suppliers, etcetera, the three or four major players in the Indian markets, Siemens, Hitachi or yourself, etcetera.

What do you think can be GE Vernova's competitive advantage compared to the other serious players.

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

So, of course, technology, Lean and localization.

So, these three, we feel are the distinct advantages that we have.

T +91 120 5021500 · Research Analyst

Okay, sir.

Thank you very much.

I'll join the queue.

Thanks.

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Thank you.

Moderator · Conference Operator

Thank you.

The next question is from the line of Sameer Thakur from Ambit Capital.

Please go ahead.

T +91 120 5021500 · Research Analyst

Hi.

Thanks for taking my question again.

I just have one.

So, just coming back to the competitive scenario here.

So, are you seeing any competition from Tier 2 suppliers?

Has that increased recently?

And are you seeing any risk to market share in domestic market from Tier 2 suppliers for the big ones?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

So, it's not that the competition from Tier 2 supplier is only now, the competition from Tier 2 suppliers has been from some time but that also depends upon product to product.

For example, when you look at circuit breakers or when you look at, for example, gas-insulated switches, etcetera, they don't have automation products, or software side.

You don't have much of a competition coming from Tier 2 supplier.

So, in some domain, it is there, other it is not.

T +91 120 5021500 · Research Analyst

Okay.

Thank you.

I'm not sure whether it's repeat because I got disconnected.

But for pricing in the new orders, so how do you see that?

Is that flattish over a year?

Or has that increased because commodity prices have increased, like copper has increased by more than 50% over a year?

But how do you see the pricing in the orders?

Has that stabilized over the year or that is also increasing? •

GEVERNOVA · Research Analyst

GE Vernova T&D India Limited August 07, 2026

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

So, the transformers and also whatever is the impact of the material which is there has been, we have been able to pass on to the customer, but we are not been able to pass on like extra margins, , to the customer.

T +91 120 5021500 · Research Analyst

I mean, what is new orders?

Sushil Kumar

In addition to what Sandeep said, I would like to highlight that this commodity price increase is a market phenomenon.

It is applicable to all the competitors.

Obviously, everyone has to factor in the increased level of commodity price and the cost in making the bid.

So, overall demand supply dynamics doesn't change because of change in the commodity prices.

T +91 120 5021500 · Research Analyst

Okay.

Thank you.

Moderator · Conference Operator

Thank you.

The next question is from the line of Umesh Raut from Nomura.

Please go ahead.

T +91 120 5021500 · Research Analyst

Hi, sir.

Good evening.

Thanks for this opportunity.

My first question is pertaining to synchronous condenser packages, which are being floated recently.

There were, I think, a couple of packages and each having project cost of about INR7,000 crores to INR8,000 crores.

So, what could be our scope of work in these projects, what we can supply from India operations?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Thank you, Umesh, and good evening.

So, synchronous condenser is manufactured by GE Vernova, but that is not part of grid portfolio.

But the transformer and the bay, which comes with the synchronous condenser, that can be a part of the scope, which is a very small as compared to the synchronous condenser.

T +91 120 5021500 · Research Analyst

Okay.

So, if I understand correctly, that portfolio is available in the parent entity.

Is that fair assumption?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Yes.

T +91 120 5021500 · Research Analyst

Okay.

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Normally, synchronous condensers are basically type of a generating equipment.

So, we are a T&D player.

So, that generating manufacturing capacities are not available with this entity.

T +91 120 5021500 · Research Analyst

Understood.

Second question is pertaining to STATCOM.

I think there were a couple of, I think, earlier cases in Khavda.

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Okay.

T +91 120 5021500 · Research Analyst

In the month of June and May as well.

And I think there were some certain instabilities in the grid.

And now, there is an urgency in terms of floating out tenders for STATCOM.

So, do you think these tenders materially pick up in the next few months?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Yes, it should pick up.

I think what you're saying is right that with Khavda, the amount of generation we lost, I think this should create more opportunities for more grid stability opportunities. •

GEVERNOVA · Research Analyst

GE Vernova T&D India Limited August 07, 2026

T +91 120 5021500 · Research Analyst

Understood.

Last question is pertaining to capacity allocation.

I mean we kind of cater to domestic demand and at the same time to exports and then with respect to our parent entities as well.

So, how do you assess capacity, which is kind of available for three different type of opportunities?

And considering that there were a couple of RPT approvals which were in place for near term in terms of, I think, order awarding.

So, would that be a case where you were slightly more selective in domestic market in last 6 months while going into bidding?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

So, thank you, Umesh.

And so, I think we have to find a balance.

So, basically, we keep a very close watch and the opportunities which do come in, like, for example, if it is a RPT opportunity, then what kind of time frame the order is getting decided, what kind of deliveries they are looking forward to, what kind of domestic opportunities are coming?

Are they overlapping in terms of deliveries, not overlapping?

So, we have a constant mechanism by which these opportunities are tracked.

And accordingly, the decisions are taken that, in RPT also, what is the maturity stage.

Suppose the maturity stage is not there, but it's just like 24 months delivery, then whether it's going to be 24 months from now or it is going to be 24 months after 6 months, that's a conscious call we take.

And then accordingly, we target whether it is export or whether it is domestic.

But that challenge is always there in terms of domestic as well because, , if you have put in a bid where you have 3 months validity and then you have other places where bids are going.

So there again, you have a 3 months validity, you have to take a conscious call what is more targeted where to put more aggressive and how to plan the capacities.

T +91 120 5021500 · Research Analyst

Understood.

Last question pertaining to current capacity utilization, how it is faring as of now?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

I would say it is consistent with whatever we have been explaining in the last few calls that a few of the factories, we are loaded pretty well and a few factories, we still have opportunity to grow.

So, that remains our position.

T +91 120 5021500 · Research Analyst

Understood.

Okay.

Thank you.

Thank you so much.

Moderator · Conference Operator

Thank you.

Our next question comes from the line of Mahesh Patil from ICICI Securities.

Please go ahead.

T +91 120 5021500 · Research Analyst

Yeah.

Hi, sir.

Thanks for the opportunity.

So, my first question is on this Power Grid mentioning that the TBCB project timelines they have, the approvals have gone up from, say, 18 months to 24 months earlier to now around 24 months to 30 months.

So, how does that impact us or our calculation in terms of our order cycling and, you know, capacity utilization and capex plans?

If you can just throw some color on it?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

On the capex side, it is not going to impact anything on the capacity utilization.

Of course, whatever orders we have, they are with a definite time frame, the orders what we have received.

I think the impact which can come on the ordering part is that suppose for few projects that have gone to 30 months, so, there the customers earlier when it was 18 months to 24 months, as soon they were winning in like 1 month to 2 months, they were deciding the order in the market.

But as it becomes 30 months, then they have some probably a quarter like maybe 3 months to 4 •

GEVERNOVA · Research Analyst

GE Vernova T&D India Limited August 07, 2026 months where they can take a decision.

So, the ordering cycle gets slightly stretched in the case when it becomes 30 months.

T +91 120 5021500 · Research Analyst

Okay.

Got it.

And sir, second question is on the margin profile.

If you can throw some color on the margin profiles of our key market segments strategy, let's say, data center is picking up, then we are doing also transmission.

So, if you can just throw some color subjectively how does that vary between our key market segments?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Yeah.

Hi, Mahesh.

So, margins by market segment or customer type is something that we don't share.

It's a very confidential part of our business strategy.

However, we do have shared in the past that exports generally have better margins to the extent of 4% to 6% compared to the domestic orders.

T +91 120 5021500 · Research Analyst

Okay.

Yeah.

Got it.

Thank you.

Moderator · Conference Operator

Thank you.

The next question is from the line of Arunachalam, an individual investor.

Please go ahead.

Arunachalam

Good evening, sir.

First of all, congratulations on your numbers.

See, I just wanted to know an update on the Vallam project, the INR55 crores project, which you had decided to roll out sometime in December 2026.

Is the deadline is likely to be met?

Or how is it?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

So, we are working on that project.

I think part of the capacity we should be able to come up with in Q1 of '27, that is there, but the balance capacity will come, probably by end of '27.

So, we are working towards it.

Arunachalam

Thank you, sir.

Moderator · Conference Operator

Thank you.

Our next question comes from the line of Vidhi Shah from C.R.

Kothari & Sons.

Please go ahead.

Vidhi Shah

Hello, sir.

Am I audible?

Sushil Kumar

Yes.

Vidhi Shah

Sir, I wanted to understand what kind of margin profile and asset turn can we look at in the next coming years?

Sushil Kumar

This is the answer that for the financial year '26, '27, we continue to maintain our EBITDA guidance of mid-'20s.

Vidhi Shah

Okay.

And asset turn, sir?

Sushil Kumar

So, asset turns, we don't typically calculate it because in our business, the assets can be utilized differently because capacities are fungible.

For instance, if we use the assets for HVDC project, the asset turns become quite significant because HVDC projects have a lot of bought out components, etcetera.

So, internally, as an internal management, we are not working on capacity •

GEVERNOVA · Research Analyst

GE Vernova T&D India Limited August 07, 2026 utilization in terms of asset turns.

But as we look forward to specific projects that we can execute using our existing capacities.

Vidhi Shah

All right.

Thank you and all the best.

Bye.

Moderator · Conference Operator

Thank you.

Our next question comes from the line of Shivang Pandya from Uppercrust Wealth.

Please go ahead.

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Hello.

Am I audible?

Sushil Kumar

Yeah.

You’re audible.

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

With all the dividends scaling rapidly and cash is also growing, how are you thinking about the balance between shareholder returns, funding capacity expansions, especially as global peers like CG Power, Hitachi are actively acquiring niche capabilities to capture the same HVDC and AI demand wave?

Sushil Kumar

Shivang, I already mentioned in the call in the beginning as well as answer to one of the investors that out of the INR29 billion cash we have, we have already announced utilization of almost 45% of that cash in the form of dividend as well as capex.

So, we have already announced INR10 billion of capex and about INR2.5 billion of dividend.

And as I mentioned, we continuously as management and Board look forward to the balance between shareholder return and return on the investment.

The amount which remains unutilized is part in the cash pool facility and fixed deposit.

And we continuously look forward to all the investment options.

A good part for us is that our business to a large extent is already comprehensive.

We have almost all the product range in terms of the HV equipment portfolio and wherever we could do the capacity expansion, we have already announced.

One important point you will note is that most of the capacity investment that we have announced within INR10 billion is largely within our existing plants where we already have the surplus land, which means that we don't need to invest in land, and thus we can have better return to the shareholders by investing in the existing facility as the land was taken a long time ago.

So, it's at a very lower cost land as compared to the current prices.

So, that is how we try to maximize the shareholder return by making a maximum utilization of cash and better return on investment.

And the last point is that we have been continuously communicating in last multiple calls that we also have a very good mechanism of working on, which is continuous improvement in our existing facilities.

While the capex may not look to be significant, but the output of that investment is very significant in terms of revenues and return to the shareholder.

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Right.

Thank you so much.

Thanks.

Moderator · Conference Operator

Thank you.

Our next question comes from the line of Pratik Dharmshi from Union Mutual Fund.

Please go ahead. •

GEVERNOVA · Research Analyst

GE Vernova T&D India Limited August 07, 2026

T +91 120 5021500 · Research Analyst

Yeah, sir.

Many congratulations for a great set of numbers.

Just one question from my side.

Considering so much of capacity additions from the competition expected over the next couple of years, do we reckon the demand-supply dynamics to be in an oversupply zone maybe after 2, 3 years?

Or you are confident on the cycle?

How should one look at it?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

I think you're right.

If you look at the only domestic demand, definitely, if the capacities which are expanding are going to feed only the domestic market, then yes, we'll look at an oversupply situation.

But today, if you look at energy transition, which is happening globally and there's a big shortfall in the availability of the equipment globally.

So, my assessment is that a large part of this capacity will also be used to feed the export market or the global demand.

So, there will be a growth in India market as well.

So, with this growth and the exports, we should still be in a position to retain the balance of demand and supply.

T +91 120 5021500 · Research Analyst

Got it.

Yep.

Thank you.

Moderator · Conference Operator

Thank you.

Our next question is from the line of Jason Soans from IDBI Capital.

Please go ahead.

Jason Soans

Yeah, sir.

Thanks for taking my question again.

Just basically, I might sound very basic.

But sir, just wanted to understand because this figure kind of, you know, varies from project to project.

So, just some clarity on that.

So, of course, when an HVDC project comes through Barmer, South Kalamb, probably a INR25,000 crores odd worth project cost, sir, what is the typical size of our addressable market from this?

If you could just give me a ballpark number.

I mean, I understand project to project is different, but just as a ballpark, what will be GE share from this INR25,000 crores odd?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

So, given this project is under bidding.

So, as of today, we'll not be able to share any numbers on this.

Jason Soans

Okay, sir.

For a typical order, probably then you can share what percentage of can be our addressable size?

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Once again, you said that it will be different.

I suppose similar projects, somewhere it is a 1,000 kilometer line or a 2,000-kilometer line.

The share will change, you know.

Jason Soans

Okay.

Sure, sir.

Sure.

Thanks for that.

Thank you.

OFFICER AND MANAGING DIRECTOR · MR. SUSHIL KUMAR – WHOLE-TIME DIRECTOR AND

Thank you.

Moderator · Conference Operator

Thank you.

We have no further questions.

Ladies and gentlemen, I would now like to hand the conference over to Ms. Megha Gupta for closing comments.

Over to you, ma'am.

T +91 120 5021500 · Research Analyst

Thank you all for joining the call today.

We hope the insights provided by our speakers have been informative and valuable to you.

We value the trust and support of our investors and analysts and ensure to remain committed to maintain transparent communication and fostering strong relationships.

If you have any further questions or require additional information, please do not hesitate to reach out to me or our communications leader.

Thank you. •

GEVERNOVA · Research Analyst

GE Vernova T&D India Limited August 07, 2026

Moderator · Conference Operator

Thank you.

On behalf of GE Vernova T&D India Limited, that concludes this conference.

Thank you all for joining us.

You may now disconnect your lines. •