Prabhudas Lilladher has maintained a 'Buy' rating on GE Vernova T&D India, setting a target of ₹5,928, after the company posted a 32% revenue increase in Q2 FY27. While a record order backlog of ₹214.4 billion provides strong growth visibility, investors may want to monitor supply chain constraints and the stock's high valuation multiples.
Prabhudas Lilladher has maintained its 'Buy' rating on GE Vernova T&D India, keeping a price target of ₹5,928. This decision follows the company's strong performance in the second quarter of fiscal year 2027, which highlighted significant growth in both revenue and profit as it continues to execute on a large pipeline of projects.
During the quarter, the company reported revenue of ₹20.3 billion, a 32% increase compared to the same period last year. Profit after tax also saw a robust rise of 44%, reaching ₹4.3 billion. The company achieved an EBITDA margin of 27.1%, which reflects its operational efficiency and sits at the upper end of its mid-20s guidance. This growth is supported by a steady flow of new contracts, with order intake surging 52% year-on-year to ₹24.4 billion.
Order Backlog and Growth Drivers
A major focus for investors is the company’s total order backlog, which now stands at ₹214.4 billion. This large pipeline provides multi-year revenue visibility, driven by domestic projects in areas like pumped storage and GIS packages, as well as rising export demand. The company is actively expanding its presence in markets like North America, Europe, and the Middle East, while also benefiting from the global shift toward renewable energy and the increasing need for grid infrastructure to support data centers.
Financially, the company remains in a strong position, effectively operating as debt-free with cash equivalents totaling ₹3.25 billion at the end of the quarter. This healthy balance sheet provides flexibility for its ongoing expansion efforts.
Monitoring Risks and Valuation
While the growth outlook remains positive, there are important factors for shareholders to consider. Supply chain constraints, particularly regarding the availability of high-voltage bushings, remain a primary risk. These bottlenecks could impact operational timelines and the speed at which the company converts its backlog into revenue. Additionally, the business relies heavily on state utilities and Power Grid for order inflows, which can lead to lumpy revenue cycles if project cycles are delayed.
Investors should also note the stock's valuation. Trading at high multiples—often cited in the range of 71x to 83x P/E—the stock reflects high growth expectations. The market will likely focus on the company's ability to maintain its margin levels, manage raw material cost volatility, and navigate the execution of complex export orders. The next key updates to track will be the progress on the major data-center order and any management commentary regarding supply chain normalization.