Thank you, Robin. Good evening, everyone, and welcome to GE Vernova T&D India Limited earnings call for quarter one of financial year 2026-2027.

I am Megha Gupta from Investor Relations team. During the call, we will discuss company's financial performance including operational highlights and we will share key updates.

I am 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.

Anika Ruda, Communications Leader; and Ms. Shweta Mehta.

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

Thank you, Megha. Good evening, everyone, and welcome to our first quarter earnings call.

India is currently executing one of the most ambitious grid expansion plans in the world with the target of 500 GW of non-fossil capacity addition by 2030 and the roadmap towards 800 GW by 2035. The transmission bottleneck is being addressed with unprecedented urgency.

Peak power demand is expected to rise meaningfully over the next several years and the government estimates a material part of that increase is going to come from newer category of loads, which is AI, data center, and EVs, which are expected to add around 30 GW of India's peak demand over next five to six years. At the same time, distribution losses remain a persistent drag on the system.

The national AT&C losses average stood at just over 15% in FY '25, 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, where 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. Coming to financial performance during this first quarter, we saw order book at 11.4 billion, down 30% year-on-year compared to 16.2 billion in the quarter ended June '25.

The primary reason for the lower order intake was due to lower realization of TBCB market in Q4 '25-'26. Our Q1 revenue stood at 18.4 billion versus 13.3 billion, a growth of 38% year-on-year.

Execution outpaced new orders, because of which the order backlog moderated to 209.3 billion as of June '26 versus 214.6 billion as of March '26, down by 2.5% quarter-on-quarter. The order backlog stands at more than three years of our revenue for FY '25-'26.

Our profit before tax and exceptional items for the quarter ended June '26 was at 4.9 billion INR, compared to around 3.9 billion INR 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 goal.

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

Abhishek.

Thanks, Sandeep. Good afternoon, everyone.

I will just take you through the key highlights or the key achievements for our company in the last quarter. In our continuous journey towards 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 at Khimti site, which is going to be the first milestone 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 had 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, NLC and similarly, a lot of new bays have been commissioned for our customers like ReNew, Tata Projects, Adani, BBT. We remain committed and had been working continuously in terms of honoring our commitment through timely completion of the projects and continue in the journey of strengthening of transmission network for the country and other neighboring countries.

This was our performance for last quarter. Now I would handover to Sushil for further updates.

Thank you, Abhishek. Good afternoon.

Good evening, everyone. Now let me move to our order booking highlights for the quarter.

While the headline order intake moderated, I want to emphasize the quality and diversity of what we built. We secured CTs and CVTs from GE Vernova entity in North America.

This order is different from the material RPT approval that we had secured from the shareholders. For that material RPT order, the group entities are still under discussion and negotiation with the end customer and now we expect that this is to get finalized in next three to six 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 for state utilities, EPCs, and data center. This export diversification, which now stands at 46% of our Q1 orders, is a strength we have been building for and had flagged in our earlier calls.

Our order backlog stood at 209 billion as of June 2026, down a modest 2.5% sequentially from the record 214 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 18.4 billion, up 38% year-on-year from 13.3 billion in the same quarter last year. I do want to address 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.

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.

In this quarter, we had 30% of revenues from export, whereas last financial year was 33%, and also the execution of very high profitable export order in the last financial year. This resulted in 1% to 1.5% of reduction in the gross margin.

Number two, there is some impact of elevated commodity prices, impacting lower savings in execution compared to initial plan. While we are still executing within our expected margin, but the savings that we anticipated during execution are lower versus the anticipation earlier made by the company.

Number three, about 2% to 2.5% point reduction is on account of ramping up of revenue for 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 kind of washes out in the EBITDA.

Accordingly, we see that 50% of overall gross margin impact gets mitigated at the EBITDA level, and we delivered an EBITDA of 21 25.1%, in line with mid-20s band we have consistently guided earlier. Going to profit before tax, profit before tax for the quarter was INR 4.9 billion, up from 3.9 billion in the quarter one of financial year '26 with finance cost remaining negligible and we continue our zero debt position.

On the balance sheet and capital allocation side, we generated 4.3 billion of cash during the quarter, taking our total available cash, including funds that we lend to the cash pool, to INR 29.3 billion. Out of this cash balance, company has announced utilization plan of approximately 13 billion, which includes 10 billion of capacity expansion program announced in the last financial year and approximately 2.5 billion INR of dividend in quarter two, subject to the approval of shareholders.

The management continues to evaluate various options for utilization of balance cash to optimize the returns to the shareholder. I would also like to highlight the continued quality of our order book.

Private customers now accounts 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 counterparty de-risking trend we have discussed in prior calls.

To summarize before I hand back for the questions, order intake for the quarter moderated, but revenues growth, execution pace, cash generation, and backlog quality all remain strong and consistent with our full year expectation, and we are confident of converting our 209 billion backlog profitably over the coming years. With that, I'll hand over for the question and answer.

Hi. Thanks.

Just wanted to check on this US data center order for which you had RPT approvals of up to 1,300 crores. Just want 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?

Yeah. Thanks

for the question.

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 timeline to be quarter two or quarter three of this financial year.

Okay. Fine.

Thank you. The 3,000 crore approval which you already had and that is I think supposed to get converted in H2 of this year, so that is still in place, right?

Probably we have to get renew that approval in the AGM in September. Is that right?

We had two approvals. I would like Sandeep to answer that.

Sameer, thanks for the question. Basically the approval what we took for 3,000 crores, that project has been put under hold as of today by the customer.

When the customer reinitiates the process, then at that point of time we will again go back to the shareholders if by that time and because the AGM is going to happen in September itself, I think I don't see any project getting closed by September. Probably when that opportunity becomes live, we'll have to again go back to the shareholders for re-validation.

Okay. Thank you.

The second question is how do you see the HVDC pipeline? It looks like the Lakadia project is on hold now and the Baguniya was converted to EHVAC and again this South Karanpura project is still not awarded.

What is your view there? Do you see any risk of delays or cancellations here?

South Karanpura, the bidding has already happened for the developers and I think the first-stage bid has been submitted by the developers. This should happen probably in August or September, it should get decided on the developers.

That's a good thing. Secondly, I think we are expecting maybe one or two more projects to come in the upcoming NCTs.

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 yes, it's not going away.

Okay. Thank you.

I'll get back in the queue. Thank you.

Yeah. Hi, sir.

Congratulations on a decent quarter. My first question is on the export orders.

In this quarter, it seems to be on a very high run rate. Typically, third-party export used to be about 800 to 1,000 crores excluding RPT.

What is driving this? I know some of these are GE entities.

If you can help us understand in this quarter how were these orders driven? Is it certification?

What is basically driving this new mandates? I think

if I understand the question, Parikshit, is that normally the overall yearly order intake from exports, the third-party and the smaller ones is not so high, but this quarter we have seen a much higher run rate, right? That's what you're saying, right?

Yeah. Sir, your voice is also not clear.

If you can come closer to the mic, I'm not able to understand. I'm missing a lot of part of your conversation.

Is it better now?

Slightly better, yeah.

Okay. Parikshit, basically, see that it all depends upon the opportunities which are coming.

Not only from data center opportunities apart from that, when the data center opportunities are being developed in US, then there is a lot of utility pipeline also getting generated in the US. I think there's a lot of orders which have come from utility customers in US as well, which is And then, of course, we are close to some two packages of 400 kV GIS with customer in different countries as well.

Of course, we don't have a fixed kind of a target for a quarter, whatever comes and we are able to win, those orders get booked into the system. This time the opportunity pipeline for the last quarter was much better and accordingly the instrument transformer a big pipeline got converted, thankfully yes, it's about 550 crores what we booked around for the exports.

Hello, sir. I'm not able to understand.

The voice is really unclear. I don't know, my

I think can we disconnect and reconnect? Just check with Can you

check with operator? Are you able to hear us?

Hello?

Parikshit, is it better now?

Much better, sir. Thank you.

I'm sorry for interrupting.

The pipeline this time because of the utility customers in US demand requirement for instrument transformers, etc. was much better and then we had few opportunities of 400 kV GIS decent-sized opportunities.

Everything contributed to a much better pipeline and order realization in the export side.

Okay. Sir, these RPTs and back-to-back, there has been delay in both the RPTs.

The bigger one, 3,000, you said now it's put on hold and if the client decides, it comes back for again approval. Same thing is happening for data centers.

Is it the overall concern around or is it the geopolitics or is it concerns around data centers? Why is this delayed decision-making from the customer end?

How is the RPT pipeline looking for the rest of the new pipeline for the rest of the year?

The first one, the 3,000 crore was into much advanced stage of discussion and negotiation and that is why we went for the RPT approval of the shareholders. Then suddenly because of budget issues, etc.

at the last minute, the utility has kind of a I will not use the word backtrack, but that has put it under hold for some time. We are just waiting for them to resolve the internal things and then reinitiate the process of it.

Regarding the data center opportunities in US, etc., yes, because we were very close to the final negotiation going. Then there were certain other aspects like change of location, change of state.

When the state change, then the complete solution is to be reworked because of different voltages, etc. I think there were certain factors which were beyond the control of GE Vernova, that is why the whole opportunity has got shifted.

Okay.

Both of them are shifted, but can come back. As of now, limited clarity, but as and when they come back, then it will get reinitiated or re-approved.

Both of them are not lost.

Okay. Sir, how's the new RPT pipeline developing?

Any color on that for the upcoming approvals this season?

I think once a large project gets identified, then automatically it comes up. 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 I definitely wanted to check.

On domestic ordering, we have seen soft quarters. Q4 was a soft quarter, this was again a soft quarter.

If you can give some color on domestic ordering, when do you expect to pick up? We have also not seen this gun powder from Power Grid coming.

They were there last couple of years, but this year we have not seen, for some quarters. How is the demand shaping up on the domestic ordering?

I think if you look at January to March, our TBCB pipeline was a pretty soft pipeline and because of that, you see the order intake which is impacting the April to June order intake which is there. We are seeing now the TBCB pipeline or decisions now getting much better.

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 a 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.

Sure, sir. Thank you and wish you all the best.

Those were my questions.

Thank you, Parikshit.

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 site, yeah?

Amit, in the present order intake, the data center ordering is not significant, I would say, that it's 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 capacity is being planned, which will be at higher voltages, we are working with the customers on those data center opportunities, but is it going to materialize in next quarter or maybe next two or three quarters, this is something yet to be seen.

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

You did highlighted that the ordering during Jan to March the tender pipeline was soft and that's why the conversions got impacted. How one should look for the full year in terms of base orders, specially the domestic one, for this year?

Will it be double-digit growth or if you could give some medium to long-term sense as to how much you are factoring in for this year?

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

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, are we sticking to that or is there any change to the guidance for this year on margins?

Amit, we maintain our guidance of mid-20s EBITDA for the year. There is no reason that we should deviate from that right now.

Understood, sir. Thank you so much.

Sir. Thank you so much for taking my question.

My first question just pertains to of course the notification of the four Chinese players which have been added and of course it increases competition particularly on the GIS side. I just wanted to know GIS definitely is a core product for us as well.

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?

Thanks, Jason. We are also watching because it has just got approved and subsequent to that, normally whatever Power Grid bidding happened had happened before that.

They were all with the domestic or the non-Chinese GIS makes had been considered and the bidding had happened in Power Grid. Regarding with the private so whatever private has won the TBCB bids, they have not yet started the discussion.

The impact of this Chinese on the GIS we'll come to know once the negotiation processes will start. 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 60%, 65% local content was not there.

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. If they were not present or they were not operational in the country for 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.

Sure, sir. Your voice was a little bit muffled as an earlier participant had spoken.

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 exported orders in the last quarter.

The other two reasons which you mentioned were not audible. Could you just repeat that just for clarity sake?

Yeah.

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

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. Last financial year, we achieved 45.3% gross margin and this quarter we are achieving 41.3%.

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 gets 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.

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

Sure, sir. That's very clear.

Thank you so much for repeating that and that's all from my side. Thank you so much.

Hi, sir. Good evening.

I just have one question. Apart from a group level, what is our order book?

Anuj, overall order that we booked for the quarter was 11.4 billion and out of this roughly 5.5 billion was from the export side. In our business largely, I don't have exact split for the quarter, but 80% 90%-95% of orders are coming from the group entities, we can assume roughly 5 billion of the order on a broader basis coming from the group entities.

Excluding that, we can consider 6.5 billion of orders coming from the third parties, which includes large portion of domestic customer and small portion from third-party customer in the export segment.

Total order book, this what you're saying about the quarter, I'm talking about the total order book of 20,900-odd something. Out of that?

Okay. That is the order backlog which we have.

Order backlog, you are asking. Right.

Order backlog, right.

20,900 crores, Sushil. We generally do not give a breakup of the backlog in export versus domestic, but I'll give you some broader color.

The export in the total orders in hand or backlog should be about 10% to 15% in that range.

Sir.

Got it, sir. Got it.

Thank you. That's it from my side and wish you all the very best.

Hi, sir. Thanks for the opportunity.

I have one quick clarification on the RPT approvals that you have. You have three the 1,300 crores which is for the US data center order, that is not part of the total 3,000 crore RPT approvals you've taken, right?

Could you clarify what that balance 3,000 RPT approval is for? Is that one single project or is that multiple projects?

That was one project and that was not a US project, that was a different project altogether.

Understood. Currently you've got 4,300 crores of RPT approvals where the orders are still pending, just to clarify.

Out of that, 3,000 is going to expire by this AGM, then it will be only 1,300 which will be left.

Understood, sir. Secondly, just in your last earnings call, you discussed being confident around base order flows of 7,000 to 8,000 crores a year.

This quarter you've done around 1,100 crores. Of course you mentioned that for pipeline TBCB is a little soft for this quarter, but it's picking up.

Do you remain confident on the 7,000 to 8,000 crore base orders coming through for the full year or are you expecting to miss that guidance?

No, we remain confident on.

Got it, sir. Just lastly on the commodity prices, you mentioned that versus FY '26, your margins in the first quarter 400 bps lower.

You explained that about 300 to 400 is 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.

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

First is that yes, definitely the commodity prices are elevated and quite volatile given the geopolitical and other challenges. In our business there is a transformer business, whether it is a standalone supply of transformer to the customer or is a part of HVDC project, in that scope we get a price escalation.

All the commodities like CRGO, steel, etc., there is a formula embedded in the contract basis which we get the compensation. That part of the business is not impacted.

Then the other part of business, rest of the business is switchgear, GIS, turnkey portfolio, etc., where we have our approach of building the estimated cost of commodity prices basis our past trend and the future expectation of the commodity prices. Now with this approach, we have been pretty successful in the past and as we see our order to execution cycle have a gap of say 18 to 24 months when we take the order and when we execute the order, which effectively means, yes, now as we build for the new tenders, we will continue to include the new prices, but the impact is likely to come in the execution in the future period.

I can just give you confidence that we have a very disciplined policy in terms of costing and going to the market. Your participation is confirmed.

Please wait. Same has been duly maintained over the period of time.

Operator, are we connected?

Let's take a confirmation that my answer to the last question was duly audible to everyone.

All right. Thank you.

Good evening, sir, and thank you for the opportunity. 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 US?

Yes, it will benefit, Subhadip.

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

That will all depend upon what kind of order, what kind of rating, it will be a mix. Difficult to predict because that will all depend upon individual opportunities.

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

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

Subhadip, as I mentioned earlier, EBITDA margin of the quarter is in line with the mid-20s that we have been consistently guiding for. Obviously last quarter when we guided for, we had seen the commodity prices going up and hence the guidance was there.

We continue to maintain that band for the financial year '26-'27 as of now.

Thanks. 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?

Subhadip, thanks for this question. I answered this to the previous caller in the previous question.

As I explained, there are two parts of our business. Transformer business gets the price escalation clause, irrespective of whether it's a direct supply or is a part of HVDC business, and it's a well-defined formula by IEEMA, which gets a good compensation of the commodity price increase.

For rest of the business, which is non-transformer business, we anticipate the cost of commodity prices basis our past experience and future expected prices. We'll continue to work with that same disciplined approach.

As I mentioned that generally there is a lag between the new prices 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 higher compensation in the future, which is a lag of say one year to two year in the execution cycle.

Perfect. That amply answers the questions.

Thank you so much.

Hi. My question was on order inflow for this quarter.

We have seen that order inflow as compared to last year as well as compared to previous quarter, the order inflow was less. I've heard that you have covered in the start of the call, but your voice was not clear.

What gives the confidence that the order inflow will increase from here on? Thank you.

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 May onwards or June onwards, not May, but I would say June onwards the pipeline has picked up, so that gives us the confidence that the order numbers will be better now.

Thanks a lot.

Hi, sir. Good afternoon.

I wanted to check with you on kind of a big-picture view considering the opportunity in HVDC as well as data centers plus exports. If you take a three or four-year view, is there a vision that you have for GE Vernova and 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?

Sorry, I think this is not the forum because this will be kind of a forward-looking statement, we will not be able to share any big-picture view on the call.

Would you be able to give me as kind of a proportion in terms of these three key businesses, what could the contribution of exports, domestic HVDC, and data centers? Would that be a possibility?

Venkatesh. This is Sushil this side.

Maybe I'll try to give some color and answer it differently. The breakup that you are seeking typically we don't give it because we look at this as a one integrated portfolio and if we see the past trend, this breakup changes significantly year-on-year, quarter-on-quarter depending on the execution of different types of projects.

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, our backlog stands at 209 billion now. This high backlog gives us a confidence that we have the potential to grow at a significant pace in the future also, because the current backlog is roughly 3.5 times of our revenue and it's a multi-year high and the backlog gives a multi-year visibility.

However, the growth will not be linear, meaning financial year '27 and '28 will continue to see a healthy growth in terms of our core portfolio, which is project products, export all put together. The HVDC backlog that has a back-ended execution as per the typical structure of the HVDC projects and we see a meaningful growth from the financial year '29 onwards.

Our growth trajectory on a overall is robust, meaningful in next couple of years, but have significant improvement in the financial year '29 onwards basis the execution of HVDC.

Right, sir. Two more questions.

Based on the projections for the future over the next 12 to 24 months, what is the CapEx that you'd probably be planning?

We already announced the CapEx of about 10 billion INR in the last financial year. We have 29 billion of surplus cash available, and as I mentioned in the beginning, 10 billion is for CapEx that we already announced, 2.5 billion for dividend, we have roughly another 16 billion of surplus cash over and above the announced plan.

As I said in the beginning, management and the board continuously evaluate what are the options available for the company for maximizing the returns to the shareholder. As of now, there are different options under evaluation, but since nothing is concrete, and as per the requirement also, we need to inform to the stock exchanges in case of such CapEx plans, it is difficult to call out a number in this call because nothing is firmed up as of now.

Right, sir. Last question from my side.

If you look at the competitive scenario apart from the Chinese suppliers, etc., the three or four major players in the Indian markets, Siemens or Hitachi or yourself, etc., what do you think can be GE Vernova's competitive advantage compared to the other serious players?

Of course, technology, lean, and when we talk about localization. These three we feel are the distinct advantages what we have.

Sir. Thank you very much.

I'll join the queue. Thanks.

Hi. Thanks for taking my question again.

I just have one. Just coming back to the competitive scenario here.

Are you seeing any competition from tier-2 suppliers? Has that increased recently?

Are you seeing any risk to market share in domestic market from tier-2 suppliers, not the big ones?

It's not that the competition from tier-2 supplier is only now. The competition from tier-2 suppliers has been for 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 switchgears, etc., you don't have or automation products, etc., you don't have or softwares, right, you don't have much of a competition coming from tier-2 suppliers. In some domain it is there, some domain it is not there, but in the other domains it has been there for some time now.

Okay. Thank you.

Not sure whether it's a repeat because I got disconnected in between, but for pricing in the new orders, 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. How do you see the pricing in the orders?

Has that stabilized over a year or that is also increasing?

The transformers and all, whatever is the impact of the material which is there we are able to pass on to the customers, but we've not been able to pass on extra margins, etc. to the customer.

Sameer,

in order 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 in their costing while making the bid. Overall demand-supply dynamic doesn't change because of change in the commodity prices.

Okay. Thank you.

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 couple of packages and each having project cost of about 7 to 8,000 crore. What could be our scope of work in these projects, what we can supply from India operations?

Thank you, Umesh, and good evening. Synchronous condenser is manufactured by GE Vernova, but that is not part of grid portfolio.

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

Okay. If I understand correctly, that portfolio is available in the parent entity.

Is that fair assumption?

Yes.

Okay.

Normally, synchronous condensers are basically a type of a generating equipment. We are a T&D player, so that generating manufacturing capacities are not available with this entity.

Understood. Understood.

Second question is pertaining to STATCOM. I think there were couple of I think packages in Khavda in the month of June, May as well, and I think there were certain instabilities in the grid, and now there is an urgency in terms of floating out tenders for STATCOM.

Do you think these tenders materially pick up in next few months?

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 grid stability opportunities.

Understood.

Understood. Last question is pertaining to capacity allocation.

We kind of cater to domestic demand and at the same time to exports and then with respect to our parent entities as well. How do you assess capacity which is kind of available for three different type of opportunities?

Considering that there were couple of RPT approvals which were in phase or near term in terms of I think order awarding, would that be a case where you were slightly more selective in domestic market in last six months while going into bidding?

Thank you, Umesh, and I think you have to find a balance. Basically we keep on a very close watch on the opportunities which do come in, for example, if it is an RPT opportunity, then what kind of timeframe 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.

We have a constant mechanism by which these opportunities are tracked and accordingly the decisions are taken that, for example, in RPT also, what is the maturity stage. For example, suppose the maturity stage is not there, but it is like 24 months delivery, then whether it's going to be 24 months from now or it is going to be 24 months after six months, that's a conscious call we take and then accordingly we target whether it is export or whether it is domestic.

That challenge is always there in terms of domestic as well, because, for example, if you're putting a bid where you have a three months validity and then you have other places where bids are going, there again you have a three months validity, you have to take a conscious call what is more targeted, where to put more aggressive and how to plan the capacities. Understood.

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

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

Understood. Okay.

Thank you. Thank you so much.

Hi, sir. Thanks for the opportunity.

Sir, my first question is on this Power Grid mentioning that the TBCB project timelines, they have the approvals have gone up from say 18 to 24 months earlier to now around 24 to 30 30 months. How does that impact us or our calculation in terms of our order cycling and, capacity utilization and CapEx plans?

If you can just throw some color on it.

I think on the CapEx side, it is not going to impact anything, and that capacity utilization, of course, they are whatever orders we have, they are with a definite timeframe, the orders what we have received. I think the impact which can come on the ordering part is that for few projects if it's gone to 30 months, for example, earlier when it was 18 to 24 months, as soon as the customers were winning, in like one to two months, they were deciding the order in the market.

As it becomes 30 months, then they have some probably a quarter like maybe three to four months where they can take a decision. The ordering cycle gets slightly stretched in the case when it becomes 30 months.

Okay. Got it.

Sir, second question is on the margin profile. If you can throw some color on the margin profiles of our key market segments, right?

Let's say, data center is picking up, then we are doing also transmission. If you can just throw some color subjectively, how does that vary between our key market segments?

Yeah.

Hi, Mahesh. Margins by market segment or customer type is something that we don't share, as 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.

Okay. Yeah.

Got it. Thank you.

Good evening, sir. Congratulation on your numbers.

See, I just wanted to know update on the Vallam project, the 55 crore project which you had decided to roll out sometime in December 2026. The deadline is likely to be met or how is it, sir?

We are working on that project, and I think part of the capacity we should be able to come up with in Q1 of '27. That is there.

The balance capacity will come out probably by end of '27. We're working towards it.

Thank you, sir.

Hello, sir. Am I audible?

Yeah.

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

Vidhi, we answered this that for the financial year 2026-2027, we continue to maintain our EBITDA guidance of mid-20s.

Okay. Asset turns, sir?

Asset turns, we don't typically calculate it that way, because in our business, assets can be utilized differently because capacities are fungible. For instance, if we use the assets for HVDC projects, then asset turns become quite significant because HVDC projects have a lot of bought-out components, etc.

Internally as internal management, we are not working on capacity utilization in terms of asset turns, but we look forward to specific projects that we can execute using our existing capacities.

All right. Thank you, and all the best, sir.

Hello. Am I audible?

Yeah. You're audible, sir.

Yeah. 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 Hitachi Power are actively acquiring niche capabilities to capture the same HVDC and thanks demand wave?

Shivang, I already mentioned in the call in the beginning as well as answered to one of the investors that out of the 29 billion cash we have, we have already announced utilization of almost 45% of that cash in the form of dividend as well as CapEx. We have already announced 10 billion of CapEx and about 2.5 billion INR of dividend.

As I mentioned, we continuously, as management and the board, look forward to the balance between shareholder return and maximizing return on the investment. The amount which remains unutilized is parked 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 large extent is already comprehensive. We have almost all the product range in terms of the HV equipment portfolio.

Wherever we could do the capacity expansion, we have already announced. One important point you will notice that most of the capacity investment that we have announced, 10 billion, is largely within our existing plants, where we already had the surplus land, which means that we don't need to invest in land, but we can have better return to the shareholder by investing in the existing facility.

The land was taken a long time ago, it's at a very very low rate as compared to the current prices. That is how we try to maximize the shareholder return by making maximum utilization of our assets and investment.

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 lean, which means 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.

Right.

Right. Thank you so much.

Thanks.

Sir. Many congratulations for great set of numbers.

Just one question from my side. Considering so much of capacity addition from the competition expected over next couple of years, do we reckon the demand-supply dynamics to be in a oversupply zone maybe after two, three years or you are confident on the cycle?

How should one look at it?

I think you are right that if you look at the domestic demand, then definitely if the capacities which are expanding are going to feed only the domestic market, then yes, we will look at a oversupply situation. Today if you look at energy transition which is happening globally and there is a big shortfall in the availability of the equipment globally.

My assessment is that a large part of this capacity will also be used to feed the export market or the global demand. I think there and of course, we look at India market also growing.

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

Got it. Yep.

Thank you.

Sir. Thanks for taking my question again.

Just basically, might sound very basic, but, sir, just wanted to understand because this figure kind of varies from project to project. Just some clarity on that.

Of course when an HVDC project comes through, Bhadla, South Karanpura, probably 25,000 crore-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 understand project to project it's different, but just as a ballpark, what will be GE's share from this 25,000 crores-odd?

Jason, this project is under bidding, so as of today, we'll not be able to share any numbers on this.

Okay. Sir, for a typical order probably, then you can share what percentage of can be our addressable size?

No. That's again you said that it will be different.

For example, suppose similar project, whether it is a 1,000 km line or a 2,000 km line, the share will change.

Okay. Sure, sir.

Sure. Thanks for that.

Thank you.

Thanks.

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