Good evening, everyone. Welcome to the GE Vernova T&D India Limited earnings call for quarter four of financial year 24-25, 25-26.

I'm Megha Gupta from Investor Relations team. During the call, 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. Anika Arora, Communications Leader; and Ms.

Shweta Mehta, Company Secretary of the company. Before we begin, 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. We encourage you to refer to our public filings and documents for comprehensive understanding of the factors that could impact our future performance.

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

Thank you, and over to you, sir.

Thank you, Megha. Good afternoon, everyone, and welcome to our fourth quarter and full-year earnings call.

As we reflect on the year gone by, one thing is evidently clear. India's power sector is in the midst of historic transformation.

The country continues to add renewable capacity at a rapid pace, electrification is deeping across industries and household, and the demand for a stronger, smarter, and a more resilient transmission and distribution network has never been greater. The Government of India now articulated an even more ambitious long-term energy vision targeting around 800 GW of renewable energy capacity by 2035, which would take the install base for the non-fossil power generation to over 70%.

This is far more than the capacity addition milestone. It is a clear signal of the scale of infrastructure build-out required.

In parallel, the country's transmission network is being planned to support over 900 GW of non-fossil capacity, underscoring the central role of grid infrastructure in enabling India's energy transition while sustaining long-term economic growth. At the same time, the broader policy and demand outlook remains highly supportive.

India's energy consumption continues to rise, driven by industrialization, urbanization, rapid data center growth, manufacturing expansion, and the increasing need for reliable power across all geographies. Peak demand is on an strong upward trajectory and is projected to nearly double by 2035.

As a result, the grid will need to evolve rapidly to manage intermittent renewable generation, enable long-distance power evacuation, and handle significantly greater complexity in system operations. What does this mean for transmission and distribution infrastructure?

It means that every megawatt of renewable capacity added, every new industrial corridor developed, and every step towards nationwide electrification requires a modern, efficient, and reliable network to carry where it is needed most. This is where exactly GE Vernova T&D plays a critical role.

Our portfolio is well-aligned to these structural opportunities from high-voltage transmission equipment to grid solutions, to digital capabilities, and HVDC technologies. We remain focused on enabling India's energy transition and supporting the country's long-term power infrastructure need.

HVDC, in particular, will continue to be strategically important as renewable energy is increasingly generated in research-rich but remote locations while demand remains concentrated in urban, industrial, and commercial centers. We also see a strong and growing export opportunity as the global market for transmission and grid equipment is expected to expand significantly.

This growth is being driven by large-scale utility and data center investments in the United States, industrial and renewable energy expansion projects across the Middle East, and rising demand and energy transition in other parts of the world led by renewable grid integration and replacement of aging substation infrastructure. Our products already reach more than 60 countries across the world, reflecting the strength of our technology, quality, and execution capability.

Under our India for the World strategy, we are focused on deepening localization, enhancing competitiveness, and increasing the share of high-value export orders manufactured from India while continuing to expand into new market and regions. Now turning to our financial performance, I'm pleased to report that for financial year 25-26 was a strong year for GE Vernova T&D marked by healthy demand, disciplined execution, and improved profitability.

During the fourth quarter, our order intake remained robust, reflecting the strength of market demand and continued trust of our customers. For the full year, we delivered a solid performance across key financial and operational matrices, supported by strong project execution and favorable market environment.

Our order book remained strong in Q4, and we saw a booking of INR 86.1 billion, up by 188% year on year compared to 29.9 billion in quarter ended March '25. Our Q4 revenue stood at 16.4 billion versus 11.4 billion, up by 42% year on year.

On a full-year basis, our revenue stood at 62.1 billion versus 42.9 billion, up by 45% year on year. New orders outpaced revenue, further expanding the order backlog to 214.6 billion as on March '26 versus 14.3 billion, up by 49%.

Our profit before tax and exceptional items for the quarter ended December was 4.6 billion. A quarter ended March was 4.6 billion as compared to 2.6 billion in the corresponding quarter of the previous financial year, growing by more than 1.8x.

From a full-year perspective, profit before tax and exceptional items stood at 17.1 billion versus 8.2 billion INR, which is 2.1 times increase. The cash and cash equivalent balance was at 25 billion as on March 31st versus 10.5 billion as on March 31st '25.

The cash generated in Q4 was 9 billion, and on a cumulative basis, 15.8 billion during the financial year 25-26. Beyond the financial performance, I would also like to highlight the meaningful progress our teams have made in strengthening execution capabilities, enhancing customer responsiveness, and building a more agile and resilient organization.

During the year, we initiated significant capital investment of more than 10 billion across multiple product lines and facilities. These investments represent critical foundations as we prepare for the next phase of growth.

Yesterday, the Board of Directors have approved an investment of Indian rupees 550 million towards creating new capacities for disconnectors and drives. The capacity will be established at a new facility located at Vallam, Tamil Nadu.

The Board of Directors also recommended a dividend of Indian rupees 10 per equity share for financial year 25-26, subject to shareholders' approval. In conclusion, this year has reinforced our confidence in the long-term opportunity ahead.

India's energy transition is accelerating, and the need for robust transmission and distribution infrastructure will only grow stronger in the years to come. Our strategy remains clear: execute with excellence, deepen our customer relationship, drive profitable growth, and continue to be trusted partners in building India and global energy transition.

On behalf of the leadership team of GE Vernova T&D, I would like to thank our valued customers, board, investors, partners, and above all, our dedicated employees for their unwavering support and commitment throughout the year. I would now like to invite Abhishek to present operational highlights.

Thanks, Sandeep. I will take you through the key execution highlights from Q4 of FY 25-26, and again, these execution highlights are reinforcement of our commitment to strengthening of country's transmission network while driving energy transition.

Some of the notable successes for us in the last quarter in terms of turnkey solutions: so we commissioned Gadag substation for our customer ReNew with whom we had been partnering very actively, and we commissioned 400 and 220 kV AIS project for them at Gadag substation. Another key mention would be PGCIL Nagaland, which was a tough location where we commissioned 132 kV GIS substation for them.

It was done through execution excellence in a very, very tough environment. Another key turnkey project which got commissioned in the last quarter was for power evacuation from NTPC Kahalgaon, a 400 kV AIS bays along with 500- 400 MVA power transformers.

Then for our customer HPPTCL, at the site location of Kango, we commissioned 220 kV, 132 kV, 33 kV AIS bays along with the associated power transformers. In addition to that, we had been actively supplying our products to our customers and some notable commissioning in terms of adding further transformation capacity through commissioning of power transformers and reactors that I would like to share with you all.

The first one would be PGCIL Ramgarh, where nine-number 80 MVAR 17- 765 kV single-phase shunt reactors were commissioned along with three-numbers 500 MVA 765 kV interconnecting transformers. Then for our customer Sterlite at Kishtwar, we commissioned one-number 400 kV single-phase shunt reactor.

PGCIL Maheshwaram, where we had commissioned 500 MVA transformers and 765 kV reactors, and then PGCIL Bhadla 3. In addition to that, we had been actively working in terms of commissioning our switchgears, both air and gas-insulated.

We commissioned 30- 22-number circuit breakers and 400 kV nine-numbers working with our customers like Godrej, and then also at IIT Bombay, we commissioned the GIS substation. With this, I think we had been focused in terms of improving our execution performance, completing the projects on time and to our customer satisfaction, which is our continuous endeavor, and improving the quality of execution and all that we do.

With this, I would like to hand over to Sushil.

Thank you, Abhishek, and good afternoon, everyone. It's a pleasure to review what has been a transformative year for GE Vernova T&D India Limited characterized by record order intake, significant margin expansion, and a fundamental strengthening of our balance sheet.

Starting with our order order performance on slide five, we have seen an unprecedented acceleration in demand. In the fourth quarter alone, we secured orders worth 86 billion, a staggering 188% increase over the last year.

This surge has propelled the total order backlog to record 214 billion as on March 31st, 2026. To put this in perspective, our backlog has grown by approximately 70% in just 12 months.

This provides us with exceptional multi-year visibility, particularly as we begin to layer in long-cycle HVDC projects alongside our core product and service offerings. Turning to slide six, this momentum in order is translating directly into strong order top line, sorry, revenue top-line growth.

For the full year, revenue stood at 62 billion, representing a robust 45% increase over the last year. However, the stand-out feature in our financial result is a significant operating leverage that we have achieved.

While the revenue grew by 45% on the full-year basis, this helped us to achieve an EBITDA of 17 billion, more than doubling versus the EBITDA of 8 billion in the last year, previous year. During the fourth quarter, we achieved a record EBITDA margin of 27.2%.

This margin expansion is a direct result of our disciplined approach to underwriting, a more favorable mix of export and high-value services, and the steady roll-off of low-priced legacy contracts. I would like to provide clarity on exceptional item of 690 million recognized in the last quarter and a reversal of 57 million in the current quarter.

This is one-time and non-operational provision related to employee retirement benefit obligation on account of new wage code. Turning to slide seven regarding the quality and composition of our backlog, I want to emphasize our successful effort in de-risking the business.

We have made a significant shift in our customer profile to 90% 98% of the backlog is comprised of private customers, central utilities, and PSUs. Our exposure to state utilities, historically a point of concern for the investor, is now at an all-time low of under 2%.

By prioritizing high-credit-quality counterparties, we are not only protecting our margins, but also ensuring a more predictable and efficient cash conversion cycle. Further, while our new order booking in this year were predominantly domestic at around 92%.

Finally, looking at the financial position, we concluded the year with zero debt in the balance sheet and a cash surplus of approximately 25 billion. This financial strength provides us a clear runway to self-fund our recently announced more than 10 billion of CapEx program, which will expand our manufacturing capacity throughout 2028, and we remain committed to a capital allocation strategy that balances these critical growth investment and our long-standing policy of rewarding shareholders through constant dividend.

With this, I'll hand the call back to the operator for question and answers.

Yeah. Thank you so much, sir, for taking my question.

Sir, my first question just pertains to the revenue growth, be it the domestic growth or the export growth has been very, very strong. Just wanted to know, first, I'll just take the domestic piece.

Which segments are basically driving growth here in particular, and just wanted to know is this growth looking sustainable at similar rates for the next couple of years at least?

Jason, thanks for your question. The revenue growth of 45%, as you rightly mentioned, is coming from export as well as domestic side.

We typically do not give split by segment because we manage this as one integrated portfolio. As you see, the backlog has grown significantly and orders still outpace the revenue, which gives us good visibility that revenues will continue to grow in future as well.

The rate may be different depending on each financial year because in our backlog, there are long-cycle HVDC projects typically which have a longer execution cycle, those contracts will have a meaningful execution conversion starting from financial year 28-29 onwards.

Sure. Thank you for that.

My next question just pertains to in light of the strong inflation in terms of various geopolitical crises which is shaping the world right now, just wanted to understand, in terms of this, how has the raw material pass-through for us worked, you could speak in terms of both ex-HVDC as well as HVDC, how do you manage our contracts and our services through this, the raw material pass-through?

Jason, in our industry, typically the transformer business has a price escalation clause. The transformers either supplied directly or as a part of HVDC, they all have escalation clause.

For the other part of the business, we basis our past experience, ongoing trends, and the estimated future trends, we include the cost inflation estimate in our tendering stage to protect our margins anticipated at the beginning of the order.

Okay. Sir, just also wanted to know in terms of localization, in terms of percentage, where are we in HVDC and ex-HVDC, and what is the maximum we can go to in both the portfolios?

Jason, localization part, we are well within the localization which has been defined by the Government of India requirements. Most of the things is now with the new CapEx coming in for thyristor valves and controls, the end product, which is essentially required for HVDC, will all be manufactured in the Indian factories only.

However, at component level, there are still imports which will be required. Then what happens is that, for example, when we look at the example of GIS or any other products, localization is a much longer journey because you have to first identify the component supplier, then develop them, test them.

Once the factory comes up and then we start the supplies, then the localization journey for thyristor valves and controls will also start at that point of time. We are compliant with the requirement of the Government of India HVDC for localization.

Sure. Just finally, sir, I just wanted to know, in terms of when the refurbishments are happening or the upgradations are happening for the HVDC, just a clarification, does it necessarily become VSC or the LCC or it's not necessarily that the LCC project will be converted to a VSC?

Just wanted to clarify that aspect.

For example, there is only one VSC project in India. The second one, we will be building it.

Obviously, refurbishment of VSC is not required as of today. LCC, for example, we have won one project in December from Power Grid.

For the projects which have been executed like about 20 years back or 25 years back, there is a pipeline of refurbishment of projects for HVDC as well. Normally, if you go from a LCC to LCC, then you can choose that, okay, to change only the thyristor valves and the controls part of it or even if you want to change the transformers, they are more or less identical.

If you change the technology like from LCC to VSC, then it is like changing everything, because with that VSC, then the whole structure, including the filter requirements and those things, will change. It is possible to change from LCC to VSC, but then the scope becomes more wider, and so the shutdown requirements and the CapEx for that refurbishment will be higher.

Sure. It'll depend on project to project.

That's what you're saying, sir.

It depends upon the customer that what kind of refurbishment they want to do.

Sure. Thank you for answering my questions.

I'll join back the queue. Thank you so much.

Thank you.

Hi, sir. Thanks for taking my question.

First question is on the order intake for the quarter, which was roughly about 8,600, considering that it must have included the portion of the VSC order. Just wanted to understand how much is VSC out of this, and if that is the case, the conversion this quarter seems to be on a lower side, even in the domestic market.

Some color on the order inflow this quarter would help.

Amit, yeah, you are right that this includes the VSC order which we have won from Adani. As a policy, we don't declare the order value because that is also protected by the customer confidentiality requirement.

We'll not be able to share the customer order value. Second, also what you have to see, Amit, in a sense that whether it is HVAC or whether it is HVDC, at the end of the day, it is part of the transmission scheme, and it's a technology to evacuate power from a generation source to the load area which is there.

It doesn't make a difference whether that HVDC should be seen as like one-off or should be excluded and then it should be seen because at the end of the day, for example, transformers are also required for HVDC, you use those capacities to take a higher order profile. If you really look at our full-year number, against a 10,700 crores, we have delivered a close to about more than 14,000 crores for the 14,700 crores for the year.

Of course, you know that for us also, when we see that order intake for us should be seen more in a yearly environment rather than a quarterly environment, because quarterly, there are times when decisions get delayed and things like that. If you look at an year perspective, on a high base of 10,700 crores, we have been able to grow by another 37% and reach a number of 14,776 crores.

Right. Sir, in terms of pipeline, are we still thinking that 7,000 to 8,000 base order, which I think earlier we have been discussing, that can gradually grow for the next financial year?

Also, update on the HVDC orders, which orders you're bidding, and what is the stage that will help for the domestic order pipeline?

Yeah. We remain confident on achieving the base order number of 7,000 crores or the numbers which you are talking about, about 7,000-8,000 crore.

If you really look today, for example, we have more than about 33 projects which are under bidding under TBCB, and then we have further opportunities now coming up in data centers and other segments as well. Also, when we look at the HVDC part, of course, I'll not be able to tell that which tenders we are bidding and not, but for example, there's only one tender which is live today, which is Barmer.

The tender has been issued. The TBCB developers are working to submit their bid.

Presently, it is getting extended, we are not very sure that what will be the timeline for the ultimate submission. Once that is done, we expect that will be done soon, once that is done, then obviously the opportunity will be there to us to secure that order.

Right. Sir, lastly, on the export data center, you mentioned there's a very strong pipeline.

Just wanted to understand what is the proportion of data center in terms of order inflow, order book? That will help.

Are we seeing the domestic data center also, there's a demand for your products in the domestic data center market? Some color there would help, and the proportion in the order book or order inflow from the data center.

Today, data center market is not that big in India. It's close to about 1.5 or 1.4 GW, that type of a size of data center market which is already installed.

We expect this market to grow to a meaningful number in next four, five years. Today, that's why, because it's not a significant number, and most of the data centers which have been installed are at 220 kV.

If you look at the proportion of the order backlog, it's very insignificant. We expect when the data center sizes will grow and will be 400 kV and 765 kV, at that point of time, we expect that to make a meaningful contribution in our overall backlog.

Right, sir. Do we think that the export could be much larger opportunity because we have seen in US and global commentary also from your parent and others that data center is still much growing piece.

Are we expecting exports can ramp up even faster from this level because of the data center orders you might be anticipating over next 12, 24 months? Yeah.

Of course, next 12, 24 months, we'll not be able to give a speculation on that what we are expecting. The data center story when you look at US and all, it looks to be very strong.

Not strong, but it looks to be very strong. Mostly, for example, our scope will be products only there, because we don't do projects or total turnkey scope in markets like US, etc., because we have other entities doing there.

Definitely, whenever there's a requirement and they reach out to us for the support in terms of product supplies.

Right, sir. What was the proportion for this full year, product versus project for us?

That's my last question. Thank you.

Amit, we don't typically disclose the project versus product. As I mentioned earlier, this is one integrated portfolio that we mention.

Definitely, the project has increased because we booked a large HVDC turnkey order in this quarter. However, I will highlight your attention to an important element that the projects were a challenge when we were largely dealing with state utilities.

As I mentioned in the earlier part of the call, that the proportion of our exposure or the backlog to the state utilities, or state sector, has actually reduced to less than 2%.

Right, sir. Thank you so much, sir, and all the best.

Thanks.

Hi, Sandeep sir. Congratulations on a great quarter and a great financial year, and phenomenal performance on margin.

Sir, my

first question is earlier in the call, we highlighted about the export market, but I think this year the export has been very muted, and we'd only recorded 1,200 crores of order versus 3,200 crores in FY '25. What has changed, and I know you can relate it also to the RPT approvals.

If you can help us understand how is the RPT approvals which you have taken converting into order, because I see the mix has happened there. That 2,900 crores which we took in AGM, and then now this UK Grid, if you can help us understand this 3,000 crore is for what, and this US RPT of 1,300?

If you can help us understand how it will translate into orders in the FY '27.

Thanks, Parikshit, for your question. In terms of your first question on the export orders that we booked in the current financial year, which is about 12 billion INR, last year, number had large export orders that we highlighted.

Excluding the large orders, our base orders have actually grown by 15% to 20%. We see a healthy underlying trend in terms of the export trajectory excluding the large orders.

Now coming to the large orders for which we have taken the RPT approval, the RPT approval that we took in the last AGM, that project is still active, but there is a delay in the decision from the customer, and we are in constant discussion. As I mentioned in the last call, we expect the decision to be in the second half of the current financial year 26-27.

The second RPT approval that we have taken is for a US entity. That order is again active and moving fast.

We have concluded the shareholder approval, I think it was yesterday, that the voting concluded. We'll be filing a stock exchange communication today.

We expect that opportunity to be decided in the current quarter. The third approval that we had taken was for UK-based solution.

That was largely on the buy side, where we need to secure the products key components on the HVDC project. That order also is expected to place in the current quarter.

That is a purchase, so that will not reflect in the order book. That is going to the parent entity.

Is

Absolutely. This is an order that we place to the UK entity, but it is to feed the large HVDC order.

Whatever is the value, we have not disclosed on the HVDC, but the entire revenue will flow into the [unclear] is the most

Is it better now?

Whatever is the realization in our books on revenue, it is irrespective of whatever we give it to the UK entity. Everything flows through us, right, in the revenues for this order, the Adani order?

Absolutely.

Okay. What is this US order pertaining to?

Is it for any particular product or any particular segment? If you can give some more granularity on that.

Whether now I think this is the first order from US in our history. How do we see this US market evolving, because in the past, I think Sandeep sir had spoken about once the tariff issue is settled that market will open us for us.

Now we have another entity, Prolec, there. How do we fit in in the scheme of things for the US market?

Parikshit, this is for high-voltage products for the data center market. This order is there, and so this is being negotiated and discussed at the US.

See, of course, Prolec is there, but also depending upon the requirements, delivery schedules, etc., and the requirements, whenever it is required, the US entities will reach out to us and we will support them in terms of supplying and help them in closing a larger order which is project-oriented.

Okay. Sir, I think parent had highlighted that Prolec will have a low-voltage distribution strategy going forward.

For the GE listed entity in India, how does it impact, as a product? Will we have any space to play there or any role to play there if this at all happens?

How do we look at that opportunity in the distribution market? Parikshit,

Parikshit, two things here. One is a US distribution market is a different ballgame and Indian distribution market is a different ballgame altogether.

Prolec has been present into the distribution range not from now, but since many decades. They are not entering into a new domain.

They have been into distribution sector, and they will continue to participate in distribution sector. Here, today, we don't have a industrial unit today which is, of course, you leave aside the automation and the software part, but on the product side, which is like the transformers, etc., today we don't have a industrial set-up which supplies to the distribution sector.

Because to participate in the distribution sector, then it will require either an organic growth or an organic capacity to be building, and the price levels and quality considerations and even the participation of players like GE is not going to value add in terms of margins where we have reached. I don't think that's a strategy which we can replicate in India from US.

Okay. For us, even for Prolec, if there is an opportunity in India, it's not possible, and anyways we're not interested in doing it doesn't make commercial sense.

Is the right thing to understand from this?

We cannot manufacture a transformer in US and supply to a distribution company.

Right. Just the last question, sir, on the export market again.

What is the exposure to the Middle East and the overall orders, export orders, and how's this market looking up, because you said that earlier that 60 countries we are present. Just wanted to understand, will FY '27 be a big year for exports, because there'll be a trickle-over from FY '26 of RPT, and maybe new RPTs will also come in FY '27?

Is it right to understand that FY '27 will be very strong on exports, and also it'll open up new markets, because I think Middle East we don't have any substantial exposure. How are you reading the Middle East market in light of the Vietnam, where parent has announced a big CapEx?

How does it also impact us in the RPT side, sir, if we can cover all these things? That's my last question.

I think Middle East now we don't have much of an exposure. We are not impacted directly by the Middle East geopolitical situation.

Just a second, Parikshit. On the '27, if we are able to conclude this order of what we have, you said that we did 1,200 crores in last year, this order itself will be close to about 1,400, 1,500 crores.

In the first quarter itself, we will be able to exceed, if you're able to close this order, what we did last year. Of course, then we'll still have three quarters left.

We remain bullish on export, as I said, but let's see how the overall space evolves.

On a mid-term, the export can be as big as our base business, excluding HVDC for India, because I think that's about 70 to 80 billion. Over the next 3, 4 years, can export match up with the base orders in India?

In light of that Vietnam investment, sir, will Vietnam impact us at all, because I think in Asia we were the most cost-effective. Now Vietnam is also expanding.

Will it also compete with us?

Parikshit, Vietnam transformer factory is basically for HVDC CapEx which is coming. There is a lot of HVDC projects expected in the East Asia part of it, like it could be Vietnam, Japan, Korea, and other geographies, Singapore, etc.

That is one thing. Second, I think when we when we look at, for example, when you said that can the export market be as big as the local market, I'll say that we don't take a decision to take an order whether it's a domestic market or an export market.

We look at various lot of things like, for example, terms and conditions, cash flow, margin, and then we take a call. Depending upon theoretically, if you ask me, yes, why not?

It can be. Practically, it looks to be difficult that we will be able to match an export potential which is equivalent to our base potential of the domestic number.

Okay. Sure, sir.

Thank you and wish you the best. Those were my questions, and once again, commendable performance for this year.

Thank you.

Thank you.

Hi, sir. Good evening, and congrats for very good set of results and ending FY '26 on strong note.

Sir, my first question is on the margin outlook side. When we started FY '26, you guided for low 20s kind of margins, but ultimately you revised it twice to mid 20s and then high 20s.

How should we now look at probably FY '27 in terms of margins?

Umesh, we continue to maintain that we endeavor to deliver mid 20s kind of margin going forward with an endeavor to improve further wherever there are areas of improvement, including various productivity and cost control measures that we continue to take internally within our organization.

Understood, sir. One clarification.

In fourth quarter, we saw other expenses going up by about 30% quarter on quarter and 41% year on year. Was there any one-off during the quarter in other expenses?

In the fourth quarter in other expenses, there were about 500 million of mark-to-market on the foreign currency derivatives, which is an accounting notional expenditure.

Okay. About 50 crores, you said?

Yes.

Understood. My second question is pertaining to the capacity expansion that we have announced closer to 55 crores towards creating capacity for disconnectors and drives for tank circuit breakers.

Just wanted to understand thought process behind this. Is it towards backward integration so that we can achieve higher margins, or is it pertaining to the philosophy of becoming Indian operations as a part of, say, global feeder factory for few products to global parent?

It is both, Umesh, that for certain product, it will be a global feeder factory. For example, Basically, disconnector is a product which was there in our portfolio, which was manufactured in Padappai.

Then because of very bad pricing environment at that point of time, we stopped manufacturing this disconnector. Because if you look at the initial few years, 765 kV, practically all the substations have been equipped with GE Vernova make disconnectors, and our quality was very good.

Now we are seeing a demand which is now coming back. Disconnector is a very important requirement in a transmission network, and we are now getting this feedback from various customers that, because of the good quality, they want our disconnectors to be back.

That is why we have decided to now restart this disconnector as an additional product for the Indian market.

Understood, sir. On the grid automation side, in last four, five years, we won two large orders in the domestic market.

Any color over here? Is there any large orders you're anticipating in terms of tender on the lines of probably wide area monitoring system or probably, say, grid digitalization in certain corridors?

Any kind of color over here? Whether we can also supply or fulfill orders for grid automation in export markets as well?

This was not for grid automation, but this was for software business, Umesh, because both are part of the same business line. Then grid automation is up to substation level, and software is at the network level.

Large orders what we had reported in the previous year was related to the software business. There is one tender which is going on on the software side, and for example, wide area monitoring, etc., that's the need of the hour, and we expect in time few more tenders to come up on wide area monitoring.

Yes, that could be a good opportunity for us to again make a meaningful impact in terms of software orders. Regarding globally, on the software side, because this is basically a software development part of it, and once your platform is ready, which we have a global platform, mostly from India, we are doing for India only, not for the export market.

Okay. On services side, are we in a position to supply, say, on-site engineers from India operations to global projects, especially complex projects like HVDC, whether it is in Europe or in North America?

That's part of the engineering COE, but that's not part of GE T&D. That's a different entity for that.

Sir. Understood.

Thank you so much, sir. All the very best.

Thank you.

Sir. Congratulations on good performance in the year.

My first question is on the royalty and the tech fees that you paid to the parent for FY '26. Is it possible you can spell out that number and what was a comparable number in FY '25?

Rahul, royalty and related group charges, they follow a revenue-linked formula that has remained broadly consistent for last many years. In FY '26, we paid about 1.9 billion, approximately 3% of revenue, compared to about 1.4 billion in the previous year, which was around earlier year, which was around 3.5% of 3.3% of the revenue.

The formulas are consistent depending on the mix and the revenue composition, there may be small change in the percentage of the revenue year over year. This

in the annual report, this basically means tech license fees, trademark fees, data management charges, and corporate headquarter charges. These are the four line items which would be a part of royalty, etc., to the parent?

Is that right understanding?

Yeah. This includes technological license fees, trademark fees, and HQ charges.

Data management is not a part of royalty, is it?

No. Data management is operational expense which is separate.

Fair enough. This is very helpful.

Second, given that there is one HVDC of Barmer 2 which is under bidding right now.

Yeah. I hope this is better.

Yeah. With respect to the HVDC of Barmer 2 and South Kallam project which is under bidding at this point in time, if the size is expected to be anywhere between 25 to 30,000 crore, typically as a rule of thumb, how much would be the share for companies like GE or some other player, the supply part?

Is it 60%? Is something how one should look at it?

Rahul, this changes from project to project. For example, if it's a 25, 30,000 crore, and suppose somewhere the line is 800 km, then the share will be more.

In

the same project, if the line becomes 1,200 or 1,500 km, the share will change.

Fair enough. I think that is fair.

I think we've already spoken about margin. I think somebody had asked this, but I just want to check on this.

Given that we have booked the HVDC, and I think this is the fourth HVDC that we have booked in India over the years, how has the import content changed, say, in the last 3 years or 5 years, and how is it today? I just want the quantification in terms of how much localization has happened.

The local content has changed drastically, because when we booked the earlier two projects, at that point of time, as per the tender requirement, only 1/3 of the transformers could be supplied from India. Now, you can supply 100% transformers from India.

Now we are in the process of opening the valves and the controls and everything from India only. You would have seen that in one of the CapEx announcements, we have also said that we are putting up a air-core reactor facility.

The local content will now be drastically better as compared to what we did in about 2012 time when we took that order.

Okay. Sir, and my last question is on the CapEx.

This 1,000 crore CapEx, how much will be done in FY '27, and how much will be spent in '28? Is that possible to break that number out?

Rahul,

we don't have the split immediately. It will be in a phased manner from beginning of '27 till the end of '28.

Fair enough. Thank you very much and all the very best.

Thank you.

Hi, good afternoon, team, and congratulations for a super year went by. My first question is on the VSC project which we have secured first time ever on this technology side.

What would be the localization plan for this new technology platform in the Indian domestic market? Given that if you go back by history, CK1, CK2, we were significantly ahead in terms of localizing it.

When it comes to VSC technology, what are your plans to localize? That's the first question.

I think, Renu, the requirement of localization for the VSC is not there, but then we are examining the possibilities of what can be done. For example, controls and all, when we are building the platform for HVDC of controls in India, by localization, it means that the product will be dispatched from India.

A large part of the studies, integrated testing will be done. The hardware for those panels today, there is no supply chain in India, so that we are still dependent on sources which is outside.

Transformers, etc., and other things anyhow are going to be supplied from Indian factories only.

Right. Would it be fair enough to assume approximately 50% to 60% share of the total project value would be local value add or assemblies coming in for the Indian listed entity, or it could be higher?

It will be difficult to give a number, Renu.

Sure. Second question is slightly more longer-term perspective, given the demand-supply gaps we have seen and the steep margin mix coming through for everybody in the industry, including yours.

It's phenomenal. Given your experience and understanding of the cycle, in your view, how long could this phase continue for another 12, 24 months, or it could potentially stretch to 36 months also further from here?

Renu, I think if you talk to anybody in the government, they will say that, okay, this is a very long-term story. If you look at the CapEx which is now being invested by most of the company, everybody believes that it's a long-term story.

Okay. The phase of margin moderation, in your view, should start commencing 12, 18 months down the line, or it could get slightly pushed back further?

No, Renu. You have to understand one thing is that last time when there was an upcycle in India, it was only in India.

Okay? This time, it's not only in India, but if you look at US, Europe, Middle East, Australia, there are a lot of geographies where there is an upcycle.

This is not an isolated Indian phenomenon. That is the first thing.

Second, today, if you would have seen the presentation, close to about 30% of last year's revenue came from export. Today, we are also driving a lot of export potential from our Indian factories.

I should say that obviously we are dependent to a large extent on the Indian market, but then export also plays a meaningful role today. Today, if you look at the list of HVDC pipeline, you get one HVDC order, and then, for example, whatever, more than $1 billion to be executed in 4 years, but looking at a back-end execution, even a 30% execution contributes to maybe 3, 4, 5,000 crores in a year.

This time, the cycle is different. The market is different, and the longevity of the cycle looks to be more sustainable.

Absolutely. Fine.

A small understanding if I can share with you and get your thoughts on, specifically for the Indian data center market, as you mentioned, it's not as large enough currently, just about a gigawatt and a half, and projections range anywhere between 6, 7 GW to up to 10 GW in the next 5, 7 years. On a relative term, if we see that India moving from 1.5 to, say, 6 or 7 GW in the next 5 years would just mean incremental 5 GW of data center demand.

If one compares with the power generation incremental demand, you have one UMHP type of projects with five or six units of supercritical where anyway adding 4 GW by single project. From that technical perspective, from Indian domestic demand dynamics, data center may not become as large a piece of the demand driver in the domestic market as the way it is there in the US or other markets where other sources of demand for the grid equipment is relatively thin.

What would be your thoughts here?

Renu, I think if you would have asked anybody 2 years back in US, did they see such a large data center business? Anybody would have said no.

Okay? Sitting here, if we take the example of US and if something similar happens, then we are looking at a much higher demand of data center.

Also,

we expect that today, for example, it's a cumulative installed capacity of 1.5 GW, but maybe going forward, every year, you might see a 4, 5 GW of data center coming every year. Also, you are right that one UMPP is about 5, 6, 7 GW, but data center gives you a better realization of prices for the same products.

Absolutely. Got it.

Thanks much, and best wishes, team. Thank you.

Thank you.

My question is, can you throw some light on your foray into nuclear energy in collaboration with Hitachi?

Thank you, Mr. Oommen.

We are actually a transmission company. GE Vernova has multiple entities in India, we don't deal with power generation part of the GE Vernova business.

That's a different legal entity, we are not in a position to answer that. Okay.

Thank you so much. That's all.

Thank you.

Hi, sir. Sir, my question is on the HVDC order, the Adani Energy order.

What can we expect, although you mentioned that majority of the execution would be FY '29 onwards, what can we expect in the first couple of years? Can we expect around 30% of execution in the first two years?

It should be lower than that, because first two years are largely engineering and securing the sourcing and supply chain. Most of the revenue starts, as I mentioned, from the FY '29 onwards where the supply of material begins.

Will it be lower than 20%? Can we have some range?

It's difficult to give such minute details of project execution.

Sir. Thank you.

Hi. I hope I'm audible?

Okay. Good afternoon, sir.

Thanks as always for your time. I just had one question on the domestic transmission bid pipeline as you look at FY '27 for the domestic market, that is, versus last year.

Just to put this in context, we've obviously seen a slowdown on the TBCB bids being placed in '26, also reflected in the order books for Power Grid kind of flattening out. Just trying to understand, and obviously, new PPAs are coming, so, obviously, we have a problem on the generation side.

Just trying to understand when you look at your pipeline for the coming year in the domestic market coming off a very high base of last year, and, not just for you, but for the industry as a whole, how do you see that kind of shaping up? What kind of growth do you see in that pipeline for yourself?

I'm not seeing a substantial growth in the pipeline, Ankur, but I think it's going to remain a consistent pipeline. Normally, if you look at the numbers which are there, on a high-level number, when you talk about, for example, the new NEP document which has been issued, under implementation is close to about 500 GW for the transmission schemes, but up till 2035 to be built is 400 GW.

There's a lot of ordering which is still to be done. For us, why it's going to make a more meaningful impact is there are, for example, more than 10 HVDC projects listed.

If there is a part of the demand which is shifting from AC to DC, that is more beneficial for companies like us.

Right. Just from the next one-year point of view, any numbers you can share or anything in terms of your bidding opportunity, anything that you internally measure?

If I look at out of the TBCB pipeline which is there, today we have close to about 33 packages which have been bidded out, and the final RA and other things have not happened under decision-making process are

there.

That 33-number project, out of that, 21 is 765 kV. Today, at least, there is a decent pipeline available on the table.

Okay. Right.

Great. Sounds good, sir.

Thank you.

Good evening, and thanks for the opportunity, and congratulations on a very, very strong year. My first question is, can you please confirm that localization requirement is zero for HVDC Khavda-Olpad?

That is my understanding. Of course, we are not at zero, it doesn't matter for us, but that is what was decided by the government for Khavda-Olpad, it was made zero because that was a VSC technology, few of the bidders had requested for that.

Understood, sir. Secondly, did you see a slowness in order finalization in current quarter in the domestic market compared to last year?

In the quarter which you mean like April to June, or you mean January to?

January to March. It looks like the Q4 was very dull for us.

Is it true statement?

You can say that it was slightly dull for us, but that was a conscious decision, I would put it like that.

Understood, sir. Is the Pusauli HVDC upgradation, you are expected to play a major role?

Do you expect this to get finalized in this fiscal?

That's a project which is being discussed, we will not be able to share any details in this call on that project.

Understood. Do we have the capability to produce synchronous condensers, and how do you see this opportunity evolving in India, and are you looking to localize it?

Synchronous condensers is done by

I think we lost the line, yeah, it seems.

Yes, sir.

Mohit, it is basically the other businesses of GE Vernova which offer synchronous condensers. The product is there with GE Vernova, but not with GE Vernova T&D India.

Understood. My last question, sir, the lot of STATCOMs is expected to get awarded in the given that a lot of bidding activity has happened, but somehow we haven't seen any great finalization in the last fiscal year.

Do you expect this particular opportunity to improve in FY '27 and a lot of finalization?

We expect that to improve in '27 vis-a-vis '26.

Understood, sir. Thank you and best of luck, sir.

Thank you.

Thank you.

Good evening, sir, and thank you for the opportunity. I missed the early part of the call, pardon me if this is a repeat question.

Firstly, on the fourth quarter numbers, gross margins have expanded quite a bit. Just wanted to understand that is this in regular course of business, or is there a one-off or one particular order which has led to better gross margins?

Subhadip, it's everything is normal course of business because we have executed all the normal operational projects in the quarter. Gross margin for the quarter was higher because we had a very significant part of revenue coming from the export business.

Also, operationally, we have, as I mentioned over a period of time, made two strategic changes: one is shift from state to the central and private customers, which helps in the better execution, and at the same time, the productivity and lean-related factors or the actions that we have been taking over the year are helping us to deliver and execute better.

Understood. If I adjust for the 50 crore MTM, which is effectively a one-off, you would have had much higher EBITDA margins.

At least for the quarter.

Sorry, could you please repeat the question?

Yeah. I'm saying that in the other expenses, the mark-to-market hit of 50 crore is a one-off.

If I look at it from that perspective, the EBITDA margins would have been much higher than at least for this particular quarter, vis-a-vis what's been reported.

You may interpret that way that if the MTM loss was not there, EBITDA would have been further better.

Perfect, perfect. On the same line and since exports is such a high value driver, do we see, let's say, over a 3 or 4-year period export mix can expand further, maybe to 40% or more?

Is that a possibility?

We typically do not target a particular mix from a particular segment as we look at it as one integrated portfolio. You'd appreciate that HVDC is also a very key focus area.

In our backlog, obviously, the quarter and the year order booking, the exports as a mix have reduced, but on a like-to-like basis, comparable basis, exports have grown. Mix may change, but the effort for the management is to grow and improve in terms of revenue, execution, profitability.

I read you. I read you.

Secondly, on the HVDC side, while we understand that Barmer is under bidding and there are maybe more than 10 projects that Sandeep highlighted which are expected to come over the years, is there any visibility of what is the next one or two HVDC projects expected to get ordered out after Barmer, let's say, in FY '28 or '29?

I think one of the project which has been listed, Subhadip, is Lakadia-Vadodara.

I understand this is also an LCC project.

This is also an LCC. I think next all projects what we are looking into, this is all LCC only.

I see. I see.

I see. Roughly, one project per year or thereabout is something that one can anticipate in terms of HVDC.

If I look at that pipeline, they say that about 10 projects of Rajasthan to be executed by 2035-36, which is 10 years from now. That way, if you look at, that will be one project.

Then we expect other opportunities also to come in, for example, if Brahmaputra Basin comes in, then there might be other HVDC projects from private developers also which might come in for city infeed requirements, etc. It can be more than one project.

Understood. Understood.

Next, if I look at, you are expanding capacity and that's expected to come up over the next, I believe, 18 to 24 months. On an expanded capacity base, what kind of peak top line can you target, let's say, over a 2, 3-year period?

If that we some ballpark range.

Difficult to lay out a number, because as we know that capacities and revenues may not be proportionately linked because of the HVDCs where we can contribute more to the revenues depending on how much HVDC we execute, because not the entire HVDC execution require if it is from inside. There's a lot of manpower which can be increased basis the need for the HVDC, and as well as a lot of bought-out equipment.

I'll request you to apply some asset turnover ratios to work on that.

Of course. Of course, that's what we typically do, but I just thought if I could get a confirmation from you, but not a worry.

Last question from my side is in terms of the overall annual CapEx pipeline, let's say, from an India transmission perspective, right? We talk about 8, 9 lakh crores spread over the next 10 years.

I assume that also includes this HVDC opportunity. Roughly, maybe 80,000 crore to 1 lakh crore of annual T&D CapEx is what we are hearing.

Would you say that that's essentially where overall T&D market in India will plateau out at?

I think, Subhadip, because that is basically comes from the NEP document. If you look at the NEP document, that doesn't include, for example, your thermal transmission evacuation.

If you have heard that the government about 85 to 90 GW of thermal capacity. I think that transmission will also be there.

Then the industrial CapEx, then you have the data centers, in time, we will have green hydrogen. In addition to that, for example, the transmission is also required at the generation end.

That is all not included in that CapEx. I think if you include that, that number is going to be much higher.

Understood. Understood.

Thanks so much for answering my questions, sir. Very clear.

Thank you.

Thank you, Subhadip.

Thank you, Yashashvi. Thank you all for joining the call today.

We hope that the insights provided by our speakers have been informative and valuable to you. If you have any further questions or require additional information, do not hesitate to reach out to me or our communications leader.

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