GE Vernova shares hit 10% upper circuit on strong Q4 show; brokerage retains 'Buy'

Shares of GE Vernova T&D India Ltd surged on Monday on recording a solid all-round performance in the fourth quarter of financial year 2024-25 (Q4 FY25). The stock settled at its 10 per cent upper price band of Rs 2,072.70. The quarterly numbers came in last Friday post-market hours.

Nuvama Institutional Equities said the company's Q4 numbers showed a solid all-round performance and the domestic brokerage retained its optimistic outlook. GE Vernova reported a strong set of numbers for the fourth quarter of FY25, with robust execution and margin expansion.

Nuvama said the company posted a 26 per cent year-on-year (YoY) rise in revenue during Q4 FY25, while its operating profit margin (OPM) surged to 21.9 per cent, the highest among high-voltage (HV) transformer peers.

On the back of stronger-than-expected margins, the broking firm has raised its FY26E and FY27E EPS estimates by 15 per cent and 13 per cent, respectively. The revised estimates assume OPMs in the 18–18.5 per cent range. The brokerage has raised its target price on the stock to Rs 2,250, maintaining a 'Buy' rating.

It noted that order inflows stood at Rs 30,000 crore, a 125 per cent YoY increase, taking the total order backlog to Rs 1.27 lakh crore, or three times FY25 revenue, adding that this provides strong revenue visibility for the medium term.

Nuvama expects GE Vernova's 1–2 high-voltage direct current (HVDC) projects to be finalised in FY26. The company is focusing on sustaining or improving its margins. Additionally, it has planned an organic capital expenditure of Rs 240 crore over the next two years, aimed at supporting its growth initiatives and operational efficiency.

It sees continued growth in order inflows over the next 4–5 years, supported by India's Rs 9.2 lakh crore transmission and distribution (T&D) capex planned between 2022 and 2032. A high export mix and strong pricing are also expected to keep margins elevated.

The brokerage further stated that GE Vernova's strong execution, margin leadership and favourable industry tailwinds make it a key beneficiary of the country's power infrastructure buildout.