GE Vernova shares surge 8% as firm declared lowest bidder for Power Grid project; Nomura raises target price
The company said it received a letter from Power Grid on September 7 informing it that it had emerged as the L1 bidder for the project. L1 status means GE Vernova T&D India’s bid was the lowest among those submitted for the project. The company, however, did not disclose the value of the contract in its filing.
The project involves setting up two 3,000 MW HVDC terminal stations using line-commutated converter (LCC) technology. GE Vernova T&D India will undertake the design, supply and execution of the project.
The Barmer II-South Kalamb corridor is part of India’s planned expansion of high-capacity transmission infrastructure aimed at moving renewable power from generation-heavy regions to major consumption centres. The 6 GW, 800 kV project was approved by the National Committee on Transmission in May 2025.
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Nomura raised the target price to Rs 6,000, implying an upside of 37.5% from current levels. “We remain constructive on GVTD’s long-term earnings growth, driven by its robust order book position and increased adoption of grid automation technologies,” the brokerage said in a note.
It said the company’s order win came as a positive surprise, as it had not factored in an HVDC order win for GE Vernova in FY27.
“While our FY27 and FY28 EBITDA margin estimates are largely unchanged, we cut our FY29F EBITDA margin estimate by 56 bp to factor in the likely execution mix, thereby partly offsetting the upward revisions to revenue estimates.”Emkay has maintained a Buy rating on GE Vernova T&D India with a target price of Rs 5,300, citing strong prospects in the power transmission sector across both domestic and export markets.
The brokerage said the company is well positioned to benefit from structural growth in the transmission sector, supported by around Rs 1,000 crore of capacity expansion planned through FY28, which should improve its ability to meet rising demand. It also highlighted strong support from parent GE, which provides access to new technologies and helps accelerate localisation for the Indian market.
Emkay also pointed to the company’s robust balance sheet, with a net cash position of Rs 2,930 crore as of the end of Q1FY27, along with healthy three-year cash-flow generation averaging around Rs 1,000 crore annually. Favourable working-capital dynamics, with net working capital maintained at around 50 days over the past three years, are another positive. The brokerage expects these factors to support a 25% earnings CAGR over FY26-29E.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
