GE Vernova T&D India Ltd (NSE: GVT&D) Q1 2026 Earnings Call dated Jul. 29, 2025
Corporate Participants:
Unidentified Speaker
meghagupta
sandeep zanzaria
abhishek srivastava
sushil kumar
Analysts:
Unidentified Participant
umesh raut — Analyst
subhadip mitra — Analyst
mohit kumar — Analyst
nitin arora — Analyst
amit anwani — Analyst
renu baid — Analyst
Subramaniam yadav — Analyst
bhavin vithlani — Analyst
amit mahawar — Analyst
subramaniam — Analyst
suraj malu — Analyst
bala subramaniana — Analyst
Parikshit kandpal — Analyst
jaina — Analyst
megha gupta — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the conference call hosted by GE Vanova TND India Limited for quarter one of financial year 2023. As a reminder, all participant lines will be the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a dashedone phone. Please note that this conference has been recorded. I now hand the conference over to Ms. Megha Gupta from GE Vanova T Indyala Mill. Thank you. And over to you, ma’.
Am.
meghagupta
Good evening everyone. Welcome to the G Varnova TMG India Limited earnings call for first quarter of financial year 2026. I am Megha Gupta from Investor Relations team. During the call today we will discuss company’s financial performance including operational highlights and will share key updates. Towards the end of the presentation we will have a dedicated question and answer session. 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 a comprehensive understanding of the factors that could impact our future performance. Now I’ll introduce Jeevanova TNB India Limited Management team available on the call. During the call we are joined by Mr. Sandeep Dantharia, CEO and MD of the company. Mr. Sushil Kumar, Full Time Director and CSO of the company. Mr. Abhishek Srivastava, Head Business Operations. Ms. Kanika Arora, Communications Leader and Mishray Bameda, company Secretary of the company. Now I’ll hand over to Mr. Sandeep Bantaria to begin the discussion.
sandeep zanzaria
Thank you, Megha. Good evening. Welcome everyone to our first quarter FY25 26 earning call globally. Investments to enhance the reliability and resilience of power grids are accelerating at an unprecedented pace. A trend clearly reflected in India as well. This growth is underpinned by the country’s ambitious target of 500 gigawatt of renewable capacity and the expectation that crude power demand will rise by nearly 80% by 2032. To meet the surging demand, India’s transmission sector must expand rapidly with 20,000 circuit kilometers of high voltage transmission lines and 125 gigawatt subscription capacity required each year through 2032. Achieving this will call an investment exceeding 9 trillion Indian rupees or 110 billion US dollars.
In this context, the recent approval of 6 gigawatt 800 KV Badmirp to South Kalam HODC project by the National Committee of transmission on May 30 marks an important step. This is the first in the series of new HODG corridors which are expected to be sanctioned and commissioned over the next decade, reinforcing the backbone of India’s future power infrastructure. We are uniquely positioned to power India’s electrified future with a fully integrated value chain. From R and D to local manufacturing, we combine scale and deep expertise to deliver world class reliable grid solutions spanning power transformers, GIS circuit breakers, instrument transformers, grid automation, digital solutions, HUDC and compensation systems.
Other facilities continue to evolve strengthened by recent investment that expand capacity in critical technologies such as HODC evolves and compensation essential for grid stability and seamless renewable integration. This strong manufacturing footprint ensures we are future ready to support India’s ambitious transmission expansion and its transition to decarbonized 24. 7 downward economy. Above all, we remain steadfast in our commitment to serve as a trusted long term partner in building the grid of tomorrow for India. Turning to our financial performance, we had a productive strong quarter of robust demand, significant revenue growth and EBITDA margin expansion. Our order book remained strong in Q1 as we saw bookings of 16.2 billion up 57% year on year compared to 10.3 billion in the quarter ended June 24.
Our Q1 revenue stood at 13.3 billion versus 9.6 billion in Q1 2425, up by 39% year on year. New orders outpaced revenue, further expanding the order backlog to 129.6 billion as on June 25, up by 2% quarter on quarter. Our profit before tax revenue and exception items for the quarter ended June 25 was at 3.9 billion rupees compared to 1.8 billion in the corresponding quarter of the previous financial year, growing by more than 2x. The cash and cash equivalent balance was at 12.2 billion as on June 30 versus 10.5 billion as on 31 March 25.
The cash generated in Q1 was 1.7 billion. Beyond the strategic market tangents, our focus remains firmly on operational excellence across all of our businesses. This commitment to continued operational improvement is critical for us. It allows us to not only enhance our efficiency and cost structure, but also ensure we consistently deliver high quality products and solutions that meet our customers evolving needs ultimately driving sustainable growth and profitability. On behalf of the leadership team at GeV TND Ge Varnava TND India, our sincere thanks to our valued customers, our dedicated investors and our exceptional teams. Now I invite Abhishek to share the insights on key commissions for the quarter.
Thanks.
abhishek srivastava
Thanks Sandeep. So good evening all of you. It gives us immense pleasure to share the key contributions of your company in terms of strengthening the transmission network. We have been actively working on building up good strong transmission networks to cater to the power demand and to enable this renewable energy transition. Some of the key notable contributions made in the last quarter was augmentation of the transmission scheme at PGCR Kotra wherein we added a transmission capacity of 3000 MBA by commissioning of transformers and outdoor gas of 400kV. Then another key thing was Adani Saga which is a hub for renewable generation and there we have been partnering with developers like Adani to set up GIS solutions and we successfully commissioned 765 and 4 MKV gas and additionally adding a transformation capacity of 3000 MBA.
Then we have been working in terms of supplying our transformers and helping our customers to again augment more and more capacity. ADIT Aluminium Lapanga was one of the key contributions done by our company in terms of adding 315Mba for Mitavi ICT. Then another one was WBSE TCL earlier which was 400kV125MBR reactors. These projects have been done in very short timeline and in line with the expectation of our customers in terms of gas insulated schiz. So we have been working with data center customers again working within tight timelines, focusing on operational excellence and delivering to our customers expectations.
So we commissioned five days of 220kV for NPP and another one for KTPCL. So these contributions are just examples of our engagement with our customers, working in a time bound manner and adding to the transmission capacity of the country. So I hand over to Sushil to take us through further details.
abhishek srivastava
Thanks Abhishek and good evening all. Moving to the Financial slide slide number 5 to 7 in the Investor presentation. Overall we had a very productive first quarter positioning us well to continue to accelerate our growth and margin expansion. We delivered strong Results in Quarter 12526 with continued growth in orders, growth in revenue, significant EBITDA margin expansion and we also generated a positive cash flow and now maintain a healthy cash and cash equivalent balance as highlighted by Sandeep.
In the beginning demand remained robust as we booked orders of 16.2 billion IMR representing an increase of 57% year over year and 1.25 times of revenue during the quarter. In this quarter most of the orders were booked from domestic customers representing 86% of the orders in the quarter. Rest 40% orders were received from customers outside India. Once again in this quarter, orders were received from a very diverse set of customers and projects for all our served markets across all our businesses. These included orders for transformers and reactors, GIS and AIs equipment automation products from various utilities, PBC display and EPCs.
As a result of strong order, our backlog continued to expand both sequentially and year over year, now reaching 129.6 billion RR. We continue to build a strong backlog supporting long term growth in our business. We are growing this backlog in a very disciplined way through disciplined underwriting. With 97% of the backlog from private customers and century duties and PSUs, the exposure to state utilities is limited to less than 3% of the backlog. We executed well during the quarter delivering a revenue of varying.3 billion INR, making progress sequentially and delivering a significant 39% growth year on year basis.
In this quarter about 39% of the revenues were generated by execution of highly profitable export backlog whereas 61% of the revenue was executed from the domestic contract. We reported a strong EBITDA of 29.3% during the quarter representing an EBITDA expansion of about 1000 basis points over the EBITDA generated in financial year 2425. The significant increase in EBITDA was driven by volume, price and productivity. Deep diving a bit more about indigenous components. First component is volume. As mentioned earlier, our volume is up 39% year over year basis and a significant part of the increase is from highly profitable export contract.
At the same time we maintain a strong focus and control over fixed cost, so this helps in expanding the EBITDA and EBITDA percentage through a strong operating leverage in the financials. The second component is price. Through a disciplined underwriting we were able to realize better price in last couple of years. This price increase coupled with phasing out of the old backlog has expanded the margin and the backlog and the execution of these healthy projects is now supporting the ebitda. Third component is productivity. We have been able to execute well through lean delivering on time and saving on the material cost and the overhead cost.
While the EBITDA for the quarter is very strong and is reflective of the strong momentum in our business. However, we are in long cycle business and the EBITDA of the quarter should not be constituted as a new benchmark. Overall, the annual EBITDA performance is a good reflection of our business. The last year we delivered an EBITDA of 19%. This was the high end of the range of mid to high teens that we called out earlier. And as communicated earlier, the endeavor of the management is to improve and deliver better than last year with a strong performance in the quarter.
1 We have high confidence to deliver better EBITDA this year. In addition to strong T and L performance, we continue to generate positive cash flow with approximately 1.7 billion INR cash generation in the quarter driven by significant profit during the quarter down payments on the new orders and the disciplined working Capital Management with 5, 40% increase in revenue as a result of this positive cash generation, we now have a healthy cash and cash equivalence of 12.2 billion INR with no debt. We continue to utilize this cash with a combination of return to shareholder and a meaningful investment within the business.
So far we have announced a dividend of 1.3 billion which is to be paid after the approval of the shareholders in the upcoming AGM in September. And we have also announced a capex of 2.5 billion excluding the announced utilization plan. Now we have an available cash of 8 billion INR for which management continues to evaluate the option. So overall we are very encouraged by our financial performance in 1Q25 26 with 40% revenue growth, 1000 point EBITDA expansion and 1.7 billion of cash generation. Our growing backlog with healthy margins provide a strong foundation for continuing improvement in the financial performance moving forward.
So we can now take up the question and we’ll be happy to answer your question.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may please star in one on the touchdown telephone if you wish to remove your sentence from question Q. Q My test star in two participants are requested to use handsets while answering your question. Ladies and gentlemen, we’ll wait for a moment while the question queue ascends. The first question is from the line of Umesh Roth from Numorma India. Please go ahead.
umesh raut
Hi sir. Good evening and congratulations for very strong set of numbers. Thank you. Thank you sir. My first question is pertaining to exports revenue growth of about closer to 80% in the quarter and the contribution at about 40% of total turnover. So how do you see this is sustaining going forward? Forward and in a way impacting in terms of better gross margin for the company.
sandeep zanzaria
Yeah. Hi. Thanks for overall last year we had significant level of export contract and overall our backlog mix has moved higher towards export order. So earlier we had export backlog as a percentage of total backlog which has been 25% but now we have a backlog of about 30%. So overall on the long term we expect that revenues to the extent of 30% should be contributed by the export side on a long term basis.
umesh raut
Got it. And if you could also share the contribution from product services and products project within your turnover for this quarter.
sandeep zanzaria
We don’t give quarter by split of that information generally because it keeps changing quarter on quarter. It’s not a thing which remains consistent. I think we will request to evaluate this as a portfolio of product services in the long term and that could better benchmark.
umesh raut
Got it. My next question is pertaining to HVDC tendering prospects. So here if I look at, I think there are two projects now which are I think in the discussion. First is pertaining to how does outdoor and second as we mentioned Barbara south belong. So how do you see parallelization happening? Tentative timelines for these projects to kind of get awarded to oem.
sandeep zanzaria
So Umesh, we expect that these orders to be finalized in this financial year.
umesh raut
Okay. So by March 2026, is that correct? Yes, yes. And any assessment from your point of view in terms of comparison between say LCC base, HVDC project, HMDC project and VESS system. Now that I think the CA has already assessed for that option in one of the HVDC projects. So what is your view between these three technologies?
sandeep zanzaria
So I think as the CEO is also evaluating, we are also evaluating the impact if any it can create on the upcoming FUDC project. But I think looking into the growth aspirations, what the country has, obviously both will be complementing each other. But it does not compromise the project requirement of HBC in the upcoming time. So the demand expected is substantial. So I don’t think that it is going to be hugely impacted with these introduction of this.
umesh raut
Got it sir. Thank you so much. I’ll join back with you and all the very best. Thank you.
operator
Thank you. The next question is from the liner Subhadit Mitra from Nuama Wealth. Please go ahead.
subhadip mitra
Good evening and many congratulations on a great set of results. Just wanted to dive a little bit deeper on the point on margins where you mentioned that naturally I think this for quarter has seen exponentially high margins because of very high exports. But given that you are expecting export mix to continue at around 30% if I heard you correctly, you were looking to better on the overall full year margins of 19% delivered last year, is that right?
sandeep zanzaria
Yes. Perfect. And in terms of the and the Barnay project to get ordered out in the current year. Can you repeat the question?
subhadip mitra
Yeah, I’m saying that both the advices, the LE project and the Barnia project are they expected to get ordered out in the current system.
sandeep zanzaria
So not the leap but south all part Kavra and Barmer South Kalam is. We expect it to be ordered this financial year.
subhadip mitra
Understood. And the configuration still remains similar. LCC for farmer and VSE for the south.
sandeep zanzaria
Yes.
subhadip mitra
Understood sir. Lastly, in terms of the capex, I think that Sushil mentioned in amount. I’m sorry I missed that particular number. Has there been an upgrade to the categories number?
sandeep zanzaria
I think what we declared in our press release and also to the stock exchange that $1.4 billion. Oh sorry, 1.4 billion Indian rupees for walls and controls for HBC and smart contract and another 1.1 billion as a regular capex of our capacity in the back. So Overall put together 2.5 billion of capex.
subhadip mitra
Perfect, Perfect. And lastly, would it be possible to also share what is the capacity utilization that your current facilities are working at?
sandeep zanzaria
I think it is the way our revenues are growing, the capacity utilization is increasing and of course we are adding people as well as debottle making the capacity through lean and so I would say it is pretty good in terms of AIs product and transformers. But for grid automation and all. Yes, we can take much more orders.
subramaniam
Understood, Understood. That’s it from my side. Thank you so much.
sandeep zanzaria
Thank you.
operator
Thank you. The next question is from the line of Mohit Kumar from ICIC Securities. Please go ahead.
mohit kumar
Yeah. Good evening sir and congratulations on a very good set of numbers. My first question is do we have the ability to produce sequence condensers and. Are you seeing any demand from the Indian market?
sandeep zanzaria
So yes, of course. So we work with other group companies and all external partners. So some part of synchronized condenser. Because when you look at synchronous condenser solution this requires some part of transmission as well. So we do that part. And of course the actual synchronized condenser as a product comes from the other countries which are into the power generation because it’s a regulating machine. But yes, there are. When we participate in various forums etc. There is a talk which is going on that synchronous condenser will also be introduced into the Indian market.
mohit kumar
Understood sir. My second question is G Vanova Global in its commentary has categorically said that they are benefiting materially from data center opportunity. I think they received up $500 million in the first. But to be as a. Does GE India has any product suite to service the Domestic data center. Are we looking to pick up some.
sandeep zanzaria
Order from this particular segment? We are regularly picking the order from the data centers. So mostly for example data center offtake is either at 220kg level which now expect that higher data centers to grow to 400kV. So we offer GIS, we offer our projects, we offer grid automation. So all the products is going to be the power which is required for the data center we are there and in India we have these products we have supplied to multiple data centers including the controllers capital lands, many data centers which are there have been our products have gone in building this.
mohit kumar
My last question, did we execute any HPDC in this particular quarter which explains the high margin?
sandeep zanzaria
No, no. Presently we don’t have any HBC project in our backlog.
mohit kumar
Understood sir. Thank you sir.
sandeep zanzaria
Thank you. Thank you.
operator
Thank you. The next question is from the line of Nitin Arora from Axis Mutual Fund. Please go ahead.
nitin arora
Congratulations Sandeep sir and the team, great execution. So just first question on if I just leave aside the HVDC opportunity just your take on how the inquiry pipeline looks like especially in the 400kV also because you won a large order last time also from power grid, how’s that overall inquiry pipeline looks like and second part to it as I think in the call it is mentioned now on a sustainable basis we look 30% of revenues coming from exports. You know how’s the pipeline looking like there? Do you expect any large chunky orders to come in and that’s the reason you know you’re looking for next a few years it’s revenue to see sustain as a mix.
That’s Paul’s question. If you can, if you can throw some light on that.
sandeep zanzaria
Thanks Nitin. I think inquiry pipeline when we talk about so another development which has happened which is positive for us is that now, now even various states are also moving and encouraging or I would say not encouraging but moving towards tdcb. So normally as Sushil said that out of our backlog we have only 3% state portfolio. But once these states also move on a TBCB backlog I think that market will also open up to us. Today also it is open to us because the various EPC players when they take orders the product goes from us not as a direct supply but as through EPC market as well.
But that is again second if you can when I said that we have 30% of the backlog and if you look at our numbers the backlog is about 130 billion which is 3x of last year revenue roughly so which means that even with the current backlog we have next three years of revenue. We have confidence that 30% of revenue can come roughly in that range can come from the so while answering the question we are not factoring in export due to pipeline but just what we have in our backlog with us.
nitin arora
Got it. Second sir, I know I’ve been asking this question for long now just if you can articulate something on the pricing environment and why I’m asking this to you again we thought that the pricing would stabilize someday. I mean I think I remember in the last call you said very clearly, very openly that you don’t see pressure in pricing the way demand is but the way we saw few results. You know people selling conductors or cables their margins are also going very high. How would you like to look that I mean as an investor how one should look beyond these prices going to stay for the next two, three years is what one should keep in mind because the demand is something will remain strong.
Just one articulation on that and second which you touch base on capacity utilization when do you think apart from that 140 crore expansion which you announced is this something you’re envisaging another round of capex that would you entail Given if the demand from both domestic and the export what you’re looking is pretty strong then don’t you think you need a little decent sized capex going ahead? Just on these two aspects sir. Thank you very much.
sandeep zanzaria
Nitin. I think on margin expansion I will not be able to comment on the conductor or the cable business part that industry but you know apart from few pockets I think in our segment the prices are stabilizing a bit. That is what I will say and when I tell prices it is normally you have to also understand price is also a factor of it doesn’t include the increase in input raw material cost. So I think there is a difference between increasing price and increasing margin today. So that is I think we need to differentiate between the two.
I think more important question is that if the cost is increasing do we still have the flexibility to pass on that increase to the market. So partially I would say yes that today also we are able to do that. On capacity utilization I think in his comments Sushil clearly said but apart from this we keep on evaluating the how to use cash and how to meaningfully look at if there is any other possibility of capacity expansion and all. So this is something which we keep on regularly evaluating and when the timing is right we’ll take the decision and whatever decision is Taken will be communicated to the market.
nitin arora
Congratulations once again Sandeep and team.
sandeep zanzaria
Thank you so much. Thank you. Thank you.
operator
Thank you. The next question is from the line of Amit and Vani from PL Capital. Please go ahead.
amit anwani
All right, so thanks for the opportunity and congrats for the strong set of numbers. First question again on the HVDC how this is highlighted the south all part order. I think assuming that this would be about crore and South Kalam should be about 25,000 plus. Just wanted to understand if at all we are bidding for this project will this be in partnership what could be our scope or addressable market? Possibly if disorders comes to us. So they wanted to understand the quantum since this orders will be getting tendered out in next 12 to 15 months.
sandeep zanzaria
So one of the south part is already the bid for the developers have been submitted and I’m not sure where the numbers have come like 24000 crore but I’ll not be in a position to comment on those numbers. But any HVDC project which is there definitely we have the capacity and capability to execute and we would be interested in bidding and taking those orders.
amit anwani
So it will not be sort of like in. In joint jointly bidding. You’ll be bidding individually for this projects. T
sandeep zanzaria
hese are all commercial strategies on its. I don’t think that this is something which we can talk on a open call.
amit anwani
Yeah. And sir, second question on the margin. So I understand that you highlighted that the export was or the mix was better this quarter and we had a kind of 47, 48% gross margin. But still would love to understand shall we assume that the 40% margin last year will be doing better numbers this year since export consumption has been higher in Q1 and even going forward also as you highlighted export should still be 30% even the product components will be increasing. So directionally are we targeting sustainable margins better than 40% gross margins
sushil kumar
. So Amit, this is Sushil and I highlighted multiple factors leading to the higher EBITDA in this quarter.
Export was one of that element volume being another one because higher volume gives significant operating leverage because we are maintaining tight control on our structure cost. And the other elements that I highlighted were also related to the productivity, material cost saving, etc. So overall the endeavor of the management is to perform better. And Rajul just commenting on the gross margin and then going into the breakup of cost etc. Overall we said that our endeavor now is to perform better than last year in terms of EBITDA performance. And with the strong first quarter we have Higher confidence of that.
amit anwani
Lastly, we would love to also understand about the non HVDC pipeline. What is the pipeline and are a disabled some color on the non HVDC transmission pipeline.
sandeep zanzaria
Also the pipeline remains strong for non HIDDP as well. So I don’t see at least in the near future any challenges on the pipeline.
amit anwani
Any number? Any number with respect to the prospects?
sandeep zanzaria
No, I don’t think so. But we are looking at about like growth in pipeline or the orders to be divided as compared to last year. We expect a growth at least in some single digits somewhere between 7 to 8% as compared to last year.
amit anwani
Thank you. Thank you so much for answering.
operator
Thank you. The next question is from the line of Renu Bait from IIFL Capital. Please go ahead.
renu baid
Yeah hi good evening team and congratulations for strong performance. Just two questions from my side. One while did mention that long term margin improvement guidance remain intact and a year on year basis we definitely expect expansion. But 1Q has pretty strong numbers to look for. So does that mean that as we see incremental execution of our export order when especially comprising of HVDC equipment for transformers and others, we should see these healthy trends being sustained?
sandeep zanzaria
Yeah. So as we mentioned that we are looking for improving the last year we were talking about low to sorry, mid to high team and we were able to deliver at the highest end of the range and this year we have ended to improve from that level and multiple factors I talked about being the volume, price and other factors. Just one thing which I want to clarify that we should not look at margins in a particular quarter. You know ours is a long term business so probably a right benchmark to measure margin would be 12 months rather than quarter on quarter.
renu baid
Got it, got it. And lastly just simple question there. From a market perspective, many investors tend to perceive that one needs to have HVDC projects to drive profitability and growth ahead of the market. But if you look at these numbers without having large domestic projects, we have been showing strong outperformance. So from a longer term perspective, do you think it’s important for you to do large projects in India or even if you’re able to execute HVDC product supplies for mobile projects, that should suffice in terms of the business mix for you and to deliver better margins.
sandeep zanzaria
So I would say I think really that you know HVDC is basically of course the factories do get loaded, for example the transformers and the. And the technology part of that. But there are other businesses, for example AIs, gis where the role of an HODC project in that the contribution is very limited. So of course we would be focused on. We would be focusing on HVDC projects because the returns which have which we now expect on HVDC project are also much better as compared to what used to happen about like five, 10, not five, but maybe about eight to 10 years back.
So it will be a focus area for us as well and wherever possible even if you are able to support any global HVDC projects like for example what we have done in Korea. So that will also remain on our radar and focus.
sushil kumar
Just to add on Renu, the demand has been strong across the board in India as well as export. And we have been highlighting for the last two, three years about disciplined underwriting, cash over revenue and our selectivity in the order booking. And that has resulted into a better price on the backlog and now is coming in the PNL based execution stage.
So we look for the best opportunity be it HVDC AC projects or in the export market wherever we get the best for the company.
renu baid
Got it. Thanks Martin. Best wishes to you.
sandeep zanzaria
Thank you.
operator
Thank you. The next question is from the line of Subhumanyan Yadav from SBI Life Insurance. Please go ahead.
Subramaniam yadav
Thank you. Sir, you have spoken on the revenue strength that from the order book for the next two to three years we. Can exist 30% of the export orders. Just wanted to understand if you can. Give some color on the intro also. From the group companies or parent company, how much mix are you expecting this year?
sushil kumar
That’s a very specific information and depends on the pipeline of the projects. When we look at any domestic market or the export market is with respect to whether the challenge is to the group permit or the directly from the third parties. Most of the time the orders come from the group government because there is a compatibility in the technology and we are able to participate and bin together. But otherwise also if we have the project where G Vermont India can bid directly and win, we participate in those market in export as well.
So it’s very difficult to give a specific number broken into by export and the related party because that keeps changing about depending on the win by the parent company or the group funding and about the pipeline in different geographies.
Subramaniam yadav
Understand that but just to get a color because when you look at G. Vernova US numbers they have been very strong. So just wanted to understand whether there have been any dialect between Indian company and the parent company in terms of sourcing, incremental sourcing. So more.
sandeep zanzaria
Definitely wherever there are opportunities for India to supply to the group entities and Participate in a bit. Definitely India is preferred because generally the cost in India are lower compared to the rest of the place. But a lot depend on other factors meaning the proximity qualification that occurs and so on. So it’s easy for Indian practice to participate in Asia and Middle east rather than something in Latin America. Because of their logistical differences and also the technical qualification and the product that you make, many of the countries do not they work on different technologies like you know, the dead end technology and so on.
And also in this industry the customers qualify a particular factory before the orders can be delivered from that factory. So it’s a combination of multiple factors. How are we keep evaluating and try to improve our market pipeline across?
Subramaniam yadav
Okay, thank you. And finally sir, in this quarter of. 16 crore of inflow, is there anything from the export order.
sandeep zanzaria
In the quarter?
Subramaniam yadav
Yes sir,
sandeep zanzaria
as I mentioned at the beginning of the call, about 14% of the current quarter order are from export and 86% from the domestic side.
Subramaniam yadav
Okay, great. Thank you sir.
operator
Thank you. The next question is from the line of Hobin Batlani from SBI Fund. Please go ahead.
bhavin vithlani
Exemplary numbers.
sandeep zanzaria
Thank you, Darwin.
bhavin vithlani
So my question is when we look back in history, I think 45 billion is peak revenues you guys hit in the last cycle which also had HBDC embedded into it. And if you take a 30, 40% the pricing levels. So to us it seems like you are already getting closer to the peak utilization levels. And the kind of capital expenditure announcement of 150 billion rupees looks underwhelming. So want to understand about the kind of potential that revenues that you guys can do with the existing capacities, innovation realignment that you would have done and the new expenditure that you guys have planned for.
sandeep zanzaria
Thanks for your question. And you rightly mentioned that in the last few years the prices have gone up. Now we have 150 million in backlog. Part of this backlog is long term meaning having an education cycle of three to five years. That’s about 30, 35 billion of backlog rest 9,500 billion of backlog is having an execution timeline of 18 to 24 months. So it means that we have potential to grow even without hedc. And that also reflected in our performance where we have grown like 40% on a year on year basis.
bhavin vithlani
The question was like what’s the with the expansion plan and the current capacity, what’s the peak revenue potential in your view, the current ones that you already have planned for.
sandeep zanzaria
This will also depend upon a lot on because you know, for project orders or if you take Hubc order etc, there’s a large part which is normally gets traded and not manufactured inside the factory. So you know, with this to define a peak capacity and also, you know, export margins are better and domestic margins are improved, but it is still nowhere near the export margin. There’s a particular capacity you loaded with an export order or you load it with a domestic order. Your capability in terms of financial numbers become very different. You know, to give a benchmark number on that where we are going to max out is very difficult.
sandeep zanzaria
Understandable. Secondly, when we look through some of your peer set, and especially the transformer manufacturers, we see that at least a couple of them have or have already gone for expansion, which is five or seven times the capacity that they had in fiscal year 25. And the industry seems like 150,000 plus MV expansion in a year or year and a half. How do you see the competitive scenario? So transformer is one piece of your business. You also have GIS and GIS fees and declarative round automation fees. If you could comment a bit on the competitive landscape that you see over a three year period, not just a year term.
And if you could talk about transformers, AI, gis, which gear, how do you see that competitive landscape out there? And the automation piece, it will be very helpful to us.
sandeep zanzaria
I think. On transformer of course you are right that people are expanding capacities, etc, but on the other side also you have to see, for example, you get one or two HUDP projects, a large part of the transformer capacity. A manufacturer gets booked by HUDP and when one manufacturer gets booked or two manufacturers get booked, I think there is still a place for everybody in the market to supply those transformers. So today if you really look into the market, the transformer deliveries are coming somewhere between 18 to 24 months earlier, I’m telling you. And wherever the demand of the market is, can you supply prior to that, like can we do it like 12 months or can we do it 10 months? So there is some demand as well.
sushil kumar
So when I look at three years perspective and same is there for GIS also we are not seeing any very large expansion of capacities. So going forward on AIs, gis, automation, I don’t see that the pricing power of the competitive scenario landscape will change much. On transformer also, of course we have to see three years down the line once main capacity is coming, because building a transformer capacity also takes time. So we’d like to see, maybe wait. But today if you look at most of the transformer manufacturers in their backlog, they have a Backlog which is equivalent like 23 years of their capacity already logged in.
So let us see about one to two years down the line what happens on then more capacities do come in.
bhavin vithlani
This last question to Srishni as you have been diving in the past in your view like what is the sustainable level of gross margins that you could see over the next one or two years. You did mention that gross margin of this quarter we had extraordinary hike on a sustainable basis. What’s level of gross margins that one should mention in.
sushil kumar
So Bhavin instead of gross margin I have now started to look at more talk about EBITDA because the strong increase in revenue gives us a strong operating leverage and EBITDA expansion both in value and in percentage runs rather than taking down margin. And I will talk the beginning last year we did 19% EBITDA and our from that level in this year and first quarter gives us a good confidence that we’ll be able to do better by 3 percentage time.
bhavin vithlani
Those were my questions. Thank you so much for taking my questions.
sandeep zanzaria
Thank you.
operator
Thank you. Next question is from the Ryan of Amit Mahavar from UBS Group. Please go ahead.
amit mahawar
Thank you. Sandeep. I had two specific questions. First of all congratulations on great profitability and growth. I think first is if I compare India with some of the competing countries and GE Vernova has been a lead exporter on quality GIS products. The Korean companies have a higher share of exports vis a vis the Indian companies. Profitability of India is still undershooting some of the competing countries when they export. You have been an exception here. I cannot include you. But in your assessment is there a. Case for India to gain a higher share of overall TND recruitment in the next three to four years? That’s one. And can you help us get a cognitive assessment and then ask second question.
sandeep zanzaria
I think we have been constantly just communicating to the market that export has been our focus and it will remain a focus. It also depends upon the opportunities and there are various other factors as well like for example Sushi also said and we also said in the past about technology, voltage, acceptance of factories etc. Etc. I can just assure you that our focus is going to remain as growth of exports. And of course you would have seen that the energy transition story is not something which is happening which is purely for India but it’s a global story for example in Middle east, in Europe, in US in Australia.
So in most of the big countries where you see the energy transition story is much strong. So I feel that export like we have grown from 2022 to 2018 to 20% of our lower backlog to a 30% of our higher backlog. So you have seen the kind of focus what we have put in. It is very difficult to give a guidance today. But what you have said about Korean companies etc. And things like that. Other I will not compare that we are trying to copy their strategy but our focus will remain greater exports.
amit mahawar
The second and last question Sandeep is you have hvdc. You have to choose between, you know, co bidding with parent on HVDC or taking standalone product orders which are very profitable and you are primarily private focused which reflects in the profitability very different from your competition. Next three fiscal can you grow 15% in volume in MBA terms even when you take. Don’t take HVDC. That’s my final question. Thank you.
sandeep zanzaria
So can you repeat the question once again? Next three years.
amit mahawar
I’m saying next three to four years without any HVDC order. Can G. Vernova India grow in volume terms in 15% on the production numbers? You have to produce the orders that you take or you will need actually to grow more than 15 20% in volume growth.
sandeep zanzaria
I will say that it should not be too difficult.
amit mahawar
Thank you Sandeep. That’s helpful and great, great going.
operator
Thank you. The next question is from the Lionel, an individual investor. Please go ahead.
subramaniam
Hello sir. Many congratulations on excellent performance. I had two quick questions. One is on the exports target export contribution, which key geographies are driving this push and are you seeing any regulatory geopolitical risks towards either order flow or receivables? That is question number one and two on technology. Are there any technology upgrades that give us a competitive edge in either domestic or export markets especially in grid digitization? Thank you sir.
sandeep zanzaria
Thanks. I’ll start with the second question first. So these are multiple geographies. I mean we have orders from Europe, Southeast Asia, partially from Middle east and even Korea as an end destination.
Of course the channel to market can be through our group families or direct. And we don’t see in our portfolio any risk, regulatory risk which can lead to a challenge on the receivable or inventory as of now. And now I’ll request Sandeep to talk about the technological updates. I think technological upgrade for example, whatever technology is available at our parent is also available with us and we keep on working with them for localization of the new technology. We keep on working with Indian customers for new introduction of newer and newer technology. So that’s a constant push or endeavor.
What we do it in the market if you have any specific technology you want to talk about. But otherwise this is like a regular, you know, KPI for our teams to push newer and newer technology into the market.
subramaniam
Got it. So that. Thanks as my question. Many thanks. Thank you.
operator
Thank you. The next question is from the line of Suraj from Katamaran. Please go ahead.
suraj malu
Hi sir. Thank you for this opportunity. I wanted to understand why the gross margin for this quarter is very high. Like 3/4 ago there was an instance where the gross margin was 41% where you had alluded that there is some one time benefit in the P L which was for 40 crores. So is there something like that for this quarter as well?
sushil kumar
Thanks Suraj for your question. These are all operational margins and profit that we delivered in this quarter. But as usual we have called out that it had a contribution, significant contribution of highly profitable export projects as well. And overall the export revenue was approximately 40% of the total revenue which is higher than past and is higher in this quarter. Because overall the backlog is 30. So in the long term exports should be around 30% of the backlog. So that’s one contribution. But other factors, as you know I already highlighted the volume is high, the pricing is high over a period of time.
And then internal productivity, cost saving, etc. Multiple factors have led to this profitability. And we’ve also mentioned in the call few times now that 1/4 profitability is not a benchmark. Overall we performed better last year. And we believe that we can improve from what we delivered in the last year on day with a level.
suraj malu
Got it. Thank you very much.
operator
Thank you. The next question is from the line of Bala Sugar Mining from Earned capital.
bala subramaniana
Good evening sir. Congratulations for good set of numbers. My first question regarding this SF6 free switch gear. How do we like this product? How do we compare between US and global alternatives? Are there any pilot projects or any orders to validate this adoption?
sandeep zanzaria
So hi, I think when we talk about technology, I think GNA has been pioneer in developing this technology. So in India what we have seen is that there is only one pilot project which has come in. And we are constantly discussing with various customers and executing. We are hopeful that maybe in medium term this technology adoption will become much faster in India.
Just that our products are market leader in terms of technology and in terms of in terms of development on the FFC technology.
bala subramaniana
Okay sir. So on the data center side I. Think some of the orders have contributed to 20kV GIS. I just want to understand 3 to 5 years perspective whether it is 400765 KB demand will emerge. Like how do you look at in this industry on the business perspective
sandeep zanzaria
you are correct is that as the data center size will grow up and up. So first we’ll see 400kb demand and if the data center sizes goes into gigawatts then we’ll also see 765k will demand coming for data centers.
bala subramaniana
Got it sir. Thank you.
operator
Thank you. The next question is from the line of from HDSE Securities. Please go ahead.
Parikshit kandpal
Hi sir. Congratulations on a great quarter. So my first question is on the order inflows. You said that you can grow this year at single digits on a. So just wanted to recheck that. On 10,700 crores you’re talking about single digit growth and does it include HVDC or HDC will be beyond this.
sandeep zanzaria
Good evening prixit. If I remember when the question was about the pipeline and somebody said that the pipeline will grow at single digit 6 to 8% in this year non HDC pipeline.
Parikshit kandpal
Okay. But in. In terms of order inflow
sandeep zanzaria
last year order intake we called out that it had about 30 billion of you know 1 of billion of export order and 8 billion of the 1 of these.
Excluding that we will be managing up to 70 billion and we’ll see how much we can deliver. Obviously we don’t think we can match this 10,000 crore of number because we tied 1 of orders.
Parikshit kandpal
Okay. And in terms of mix like last year we had almost 30% plus export orders. So this year also the mix will be similar. I mean overall in terms of inflows.
sandeep zanzaria
So last year we had a very large order coming from one of the specific countries. Difficult to replicate, you know, such large orders coming from one country. But it will be an endeavor to grow as much as possible the export volume.
I will say that excluding that one off large orders there will be a growth in export potential.
Parikshit kandpal
How much was that? If you can quantify how much was that order like large order.
sandeep zanzaria
So 22 billion was the large order.
Parikshit kandpal
Yeah. And just one last question on the excluding the opportunity on the export side from related parties. So what kind of efforts we are taking especially on introduction of new products, we are also expanding in existing capacities and also on certification to get a bigger share of time from the direct sales to the expor
sandeep zanzaria
t. So parish if we are taking all the possible efforts so we are getting qualified more and more into other customer bases and direct utilities in Europe etc.
So there’s a constant exercise which keeps on happening for product qualification, factory Qualification. So this is something which is a constant exercise.
Parikshit kandpal
Okay, just on the last I remember you said that export margins are 500 basis point higher than domestic. But even if I take the mix this time and the margin differential even then looks like the domestic margin also very strong this quarter. So with the right understanding,
sandeep zanzaria
yes, as I mentioned that pricing has been strong in last couple of years as we phased out the old backlog with low margin, then the overall backlog margin has become accretive.
Also this quarter had the impact of operational efficiencies through cost savings.
Parikshit kandpal
You told. The only thing is every time you’re saying this should not be a new normal for last many quarters you’ve been saying and every time the normal is shifting and you’re repeating the same thing. The only thing is how much from here on we can increase for a year. For the year as a whole
sandeep zanzaria
we have been very disciplined and conservative in taking orders as well as, you know, calling out improvements. And instead of quarter on quarter performance, we more guide on the long term full year basis.
Last year we did tell that the margin, EBITDA margin rent will be too high too and we delivered at the high end. So we are almost at the level where we guided.
Parikshit kandpal
Okay, sure sir. Thank you. Those are my questions. Thank you.
operator
Thank you. The next question is from the line of Subhad M from NAMA Wealth. Please go ahead.
subhadip mitra
Thank you for the opportunity once again. So my question was more on the export side. Is there a large TAM or a large pipeline on the HDDC side for exports that can probably pan out over the next two to three years?
sandeep zanzaria
No. The answer is no.
subhadip mitra
Understood. Thank you so much.
sandeep zanzaria
Thank you.
operator
Thank you. The next question is from the line of Dainum from Soltra Investment. Please contact. Go ahead.
jaina
Congratulations on a great set of results to the entire team. What I want to understand is that in the previous cycle the peak EBITDA margins that we reached around was at around 18%. This time already for FY25 we achieved 19% and we are confident to achieve better. So what I want to understand, how. Is this cycle fundamentally different from the previous one? That’s my question number one and question number two, whether it’s 19 and a half percent or 20% that we might achieve in FY26, how long do you foresee it to sustain? Maybe like you said, you are conservative and the margins can probably even get better further. But this new normal, how long do you expect it to sustain? So I would want to know both A and B if you could throw some light.
sushil kumar
So Gyram, thanks for your question. To the first question about the peak margins. I think earlier in the earlier cycle in our company the backlog was more tilted towards projects and within that there were also projects for the state, utilities and some of the power sector companies which didn’t do well later on this time. For the last couple of years we have been communicating our focused and disciplined approach of underwriting projects. The mix has changed towards export and product. So our company strategy is leading to better margin over and above the industrial margin. This probably is one of the industry leading margin that we are delivering in terms of sustainability.
I think we have good backlog of 130 billion and the margins on the backlog have improved in the last couple of years. So our endeavor will be to sustain this margin in next few years, at least the next two to three years because we have and then we’ll see in couple of years how the demand and supply solution shifts up. And the new orders that you are.
jaina
Getting now that you’re seeking in the market, the pipelines that are there, are they also in the similar margin range or is it that the realizations are kind of dropped off?
sushil kumar
That’s a commercial thing. You’ll not be able to disclose at what margin we take, new order and all, but what matters is how we execute and deliver at the end. We have been able to improve margin in the execution over and above at what we take during the August day. And this is a result of strong disciplined underwriting as well as strong execution by entire team and the India team. So there are multiple factors including the control over fixed cost, but multiple factors lead to this improved execution. But will not be able to improve our commercial bidding strategy and pricing in the ground?
jaina
Sure, fair enough. And what are the supply chain? Are there any supply chain constraints or issues particularly for the long dated orders that you need to execute? Is there any challenge that you’re facing over there in terms of the pricing of these.
sandeep zanzaria
Global energy transition story Supply chain is definitely a big challenge that we have. Not only we have, but it’s a global challenge which is there. But we have specific teams which keep on working to mitigate those challenges. And when we take orders, etc. We ensure that we are not taking any orders where our risks are not mitigated.
jaina
So but how are we, like you said, it’s for everyone, for the industry. So what is GE doing differently that you know, like you said, mitigates the risk when it comes to supply chain? Are we kind of booking the entire capacity for our vendors? What are a few things. Are we backward integrating like our pos? What are we doing? That is really.
sandeep zanzaria
It is multiple things. It depends upon item to item system where we would be Booking capacities in 2 years in advance and they think sometimes we would be developing multiple channels or multiple component suppliers. Localization is also a strong theme on which we are working to localize more and more supply chain to India. So it is. It depends upon product to product or component to component. So it’s not like one strategy fits all.
jaina
Got it. Got it. Thank you so much. Thank you.
sandeep zanzaria
Thank you.
operator
Thank you. If there are no further questions from the participants, I now hand the conference over to Ms. Megha for closing comments. Over to you now.
megha gupta
Thank you everyone for joining us today. We hope the insights provided by our speakers have been informative and valuable to you. We value the trust and support of our investors and analysts and ensure to remain committed to maintain transparent communication and fostering strong relationships. If you have any further questions or require additional information, please do not hesitate to reach out to me or our communications leader. Thank you.
operator
Thank you. On behalf of GE Vanora TND India limited That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.