The Barmer II-South Kalamb HVDC interstate transmission system (ISTS) scheme, for evacuation of renewable power from Barmer to South Kalamb, will have the bidder build 6,000 MW, ±800 kV bipole HVDC-Line-Commutated Converter, or LCC, terminals. It was offered under TBCB (tariff-based competitive bidding), with a winning tariff quote of Rs 3,240 crore. The project value is expected to be Rs 25,000-26,000 crore, with the HVDC portion worth at least Rs 8,000 crore.
The project entails the establishment of HV terminals at Barmer and South Kalamb, construction of a 1,000 km HVDC bipole line connecting Barmer-II and South Kalamb, construction of 400 kV transmission lines, and installation of two Synchronous Condenser units at Barmer-II station.
GVTD has secured a contract from Power Grid for the design and establishment of the 6,000 MW, ±800 kV HVDC LCC Terminal Station to evacuate renewable power from Barmer-II to South Kalamb.
The overall project capex is Rs 26,000 crore, with GVTD’s contract value at around Rs 13,000 crore.
This is a big boost to order inflow, which moves to around Rs 23,100 crore from Rs 10,100 crore. This is around four times the FY26 revenue. In addition, there is an export order of Rs 3,000 crore, which is on hold due to budget issues from the customer.
Given the large order book and the adoption of grid automation technologies, prospects look good for GVTD. The transmission and distribution, or T&D, sector is poised for massive investments and structural growth. GVTD has allocated capex of Rs 1,000 crore per annum for expansions till FY28.
GVTD will construct new manufacturing lines for HVDC, LCC/VSC-STATCOM valves, transformers, and accessories, along with a testing lab. The company also expects a Rs 1,300 crore data centre-related order from its US parent in H2FY27. So, this win could lead to similar export orders. Given US restrictions on Chinese power equipment, GVTD could accelerate its export profile if it can manage the supply-chain diversification required.
The support from the global parent includes access to new technologies and enabling localisation. The company also has a strong balance sheet, with a net cash position of Rs 2,930 crore and three-year cash-flow generation expected to come in at Rs 1,000 crore per annum. It has good working capital management, with net working capital, or NWC, at 50 days over the last three years. Given the order book, the revenue growth should translate into mid-twenties earnings growth over the next three fiscals.
Assuming the order comes through (which is almost certain given L-1 status), the Barmer II-South Kalamb project would be GVTD’s second HVDC order. It won its first HVDC order for the Khavda-South Olpad project in December 2026. Both HVDC projects will contribute substantially to revenue from FY29. In FY28, it should contribute around 4 per cent to revenue for GVTD. Along with the ongoing 2,500 MW Khavda-South Olpad HVDC-VSC project, this lends weight to GVTD’s credentials in LCC and VSC technologies.
Prior to the order, GVTD was estimated to be trading at over 72 times price-to-earnings for FY27 and at around 60 times price-to-earnings for FY28. After factoring in the order, some investors will find the valuations attractive, given the revenue growth and earnings visibility. This market segment features other local arms of several power sector majors, and they are all highly valued. The management says it is looking to generate higher margins. Winning L-1 status against strong competitors like Hitachi India is commendable.
The Barmer II-South Kalamb corridor is part of a larger Rajasthan renewable energy evacuation programme with a 1,000 km HVDC transmission link. Power Grid was awarded the overall transmission project in September 2026. The NCT-approved project cost is Rs 24,970 crore, and it is reasonable to estimate GVTD’s opportunity at around Rs 12,500-13,000 crore. The project will take multiple years.
India’s HVDC market is growing, and these two projects demonstrate GVTD’s capabilities across both HVDC platforms and, in turn, that could leave it well positioned to pick up more orders across a tender-based pipeline.
