Five power grid stocks riding India’s energy transition

Currently, India's transmission network spans about 500,000 circuit kilometres with a transformation capacity of 1,407 gigavolt-amperes (GVA). As the country ramps up investments in transmission and distribution infrastructure, companies supplying grid equipment, transformers, switchgear and automation systems are increasingly coming into focus.

Here are five stocks riding that opportunity.

Formerly ABB Power Products and Systems India Ltd., Hitachi Energy was formed as a joint venture between ABB's Power Grids division and Hitachi in 2019. Hitachi Ltd. took full ownership of the company in 2022.

The company offers grid automation, grid integration, transformers, and a broad range of high-voltage power products.In FY26, Hitachi Energy landed major orders from data centres — including manufacturing three 220 kV AIS transformer bay extensions for a leading Hyderabad-based data centre.

Other orders received during the year and in Q4 FY26 included control and protection upgrades, dry-type transformers for a renewable energy company, and 150 traction transformers for metro rail projects.

Orders received during FY26 were worth ₹18,456 crore, compared with ₹1,847.7 crore in FY25.

The company also commissioned the Infeed HVDC 1000 MW VSC Project, including HVDC converter stations at Aarey and Kudus. Other commissioned projects included power transformers at Jamnagar, Ramgarh and several other locations.

To support future growth, Hitachi Energy has announced an additional capex of ₹2,000 crore for a greenfield large power transfer facility in Karjan, Gujarat, taking its cumulative investment commitment to ₹4,000 crore.

On the financial front, net sales rose to ₹2,754 crore in Q4 FY26 from ₹1,884 crore a year earlier. Profit after tax (PAT) increased from ₹63 crore to ₹113 crore, while net profit margin (NPM) improved from 9.8% to 12%.

Hitachi Energy has delivered three-year compound sales growth of 9.3% and compound profit growth of 23.6%.

Average return on equity (ROE) over the last three years stood at 9.6%, while average return on capital employed (ROCE) was 16.4%.

CG Power is a global electrical engineering company operating through two segments—Industrial Systems and Power Systems.

The Industrial Systems segment offers products ranging from industrial motors and automation solutions to EV solutions and railway systems. The Power Systems business provides transformers, switchgear, automation systems, power quality solutions and other power products.

During FY26, revenue from the Power Systems segment surged 46% year-on-year to ₹5,138 crore.

Order intake for the segment stood at ₹11,210 crore, up 69%, while the order backlog increased 91% to ₹12,644 crore.

The company secured a ₹640-crore order from Power Grid for 765-kV transformers, its largest domestic single transformer order to date. The project is scheduled for execution over 18-36 months.

CG Power has also approved a ₹750-crore greenfield expansion to increase switchgear manufacturing capacity by 7,200 units annually, taking total capacity to 16,200 units.

It recently completed two brownfield transformer expansion projects at Gwalior and Mandideep, while a new greenfield facility is expected to be commissioned during July-August this year.

Net sales in Q4 FY26 rose to ₹3,442 crore from ₹2,753 crore a year earlier. PAT increased from ₹274 crore to ₹362 crore, while NPM improved from 10% to 10.5%.

The company has delivered three-year compound sales growth of 21.8% and profit growth of 15.6%.

Average ROE and ROCE of the company for the last three years were 33.1% and 44.3%, respectively.

ABB India Ltd. is the Indian arm of global electrification and automation major ABB Ltd.

The company offers a broad portfolio of electrical products, automation solutions, digital systems and services supporting sustainable electrification.

Its offerings range from solar inverters and EV infrastructure to low- and medium-voltage systems, switchgear and industrial automation products.

During FY26, ABB entered the wind power converter segment, creating a new growth avenue. The first locally manufactured wind power converter has already been dispatched from its Nelamangala facility.

The company is also expanding manufacturing capacity to meet demand from renewable energy, railways, data centres and export markets. Recently, it announced a capex plan of $75 million to expand manufacturing facilities and strengthen research and development capabilities in India.

Order inflows grew 25% year-on-year during FY26, supported by demand from data centres and railways.

The order backlog reached ₹11,000 crore, including ₹4,000 crore in the electrification segment, providing strong revenue visibility over the next five to six quarters.

Net sales in Q4 FY26 increased to ₹3,184 crore from ₹3,010 crore in the corresponding quarter last year.

PAT declined to ₹342 crore from ₹457 crore, while NPM fell to 10.7% from 15.2%.

Over the past three years, ABB India has delivered compound sales growth of 15.5% and compound profit growth of 17.6%.

Average ROE and ROCE stood at 22.9% and 30.9%, respectively.

Siemens provides smart infrastructure solutions for utilities, industries and urban infrastructure projects.

Its Smart Infrastructure business contributes more than half of the company's revenue and accounted for 55.5% of total revenue during FY26.

Revenue from the segment rose 11.6% year-on-year to ₹4,660 crore during H2 FY26.

New orders grew 22.9% to ₹6,060 crore, driven by demand from power utilities, renewable energy developers and data centres.

The segment benefited from a strong order backlog across electrification, automation and electrical products.

However, margins came under pressure due to higher commodity and input costs.

Net sales for the January-March quarter of FY26 stood at ₹4,618 crore, compared with ₹4,029 crore a year earlier.

PAT declined from ₹393 crore to ₹355 crore, while NPM fell from 9.8% to 7.7%.

Even so, Siemens delivered three-year compound sales growth of 19% and profit growth of 38.2%.

Average ROE and ROCE stood at 14.5% and 20.1%, respectively.

The company manufactures a wide range of oil-filled power and distribution transformers, along with switchgear and unitised substations.

Its annual transformer manufacturing capacity stands at approximately 14,000 MVA.

Voltamp is expanding capacity through a greenfield EVH Power Transformer facility, which is expected to be completed this month. As of February 2026, the company had invested ₹124 crore in the project.

During FY26, Voltamp secured a major order worth ₹938 crore for 7,904 MVA of transformers.

Total order inflows till February 2026 stood at ₹1,980 crore.

Net sales in Q4 FY26 came in at ₹617 crore, marginally lower than ₹625 crore in the corresponding quarter last year.

PAT declined sharply from ₹97 crore to ₹48 crore, bringing NPM down to 7.8% from 15.5%.

However, the fall in profitability was primarily due to one-time provisions and higher input costs.

The company has delivered three-year compound sales growth of 19.7% and profit growth of 34.8%.

Average ROE and ROCE over the last three years stood at 20.4% and 26.9%, respectively.

With robust order books, capacity expansion plans and rising investments in transmission infrastructure, these companies appear well positioned to benefit from India's energy transition.

The opportunity is underpinned by growing renewable energy capacity, rising electricity demand, data-centre expansion and grid modernisation efforts.

That said, investors should closely monitor execution, project delivery timelines and margin trends, as these will be key determinants of long-term growth.

Investors should evaluate company fundamentals, corporate governance standards and valuations before making investment decisions.

Happy investing.