India’s electricity need is set to grow fast, pushing the power‑transmission sector into the spotlight.
Why the sector matters
By 2027, the country expects a 20% rise in electricity demand, driven by factories and a growing middle class. The government plans to spend about ₹9.15 trillion on new transmission lines by 2032, which should boost companies that build and operate the grid.
Stocks that have tumbled
Even with strong demand, several transmission‑related stocks have fallen sharply from their 52‑week highs, some losing more than half their value. Below is a quick look at four of them. This is not a recommendation.
1. Transformers and Rectifiers (India) Ltd.
- Shares down ~55% from the 52‑week high.
- Q2 FY26 sales flat at ₹460 cr; profit fell to ₹37 cr.
- Recent moves: bought a controlling stake in a CRGO steel plant and started an automated radiator factory.
- Plans to add 22,000 MVA of extra‑high‑voltage transformer capacity, aiming for >75,000 MVA total.
2. KEC International Ltd.
- Shares down ~44% from the 52‑week high.
- Q2 FY26 revenue ₹6,091 cr, profit rose to ₹160 cr.
- Strong order book: over ₹16,000 cr of new work, 75% from transmission & distribution.
- Expanding tower plants in Dubai, Jaipur, Jabalpur and Nagpur.
- Looking for projects in the Middle East, Africa, CIS and the Americas.
3. Danish Power Ltd.
- Shares down ~49% from the 52‑week high.
- H1 FY26 revenue ₹211 cr (up 29% YoY); profit ₹29.3 cr (up 41%).
- Completed first phase of a capacity expansion; second phase due by Dec 2025.
- Targeting 11,000 MVA of transformer capacity and 8‑10% of sales from exports.
- Management sees revenue of ₹500‑550 cr for FY26, potentially ₹750 cr after full capacity.
4. Torrent Power Ltd.
- Shares down ~22% from the 52‑week high.
- Q2 FY26 revenue ₹7,876 cr; profit jumped to ₹741 cr.
- New 250 MW renewable project awarded; long‑term supply contract for a 1.6 GW coal plant.
- Completed India’s biggest green‑hydrogen‑natural‑gas blending project.
- Current generation capacity around 5 GW, with a pipeline of >7 GW of new projects.
Should you consider power‑transmission stocks?
The sector benefits from massive government spending and rising electricity use, which align with India’s renewable‑energy goals. However, high valuations and execution risks mean investors should be careful.
Some of these stocks may be oversold, offering potential value if the price drops are only temporary. Do your own homework: check fundamentals, corporate governance, and whether the current price makes sense.
Bottom line
India’s power‑transmission market is growing faster than the world average, but the recent price declines make it a mixed bag for investors. Look for solid fundamentals and keep an eye on government projects before taking a position.
Remember, this is just an overview, not a buy or sell tip. Do your own research and consider your risk tolerance.