India's ₹9 lakh crore power grid expansion is creating robust demand for transformer oils, with the country adding 55.3 gigawatts of renewable energy capacity in FY26 alone. According to reports from The Financial Express, India's transmission network is planned to expand from nearly 5 lakh circuit kilometres to 6.5 lakh circuit kilometres by 2032, while transformation capacity is expected to increase from 1,429 GVA to 2,354 GVA over the same period. The expansion includes support for rising power generation and emerging sectors like data centres, creating sustained demand for new transformers and consequently transformer oils. As per the Central Electricity Authority, India will require investments of ₹7.93 lakh crore in transmission infrastructure to integrate more than 900 gigawatts of non-fossil fuel-based energy capacity by 2035. Growing demand for large power transformers, driven by grid expansion, data centres, industrial electrification, and renewable energy integration, has increased the need for additional manufacturing capacity in the country.
Savita Oil and Apar Industries are positioned as key beneficiaries of this infrastructure growth. As reported by The Financial Express, Savita Oil is one of India's two leading transformer oil manufacturers with ₹4,363 crore revenue in FY26 and targets 12-15% transformer oil volume growth. Apar Industries, India's largest and world's third-largest transformer oil manufacturer, reported ₹5,086 crore revenue in FY26 and maintains a global footprint with 49% of transformer oil sales overseas. The companies serve diversified customer bases including major utilities and OEMs with low customer concentration risk.
Both companies are focusing on higher-margin products to capitalize on the infrastructure boom. According to The Financial Express, Savita Oil maintains natural ester capacity of 5,000 kilo litre at its Mahad facility, with natural ester oil costing 2x as much as mineral oil and synthetic ester oil costing 5x as much as mineral oil. Apar Industries offers POWEROIL NE, a K2-class natural-ester transformer fluid that is over 90% biodegradable and serves floating solar, wind, and marine transformers. The companies serve diversified customer bases including major utilities and OEMs with low customer concentration risk.
Both companies demonstrated strong financial recovery in FY26. As reported by The Financial Express, Savita Oil's revenue rose 14.4% year-on-year to ₹4,362.6 crore with EBITDA increasing to ₹290.6 crore and net profit surging 60.6% to ₹181.8 crore. Apar Industries generated ₹5,086 crore revenue in its Transformer & Specialty Oil division with 12.2% volume growth domestically and 3.5% global volume growth. The companies have allocated significant capital for expansion, with Apar earmarking ₹1,500 crore for FY27 including ₹200 crore specifically for the Oil division.
According to The Financial Express, Apar Industries demonstrates stronger financial metrics with ROCE of 31.1% and ROE of 31.1% compared to Savita Oil's ROCE of 13.3% and ROE of 15.7%. Both companies are trading at premium valuations, with Apar at 63.0 price-to-earnings ratio versus Savita Oil's 17.9 P/E ratio. The analysis suggests that while Apar leads in scale and global presence, Savita Oil differentiates through higher-margin ester-based products and targets specific growth rates of 12-15%.
