High-voltage transmission and distribution equipment stocks have experienced a significant correction after their impressive rally throughout 2026. According to reports from LiveMint, Hitachi Energy India, GE Vernova T&D India, Siemens Energy India, and CG Power and Industrial Solutions rose 66%, 34%, 23%, and 35% respectively year-to-date, substantially outperforming the BSE Capital Goods Index which gained only 10% over the same period. However, the rally has recently paused as investors appear to be booking profits amid concerns over elevated valuations, with the sector experiencing a price correction that has eased valuation concerns according to 360 ONE Capital Markets.
Despite the recent correction, brokerage firms have issued contrasting recommendations on the sector's key players. 360 ONE Capital Markets maintains Buy ratings for GE Vernova T&D India (₹4,919 target) and Siemens Energy India (₹3,101 target) with 10%–20% upside potential, while assigning a Hold rating to CG Power and Industrial Solutions (₹886 target). However, Elara Capital has taken a more cautious stance, initiating coverage with a 'sell' recommendation on Hitachi Energy India (₹29,190 target), an 'accumulate' rating for Siemens Energy India (₹3,699 target), and a 'buy' recommendation for GE Vernova T&D India (₹5,547 target), with GE Vernova T&D India being Elara's top pick within the space. As per CNBC TV18, GE Vernova T&D shares were trading little changed at ₹4,195.3, while Hitachi Energy India shares were down 3% at ₹30,260.
According to 360 ONE Capital Markets, renewable energy capacity is projected to rise significantly from 283.5 GW in March 2026 to 596.3 GW by FY32 and 786 GW by FY36, accounting for around 71% of the projected total generation capacity of 1,121 GW. As reported by LiveMint, transformation capacity is expected to nearly double from 1,450,526 MVA in March 2026 to 2,411,885 MVA by FY32, underpinning approximately ₹9.2 trillion in transmission investments. With renewable generation concentrated away from load centers and providing limited inertia, this transition is reshaping grid requirements, driving demand for long-distance power evacuation through HVDC systems and grid stability solutions. Elara Capital expects India's power demand compound annual growth rate (CAGR) to be more than 5% over FY27-36, led by industrialisation, electrification and emerging loads such as data centres, EVs and green hydrogen.
The brokerage highlighted that a global shortage of high-voltage equipment is creating significant export opportunities for Indian companies. According to LiveMint, GE Vernova T&D India's export share increased from 17% of revenue in FY20 to 33% in FY26, while Hitachi Energy India's bidding mix implies an export exposure of 29%–30%. CG Power and Industrial Solutions' $99 million Tallgrass Order also marks its entry into the US hyperscale data center market. Importantly, export demand is skewed towards HVDC systems, grid modernization, gas-insulated switchgear (GIS), and instrument transformers, supporting a structurally stronger product mix and pricing. Elara Capital notes that the global grid investment may rise to $606 billion by CY29, led by renewables, ageing, infrastructure, electrification, data centres and grid modernization, creating a sizeable opportunity for Indian transformer manufacturers.
Data centers provide another significant growth driver for the sector, with India's installed capacity currently below 2 GW compared with an expected 13–18 GW by 2030. As reported by LiveMint, this translates into an estimated ₹850 billion– ₹1,050 billion opportunity for Hitachi Energy India, equivalent to 1.0–1.5 times its FY26 revenue. Elara Capital estimates around ₹2.7 lakh crore data centre investment by FY39, ₹0.8 lakh crore BESS deployment through FY36 and ₹15 lakh crore transmission opportunity by FY36, to drive demand for transformers, switchgear, PCS and grid stability equipment. The brokerage sees a multi-year growth runway for T&D, led by expansion in the domestic grid, EHV/high voltage direct current (HVDC) investments, capacity additions and rising export opportunities. However, with valuations already reflecting a meaningful part of the growth, Elara Capital favours companies where earnings can surprise via capacity ramp up, better execution and margin expansion.
