The ₹1.86 lakh crore PM-DHARA Scheme is expected to create a multi-year growth opportunity for transmission equipment manufacturers, cable makers and related companies, according to Harshit Kapadia, Railway Analyst at Elara Securities. As reported by CNBC TV18, Kapadia noted that this is the first time such a big number has come from the Green Energy Corridor (GEC) side. The scheme, aimed at evacuating 135 GW of renewable energy and strengthening the transmission network, could begin translating into business opportunities once tendering gains pace over the next six months. According to Kapadia, around ₹1.44 lakh crore is expected to be spent on transmission infrastructure, with the balance allocated to battery energy storage systems, making it a significant investment in India's power transmission infrastructure. The latest reports from Business Standard confirm that GEC-III will have ₹54,080 crore of financial support from the Centre, to offset intra-state transmission charges, with transmission utilities of states serving as implementing agencies. The Cabinet's recent approval of Green Energy Corridor III with ₹1.36 trillion for intrastate transmission and ₹50,000 crore for 50 GWh of battery storage represents a significant step forward in India's power infrastructure development.
KEC International shares have emerged as a key beneficiary of the PM-DHARA scheme, with the company's T&D order book plus L1 position standing at over ₹25,000 crore, representing 62% of KEC's total order book of ₹37,697 crore. The company secured ₹3,600 crore in new orders across India, the Middle East, Africa and the Americas in Q1FY27, including its first transmission line order for power evacuation to a data centre in Western India from a private developer. As reported by The Financial Express, T&D accounts for ₹1 lakh crore of the tender pipeline, which is over ₹2 lakh crore, with management expecting multi-year growth supported by accelerating renewable integration, grid expansion and modernisation, and power evacuation for data centres. The company's T&D revenue grew by 2% year-on-year to ₹3,217 crore in Q1FY27, representing 64% of total sales, though consolidated revenue remained flat at ₹5,024 crore due to margin pressures. Management has guided for 12% to 15% consolidated revenue growth for full-year FY27 and targets new order inflows of ₹30,000 crore in FY27.
Power Grid Corporation of India, India's largest power transmission utility, continues to benefit from the transmission boom with gross fixed assets of ₹3.25 lakh crore and 1,86,595 circuit kilometres of transmission lines as of June 2026. During Q1FY27, the company accelerated project commissioning with ₹7,765 crore capex and commissioned 1,635 ckm of transmission lines and 10,500 MVA of transformation capacity. As reported by The Financial Express, the company's capitalisation stood at ₹5,277 crore in Q1FY27, with management aiming to capitalise ₹30,000 crore of capex in FY27. The company maintains a total market share of around 47% in annual tariff across all inter-state transmission system tariff-based competitive bidding projects, with tariff-based competitive bidding projects now comprising 83% of the active portfolio. Consolidated transmission charges grew 3% year-on-year to ₹10,905 crore in Q1FY27, while the company's debt stood at ₹1,45,586 crore with a debt-to-equity ratio of 1.4x.
Kalpataru Projects International has demonstrated robust execution capabilities with T&D revenue (excluding Brazilian subsidiary) rising 10% year-on-year to ₹2,924 crore in Q1FY27, while net profit grew 46% to ₹312 crore with EBITDA margin expanding to 8.8%. The company secured ₹4,163 crore in T&D orders during Q1FY27, representing 54% of total consolidated order inflows, with T&D accounting for 44% of the company's total ₹66,607 crore order book. As reported by The Financial Express, the company's average project size has surged 2.5x to ₹500 crore per project, with net debt-to-equity standing at 0.1x and net working capital cycle improved to 80 days. The company holds the L1 position in pipeline bids valued at more than ₹5,000 crore and is actively strengthening its market position in High Voltage Direct Current power transmission and design-build contracts.
According to Elara Securities, railway and metro capital expenditure is expected to remain healthy, supporting companies such as RITES and BEML over the next few years. Kapadia noted that railway capex has increased significantly over the past five years, though annual growth has slowed to around 9% from nearly 20% seen earlier. However, continued spending on signalling, electrification, rail overbridges, Vande Bharat trains and high-speed rail projects should sustain opportunities for railway companies. RITES' turnkey construction business is entering a stronger execution phase, with nearly half of the company's ₹9,500 crore order book linked to turnkey construction, including rail connectivity projects connecting industries to ports. Kapadia expects this business to grow by around 20% annually over the next two years as project execution accelerates. Additionally, RITES could benefit from upcoming rolling stock tenders and expanding coach export opportunities, with the company looking to add one new export market every year.
Kapadia remains positive on BEML, citing its ₹17,000 crore order book, of which around ₹11,000 crore is linked to rail and metro projects. As reported by CNBC TV18, execution of metro coach orders for Bengaluru, Chennai and Mumbai metros is gathering pace, while defence and mining businesses are expected to provide additional growth. Highlighting the company's improving financial performance, Kapadia said, "The story has just started for them." He added that management has guided for 25% revenue growth in the financial year 2026-27 (FY27), supported by stronger execution across rail, defence and mining businesses.
According to the Jefferies report, electricity demand has been rising faster than earlier expectations. Month-to-date power demand is up 15% year-on-year, while year-to-date demand has increased 10% compared with earlier estimates of 7% year-on-year growth for FY27. The increased demand is attributed to higher cooling requirements, with the second quarter of FY27 seeing below-average rainfall that has increased cooling needs across several parts of the country. As reported by The Financial Express, merchant power prices are up 2.0x YoY in September 2026 to date, with average merchant prices in the second quarter of FY27 to date rising 46% year-on-year and 12% quarter-on-quarter to ₹5.7 per unit. The deficient monsoon has put the focus on some unlikely winners, with power plants running harder than ever before as electricity demand continues to rise faster than expected. The broader power theme has also been supported by rising expectations for electricity demand and grid investment, with Jefferies recently naming Adani Energy Solutions, JSW Energy and NTPC among its preferred power stocks, citing stronger power demand and tightening coal inventories.
