Macquarie Research has identified significant opportunities for Indian power and grid equipment manufacturers following fresh US policy moves. The brokerage's August 27 India Industrials report carries 'Outperform' ratings on eight stocks, with Bharat Electronics leading at 35% upside potential, followed by Siemens Energy India at 32%, GE Vernova T&D India at 26% each, and Hitachi Energy India at 16%. According to The Financial Express, the US executive order restricts certain foreign supplies of bulk-power system electric equipment, covering transformers, reactors, generation equipment and control systems used in power plants, substations and transmission networks of 69kV or above. India is not subject to US arms embargoes or sanctions, while several Indian manufacturers already supply equipment to the American market, making the opportunity particularly relevant for Indian grid companies that can increase exports as US utilities seek equipment from suppliers outside restricted countries.
Macquarie Research has maintained its 'Outperform' rating on Bharat Electronics with a target price of ₹550, raising it from ₹510, implying a 35.04% upside potential from current levels. As reported by Equentis, the company closed at ₹406.90 on August 26 and traded around ₹410 on August 27, with the stock's 52-week range being approximately ₹361.20 to ₹473.45. The brokerage's positive view is supported by BEL's large order backlog of ₹72,300 crore at the end of Q1 FY27, providing multi-year revenue visibility. BEL recently announced additional orders worth approximately ₹730 crore since its previous disclosure on August 10. The company secured orders worth ₹6,200 crore in FY27 so far, compared to ₹11,200 crore during the same period last year, representing a decline of about 45% that Macquarie attributes primarily to booking timing rather than fundamental demand slowdown.
GE Vernova T&D India leads among major Indian grid equipment suppliers with 33% of production exported, followed by Siemens Energy India at 29%, Hitachi Energy India at 26%, and CG Power with less than 5%. According to The Financial Express, GE Vernova supplies transformers, switchgear and HVDC and grid-control systems, along with protection and automation equipment and data-centre power transformers. Siemens Energy India supplies large power transformers, switchgear and circuit breakers, HVDC and grid-control systems, protection and automation systems, and data-centre power transformers. Hitachi Energy is among Indian companies already supplying the US with large power transformers, switchgear and circuit breakers, HVDC and grid-control systems, protection and automation systems, and data-centre power transformers, with 26% of production from India exported. CG Power is listed among Indian suppliers of data-centre power transformers, though its exports from India account for less than 5%.
Larsen & Toubro receives a target price of ₹4,910, indicating an upside of 21%, while Cummins India maintains its target price of ₹6,150, implying a 19.39% upside potential. As reported by The Financial Express, Cummins India features among Macquarie's preferred industrial stocks in its India Industrials coverage, alongside companies exposed to power, equipment and infrastructure spending. Power generation remains the largest revenue segment, with demand coming from manufacturing, pharmaceuticals, solar cell plants, e-commerce facilities, and municipal infrastructure projects. CG Power is listed among Indian suppliers of data-centre power transformers, though its exports from India account for less than 5%. Macquarie includes the company among the Indian grid and industrial names that could benefit as US power-equipment sourcing changes.
Macquarie's bullish view on BEL is primarily based on the company's substantial order backlog, expected defence contract awards, and execution capability. However, the brokerage acknowledges key risks including delays in government defence contracts, slower-than-expected order inflows, pressure on operating margins, and high expectations already reflected in the stock valuation. BEL reported Q1 FY27 revenue of approximately ₹5,533 crore, up about 25% year-on-year, while net profit increased around 8% to ₹1,048 crore, though operating margins were below expectations. The company is targeting more than ₹55,000 crore of new orders during FY27, with potential growth drivers including India's defence-indigenisation push and several large programmes under consideration. For investors tracking the BEL share price target, four key indicators deserve attention: new defence order announcements, progress towards the ₹55,000-crore FY27 order target, quarterly revenue and EBITDA margins, and execution of the existing ₹72,300-crore-plus order backlog.
