India's power transmission sector is projected to attract ₹6 trillion in investments through 2032 as grid infrastructure is expanded to integrate rising renewable energy capacity, according to Icra. The projected transmission capital expenditure includes strengthening existing infrastructure, adding evacuation capacity, and developing new transmission routes to support generation centres. As reported by Icra, the Central Electricity Authority (CEA) has planned a transmission system for evacuating power from more than 900 GW of non-fossil fuel capacity by 2035-36, with 137,500 circuit kilometres (ckm) of transmission lines and 827,600 megavolt-amperes (MVA) of substation capacity under the inter-state transmission system (ISTS) and intra-state networks for integrating additional wind and solar capacity during 2026-27 to 2035-36, at an estimated cost of ₹7.93 trillion.
The government's decision to allow four Chinese entities with manufacturing facilities in India to participate in critical power transmission projects is expected to improve equipment availability without materially altering the sector's favourable outlook. With strict localisation requirements mandating 50-60% domestic content and restrictions on direct imports, the move is aimed at addressing supply bottlenecks rather than intensifying price competition. According to Icra, outstanding orders and order inflows for key equipment suppliers to the transmission sector in 2025-26 have more than doubled since 2021-22, with a surge in transmission capex over the coming years expected to lead to healthy order inflows for these players. As reported by Nepean Capital's Gautam Trivedi, ancillary manufacturers supplying specialised equipment such as bushings, transformers and other transmission components are better positioned than many obvious names, with some capable of expanding revenues from around ₹500 crore to nearly ₹2,000 crore over the next two to three years as large infrastructure orders start flowing in.
Despite the massive investment projection, execution challenges continue to plague the sector. As reported by Icra, most transmission projects awarded by central nodal agencies through the tariff-based competitive bidding (TBCB) route have been delayed beyond their scheduled commissioning date (SCOD) due to land acquisition and right of way (RoW) issues. Out of the total projects commissioned by March 2026 under this route, only about 12 per cent were completed within the scheduled timeline, while the rest were commissioned with delays ranging from two months to three years, with the median delay exceeding 10 months. These delays translate into grid curtailment issues for renewable energy developers, with RE projects continuing to face grid curtailment of up to 33 per cent. Supply-side delays also stem from the limited capacity of equipment manufacturers and shortages of skilled manpower, constraining execution timelines. However, the transmission sector continues to benefit from robust demand and persistent supply constraints, particularly in the extra-high-voltage (EHV) transformer segment, where capacity additions have been limited due to high entry barriers and stringent qualification norms.
The medium-term outlook for the transmission sector remains constructive with strong infrastructure demand and sustained supply tightness in critical equipment supporting growth prospects. As reported by The Economic Times, the expected revival in transmission ordering is anticipated as tender activity had slowed in recent months due to elevated prices of copper, steel and transformer oil making bidding commercially unviable. As commodity prices begin to soften, utilities are expected to revise project budgets and reissue deferred tenders, supporting an improvement in order inflows from the second and third quarters of FY27. GE Vernova is positioned to benefit from this expansion with a target price of ₹5,200, while Atlanta Electricals maintains a buy rating with a target of ₹1,950. The company's focus on backward integration, EHV transformers, and BESS-linked opportunities is expected to strengthen margins and enhance long-term execution visibility, with management guiding 40% revenue CAGR over FY25-28.
