₹9 Trillion Transmission Boom: Motilal Oswal Sees Multi-Year Growth Wave in India’s Power Grid – EQ
In Short : Motilal Oswal Financial Services highlights strong growth prospects in India’s power transmission sector, driven by a ₹9 trillion capex pipeline through 2032. The investment cycle, fueled by renewable expansion and grid upgrades, is expected to boost order books, revenues, and profitability while positioning the sector for sustained long-term expansion.
In Detail : Motilal Oswal Financial Services has identified India’s power transmission and distribution sector as a major long-term growth opportunity, supported by a massive capital expenditure pipeline of nearly ₹9 trillion. This investment wave is expected to transform the sector into one of the most dynamic segments within the broader energy ecosystem.
The projected capex, outlined under national planning frameworks, is largely aimed at strengthening transmission infrastructure to support India’s rapidly expanding power demand. A key driver behind this push is the integration of renewable energy, which requires robust grid connectivity and advanced transmission systems.
The current investment cycle, which began around FY22–23, has already started delivering tangible results across the industry. Companies involved in transmission equipment and infrastructure have reported stronger order books, improved revenues, and better profitability, indicating the early benefits of this sustained capex momentum.
Despite a temporary slowdown in project awards during FY26, the brokerage emphasized that the decline is not due to weak demand. Instead, it is attributed to execution constraints such as high capacity utilization and longer manufacturing timelines for advanced equipment, particularly high-voltage transformers.
Demand fundamentals remain strong, both domestically and globally. Indian manufacturers are experiencing increased demand for transmission equipment, especially as countries worldwide invest heavily in grid modernization, renewable integration, and electrification infrastructure.
A significant growth catalyst for the sector is the rising adoption of high-voltage direct current (HVDC) technology. These systems are critical for efficiently transmitting large volumes of electricity over long distances, especially from renewable-rich regions to consumption centers, creating new opportunities for specialized equipment manufacturers.
Another important factor supporting growth is the supply-demand imbalance in transformer manufacturing. With global demand surging and supply lagging, manufacturers are benefiting from improved pricing power and longer order visibility, which enhances revenue predictability and margin expansion.
The report also highlighted export opportunities as a key upside for Indian companies. As global markets face shortages and rising infrastructure needs, India is emerging as a competitive manufacturing hub for transmission equipment, allowing domestic players to integrate into international supply chains.
