The domestic brokerage house, Motilal Oswal has turned bullish on India’s transmission and power equipment space, highlighting it as one of the key sectors to watch. In its latest report, the brokerage has initiated coverage on select companies and reiterated its positive stance on others.
Motilal Oswal believes that the transmission and distribution (T&D) segment is entering a multi-year growth phase. The brokerage sees select stocks offering upside potential of up to 23% from current levels.
Motilal Oswal’s T&D picks: Target price and upside potential
Motilal Oswal has initiated coverage on CG Power and Industrial Solutions with a ‘Buy’ rating and a target price of Rs 900. This implied an upside of about 16% from the current market price.
The brokerage house has also initiated coverage on Atlanta Electricals with a ‘Buy’ rating and a target of Rs 1,650.This indicates a potential upside of around 20% from the current price.
Another key pick is GE Vernova T&D India, where Motilal Oswal has assigned a ‘Buy’ rating with a target price of Rs 4,750. This translates to an upside of nearly 15% from the current levels.
In addition, the brokerage has reiterated its ‘Buy’ rating on Siemens Energy India with a target price of Rs 3,700. This indicates an upside potential of about 23% from the current market price.
Meanwhile, Hitachi Energy India has been upgraded to ‘Neutral’ with a target price of Rs 27,000, indicating downside of around 7%.
| Company Name | Rating | Target Price (Rs) | Upside/Downside (%) |
| CG Power and Industrial Solutions | Buy | 900 | 16% |
| Atlanta Electricals | Buy | 1,650 | 20% |
| GE Vernova T&D India | Buy | 4,750 | 15% |
| Siemens Energy India | Buy | 3,700 | 23% |
| Hitachi Energy India | Neutral | 27,000 | -7% |
Why is the power transmission and distribution sector back in focus
The key reason behind this optimism lies in the strong capital expenditure cycle underway in the transmission space.
According to the Motilal Oswal report, “The transmission and distribution (T&D) value chain, particularly segments focused on high voltage transformers, continues to benefit from a robust capex outlay of Rs 9 trillion until 2032, alongside a much stronger opportunity unfolding from global markets for quality players.”
This means that both India and global markets are investing heavily in power infrastructure, which is directly boosting demand for equipment manufacturers.
The brokerage further added, “This T&D capex cycle, which began in FY22-23, has driven sharp growth in order books, revenue, and the margin profiles for industry participants.”
Motilal Oswal on T&D space: Government push and long-term demand visibility
A major trigger for this growth is India’s long-term power plan. The report highlighted that “India’s National Electricity Plan (NEP; FY23-32) has outlined an ambitious investment plan of Rs 9 trillion in transmission.”
This large investment pipeline is aimed at strengthening the country’s grid and supporting renewable energy integration. Even partial execution of this plan is expected to generate strong order inflows for companies in the sector.
However, the report also flagged that activity slowed slightly in the recent year. It noted, “Sector-level ordering was weaker in FY26 (16 schemes awarded) versus FY25 (45 schemes awarded), primarily due to temporary bandwidth constraints rather than any structural demand slowdown.”
Motilal Oswal on transmission and power equipment space: Global demand opens export opportunities
Apart from domestic demand, global markets are also creating opportunities. According to the brokerage, transformer demand in regions like the United States and Europe is rising sharply.
Motilal Oswal report added, “Transformer demand in the US and Europe is currently experiencing a historic surge driven by renewable energy integration, data centre expansion, industrial electrification, electric vehicle charging infrastructure, and the urgent need to replace ageing infrastructure.”
Motilal Oswal on transmission and power equipment space: New technologies and evolving demand
Another important factor driving demand is the need for grid stability and energy storage. The report pointed out that the growing role of battery energy storage systems.
The report further added that, “The growing need for grid stability is accelerating the adoption of battery energy storage systems (BESS), with India targeting around 13.5 gigawatts by FY27 and around 51.5 gigawatts by FY32.”
Motilal Oswal on transmission and power equipment space: Key risks to watch
Motilal Oswal report has also highlighted some risks. These include supply chain disruptions, rising raw material costs such as copper, and delays in project execution.
It also pointed out concerns around “the unavailability of semiconductor chips” and “a slowdown in tendering activity,” which could impact near-term growth.
Disclaimer: Investment analysis and target prices featured in this report are based on a domestic brokerage’s projections and are for informational purposes only. These views do not constitute a direct offer, solicitation, or investment advice. Given the inherent volatility of the power and transmission sector, readers should consult a SEBI-registered financial advisor before making any buy, sell, or hold decisions to ensure alignment with their specific risk profile and financial goals.
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