The Indian government has outlined a massive ₹9.2 lakh crore Transmission Capex Plan under the National Electricity Plan for high-voltage lines. The Transmission and Distribution sector is further propelled by the need to integrate 500 gigawatts of renewable energy capacity and upcoming nuclear power initiatives into the national grid.
T&D Super-Cycle Underway
The ₹6.5 Lakh Crore Arunachal Hydro project Tailwind
Additionally, long-term initiatives, such as the Arunachal Hydro project, are expected to unlock an additional ₹6.5 lakh crore in transmission investment opportunities by 2035, as per Skipper. Not just in India, but globally too, grid investments are projected to nearly double from US $1.6 trillion (CY19-23) to US $3.0 trillion between CY2024 and CY2029.
This is driven by grid modernization, cross-border interconnections, and decarbonization goals. Also, electricity networks must expand and modernize to accommodate intermittent renewable power, data center demand, and rising electrification. For companies, this investment cycle is offering a structural growth phase rather than a short-term capex cycle.
Similarly, this article examines three “hidden gems” that can capitalize on this opportunity.
#1 Quality Power: Microsoft’s Data Center Partner
Quality Power Electrical Equipment manufactures high-voltage power equipment and advanced power-quality solutions. It serves over 210 global clients, including Fortune 500 companies, and operates across more than 100 countries on five continents. It holds expertise in High Voltage Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS).
A Broad-Based Product Portfolio
The company provides technology-driven products and tailored solutions for grid connectivity, with a focus on enhancing voltage regulation. The product portfolio spans coil products and transformers. Key clients include GE T&D India, Siemens, and Hitachi Energy. It serves the renewable energy, automobile, and cement sectors.
Quality Power operates under a family of brands, including Endoks (Turkey), which focuses on power electronics, edge computing, and energy management systems; Mehru (Bhiwadi, India), specializing in instrument transformers; and Sukrut (Pune, India), which manufactures power accessories and transformer components.
Business Segments
The ₹895 Crore Order Book
As of Q3FY26, Quality Power holds a consolidated order backlog of over ₹895 crore, of which approximately 90-95% is executable within the next 18 months. It is in advanced discussions to close additional orders exceeding ₹300 crore in the last quarter of FY26. Strong demand is being seen from the Middle East, Europe, the United States, and Australia.
Quality Power is one of the direct beneficiaries of massive global infrastructure shifts. The explosion of Artificial Intelligence and data centers represents a massive tailwind. To this end, it recently completed a Microsoft hyperscale data center project in Finland. It is actively pursuing similar large-scale AC transmission and power projects in the US and India.
Strategic Capacity Expansion: Sangli to Turkey
To meet this order book, the company is rapidly expanding its manufacturing worldwide. The timeline for this coil factory (in Sangli) has been pushed back to June 2026. It will feature a 2,500 kV AC high-power test lab and a global engineering and technology center.
The expansion of the Aluva (Cochin) facility was successfully completed in Q3FY26 and is now fully operational. This expansion has doubled the plant’s manufacturing capacity, enabling it to better serve the domestic coil-based market and meet the growing demand for HVDC and FACTS projects.
To meet strong domestic and international demand, Mehru is expanding its existing Bhiwadi plant. Equipment is being commissioned in phases, with full completion expected by Q4 FY26. This will increase the overall plant capacity by 45%. At this expanded capacity, Mehru has the potential to generate peak revenues of ₹450-500 crore.
Quality Power is considering building a new facility on 40 acres of land it already owns in Turkey. This will allow it to serve the European market directly. With all planned and recently completed capacity expansions, management estimates the company could generate approximately ₹1,500 crore in revenue at a 75% capacity utilization rate.
Financials: 256% Revenue Surge and Profitability Metrics
Numbers are also showing this shift. Revenue increased 256.5% year-on-year to ₹284.3 crore in Q3FY26, driven by execution and improved capacity utilization. EBITDA was up 222.7% to ₹79.3 crore, while margins declined by 290 bps to 27.9%. Net profit surged 220.7% to ₹62.8 crore.
#2 Atlanta Electrics: This Transformer Gem Just Increased Capacity by 4X for the Grid Surge
Atlanta Electricals is a pure-play manufacturer of power, auto, and inverter-duty transformers in India. Atlanta operates five manufacturing facilities equipped with a combined manufacturing capacity of 63,060 MVA. This capacity is up by 4X from 16,000 MVA over the past 18 months.
The company manufactures a diverse range of transformers, starting from 5 MVA/11 kV up to 500 MVA/765 kV. The product portfolio includes Auto Transformers, Power Transformers, Inverter-Duty Transformers, Furnace Transformers, and Special-Duty Transformers.
The ₹2,451 Crore Order Book
Atlanta serves a diversified client base of 251 customers, including national electricity grids, private-sector companies, and renewable energy companies. Clients include Adani Green, Tata Power, and SMS Group. As of 31 December, 2025, the order book stood at ₹2,451 crore.
Atlanta Order Book
Massive 63,060 MVA Capacity: Powering the Vadod Expansion
The newly operationalized plant at Vadod boasts a massive 30,540 MVA capacity and is capable of manufacturing transformers up to 500 MVA, 400 kV class. The production commenced in July 2025 and has already added about ₹160 crore (around one-third) to Q3FY26 revenue.
Formerly known as BTW Atlanta, this facility adds 15,780 MVA of capacity. enabling it to tap into the extra-high-voltage market for 400 kV and 765 kV class transformers. The facility commenced operations in Q3FY26 and is expected to contribute more meaningfully in the future.
The Extra-High-Voltage Market and a ₹10,000 Crore Bid Pipeline
The company maintains an active bid pipeline of close to ₹10,000 crore, with a historical win rate of 10%-15%. Management expects to maintain a quarterly order intake of approximately ₹600-700 crore. The company intends to maintain a robust minimum 40% year-on-year revenue growth rate moving forward.
Moving into the next fiscal year, Atlanta plans to initiate new capital expenditures for backward integration, specifically aiming to insource components such as radiators and tank integration starting around Q1 FY27 to achieve cost savings.
Backward Integration: The Q1 FY27 Roadmap for Margin Protection
The financials reflect this operational scaling. Revenue increased 79.7% year-on-year to ₹471.8 crore in Q3FY26, driven by capacity utilization at the Vadod plant. EBITDA was up 119.6% to ₹91.3 crore, while margins increased by 360 bps to 19.4%. Net profit surged 94.6% to ₹43.3 crore.
#3 Skipper: India’s Largest T&D Company
Skipper is India’s largest and one of the world’s top 10 integrated manufacturers of Transmission and Distribution tower structures. It operates across three primary business segments: Engineering (which contributed 80% of its 9M FY26 revenue), Infrastructure (11%), and Polymer products (9%).
Dominating the T&D Landscape: From 11 kV to 1200 kV
The Engineering and Infrastructure segment caters to the T&D sector. T&D products support a voltage range spanning from 11 kV up to 1200 kV. Beyond manufacturing, Skipper executes full transmission line EPC (Engineering, Procurement, and Construction) projects, which entail the complete supply of towers, bought-out items, and full site construction.
Skipper’s order book (over ₹9,000 crore) is heavily dominated by the T&D sector. Domestic T&D orders account for 78% of the order book, and exports (T&D-related) account for another 10%.Recently, it received two 765 kV transmission line projects from Power Grid.
Skipper Order Book
The Export Pivot: Aiming for a 50:50 Domestic-Global Mix
Skipper is expanding its export penetration into developed markets such as North America and Europe to capitalise on rising global grid investments. It held an export order book of close to ₹900 crore, the highest among Indian transmission line tower companies.
Management aims to gradually move toward a 50:50 domestic–export mix over the long term. To capture the surging demand, Skipper is aggressively scaling its manufacturing capabilities.
Scaling to 450,000 MTPA: The Infrastructure Build-out Phase
It is currently expanding its total engineering capacity to 450,000 MTPA (metric tonnes per annum) by the end of FY26. A new 75,000 MTPA brownfield is fully operational, with capacity utilization over 85%. An additional 75,000 MTPA plant will be commissioned by March 2026, or Q1FY27. Management expects this new capacity to reach optimum utilization (85%) by Q2FY27.
Profitability metrics underscore this transition. Revenue increased 20.7% year-on-year to ₹1,370.6 crore in Q3FY26, driven by strong execution across the engineering products and EPC businesses. EBITDA was up 27.5% to ₹141.4 crore, while margins increased by 50 bps to 10.3%. Net profit surged 39.7% to ₹50.2 crore.
The Verdict: Execution is the Final Frontier.
Atlanta return ratios, including Return on Capital Employed (RoCE) and Return on Equity (RoE), are the strongest amongst peers, followed by Quality and Skipper. Valuations have also eased following recent corrections.
In terms of valuation, Quality and Atlanta are trading at a premium to industry medians, while Skipper is trading at a discount to both industry and 5-year historical median (39.5). Given their limited trading histories, we have not conducted a historical valuation comparison for Quality and Atlanta.
| Valuation Comparison (X) | ||||
| Company | Current P/E | Industry P/E | RoCE (%) | RoE (%) |
| Quality | 60.0 | 32.5 | 26.6 | 22.1 |
| Atlanta | 43.2 | 32.5 | 50.2 | 40.8 |
| Skipper | 21.2 | 32.5 | 24.4 | 14.2 |
| Industry Median | 32.5 | 28.1 | 22.4 | |
| source: screener.in | ||||
India’s transmission build-out and global grid upgrades are opening a long runway for equipment makers and infrastructure providers. Quality Power, Atlanta Electricals, and Skipper operate in different parts of this ecosystem. The real test now lies in execution, scaling new capacity, converting the bid pipeline into orders, and sustaining profitability. Keep them on your watchlist to track how the opportunity unfolds.
Disclaimer:
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data was unavailable have we used an alternative, widely used, and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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