New Delhi [India], April 11 : India's power equipment sector is entering a multi-year growth phase, driven by the country's accelerating energy transition and rising transmission investments, according to a recent report by JP Morgan.
The report highlights that high-voltage (HV) equipment manufacturers are "in the midst of a decadal upcycle as the grid keeps up with a step-change in renewables," underpinned by strong policy visibility and a sharp ramp-up in renewable capacity additions.
The sector's outlook is anchored in India's ambitious clean energy pipeline, with the national plan targeting 470GW of solar and wind additions over the next decade. This is expected to significantly boost demand for transmission infrastructure and associated equipment.
"Large-scale transmission build takes 3-5 years... providing multi-year revenue visibility for HV OEMs," the report notes, indicating sustained order inflows even if renewable commissioning timelines fluctuate.
Annual transmission capex is projected at $8-9 billion, while HVDC (high-voltage direct current) technology is emerging as a key enabler of long-distance renewable power evacuation. The report estimates a $14-15 billion HVDC opportunity over the next 5-6 years, reinforcing a strong medium-term demand cycle.
Beyond domestic demand, export opportunities are expanding as global grids upgrade to accommodate renewables and rising electricity consumption from AI-led data center growth.
The report points out that exports are extending the cycle as global order books continue rising on renewables, grid upgrades, and AI-driven load growth, positioning Indian manufacturers as competitive global suppliers.
Favourable industry structure, characterised by limited competition in HVDC, tight supply-demand conditions, and operating leverage, is expected to support margin expansion.
While near-term risks such as supply-chain disruptions or delays in HVDC project awards could impact sentiment, the structural outlook remains intact. The report emphasises that any such pauses may create entry opportunities, given the multi-year ordering outlook for the sector.
The report concludes that India's power equipment sector is well-positioned to benefit from the country's energy transition, with strong order visibility, export optionality, and margin tailwinds driving a sustained upcycle over the next 3-5 years.