3 Stocks That Could Be the Biggest Winners as India Plans 500 GW of Renewable Energy Capacity by 2030

Synopsis: India’s accelerating power infrastructure push spanning new transmission corridors, high-capacity substations, and grid modernisation is unlocking a multi-year capex supercycle for domestic electrical equipment makers. Transformers and Rectifiers (India), KEI Industries, and Hitachi Energy India stand at the centre of this structural opportunity.

India’s power sector is undergoing its most ambitious transformation in decades. The central government has committed to adding over 500 GW of renewable energy capacity by 2030, a target that demands not just generation assets but an entirely rebuilt transmission and distribution backbone. 

Grid connectivity projects, interstate transmission corridors, high-voltage substations, and smart metering rollouts are collectively drawing in lakhs of crores in public and private capital and the companies that manufacture the equipment to move electricity are emerging as some of the most compelling structural plays on India’s energy transition.

For equity investors, the calculus is straightforward: every new solar park, wind farm, or industrial corridor needs transformers, cables, switchgear, and substation infrastructure before a single unit of power reaches the consumer. Unlike the generation segment where competition is intense and returns are often regulated, the equipment supply chain commands better margins, enjoys order visibility spanning multiple quarters, and benefits from both government-driven power sector spending and private capex from data centres, manufacturing hubs, and urban infrastructure projects. Against this backdrop, three listed companies are especially well-positioned to capture outsized value from the ongoing grid build-out.

1. Hitachi Energy India

Hitachi Energy India Limited currently holds one of the strongest order books in India’s electrical infrastructure sector, making it arguably the highest-conviction play among the three companies.

As of June 2026, the company reported a massive Rs. 29,555 crore order backlog, against FY26 revenue of Rs. 8,148 crore, giving it an exceptional Order Book-to-Sales ratio of 3.63x meaning nearly four years of revenue is already secured.

The company has also demonstrated remarkable operational leverage. While revenue growth remained healthy, net profit surged nearly 157 percent year-on-year, with EBITDA margins expanding sharply from 9.3 percent to 15.4 percent, signaling that incremental revenue is now translating directly into profitability.

Its long-term growth outlook strengthened further after management announced a cumulative Rs. 4,000 crore capex plan, including a new transformer manufacturing facility aimed at addressing rising demand from renewable energy projects and AI-driven data center infrastructure.

With a market capitalization of approximately Rs. 1.51 lakh crore, shares of Hitachi Energy India closed at Rs. 33,950 on Thursday, continuing to remain near elevated levels as investors price in the company’s strong positioning in India’s accelerating grid modernization and power infrastructure expansion cycle. However, the stock remains richly valued with a P/E ratio of 153.19x, meaning future growth execution will be critical to justify current valuations.

2. KEI Industries

KEI Industries Limited has quietly emerged as one of India’s strongest infrastructure compounders, benefiting from surging demand for high-voltage cables used in transmission projects, metro rail systems, industrial capex, and data center construction.

While historically viewed as a mid-cap cable manufacturer, KEI has now firmly entered large-cap territory after touching an all-time high of nearly Rs. 5,535 per share in June 2026.

Management recently highlighted an impressive Rs. 20,500 crore total order pipeline and inquiry book. Against FY26 revenue of approximately Rs. 11,746 crore, this translates into an estimated Order Book-to-Sales ratio of 1.74x, giving the company roughly two years of revenue visibility.

Operationally, KEI continues to maintain strong execution, with 90 percent utilization in Extra High Voltage cable production, prompting the company to commit over Rs. 1,300 crore toward its new Sanand manufacturing facility, expected to significantly expand capacity over the coming quarters.

With a market capitalization of approximately Rs. 53,489 crore, shares of KEI Industries were trading at Rs. 5,599 on Thursday, remaining in focus as investors continue betting on India’s rapidly expanding electrical infrastructure and cable manufacturing ecosystem. While the company continues benefiting from strong sectoral demand, the stock currently trades at a premium valuation with a P/E ratio of 58.74x, making sustained growth execution an important factor going forward.

3. Transformers & Rectifiers India

Transformers and Rectifiers (India) Limited may be the smallest among the three companies by scale, but it is currently delivering some of the fastest earnings growth in India’s power equipment sector.

The company reported an order book of Rs. 5,472 crore, against FY26 revenue guidance of roughly Rs. 2,500 – 2,600 crore, resulting in a healthy Order Book-to-Sales ratio of approximately 2.0x, giving strong medium-term revenue visibility. What makes TARIL particularly interesting is its profitability trajectory.

Recent quarterly results showed profit growth of a staggering 243 percent year-on-year, making it one of the fastest-growing industrial companies in the segment. A major catalyst has been the company becoming the first Indian-origin manufacturer to secure specialized HVDC repair orders from Power Grid Corporation, a niche business historically dominated by global multinational players.

Management is also aggressively pursuing backward integration initiatives for critical transformer components, expected to improve margins by nearly 200 basis points over the coming fiscal year.

With a market capitalization of approximately Rs. 9,995 crore, shares of Transformers and Rectifiers (India) closed at Rs. 340.65 on Thursday, remaining on investor radar as markets continue tracking the company’s emergence as a specialized electrical infrastructure player amid rising power sector capital expenditure. The stock currently trades at a relatively premium P/E ratio of 37.57x, while management continues pursuing its long-term ambition of becoming a $1 billion revenue company, equivalent to roughly Rs. 9,000 crore in annual revenue.

Key Indicator

For capital goods and infrastructure companies, revenue growth alone rarely tells the full story. The single most important indicator remains Order Book-to-Sales Ratio, because it reveals future earnings visibility already secured through confirmed contracts.

A ratio above 3x typically signals exceptionally strong future revenue security, while improving margins indicate whether that revenue will ultimately translate into profit.

By this metric alone, Hitachi Energy India currently stands as the strongest long-term visibility play, while Transformers & Rectifiers remains the fastest-growing profit challenger.

As India enters what could be a decade-long infrastructure spending supercycle driven by renewable energy expansion, AI data center growth, semiconductor manufacturing, and industrial electrification, companies supplying transformers, cables, and transmission equipment may emerge as some of the biggest wealth creators.

During the gold rush, the miners chased gold. But often, the companies selling the shovels made the most money. In India’s power infrastructure boom, Hitachi Energy India, KEI Industries, and Transformers & Rectifiers may be those shovel sellers.

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