From Transformers to Tech: These 3 Indian Energy Stocks Have Grown up to 7x

3 Indian Energy Stocks: India’s electricity demand is on a powerful upswing, fueled by industrial expansion, growing appliance usage, and the rapid rise of data infrastructure and artificial intelligence. In FY25, the country’s peak power demand hit a record 250 gigawatts (GW)—a staggering 70% increase over the last decade.

A significant chunk of this growth is being driven by increased cooling needs, with the International Energy Agency (IEA) estimating that air conditioners alone added 60 GW to the 2024 peak load. By 2050, they could account for nearly one-third of total electricity consumption.

Meanwhile, the boom in data centers and AI processing capabilities is set to elevate power requirements further. To meet this evolving demand, analysts at Motilal Oswal have projected a ₹40 trillion capital expenditure opportunity in the next 10 years—particularly in grid modernisation, transmission upgrades, and renewable energy integration.

In this context, here are three power sector companies that appear well-positioned to benefit from India’s electricity transformation.

3 Indian Energy Stocks Have Grown up to 7x

1. Voltamp Transformers

A Niche Transformer Maker Battling Capacity Constraints

Voltamp Transformers manufactures a range of oil-filled and dry-type electrical transformers, serving over 1,000 clients across industries such as power, chemicals, infrastructure, and automobiles. With an installed capacity of 14,000 MVA, the company is currently operating at 100% capacity, up from 80% just three years ago.

• FY25 Revenue: ₹19.3 billion (↑ 20% YoY)
• Net Profit: ₹3.3 billion (↑ 6%)
• EBITDA Margin: 18.9% (↓ 101 bps)
• Order Book: ₹11.3 billion (~6 months visibility)

To address capacity constraints, Voltamp is executing a CAPEX plan that will expand its capacity by 43%, expected to go live in Q1 FY27.

Despite its valuation of 27x P/E—above its 10-year median of 17x—the company remains attractively priced compared to its 5-year high of 45x, especially given the rising demand from sectors like data centers and green energy.

2. GE Vernova T&D

High-Voltage Specialist Riding the AI and Renewable Boom

Part of global energy giant GE Vernova, this company manufactures high-voltage transmission systems—ranging from 66 kV to 1,200 kV—including transformers, switchgears, and control panels. It caters to power utilities, industrial customers, and is expanding rapidly in the data center segment.

• FY25 Revenue: ₹42.9 billion (↑ 35%)
• Net Profit: ₹8.2 billion (↑ 3.1x)
• Operating Margin: 19% (↑ from 10%)
• Order Backlog: ₹126.6 billion (~3 years visibility)

With 62% of its orders coming from the private sector and ongoing projects for 22 kV data centers, GE Vernova T&D is planning to invest ₹14 billion in HVDC tech and converter valve manufacturing—technologies that will be critical for India’s energy future.

Its current P/E of 100x may seem lofty, but it reflects strong growth and margin expansion in a competitive, high-barrier industry.

3. Hitachi Energy India

Diversified Power Giant With Rising Service Revenues

Hitachi Energy’s portfolio covers the full power value chain—from high-voltage products and transformers to automation and grid stability solutions. It reported solid revenue growth across most segments, with a major thrust from transmission and renewables.

• FY25 Revenue: ₹64.8 billion (↑ 23%)
• Net Profit: ₹3.8 billion (↑ 134%)
• Operating Margin: 9.2% (↑ 250 bps)
• Order Book: ₹192.5 billion (~3 years visibility)

With 750% growth in transmission and over 100% in renewables, the company is also becoming debt-free and expanding its services division. Recently, it raised ₹25 billion via QIP, of which one-third is allocated for expansion.

Although trading at a sky-high P/E of 215x, its premium valuation is backed by strong brand trust, deep tech capability, and a growing presence in the next-gen power ecosystem.

Outlook: Data Centers and AI Could Be Game-Changers

According to a Deloitte report, India will need an additional 40–45 terawatt-hours (TWh) of electricity by 2030 to meet data center demands. This opens the door for long-term investments across power transmission, grid automation, and transformers.

These three companies—Voltamp Transformers, GE Vernova T&D, and Hitachi Energy—are strategically positioned to tap into these massive opportunities.

Disclaimer: This article is for informational purposes only and is based on publicly available data from Screener.in and company presentations. Please do your own research or consult a financial advisor before investing.