India Electrical Equipment

Research evidence excerpt

India Electrical Equipment

Viewpoint |

05 Jul 2026 22:03:16 ET │ 17 pages

FY27 1Q Preview: Stable Execution, Resilient Margins; +ve CW on

Hitachi Energy India

Anusha Madireddy AC

CITI'S TAKE +91-22-6175-9866

We see India's T&D OEM sector remaining firmly in an upcycle — all four anusha.madireddy@citi.com

companies in our coverage exited 4Q/FY with robust order books, with Mohit Pandey

momentum expected to sustain into 1QFY27. News regarding government

approval of Chinese OEMs for T&D tenders has raised competition +91-22-6175-9734

concerns, but we view this as execution-positive rather than competitively mohit.pandey@citi.com

disruptive, limited to capacity-deficient segments. Margins appear well-

anchored by global supply shortages, strong incumbent positioning, and

book-to-bill ratios exceeding 2.5x. We open a 90-day upside Catalyst

Watch on POWERIND, where the Barmer II HVDC tender (~Rs100bn) and

the recent correction should present an enhanced opportunity.

Post 4Q/conference demand commentaries — All four companies in our coverage

universe exited 4Q/FY, with robust order books and positive demand commentary,

further reinforced by CG Power's favourable demand outlook shared at our

conference. We expect strong order booking momentum to sustain into 1QFY27,

driven by the commencement of order intake for capacities anticipated to come

online over the next 18–24 months — particularly for Hitachi Energy India, GE

Vernova T&D India, and CG Power. Execution and gross margins are expected to

remain stable across all four companies, with the benefits of ongoing operational

efficiencies serving as a key driver of EBITDA margin expansion, in our view.

Focus likely to be on potentially increasing competition due to re-entry of Chinese