Indian power generation stocks are experiencing a significant rally, with the BSE Power index reaching new highs, fuelled by robust demand, substantial capital expenditure, and a strong push towards renewable energy and grid modernisation.
Key Points
- The BSE Power index reached a new high of 8,497, surging 24 per cent in two months, making it the top-gaining sectoral index.
- Major companies like Hitachi Energy India, Adani Green Energy, and CG Power and Industrial Solutions reported strong order backlogs and significant capital expenditure plans.
- Hitachi Energy India's order backlog surged to Rs 29,555 crore, with an additional Rs 2,000 crore capex for its Vadodara transformer facility.
- Adani Green Energy commissioned the world's largest single-location battery energy storage system outside China at Khavda, Gujarat, with plans for substantial future expansion.
- CG Power and Industrial Solutions saw a 59 per cent year-on-year increase in order backlog to Rs 15,719 crore, driven by investments in power systems and capacity expansion.
Shares of power generation-related companies were on a roll on Wednesday, with the BSE Power index hitting a new high of 8,497, driven by strong demand and robust order books.
Over the past two months, the BSE Power index has surged 24 per cent.
The BSE Power index was the top gainer among sectoral indices, rising 3.3 per cent compared to a 0.2 per cent decline in the BSE Sensex.
Market Performance and Key Players
Six of the 15 stocks in the index hit their respective all-time highs — Adani Power, Bharat Heavy Electricals, CG Power and Industrial Solutions, GE Vernova T&D India, Hitachi Energy India, and Siemens Energy India.
Among individual stocks, Siemens Energy India soared 9 per cent, while CG Power and Industrial Solutions rallied 6.4 per cent, followed by ABB at 6 per cent. GE Vernova T&D India gained 5.2 per cent, followed by JSW Energy at 4.5 per cent and Thermax at 3.5 per cent.
Hitachi Energy's Growth Outlook
Following its fourth-quarter (January-March/Q4) results for 2025-26 (FY26), Hitachi Energy India highlighted a strong multi-year growth outlook driven by rising power demand, renewable energy integration, electrification, and data centre expansion.
The company said its total order backlog surged to Rs 29,555 crore in Q4FY26, providing strong revenue visibility for several quarters.
The company has secured over Rs 20,000 crore worth of high-voltage direct current (HVDC) orders and is currently executing two mega 6-gigawatt HVDC projects — Khavda-Nagpur and Bhadla-Fatehpur.
Hitachi Energy also announced an additional capital expenditure of Rs 2,000 crore for its Vadodara transformer facility, taking cumulative announced investments to Rs 4,000 crore.
In Q4 of calendar year 2025, the company’s revenue rose 46.2 per cent year-on-year (Y-o-Y) to Rs 2,754 crore, while profit after tax jumped 80 per cent Y-o-Y to Rs 330 crore.
Adani Green's Storage Milestone
Adani Green Energy commissioned a cumulative 3.37 gigawatt-hour (GWh) battery energy storage system at Khavda, Gujarat, making it the world’s largest single-location battery storage deployment outside China and among the fastest executed globally.
The project, completed within 10 months, included 1.37 GWh commissioned in March 2026 and is aimed at strengthening grid reliability and enabling round-the-clock renewable power supply.
The company plans to add over 10 GWh of battery storage capacity in 2026-27 (FY27) and scale total storage capacity to 50 GWh over the next five years.
CG Power's Strategic Expansion
CG Power and Industrial Solutions said order inflows remained strong during Q4FY26, with several key wins taking the order backlog up 59 per cent Y-o-Y to Rs 15,719 crore, offering strong revenue visibility for FY27.
The company is well-positioned to benefit from strong industry tailwinds, particularly in the power systems segment, where rising investments in renewable energy, data centres, and thermal power are driving demand for transformers and switchgear.
To capitalise on this momentum, the company recently completed a major expansion of its power transformer capacity to 50,000 megavolt-amperes (MVA) from 17,000 MVA and is working to increase it further to 65,000 MVA in the near term.
FY27 is expected to be a year of accelerating earnings delivery.
The sizeable projects commissioned during FY26 are expected to stabilise and contribute to full-year earnings before interest, tax, depreciation, and amortisation, driving a meaningful step-up in the company’s financial performance.
