How Are India’s Infrastructure and Power Companies Powering Growth in FY26?
About India’s Infrastructure Upsurge
India’s infrastructure ecosystem continues to see multi-sector expansion—from transmission projects and expressways to renewable energy and industrial parks. A strong capex cycle, improving balance sheets, and technology integration in EPC execution are driving robust financial performance across the board.
Transformers & Rectifiers (India) Ltd – Q2 Highlights ⚙️
| Metric | Q2 FY26 | YoY |
|---|---|---|
| Revenue | ₹306 Cr | ₹206 Cr |
| EBITDA | ₹34.49 Cr | ₹38.92 Cr |
| PAT | ₹22.19 Cr | ₹23.8 Cr |
| Order Book | ₹5,500 Cr | -43% |
The company reported a decline in order inflows due to supply-chain delays but remains focused on high-efficiency transformer solutions and export diversification. FY26 revenue guidance was revised to ₹2,600 Cr amid project deferrals.
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JSW Cement Q2 FY26 Highlights 🧱
JSW Cement reported mid-teen YoY growth, driven by better cost management and commissioning of the Sambalpur unit. Green power share improved to 21%, with a target of 63% by FY26-end. Clinker utilization stood at 86%, while CO₂ intensity dropped to 277 kg/ton — the best in class in India’s cement sector.
Capex of ₹964 Cr in H1 and reduced debt to ₹3,231 Cr indicate balance sheet prudence. Post Nagore commissioning (Q4 FY26), the company expects EBITDA/ton to rise to ₹1,150–₹1,200 with north plant utilization improving through FY28.
Oil India Q2 Review 🛢️
Oil India delivered consistent performance with an expected production CAGR of 13% and earnings CAGR of 11% over FY25–28E. Gas ASP stood at 12–15% of oil price, while refining margins remained strong. Morgan Stanley maintained an ‘Overweight’ rating with a target price of ₹467, citing 80% probability of price appreciation and 15%+ ROE potential.
Ather Energy Q2 Review ⚡
Ather Energy reported margin expansion and EBITDA loss reduction, supported by rising store presence and robust market share. HSBC maintained a ‘Buy’ with a TP of ₹700. The company expects its EL platform to be a major growth driver, although sluggish EV penetration remains a long-term challenge.
Petronet LNG Q2 Highlights 🏭
| Metric | Q2 FY26 | QoQ |
|---|---|---|
| Revenue | ₹11,723 Cr | -5% |
| EBITDA | ₹1,148 Cr | -4% |
| PAT | ₹698 Cr | -3% |
| Volume | 211 TBTU | Stable |
Petronet LNG faced volume and UoP provision impact but remains optimistic on throughput growth post-capacity expansion. HSBC maintains ‘Hold’ with a target price of ₹320.
Sectoral Trends & Opportunities
- ✅ Infrastructure execution pace remains robust amid record government capital expenditure.
- ✅ Cement and power companies showing operational leverage from cost optimization.
- 💡 Green energy and gas value chain expansion to drive next phase of growth.
- ⚠️ Short-term risks include high input costs and monsoon-linked demand variability.
Valuation & Investment View
- JSW Cement: Balance sheet strength and scale efficiency ensure robust FY27 outlook.
- Oil India: Long-term energy bet with stable ROE profile.
- Ather Energy: High potential in EV space, watch for operating leverage gains.
- Transformers & Rectifiers: Await recovery in new orders post project deferrals.
- Petronet LNG: Volume recovery likely from FY27 with LNG capacity expansion.
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Investor Takeaway
Gulshan Khera, CFP®, observes that India’s infrastructure revival remains a key macro theme. With defense cooperation, trade deals, and green transition supporting sentiment, power, cement, and capital goods are likely to remain market favorites through FY27. Discover actionable setups at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
