Macquarie Turns Bullish On India's Grid Infrastructure Theme

Macquarie has initiated coverage on four major power equipment and transmission companies with Outperform ratings, highlighting what it sees as a multi-decade opportunity arising from electrification, renewable energy integration, data centre expansion and transmission network upgrades.

The brokerage believes India's transmission and distribution sector is entering one of the strongest investment cycles in its history.

Macquarie's Top Picks

Why The Opportunity Is So Large

India's power demand is growing rapidly due to manufacturing expansion, electric mobility, urbanisation, AI-driven data centres and renewable energy additions.

To support this growth, the country requires massive investments in transmission lines, substations, transformers, grid automation and high-voltage infrastructure.

Macquarie believes this investment cycle could continue for decades rather than years.

CG Power: Multiple Growth Engines Working Simultaneously

CG Power is expected to benefit from several independent growth drivers.

✅ Grid infrastructure expansion.

✅ Industrial equipment demand.

✅ Railway electrification projects.

✅ Leadership position in low-voltage motors.

✅ High-voltage grid build-out opportunities.

Macquarie expects approximately 28% earnings CAGR between FY26 and FY29 along with return ratios above 20%.

Siemens Energy: Leveraging A Multi-Decade Trend

Macquarie believes Siemens Energy is well positioned to capture opportunities arising from electrification, decarbonisation and transmission investments.

The business remains heavily exposed to transmission infrastructure where spending visibility remains exceptionally strong.

Key highlights include:

✅ 30% EPS CAGR over the next three years.

✅ Return ratios exceeding 25%.

✅ Capacity expansion to meet demand.

✅ Strong order-book visibility.

GE Vernova T&D: High Conviction Transmission Play

Macquarie identifies GE Vernova T&D as one of the most strategically positioned companies in India's transmission sector.

Approximately 33% of revenue comes from transmission-related activities, representing the highest exposure among peers.

The brokerage expects the order book to potentially triple between FY24 and FY36 as transmission investments accelerate.

GE Vernova is also expanding capacity to capture opportunities in both domestic and international markets.

Hitachi Energy: Leader In High-Voltage Infrastructure

Hitachi Energy remains the dominant player in India's HVDC (High Voltage Direct Current) market.

The company currently possesses the largest order backlog among major peers.

Macquarie believes Hitachi is uniquely positioned to benefit from:

✅ Grid modernisation.

✅ Renewable energy integration.

✅ Data centre power infrastructure.

✅ Export opportunities.

✅ Capacity expansion initiatives.

Structural Growth Drivers Supporting The Sector

How Macquarie Ranks The Opportunity

✅ Hitachi Energy – Largest backlog and HVDC leadership.

✅ GE Vernova T&D – Highest transmission exposure.

✅ Siemens Energy – Strong transmission and decarbonisation play.

✅ CG Power – Diversified exposure across multiple growth engines.

Together, these companies represent some of the most direct beneficiaries of India's evolving power infrastructure ecosystem.