New Delhi: India’s transmission and distribution sector is entering a strong expansion phase, supported by an estimated Rs 9 trillion in capital expenditure through 2032, according to a new report by Motilal Oswal Financial Services.
The investment cycle, which began in FY22–23, has already lifted order books, revenues, and profitability for companies across the T&D value chain. The National Electricity Plan anchors the growth, earmarking about Rs 9 trillion for the transmission segment to integrate large-scale renewable energy into the grid.
While FY26 has seen fewer new awards, with 16 schemes compared with 45 in FY25, the report attributes the pause to temporary bandwidth limits as manufacturers focus on ramping up capacity. Domestic players are now operating at high utilisation and moving into higher-voltage transformers, a shift that extends production cycles but reflects a move up the value chain.
Demand remains robust across domestic and export markets. With transformer supply trailing orders, lead times have lengthened and pricing has turned favourable for manufacturers, strengthening margins and encouraging fresh capacity additions.
Motilal Oswal said the medium-term outlook stays positive. Ongoing plant expansions, steady policy support for renewables, and strong interest from global buyers position the sector for continued growth in the coming years.
The data points to a T&D ecosystem scaling up to meet India’s energy transition goals, turning the grid upgrade into a multi-year opportunity for industry and a backbone for clean power delivery.
