The next power boom is here—and it's bigger than just electricity

India's power and electrification investment cycle is gathering momentum, with companies across the electrical equipment value chain betting on sustained demand from transmission upgrades, renewable energy, railway electrification and the rapid expansion of hyperscale data centres.

Management teams across electrical equipment, cables, transformers, electrical panels and industrial cooling companies struck a common note during PhillipCapital's India Inc. Unplugged conference, where they spoke of strong order books, capacity expansion and aggressive growth plans as the country's infrastructure spending broadens beyond power generation into grid modernisation and digital infrastructure.

Grid expansion powers next leg of growth

Companies operating across different segments of the electrical ecosystem said investments in transmission and distribution infrastructure remain a key demand driver.

Indo SMC, which manufactures medium-voltage electrical utility products, reiterated its ambitious target of crossing ₹1,000 crore in revenue by FY28-FY29, with management attributing the opportunity to "a 10-year demand cycle from renewables and data centres." The company also highlighted railway approvals, export expansion and new product launches as key growth catalysts, while noting that its current order book exceeds ₹300 crore.

Cable manufacturer JD Cables had a similar outlook. The company, which supplies power cables and conductors used in transmission and distribution projects, said it is witnessing growing opportunities from state electricity boards, railway electrification and power infrastructure projects. Management expects industry growth to remain robust, driven by power, infrastructure and renewable energy expansion, while targeting revenue of ₹600 crore in FY27 and ₹1,000 crore in FY28. Its existing order book stands at around ₹515 crore.

Susan Electricals, another supplier to power utilities, said ongoing rural electrification, underground cabling projects and government spending on power infrastructure continue to support industry growth. The company is expanding beyond DISCOMs to serve EPC contractors and public sector companies such as Power Grid and NTPC while also pursuing opportunities in railway electrification. "HT and MVCC products are considered the highest-margin businesses and are primary drivers for future growth," the management said.

Transformer component manufacturer KSH International also painted a positive picture, saying demand from the transformer industry remains strong enough to justify a near doubling of production capacity at its Supa facility. Management expects the Indian market for continuously transposed conductors (CTCs), used in high-voltage transformers, to almost double over the next few years as transmission investments accelerate.

Data centres emerge as the biggest incremental opportunity

While power infrastructure remains the overarching growth story, executives repeatedly identified data centres as one of the fastest-growing demand drivers.

Vivid Electromech said the data centre business has become its "core growth engine", already contributing nearly 50% of revenue, with management guiding for 35-40% growth in the segment. The company, which manufactures low- and medium-voltage electrical panels, works with six of the world's top 10 hyperscale data centre operators, including STT, NTT, CtrlS, Nextra and AdaniConneX.

Management said the company's current manufacturing facilities are operating at 95-100% utilisation, prompting a major expansion that will nearly triple installed capacity. "Data centre work is a full supply, installation, testing and commissioning job involving complex software integration, not just panel supply," it said.

Indo SMC also identified data centres as one of the structural demand drivers supporting its long-term growth outlook.

Meanwhile, Shree Refrigerations is looking to ride the same wave from a different segment. Known for its defence-focused HVAC systems, the company announced a partnership with Canada's Smardt to enter the fast-growing data centre cooling market by leveraging its oil-free compressor technology developed for naval applications.

Management reiterated its expectation of 40% CAGR growth, adding that this guidance does not include any contribution from the data centre business, suggesting further upside if the new vertical scales successfully.

Companies ramp up capacity as confidence grows

Beyond strong demand commentary, several companies outlined plans to expand manufacturing capacity to meet expected growth.

Indo SMC is expanding its FRP and SMC facilities, JD Cables is commissioning a new manufacturing unit, Vivid Electromech is setting up a 1.2 lakh sq. ft. facility at Palava, while KSH International is nearly doubling capacity at its Supa plant. Shree Refrigerations has also inaugurated a new 50,000 sq. ft. manufacturing facility to cater to defence and industrial demand.

Taken together, the management commentary suggests India's power and electrification story is evolving into a broader industrial investment cycle. Rather than relying on a single growth engine, companies across the electrical value chain are seeing demand emerge simultaneously from renewable energy, transmission and distribution upgrades, railway electrification and the construction of large-scale data centres.