Godrej’s Energy Solutions arm targets 15% growth by FY27 with ₹2,600 cr project pipeline

Godrej Enterprises Group expects sustained growth in its Energy Solutions business, driven by strong demand in power transmission, renewable energy and emerging segments such as data centres, even as geopolitical tensions have had limited direct impact on its operations.

The business has built a robust project pipeline of around ₹2,600 crore at the end of FY26, spanning transmission infrastructure, railway electrification and renewable energy projects. Backed by this strong order book, the company expects the segment to grow by about 15% by FY27.

In an interaction with Fortune India, Raghavendra Mirji, Business Head – Energy Solutions at Godrej Enterprises Group, said the company has built a strong presence in the power infrastructure segment over the past seven to eight years and is now among the leading players in the substation space. The company works with major clients including central utilities and large corporates such as NTPC, Bharat Petroleum Corporation Limited, Petronet LNG, as well as private developers like the Adani Group and Sterlite Power.

“The strong order book reflects increasing demand for transmission infrastructure, railway electrification and renewable energy solutions,” Mirji said.

The growth comes amid rising demand for grid modernisation and electrification projects, supported by the government’s continued focus on strengthening India’s power ecosystem and meeting the country’s expanding energy needs.

Mirji noted that the industry-wide opportunity pipeline remains robust, with about ₹1.65 lakh crore of investments expected in transmission infrastructure over the next three years, translating into a sizeable EPC opportunity.

Renewable push, data centres to drive growth

The company is expanding its footprint across key markets such as Gujarat and Rajasthan, which are witnessing rapid renewable capacity additions, as well as Maharashtra, Uttar Pradesh and Tamil Nadu, where rising industrial and urban demand is driving investments in transmission infrastructure.

“India’s rapid renewable energy expansion is emerging as a key growth driver for the power infrastructure segment. The country has already crossed 250 GW of renewable capacity and is targeting 500 GW by 2030, which will require significant investments in transmission networks to evacuate power from generation hubs,” Mirji said.

He added that states such as Gujarat and Rajasthan are leading renewable capacity additions, particularly in solar and hybrid projects, which is driving higher demand for substations and transmission infrastructure. The company has already executed complex projects in these regions and continues to expand its presence.

Beyond renewables, rising electricity demand from electric vehicles, railway electrification and data centres is expected to further boost investments in power infrastructure.

“India’s push towards renewable energy, along with rising demand from segments such as data centres, electric vehicles and railway electrification, will continue to drive sustained investments in power infrastructure,” he said.

Mirji also highlighted that India is witnessing strong growth in data centres, with large global players such as Microsoft and Google setting up large facilities. These projects increasingly require high-voltage substations, creating a new avenue of demand for the company.

Railway electrification remains another key growth driver, with ongoing upgrades and expansion of traction infrastructure supporting long-term opportunities.

Limited impact from geopolitical tensions

Despite geopolitical tensions and volatility in crude oil prices, Mirji said the company does not foresee any immediate impact on its power EPC business, as most of its projects are domestically driven.

Over the past year, the company has executed several projects across India, including commissioning 25 units of 765 kV AIS and GIS bays in Gujarat, 54 units of 400 kV and below AIS/GIS bays across multiple regions, and a 220/132 kV AIS substation in Sikkim. In the railways segment, it has delivered three traction substations to support electrification projects.

The company has also expanded its renewable portfolio, including a 6.5 MWp rooftop solar installation in Jaipur, reflecting growing adoption of solar solutions among commercial and industrial users.