India's power transmission sector, bolstered by massive government spending and surging electricity demand, presents a compelling growth story. However, a closer look reveals significant corrections in several prominent stocks, with some trading as much as 55% below their yearly peaks. This divergence between robust sector fundamentals and individual stock performance warrants a detailed examination.
Market Context: Strong Tailwinds for Power Transmission
The global backdrop for power transmission is exceptionally positive. World electricity consumption is projected to grow by approximately 8,300 TWh by 2027, driven largely by emerging economies. India is at the forefront of this expansion. The nation's current demand of about 1,700 TWh is forecast to jump by over 20% within the same period, fueled by rapid industrialisation and the rising aspirations of a growing middle class.
To support this, India is undertaking a monumental modernisation and expansion of its electrical grid. This positions the country as one of the world's most dynamic and fast-growing power transmission markets, with growth rates significantly outpacing the global average. The government has outlined ambitious plans, including an investment of ₹9.15 trillion in transmission infrastructure by 2032, aligning with renewable energy goals and broader industrial growth.
Stocks Under Pressure: A Closer Look at Four Companies
Despite this favourable environment, select stocks have witnessed steep declines from their 52-week highs. Here is an analysis of four such companies, based on publicly available data. This is not a recommendation but a factual overview of their current situation and strategic moves.
1. Transformers and Rectifiers (India)
This company is a leading manufacturer of high-voltage power transformers and reactors with a global clientele. Its shares have experienced a steep fall, declining as much as 55% from their 52-week high of ₹650.23, reached on 8 January 2025. The stock hit a low of ₹230 on 11 December 2025 before recovering slightly to around ₹294.
Financially, its Q2 FY26 performance showed flat net sales at ₹460 crore, while net profit decreased to ₹37 crore from ₹45 crore year-on-year. Strategically, the company is focusing on backward integration. A key move was acquiring a controlling stake in a CRGO steel processing plant, a critical raw material. It is also establishing a fully automated radiator facility and adding 22,000 MVA to its extra high voltage transformer capacity, with commercial production expected from February 2026.
2. KEC International
A major engineering, procurement, and construction (EPC) player, KEC International derives a significant share of revenue from transmission and distribution. Its stock is down up to 44% from its 52-week high of ₹1,263 (20 December 2024), currently trading near ₹712.
The company's fundamentals appear strong, with a record order intake. As of early November 2025, it secured over ₹16,000 crore in orders year-to-date, marking 20% yearly growth. About 75% of this came from its T&D business. Financially, Q2 FY26 revenue rose to ₹6,091 crore from ₹5,113 crore YoY, and net profit nearly doubled to ₹160 crore. The company is expanding manufacturing capacity in Nagpur, Jaipur, Jabalpur, and Dubai to meet rising domestic and international demand, with a robust total order book and L1 position exceeding ₹44,000 crore.
3. Danish Power
Founded in Jaipur in 1985, Danish Power manufactures a range of transformers for various applications, including renewable energy plants. Its stock has corrected sharply, falling up to 49% from its 52-week high of ₹1,269 (19 December 2024), now trading around ₹651.
The company's operational performance in H1 FY26 was robust, with revenue growing 29% year-on-year to ₹211 crore and net profit jumping 41% to ₹29.3 crore. It held a healthy order book of ₹405 crore as of early November 2025. Danish Power is in the final stages of a capacity expansion project, which upon completion in December 2025, is expected to boost its annual transformer capacity to nearly 11,000 MVA. The management has guided for FY26 revenue between ₹500-550 crore, with a target of ₹750 crore once new capacities are fully utilised.
4. Torrent Power
An integrated power player with experience in generation, transmission, distribution, and cable manufacturing, Torrent Power has seen a relatively moderate decline. Its stock is down up to 22% from its 52-week high of ₹1,640 (16 April 2025), trading around ₹1,279.
The company reported strong Q2 FY26 results, with revenue increasing to ₹7,876 crore from ₹7,175 crore YoY and net profit surging to ₹741 crore from ₹495 crore. It is actively expanding its renewable and conventional portfolio. Notably, it secured a contract for a 1.6-gigawatt coal-based power plant and is progressing on a 367 MWp solar project. Torrent Power also made headlines by implementing India's largest green hydrogen blending project in the city gas distribution sector during Q2 FY26.
Investment Perspective: Caution Amid Opportunity
The substantial corrections in these stocks, against a sectoral canvas painted with growth, present a complex picture for investors. On one hand, the long-term drivers for power transmission in India are undeniably strong, backed by policy thrust and essential demand. Some stocks may appear oversold if their low prices stem from transient factors rather than broken fundamentals.
On the other hand, high valuations in the past and ongoing execution risks warrant a cautious approach. Investors must conduct thorough, independent due diligence. Key factors to evaluate include the company's financial health, quality of corporate governance, order book sustainability, margin trajectory, and current valuations. The sector's potential is clear, but stock selection requires careful analysis of individual company prospects amidst the broader tailwinds.
