5 Emerging Leaders in India's Infrastructure Story

#2 HG Infra

Second on the list is HG Infra.

Established in 2003, the company has built strong proficiency in EPC and hybrid annuity model (HAM) projects across civil and related infrastructure works.

It has recently diversified into railways, solar power, battery energy storage system (BESS) and transmission projects. The company is present in Maharashtra, Jharkhand, Odisha, Uttar Pradesh, Andhra Pradesh, Gujarat, Rajasthan, etc.

Being an accredited AA-class contractor by the Public Works Department (PWD) of the Government of Rajasthan and a SS-class contractor by the Military Engineer Services (MES), the company enjoys various synergies.

Coming to HG Infra's financials, the company's sales and net profit have grown at a CAGR of 18% and 25% respectively over the past 5 years.

Its ROE and ROCE have averaged 23% and 24% during the same period.

HG Infra Financial Snapshot

The company's portfolio now includes more than 29 active projects spread across 13 Indian states, including 7 rail metro projects. It has an order book of Rs 139.3 bn providing strong growth visibility.

Going forward, HG Infra Engineering aims to secure big ticket transmission and distribution projects.

According to the management, it remains active in the transmission space and continues to participate actively into the upcoming tenders.

In terms of BESS, it has executed a binding agreement with GUVNL and NVVN for a 435 MW/ 870 MW hour project, scheduled for completion in November 2026 and December 2026, respectively.

HG Infra Engineering's future prospects appear good, driven by a strong order pipeline, strategic diversification, and broad infrastructure capex in India.

For more details, check out HG Infra's financial factsheet.

#3 Kirloskar Oil

Third on the list is Kirloskar Oil.

Kirloskar Oil Engines is a leader in the production of internal combustion engines, generator sets, and farm equipment, with a good global presence.

It also produces engines for construction machinery, so it's considered a perfect proxy play to the infra story. It specialises in producing liquid-cooled and air-cooled generator sets with a broad range of power outputs (3kVA to 12,000 kVA).

These are widely used in markets for specialised fishing engines, power tillers, diesel and electric pump sets, and more. With offices in Dubai, South Africa, Kenya, and the US, the company has a robust distribution network.

As far as Kirloskar Oil's financials are concerned, its sales and net profit have grown at a CAGR of 13% and 20% respectively over the past 5 years.

Its ROE and ROCE have averaged 13% and 16% during the same period.

Kirloskar Oil Financial Snapshot

Currently, the company is pursuing its 2B2B strategy, which aims to achieve US $2 bn in consolidated revenue by fiscal 2030.

To support this objective, it has undertaken large-scale capacity additions at its Kagal plants and to expand its presence in the HHP segment and increase capacity utilisation in the B2C segment.

The company also intends to improve its market share in the B2C segment, focus on the industrial segment and explore opportunities in non-internal combustion engine solutions.

For more details, check out Kirloskar Oil's financial factsheet.

#4 Action Construction Equipment (ACE)

Fourth on the list is ACE.

The company holds a dominant share in India's pick and carry crane market (around 63%) and tower crane segment (about 60%), with additional presence in forklifts and tractors in select regions.

It manufactures a wide range of products in house, covering cranes, backhoe loaders, forklifts, and agri equipment.

Its strong tech edge and promoter background has helped it come up with many firsts in India. These include India's first electric crane, self-propelled aerial work platforms, India's largest crane and next generation cranes.

As a core-infra company at heart, it has gone through a lot of cycles. And despite this, the company's balance sheet has not shown signs of stress, which can't be said for many other players.

Over the past five years, its sales and net profit have grown at a CAGR of 24% and 51% respectively.

During the same time, its ROE and ROCE have averaged 20% and 28%.

ACE Financial Snapshot

As India builds out infrastructure, demand for mobile cranes and related equipment will increase.

As a supplier to infra, construction, manufacturing, material handling and agri equipment industry, the company is a beneficiary of the rise in infra investments, capex and domestic manufacturing driven by PLI schemes and China plus one.

In the past two years, the company has undertaken capacity expansion in the crane and material handling segments. The company is also investing in automation and upgrading its products.

With a debt-free balance sheet and healthy liquidity, the company is looking for inorganic growth opportunities in the domestic and export markets, especially in Europe.

For more details, check out ACE financial factsheet.

#5 Elecon Engineering

Last on the list is Elecon Engineering.

Elecon Engineering is among the larger players in industrial gearboxes (about 80% of revenue) and material handling equipment, supplying cement, steel, power, mining, and defence sectors with standard and custom solutions, including specialised gearboxes.

It has a market share of 38-40% with significant manufacturing capacities. The company is present in 95+ countries through a network of distributors, dealers, and customer representatives.

Over the years, the company has widened its product offering and geographical presence in transmission products through in-house development and acquisitions globally.

Moreover, the company benefits from strong design and engineering capabilities, technical collaborations as well as backward-integrated facilities with an in-house foundry.

All of this has helped it bag repeat orders for marine gears from the Indian Navy.

Coming to Elecon's financials, its revenue and profit have grown at a CAGR of 18% and 43% respectively over the past 5 years.

Its ROE and ROCE have averaged 18% and 24% during the same period.

Elecon Engineering Financial Snapshot

The company has an order book of over Rs 20 bn which provides strong revenue visibility.

Going forward, a healthy pipeline of orders in the transmission segment and favourable demand prospects from its end-user industries are expected to drive Elecon's revenue and profit growth.

For more, check out Elecon Engineering's financial factsheet.

Conclusion

As the infra cycle picks pace, the benefits will not just be limited to the infra sector. Think of the additional cement and steel required to build roads, highways, hospitals, and buildings.

A push to the infra sector directly lifts the gross domestic product (GDP) growth because infrastructure investment has a multiplier effect.

Infra companies in a sweet spot. That said, infrastructure stocks could be risker as their fortunes are prone to economic booms and busts. Operations are linked to spending by the government on infrastructure and the expansion plan a company undertakes.

As a result, during times of distress in the Indian economy, government can cut down on investments in infrastructure spending. This can have an adverse impact on infra companies' operations.

To mitigate this risk at certain extent, you could look at companies who have decent export revenues.

As always, do your own research and consider your risk profile while investing.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy investing.

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