4 Top Smallcap Switchgear Stocks to Add to Your 2026 Watchlist

Some parts of India's power story rarely get attention because they sit behind the scenes. Transformers, cables and meters get the headlines. But tucked between them is a business that quietly keeps everything running switchgear.

It is what decides whether a factory runs smoothly or shuts down in seconds.

Every new metro line, renewable park or data centre depends on it.

As India builds out its next phase of growth in EV charging, industrial automation and grid expansion, demand for reliable electrical control gear is rising sharply.

The numbers tell the story.

India's low- and medium-voltage switchgear market, valued at over Rs 340 billion (bn) today, is expected to double by the end of the decade. Demand from utilities, smart cities and digital infrastructure continues to drive steady order books for manufacturers. Margins have remained stable as companies benefit from better technology, rising exports and energy-efficient product designs.

Here are four smallcap names that stand out. The companies have been shortlisted from the Equitymaster screener based on their market capitalisation, operational track record and direct exposure to the switchgear industry.

For investors seeking quality industrial exposure in a market where value is hard to find, this corner of the power sector may be worth a closer look.

#1 HPL Electric & Power

First on our list is HPL Electric & Power.

HPL Electric & Power manufactures metering systems, switchgear, lighting products and cables across seven integrated facilities in Haryana and Himachal Pradesh. The company serves both institutional and retail markets, supported by a network of over 900 dealers and 85,000 retailers nationwide, giving it strong reach in the low-voltage electrical space.

In FY25, revenue grew 16% year-on-year, driven by healthy growth in metering and low-voltage switchgear. EBITDA margins improved to 15% on better product mix, automation and cost control.

In Q1 FY26, revenues fell 2.5% with EBITDA margins near 15%. The metering business saw a temporary slowdown as utilities adjusted smart-meter rollout schedules, while the switchgear and wires divisions continued to perform well. The order book stood above Rs 30 bn, reflecting steady execution and new tender wins in metering and wires.

Looking ahead, the company plans a Rs 1 bn capex in FY26, focussed on automation and expansion in smart metering, industrial and domestic switchgear and high-growth wires and cables. Management expects the consumer and industrial portfolio to exceed Rs 10 bn in revenue by FY28, supported by continued brand and channel expansion, targeting 100,000 retailers by FY26.

At present, the stock trades around 30 times earnings, a deep discount to its long-term median of 46 times.

To know more about the company, check out its financial factsheet and latest quarterly results.

#2 Shivalic Power Control

Next on our list is Shivalic Power Control.

Shivalic Power Control designs and manufactures low- and medium-voltage switchgear panels used across industries, data centres and infrastructure projects. Its product range includes power control centres, motor control centres, DG synchronization panels, intelligent MCCs and APFC panels built to IEC 61439 and IEC 61641 standards. The company partners with Siemens, Schneider Electric and TDK to deliver fully type-tested systems and serves over 1,500 clients across 13 countries.

FY25 was another strong year. Revenue grew 30% year-on-year, supported by higher orders from industrial and renewable-energy projects. Margins remained steady near 14%, driven by better automation, execution efficiency and export traction. The company's switchgear and control panels account for almost all its revenue, positioning it as one of the few pure-play switchgear manufacturers in the smallcap space.

Looking ahead, the company remains optimistic for FY26. It believes the key growth drivers include a stronger order book from commercial and industrial clients, deeper partnerships with automation OEMs and EPC players and a continued focus on high-margin, value-added panels and automation solutions. Shivalic is also exploring new export markets in neighbouring countries and the Middle East. It is investing in capacity expansion, certifications (ISO/CE/IEC) and digitisation to improve efficiency and competitiveness.

The stock trades near 19 times earnings, in line with its longer term median.

To know more about the company, check out its financial factsheet and latest quarterly results.

#3 Veto Switchgears & Cables

Third on our list is Veto Switchgears & Cables.

Veto Switchgears & Cables manufactures and trades wires, cables, fans, lighting products and low-voltage switchgear such as MCBs, isolators and distribution boards. The company operates through a strong retail network across India and exports to the Middle East and Africa via its Dubai-based subsidiary.

In FY25, revenue rose 12% year-on-year to Rs 3.52 bn, supported by steady demand for switchgear and cables from housing and infrastructure projects. EBITDA margin stood at 10.1%, improving on the back of higher-value product sales and tighter cost control. Switchgear contributes roughly 40-45% of total revenue, making it one of the largest verticals within the portfolio.

Veto is expanding capacity at its Vasai facility and strengthening exports through its UAE operations. The company remains debt-free and continues to generate consistent cash flows. Growth is being driven by retail expansion in smaller cities and steady traction in industrial switchgear.

At current levels, the stock trades at about 20 times earnings, close to its five-year median of 19 times on Screener. The valuation reflects the company's disciplined execution, strong presence in low-voltage electricals and visibility from India's growing urban electrification.

To know more about the company, check out its financial factsheet and latest quarterly results.

#4 Aartech Solonics

Last on the list is Aartech Solonics.

Aartech Solonics designs and manufactures specialised power and control systems used in defence, utilities and industrial automation. The portfolio spans bus transfer systems, control and relay panels and engineered power-electronics solutions that work alongside conventional switchgear.

In FY25, revenue growth came in at about 11% year on year, led by better execution in bus transfer systems and control & relay panels. Management highlights stable to improving gross margins and double-digit operating margin gains in certain product lines, helped by stronger volumes and better fixed-cost absorption. FY25 EBITDA margin stood at 4%.

Looking ahead, the company is leaning into smart-grid and export opportunities. It reported a major Middle East export order in the bus transfer system division and delivered a project for the UK's Global Centre for Rail Excellence, while calling out SAS-compliant panels and smart-grid components as growth areas.

Aartech also set priorities for FY26 that include scaling exports, expanding high-value product categories and pushing innovation through its DSIR-recognised R&D centre.

The stock trades around 66 times earnings close to its 5-year median.

To know more about the company, check out its financial factsheet and latest quarterly results.

In conclusion

Even in an expensive market, fundamentally strong stocks provide an anchor. They balance growth with stability and give investors a margin of safety. The challenge is to look past momentum, separate durable businesses from cyclical bursts and focus on those building value patiently.

Smallcaps can offer outsized returns, but they also carry sharper risks. Order volatility, dependence on a few customers and limited liquidity can all weigh on performance. Valuations may look appealing on paper, yet execution and scale take time to prove.

Investors should focus on financial quality, governance and cash generation rather than near-term price moves. It helps to stagger exposure and track how these businesses deliver on their growth promises over several quarters.

These habits - patience, selectivity and discipline - turn promising small companies into long-term wealth creators.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...