5 Smallcap Power Transmission Stocks Poised to Benefit from Government's Rs 9.2 Trillion Plan

India's power sector is like a mighty river, growing stronger and faster as tributaries of innovation and infrastructure merge into its flow. This surge is fuelled by the government's ambitious plans to transform the nation's energy landscape.

With the recently finalised National Electricity Plan 2023-2032, the country is gearing up to meet a peak electricity demand of 458 GW by 2032.

By 2032, India's transmission network will expand from the current 4.9 lakh circuit kilometer (ckm) to a massive 6.5 lakh ckm, while the transformation capacity will nearly double, rising from 1,251 GVA to 2,342 GVA.

To enhance grid efficiency, nine new High Voltage Direct Current (HVDC) lines with a capacity of 33.3 Giga Watt (GW) will supplement the existing 33.5 GW network. Additionally, the inter-regional transfer capacity will increase significantly, from 119 GW to 168 GW.

The plan, covering systems of 220 kV and above, is an engineering feat with an estimated investment of Rs 9.2 trillion. It aims to meet rising electricity demands, integrate renewable energy sources, and support green hydrogen initiatives.

This comprehensive plan is set to unlock massive opportunities for the power sector. Companies involved in power transmission projects are poised to reap substantial benefits.

In this article, we talk about five promising small-cap power transmission companies that are undertaking pivotal projects and stand to gain significantly from the government's bold initiatives.

#1 Skipper

First on the list is Skipper.

Skipper is one of the world's largest integrated transmission tower manufacturers. It specialises in angle rolling, tower production, accessories, fastener manufacturing, and EPC line construction. The company has the largest manufacturing capacity in India and is among the top 10 globally.

Skipper offers its customers a full-range-cum-diverse product basket ranging from 66 KV to 800 KV Towers (single circuit, double circuit, multi-circuit towers suitable for twin, triple, quad or hex conductor configurations). It also offers tower materials as per Indian as well as international material grades ranging from BSEN to ASTM to GOST.

The company aims to achieve a revenue milestone of Rs 100 billion (bn) by FY29. This target represents a significant increase from its FY24 revenue of Rs 32.8 bn, indicating a compound annual growth rate (CAGR) of approximately 25% over the next five years.

To support this growth trajectory, Skipper plans to double its tower manufacturing capacity from the current 3 lakh metric tonnes per annum (MTPA) to 6 lakh MTPA. This expansion is expected to require an investment of around Rs 8 bn over the next four to five years.

Overall, Skipper's comprehensive expansion plans are aligned with India's National Electricity Plan 2023-2032, positioning the company to benefit from the government's substantial investments in power transmission infrastructure.

During Q2 FY25 Skipper reported its best-ever second-quarter revenue of Rs 11.1 bn, reflecting a 44% growth year-on-year (YoY). This significant growth was driven by strong performance in its engineering segment.

The company's net profit rose 63.4% to Rs 1.1 bn, with operational margins improving to 10.1% from 9.5% in the previous year.

Skipper's order inflow during the quarter stood at Rs 16.6 bn, including key contracts from Power Grid Corporation (PGCIL) and state electricity boards (SEBs).

The current order book, valued at Rs 65.9 bn, marks the highest in the company's history, with a 2.3x book-to-sales ratio for engineering and infra projects.

Skipper's focus on power transmission, coupled with diversification into related sectors, sets the stage for sustained growth and a strong contribution to India's evolving energy infrastructure.

For more details about the company, you can have a look at the Skipper fact sheet and quarterly results on our website.

#2 Bajel Projects

Next on the list is the subsidiary of Bajaj Electricals - Bajel Projects.

Bajel Projects is a leading company in the business of power infrastructure, with a strong presence in the power transmission and power distribution sectors.

Its power transmission business has executed more than 7,000 circuit kilometers (ckm) of extra high voltage transmission lines. It has also executed more than 40 extra high voltage AIS/GIS substation projects providing electricity to millions (m) across the country.

It has more than 25 projects under execution with various states, central, and private utilities. It's executing major projects like the 765 kV Beawar-Mandsaur line in Rajasthan and Madhya Pradesh, the Halvad-Vataman line in Gujarat, and the Maharanibagh-Narela line in Rajasthan.

These projects, focused on renewable energy integration and grid expansion, showcase Bajel's expertise in high-voltage transmission.

Last month, Bajel entered the fast-growing data center sector, securing its first contract to build a 220/33kV GIS substation and extend transmission lines for a colocation data center in Navi Mumbai.

This strategic move leverages Bajel's EPC expertise to meet the rising demand for digital infrastructure while maintaining its commitment to quality and efficiency.

The company achieved total revenue from operations of Rs. 6.6 bn in Q2 FY25 as compared to Rs 2 bn in the same period last year, a growth of 231%. It reported a PAT of Rs 36.6 m in Q2 FY25, compared to a loss of Rs 44.4 m in the same quarter last year.

The strong performance was driven by the continued focus on executing a robust order book. While progress has been made, the company acknowledges there is still a long way to go.

Moving ahead, the focus will be on building a strong organisational foundation, improving efficiency, achieving execution excellence, and managing risks proactively.

For more details about the company, you can have a look at the Bajel Projects fact sheet and quarterly results on our website.

#3 Advait Infratech

Next on the list is Advait Infratech.

Its core expertise is in manufacturing and supplying essential components like stringing tools, OPGW, OFC cables, ACS, ERS, and OPGW joint boxes for the power transmission sector.

With strong EPC capabilities, it transforms these products into complete solutions for the transmission and telecom industries.

Advait Infratech is making strategic moves to support India's ambitious power transmission and energy transition goals. In November 2024, it won a Rs 67 m contract for emergency restoration systems in Jammu & Kashmir, aimed at enhancing grid reliability.

In August 2024, it was awarded a Rs 2 bn project from the Solar Energy Corporation of India (SECI) under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme (Tranche-II) to manufacture 200 MW of alkaline electrolysers, which supports the nation's green hydrogen push.

For the Q2 FY25 Advait Infratech's revenue from operations fell to Rs 461.9 m from Rs 489.5 m in the same quarter last year, while profit after tax (PAT) declined to Rs 40.3 m from Rs 55 m. This quarterly dip indicates some short-term challenges.

However, for the half-year ending 30 September 2024, revenue rose to Rs 1,060 m from Rs 764 m last year, a 38.7% increase. Similarly, half-year PAT climbed to Rs 94 m, up from Rs 68.9 m, reflecting steady long-term growth despite the quarterly slowdown.

For more details about the company, you can have a look at the Advait Infratech fact sheet and quarterly results on our website.

In October 2024, Advait rebranded itself as Advait Energy Transitions.

#4 Jyoti Structures

Next on the list is Jyoti Structures.

Jyoti Structures focuses on infrastructure for transmitting extra high-voltage electric power.

The company delivers turnkey projects that include designing, testing, manufacturing, erecting, and commissioning transmission lines, substations, and power distribution systems in India and abroad.

Its towers and structures support power transmission grids, ensuring electricity reaches consumers across homes, offices, schools, farms, and industries.

Jyoti Structures is actively advancing its role in India's power transmission sector with several major project wins that align with the government's ambitious infrastructure goals.

In July 2024, it secured a Rs 1.2 bn contract for a 111-km transmission line for Adani Energy Solutions under the Khavda Phase IV project.

In October 2024 it won a Rs 4.5 bn turnkey project for the Bhuj II-Lakadia line, also for Adani. Apart from this, it has also won similar orders from other private developers in 2024.

In Q2 FY25, Jyoti Structures' total income increased to Rs 1,092.9 m, up from Rs 843.6 m in the same quarter last year. However, this revenue increase was offset by a significant rise in expenses, which climbed to Rs 102.6 m from Rs 731.6 m in the previous year's quarter.

Higher material costs and subcontracting expenses contributed to the expense surge, driven by the scale of ongoing projects. As a result, despite higher income, net profit declined.

Profit after tax dropped to Rs 70.6 m, down from Rs 111.9 m, as increased costs impacted overall profitability.

For more details about the company, you can have a look at the Jyoti Structures fact sheet and quarterly results on our website.

#5 Viviana Power Tech

Last on the list is Viviana Power Tech.

Viviana Power Tech, founded in 2014, focuses on serving clients in the power transmission sector, along with distribution and industrial EPC. Established by directors Nikesh Choksi and Richi Choksi, the company completed 40 power transmission projects within five years, valued at over Rs 400 m.

Viviana currently manages additional projects worth more than Rs 350 m. It's actively expanding power transmission projects, aligning with India's infrastructure goals.

The company has contracts with major entities like Dakshin Gujarat Vij Company (DGVCL), Gujarat Energy Transmission Corporation (GETCO), and Madhya Gujarat Vij Company (MGVCL), focusing on projects up to the 400 kV system.

For the half year ending 30 September 2024, Viviana Power Tech reported revenue from operations of Rs 481.1 m, a substantial increase from Rs 232.2 m in the same period last year.

Net profit after tax for the half year rose to Rs 44.9 m, up from Rs 25 m in the previous year, driven by improved operational efficiencies and effective cost management.

Viviana Power Tech's current order book stands at over Rs 2.36 bn, including both ongoing projects and new contracts received. The company is also the lowest bidder (L1) in multiple projects with various DISCOMs, reflecting a strong pipeline of potential contracts.

For more details about the company, you can have a look at the Viviana Power Tech fact sheet and quarterly results on our website.

Conclusion

India's power transmission sector is poised for an unprecedented transformation backed by big investment of Rs 9.2 trillion.

This ambitious initiative aims to scale up the country's transmission capacity from the current 2,530 GVA to 900 GW by 2032, a nearly fivefold increase. The plan is pivotal to meeting India's future energy demand and achieving its renewable energy targets.

By 2032, the country's transmission infrastructure will integrate 500 GW of renewable energy into the grid, including offshore wind, solar, and hydro projects.

The initiative includes the construction of high-capacity inter-state transmission systems, with an expected 50 GW already approved and under execution.

These advancements aim to ensure seamless power flow across regions while accommodating the demands of green hydrogen and green ammonia industries.

In the first phase alone, 85 GW of projects are under construction, with 75 GW in the bidding stage and another 82 GW awaiting clearance. This rapid development reflects the government's urgency in expanding the grid to support India's energy transition.

For small-cap companies like Skipper, Bajel Projects, Advait Infratech, Jyoti Structures, and Viviana Power Tech, these developments present unparalleled opportunities.

These firms are securing significant contracts and scaling operations to align with the government's goals, particularly in the high-voltage transmission and renewable energy integration domains.

This massive investment drive signals strong growth potential for the power transmission sector, making it an attractive avenue for investors.

However, success in this space will depend on strategic execution, careful risk management, and a thorough understanding of the sector's evolving landscape. With the right approach, power transmission stands out as a transformative force in India's energy future.

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Happy Investing.

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