SYNOPSIS: India’s Rs. 9.16 lakh crore power transmission expansion plan is creating opportunities across the grid ecosystem, with several small-cap companies in transformers, HVDC equipment, and transmission infrastructure positioned to benefit from rising power demand.
In 2025, India successfully met a record peak power demand of 242.49 GW, while reducing the national energy shortage to just 0.03 percent in FY26. These developments highlight the sector’s growing strength and its continued focus on improving reliability while supporting sustainable growth.
At the same time, the government has been working to improve energy efficiency, strengthen infrastructure, and expand access to electricity across the country. Efforts such as universal electrification, improved power availability in rural areas, and the adoption of advanced technologies have played an important role in improving the overall power ecosystem. These initiatives are aimed at ensuring that electricity remains reliable, affordable, and accessible while supporting India’s broader energy transition goals.
To support the country’s rising power demand, the Government of India has finalised the National Electricity Plan (NEP) for 2023-2032, covering both central and state transmission systems. The plan aims to meet a projected peak demand of 458 GW by 2032, with a total planned investment of Rs. 9.16 lakh crore. Under the previous plan for 2017-2022, the country added around 17,700 circuit kilometres (ckm) of transmission lines and 73 GVA of transformation capacity annually.
Under the new roadmap, India’s transmission network is expected to expand from around 4.98 lakh ckm as of November 2025 to about 6.48 lakh ckm by 2032, under the new roadmap. During the same period, transformation capacity is projected to increase from 1,398 GVA to 2,345 GVA, while inter-regional transfer capacity is expected to rise from 120 GW to 168 GW.
The plan focuses on transmission networks of 220 kV and above and is designed to support rising electricity demand while enabling the integration of renewable energy and green hydrogen-related loads into the grid. Following are the three small-cap stocks that are quietly powering India’s energy future and can capitalise on this planned opportunity of Rs 9.16 lakh crores:
Atlanta Electricals Limited
With a market cap of Rs. 7,592.4 crores, the stock closed in the red at Rs. 987.35 on BSE, down by over 5 percent on Friday. Atlanta Electricals Limited is among India’s leading manufacturers of power, auto, and inverter-duty transformers. Its product portfolio spans a wide range, from 5 MVA/11 kV units to large 500 MVA/765 kV transformers, including power, auto, inverter-duty, generator, and furnace transformers.
In addition, the company specialises in manufacturing transformers customised to client-specific requirements. As of 31st December 2025, the company has supplied 4,710 transformers, totalling to 1,07,229 MVA, across the country.
The company’s order book stood at an all-time high of Rs. 2,451 crore as of December 2025. Order inflows during Q3 FY26 totalled Rs. 796 crore, including a Rs. 298-crore contract from GETCO for 25 high-capacity transformers, underscoring a three-decade partnership. It also secured a Rs. 134-crore order from Adani Green Energy Limited for inverter duty transformers.
Atlanta currently operates 5 manufacturing facilities with a combined capacity of 63,060 MVA, marking a fourfold increase from 16,000 MVA over the past 18 months.
From an operational standpoint, the Vadod facility in Gujarat contributed roughly one-third or nearly Rs. 160 crores to the revenue of Q3 FY26, while operations at Atlanta Trafo have commenced. This Vadod facility has an installed capacity of 30,540 MVA (the highest amongst the 5 facilities). The plant is spread across 1,798.4 square meters and is involved in the manufacturing of power transformers, generator transformers, and special-duty transformers.
Atlanta currently has an active bid pipeline of nearly Rs. 10,000 crore, with a historical order conversion rate of around 10-15 percent. Management expects quarterly order inflows to remain in the range of Rs. 600-700 crore.
Looking ahead, management indicated that the major investment phase is largely complete, with focus shifting towards improving capacity utilisation to drive operating leverage. It also aims to sustain a strong revenue growth trajectory of at least 40 percent YoY.
Quality Power Electrical Equipment Limited
With a market cap of Rs. 6,033 crores, the stock closed in the red at Rs. 779 on BSE, down by around 6 percent on Friday. As per the December 2025 shareholding pattern, the ace investor Ashish Kacholia, through his investment firm Bengal Finance and Investment Pvt Ltd, holds a total of 1.55 percent stake in the company.
Quality Power Electrical Equipments Limited is engaged in the business of manufacturing power products and providing services in the areas of power generation, power transmission, power distribution and power automation. It is among the few global manufacturers of critical high voltage equipment for High Voltage Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS) networks.
As of Q3 FY26, the company holds an order book of exceeding Rs. 895 crores with contributions from Quality Power Group. As part of its plan, expansion projects are underway at its Sangli and Cochin facilities, while a new expansion is also being planned at its Bhiwadi plant in Mehru. The Bhiwadi project includes the installation of 4 new autoclaves and the relocation of non-critical storage to a dedicated warehouse.
These initiatives together are expected to increase the company’s overall plant capacity by around 45 percent. To support these expansion plans, the Board has approved capex investments backed by a strong order backlog of about Rs. 895 crores across the Quality Power Group.
The Cochin plant is also set to undergo a capacity expansion aimed at doubling its manufacturing capability. The expansion aligns with the company’s focus on HVDC systems and FACTS projects, where demand is expected to grow. The required capex for this initiative has been approved by the Board, and the project is expected to be completed by November 2025.
Skipper Limited
With a market cap of Rs. 3,894 crores, the stock closed in the red at Rs. 344.95 on BSE, down by around 2 percent on Friday. Skipper Limited is engaged in the manufacturing and selling of transmission & distribution structures (towers & poles), telecom towers and fasteners under its engineering products segment and PVC, HDPE, CPVC, UPVC, SWR pipes & fittings, water tanks, bath fittings and other related products, being its polymer segment. It is also involved in the execution of EPC services under its infrastructure segment.
As of Q3 FY26, the company’s order inflows during the period stood at Rs. 1,429 crore, led by Power Grid and key export markets, taking the order book to an all-time high of over Rs. 9,000 crores ($1 billion), with a bidding pipeline of over Rs. 27,000 crores (~$3 billion). This provides multi-year revenue visibility and positions the company strongly for accelerated growth.
To support growth, the company has made 75,000 MTPA of new capacity fully operational, which is expected to strengthen exports and help maintain capacity utilisation above 85 percent. A further 75,000 MTPA capacity expansion is currently underway, with the company targeting a total capacity of around 4.5 lakh MTPA by the end of FY26.
Looking ahead, the company expects strong tailwinds in the power T&D sector, supported by a record order backlog and expanding global presence. Based on current momentum, the company aims to deliver another record year with stronger performance in the upcoming quarter.
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