As India switches gears to renewable energy, these five switchgear stocks may benefit
Renewable energy generation in India is on the rise, which in turn is raising demand for switchgear and switchboard parts to support grid infrastructure.
Switchgear plays a crucial role in controlling, protecting and isolating electrical equipment to ensure that electricity is distributed safely and efficiently.
Increasing demand for smart switchgear is an upcoming trend in the market, and investors are looking for opportunities for long-term gains.
Here are five switchgear stocks to watch in 2025. These have been filtered using Equitymaster's powerful stock screener – best switchgear stocks in India.
#1 CG Power & Industrial Solutions
Headquartered in Mumbai, CG Power is an 86-year-old engineering conglomerate and a leader in the electrical engineering industry. It has two business lines—industrial systems and power systems. The company provides a comprehensive array of switchgear products. Its product portfolio includes:
These are crucial components for power distribution, protection, and control in the industrial, commercial, and utility sectors.
Also read: As India looks to attract global EV makers, these five companies could win big
The company plans a capacity expansion of switchgears (Nashik) for ₹155 crore.
The board has also approved a greenfield expansion for 45,000 mega volt-amperes (MVA) of power transformer capacity for ₹712 crore, which would increase its overall capacity to 85,000 MVA by FY28.
In the MV switchgear business, the company expanded its presence in the metro segment by securing a 33kV AIS order for projects in Bhopal, Indore, and Agra. It operates world-class switchgear manufacturing facilities at Nashik and Aurangabad in Maharashtra.
Revenue increased at a compounded annual growth rate (CAGR) of 39.5% over the past three years, while net profit has grown slowly since FY22. The company maintained strong financial health, with an average return on equity (RoE) of 45.9% and return on capital employed (RoCE) of 53.8%.
#2 GE Vernova T&D India
GE T&D is the listed entity of GE's Grid Solutions business in India. It builds power transmission and distribution infrastructure, and has a product portfolio comprising the entire range of transmission equipment up to EHV (765 kV and beyond), including AIS and locally manufactured power transformers and GIS.
The company offers products for the power industry, including power transformers, circuit breakers, switchgear, instrument transformers, substation automation equipment, digital software solutions and more.
It manufactures electricity distribution and control apparatus for switching or protecting electrical circuits – switches, fuses, voltage limiters, surge suppressors, junction boxes, etc. This contributes 23.7% of the company's revenue.
Revenue has been flat over the past three years, while the company recorded a strong bottom line in 2024 after a bout of losses. It has an average RoE of 4.9% and RoCE of 10.6%.
#3 Voltamp Transformers
Voltamp Transformers is a Baroda-based company that primarily manufactures various types of oil-filled power & distribution transformers of various classes.
It has two main business segments:
Its clients include companies in the power, oil refinery, textile, chemical, real estate, automobile, infrastructure, and steel sectors. These include Larsen & Toubro, TECHNIP, Thyssenkrupp, Toyo, Petrofac, Engineers India, Tata Projects, Thermax, Siemens, ABB, GE and Hitachi.
The company has four manufacturing facilities in Gujarat with a total installed capacity of 14,000 MVA.
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Revenue increased at a CAGR of 32.7% over the past three years, while net profit grew at a CAGR of 39.9%. The company has maintained strong financial health, with an average RoE of 18.3% and RoCE of 23.9%.
#4 HPL Electric & Power
The companyis a leading electrical equipment manufacturer in India, with a significant presence in five product verticals – metering solutions, modular switches, switchgears, LED lighting, and wires& cables.
It is the largest manufacturer of on-load change-over switches, with a50%market share in India. It also has a 20% sharein domestic electric meters, and 5% in LV switchgear.
The company has seven manufacturing facilities in Gurugram, Jabli, Kundli & Gahraunda.It has an order book of more than ₹3,500 crore as of 20 May.
Revenue grew 16.39% and domestic switchgear grew 16% in FY25.
Revenue grew at a CAGR of 18.6% over the past three years, while net profit grew at a CAGR of 63.3%. The company maintained strong financial health, with an average RoE of 3.4% and RoCE of 13.9%.
#5 RMC Switchgears
Incorporated in 1994, RMC Switchgears is in the business of switchgear engineering and early contractor involvement (ECI) contracts for the power distribution/transmission sector. Its manufacturing facilities are located at Badodiya, with an installed production capacity of 36,000 MT.
RMC Switchgears caters to diverse industries including railways, electrical, utility, aerospace, automotive, roads & highways, oil & gas, chemical processing, and cooling towers.
The company is developing innovative products such as advanced metering infrastructure and distributed automation systems. These are designed to minimise transmission losses and enhance the efficiency of India's evolving electrical infrastructure.
It is also focusing on products such as smart meter enclosures and distribution boxes for various transformers.
Revenue grew at a CAGR of 57.2% over the past three years, while net profit grew at a CAGR of 221.1%. The company has maintained strong financial health, with an average RoE of 17.5% and RoCE of 27.9%.
Also read: Top 5 precision engineering stocks in India to add to your watchlist
Conclusion
Switchgear companies play a critical role in India's energy transition, electrification push, and infrastructure upgrades. Investors could consider these stocks based on the company's market position, scalability, and future growth. It's important, however, to keep in mind the risks of margin volatility, policy execution, and competitive differentiation. Thorough research on financials and corporate governance is vital before making any investment decisions to ensure they align with your financial goals and risk appetite.
Happy investing!
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
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