Four power transmission stocks down up to 55% from 52-week highs

India's 1700 TWh electricity demand is predicted to increase by more than 20% by 2027 due to industrialisation and the ambitions of the country's expanding middle class.

India's power transmission market is expanding significantly due to the country's electrical grid modernisation and expansion, which support its growing industrial base and rising electricity demand resulting from urbanisation and economic growth.

With growth rates much higher than the global average, the nation is one of the most vibrant and quickly expanding power transmission markets in the world.

However, certain stocks in the power transmission sector have seen significant declines, dropping by as much as 55% from their 52-week highs.

Let's discuss four of these stocks. Please note, this is neither a stock recommendation nor a fundamental analysis of these companies.

#1 Transformers and Rectifiers (India)

Transformers and Rectifiers (India) has established itself as a top partner for high-voltage power transformers and reactors for customers worldwide, with three cutting-edge transformer manufacturing facilities.

Its wide range of products includes power transformers up to 500 MVA and 1200 kV class, furnace transformers, rectifier and distribution transformers and speciality transformers for a variety of uses, including locomotive traction, series and shunt reactors, and mobile substations.

The company's shares have fallen as much as 55% from their 52-week highs.

For Q2 FY26, the company's net sales were flat at ₹460 crore. Net profits fell to ₹37 crore from ₹45 crore YoY.

Transformers and Rectifiers (India) reported an average three-year ROE of 12.2% and average three-year ROCE of 22.4%.

The purchase of a controlling interest in a cold-rolled grain-oriented (CRGO) steel processing facility was a crucial strategic decision made during the year by the company.

As CRGO electrical steel makes up almost one-third of transformer raw materials, dependable transformer performance depends on its consistency and quality.

The company’s market position, operational effectiveness, and supply chain management will all improve with this acquisition.

Transformers and Rectifiers (India) is establishing a fully automated radiator facility. Phase 1 of this advanced facility is already operational, with the entire project expected to be completed the next fiscal year.

This facility can manufacture radiators for applications up to 765kV, significantly advancing the company’s backward integration strategy and expanding its capabilities.

Additionally, the company has chosen to add 22,000 MVA to its extra high voltage transformer capacity. Commercial production is anticipated to start in February 2026. With this expansion, the company will be able to produce more than 75,000 MVA.

In the past five trading sessions, Transformers and Rectifiers (India) shares have risen from ₹273.25 to ₹293.85.

The stock touched its 52-week high of ₹650.23 on 8 January 2025 and a 52-week low of ₹230 on 11 December 2025.

#2 KEC International

The company is a top player in the EPC segment, which includes power transmission & distribution, railways, civil and urban infrastructure, etc.

A significant portion of its revenues comes from transmission and distribution (T&D) segment. In fact, the company achieved a record year-to-date (as of early November 2025) order intake of over ₹16,000 crore reflecting a healthy growth of 20% YoY.

Notably, a substantial 75% of this order intake has been secured by the transmission and distribution business across India and the international markets.

The stock has fallen as much as 44% from its 52-week high.

On the financial front, KEC International reported revenues of ₹6,091 crore for Q2 FY26 versus ₹5,113 crore YoY. Net profit of the company jumped to ₹160 crore from ₹85 crore a year ago.

KEC International reported an average three-year ROE of 7.9% and average three-year ROCE of 24.9%.

Moving ahead, the company is expanding its tower manufacturing facilities. It had recently completed capacity enhancements at plants in Dubai, Jaipur, and Jabalpur.

The expansion of KEC International’s Butibori facility in Nagpur is expected to be completed by the end of this year. This will enable the company to meet increasing demand for transmission infrastructure in both the domestic and international markets.

According to the management, the market outlook is still promising globally. With significant transmission projects in progress in Saudi Arabia, the UAE, and Oman, the Middle East remains a major growth engine.

On the international front, the company is looking for opportunities in Africa, the CIS, and the Americas. With a record order book and L1 in T&D of nearly ₹29,000 crore, the management is optimistic of future prospects.

Domestically, the government’s thrust on renewable evacuation corridors, green energy transmission and intraregional interconnections is creating a robust pipeline of opportunities.

With a strong focus on execution, expanding capacity, a robust and diversified order book and L1 of over ₹44,000 crore and the current tender pipeline of over ₹1.8 trillion, particularly in T&D and civil, the company is positioned for growth.

In the past five trading sessions, KEC International shares have dropped marginally to ₹712.4 from ₹720.25.

The stock touched its 52-week high of ₹1,263 on 20 December 2025 and a 52-week low of ₹605.05 on 7 April 2025.

#3 Danish Power

Danish Power was founded in 1985 in Jaipur. The products of the company include power transformers, distribution transformers, hermetically sealed transformers, transformers for solar & wind power plants, inverter duty transformers etc.

The company has ventured into new products to cater to the power industry and started manufacturing control & relay panels with substation automation and power & distribution transformers.

The stock of Danish Power has fallen as much as 49% from its 52-week highs.

For the first half of FY26, the company delivered revenue of ₹211 crore, against ₹163 crore, reflecting a 29% revenue growth on a year-on-year basis. The company reported net profit of ₹29.3 crore in H1 FY26, against ₹20.7 crore last year, a 41% increase in the net profit numbers.

Danish Power reported an average three-year ROE of 27.7% and average three-year ROCE of 38.1%.

At the beginning of November 2025, Danish Power had an order book, ₹405 crore to be executed in the next six to eight months.

The management said they continue to see a healthy inquiry pipeline from key sectors, like renewables, along with transmission in the distribution segment as well.

In terms of its expansion, Danish Power’s first phase of expansion was completed in the first week of October 2025. The second phase, which is the final phase, is expected to be ready by the end of December 2025.

Once fully operational, the company expects capacities to rise close to 11,000 MVA per annum for transformers.

Danish Power is also laying an emphasis on exports. This year, the company is expecting export orders to form 8% to 10% of its sales.

For FY26, the management has indicated revenue between ₹500-550 crore. Once the capacity is fully operational, the company expects revenues of around ₹750 crore.

In the past one-week, Danish Power shares have risen from ₹640.05 to the current market price of ₹651.

The stock touched its 52-week high of ₹1,269 on 19 December 2024 and a 52-week low of ₹599.95 on 9 December 2025.

#4 Torrent Power

Torrent Power has an all-round experience in generation, transmission and distribution of power, with a proven track record of implementing large power projects.

The company is also engaged in the manufacturing of power cables.

The stock of Torrent Power has fallen as much as 22% from 52-week highs.

The company reported revenues of ₹7,876 crore for Q2 FY26 against ₹7,175 crore YoY. The net profits of the company jumped to ₹741 crore from ₹495 crore YoY.

Torrent Power reported an average three-year ROE of 17.6% and average three-year ROCE on similar lines.

In addition to its existing renewable pipeline, a subsidiary of the company received letter of award of 250 mw of FDRE renewable generation from its licensed distribution unit.

Torrent Power has also secured a letter of award from MP Power Management Company for long-term supply of power from new 1.6-gigawatt coal-based power plant at a tariff of ₹5.83 per kWh.

The company recently implemented India's largest green hydrogen natural gas blending initiative within the city gas distribution sector, which was successfully commissioned during Q2 FY26.

With the progressive commissioning of the 367 MWp MSEDCL project, the aggregate installed generation capacity of the company stood at about 5 GW on 30 September 2025, comprising 2.7 GW gas-based capacity, about 1.9 GW renewable capacity and 362 MW coal-based capacity.

The project pipeline as of the end of the September quarter includes 3.6 GW of renewable capacity, 3 GW of pump storage capacity, 1.6 GW of coal plant, and 2 transmission projects at Khavda and Solapur.

In the past five days, Torrent Power shares have remained flat at around the 1,279 levels.

The stock touched its 52-week high of ₹1,640 on 16 April 2025 and a 52-week low of ₹1,188 on 6 October 2025.

Should You Consider Power Transmission Stocks?

Leading companies in India's power transmission space have tailwinds of robust government investments and rising electricity demand.

With plans for ₹9.15 tn in transmission infrastructure by 2032, the sector aligns well with renewable energy goals and industrial growth.

However, high valuations and execution risks warrant caution for investors.

On the other hand, some of these stocks may be oversold or undervalued, especially if their low prices are the consequence of transient circumstances.

Investors should proceed cautiously, in spite of the potential value that some might possess. It’s crucial to carry out thorough and independent research in this sector.

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.

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