India's Power Capex Cycle: 4 Stocks That Reported Strong Q1 FY27 Profit Growth

India's power sector is entering a major investment cycle. To meet rising power demand and support long term decarbonisation goals, CRISIL Ratings expects thermal power capital expenditure to double to nearly ₹2.3 lakh crore over FY26 to FY28, from ₹1.1 lakh crore in the previous three years. The broader spending cycle is also supported by government capex, with FY27 central capital expenditure budgeted at ₹12.2 lakh crore, up 11.5% year on year.

This article looks at four specialised power equipment companies that reported strong Q1 FY27 profit growth. Instead of focusing only on the headline numbers, we look at what is driving the results: order books, product mix, margins, exports and capacity expansion.

Q1 FY27 Performance Summary and Key Drivers

1. Marine Electricals (India) Ltd

Consolidated Net Profit: ₹17.27 Cr (+48.75% YoY) | Revenue: ₹259.16 Cr (+55.20% YoY)

Business model and strategic positioning

Marine Electricals provides custom power distribution and automation solutions for marine, defence, industrial and technology applications. The company built its business around marine and naval defence control systems, but recent growth has been increasingly driven by high value applications, especially custom switchgear for hyperscale data centres.

Growth catalysts and operational outlook

• Large order book: As of June, Marine Electricals has an executable order book of ₹2,073 Cr, providing visibility for revenue across its manufacturing facilities.
• Data centre expansion: Data centre infrastructure now accounts for 35% to 40% of the active execution pipeline. Large contracts, including the ₹141.74 Cr Princeton Digital order, highlight the company's growing presence in this segment.
• Margin expansion: Consolidated EBITDA margin rose 63 bps year on year to 10.47%. The improvement was mainly due to operating leverage, as revenue grew 55.2% while overhead costs increased much more slowly.

2. TD Power Systems Ltd

Net Profit: ₹86.30 Cr (+72.00% YoY) | Revenue: ₹640.00 Cr (+73.00% YoY)

Business model and strategic positioning

TD Power Systems is a major manufacturer of customised AC generators and specialised electric motors. Its equipment is used in steam, gas, hydro and railway applications. Its large export base is helping the company benefit from overseas demand for gas turbine generation, including applications in remote locations and data centres.

Growth catalysts and operational outlook

• FY27 guidance: Management has guided for FY27 revenue of about ₹2,600 Cr, with potential upside, supported by targeted order inflows of around ₹2,800 Cr, or roughly ₹700 Cr per quarter.
• Capacity expansion: The company is spending ₹50 Cr on debottlenecking to raise overall capacity to ₹3,200 Cr by FY28. Management has also discussed a longer term path towards capacity above ₹4,000 Cr.
• 14 to 18 MW niche: TD Power is seeing repeat orders from global gas turbine OEMs in the 14 to 18 MW range. These generators serve off grid industrial power, oil and gas operations and data centre backup in the US, supporting higher EBITDA margins.
• Export driven orders: Exports and deemed exports made up 93% of Q1 FY27 order inflows, or ₹683.6 Cr. The high export mix supports demand diversification, while gross margins remained near 34.7%.

3. Advait Energy Transitions Ltd

Consolidated Net Profit: ₹14.80 Cr (+66.00% YoY) | Order Book: ₹1,330.10 Cr

Business model and strategic positioning

Advait Energy Transitions operates across traditional power transmission EPC and green energy technology. The company supplies products such as Optical Ground Wire (OPGW) and Emergency Restoration Systems and is expanding into Battery Energy Storage Systems (BESS), green hydrogen electrolysers and fuel cell technologies through its partnership with Norway's TECO 2030.

Growth catalysts and operational outlook

• Order book mix: Advait has an order backlog of ₹1,330.1 Cr. Power transmission solutions account for 71%, while renewable and energy transition projects make up 29%.
• Manufacturing margins vs EPC: Advait's standalone manufacturing business delivers EBITDA margins of 15% to 18%+, compared with the 8% to 10% range typically seen in turnkey EPC contracts, partly because EPC contracts include pass through materials.
• ACS wire advantage: Products such as Aluminium Clad Steel (ACS) wires require specialised manufacturing capabilities, making it harder for new competitors to enter. Raw material price changes are largely passed through to customers.
• Dholera expansion: Advait has planned FY27 capex of ₹300 to 350 Cr. The Dholera integrated plant is a key project, with Phase 1 focused on BESS and electrolysers and targeted for commissioning in Q4 FY27.

4. Modison Ltd

Net Profit: ₹33.80 Cr (+600%+ YoY) | EBITDA Margin: 18.52% | Revenue: ₹270.47 Cr

Business model and strategic positioning

Modison manufactures electrical contacts and sub assemblies for low, medium and high voltage switchgear systems. The company has moved beyond basic commodity products and is focusing more on value added high voltage contact assemblies for global and domestic switchgear OEMs.

Growth catalysts and operational outlook

• Raw material pass through: Modison passes through 100% of the change in key raw material prices such as silver and copper, helping protect base gross margins from commodity price movements.
• Higher voltage mix: Profit growth is being supported by higher volumes and a shift towards high and medium voltage components, which earn higher margins than low voltage products.
• Scale driven margin expansion: Q1 revenue more than doubled, rising 101.6% year on year to ₹270.47 Cr, while net profit increased sixfold. Higher volumes are helping spread fixed costs over more sales.

Key Takeaways for Investors

• Higher margin manufacturing: Marine Electricals and Advait Energy are expanding in house manufacturing in areas such as data centres, OPGW and ACS wire, reducing dependence on lower margin contracting work.
• International demand: TD Power's 93% export share in new orders shows the opportunity for Indian capital goods companies in backup power and energy transition markets.
• Capacity build out: Advait's Dholera facility and TD Power's debottlenecking projects provide additional capacity to support order execution through FY27 and FY28.