Power Infrastructure Sector: India'S Renewable Energy Revolution And Epc Dynamics

Executive Summary

The Indian Power Infrastructure sector, particularly within renewable energy, is experiencing an unprecedented growth phase, driven by ambitious national targets, robust policy support, and rapidly improving economics of solar technology. India's non-fossil fuel capacity has already surpassed 250 GW and is aggressively targeting 500 GW by 2030, with solar energy poised to contribute over 280 GW to this goal. This translates into a multi-year growth opportunity across the entire solar value chain, encompassing project development, EPC (Engineering, Procurement, and Construction), module manufacturing, and the burgeoning energy storage segment.

The EPC services demand in the solar sector is projected to grow from Rs. 605 billion in FY2023 to Rs. 1,705 billion by FY2028, reflecting a robust 23% CAGR. Similarly, the O&M (Operations & Maintenance) market for solar is expected to expand from Rs. 16.8 billion in FY2023 to Rs. 73.0 billion by FY2030, also at a 23% CAGR. Battery Energy Storage Systems (BESS) are emerging as a critical growth area, with government targets of 200 GWh by 2030 and significant budgetary allocations under VGF schemes.

Leading players like Waaree Renewable Technologies Limited and Solarworld Energy Solutions Limited are at the forefront of this transformation. Waaree, an asset-light EPC leader, demonstrates strong financial performance with H1 FY2026 revenue growth of 81.12% YoY and PAT growth of 148.21% YoY, maintaining healthy margins (EBITDA ~20%, PAT ~15%). The company leverages its 15 years of EPC experience, strong parentage (Waaree Energies, a Tier 1 module manufacturer), and a robust unexecuted order book of 3.48 GWp as of October 2025. Waaree is strategically diversifying into international markets, data center EPC, cooling solutions, and transmission substations, while also expanding its IPP and O&M portfolios.

Solarworld, while also a prominent EPC player, is pursuing a strategy of deep backward integration across the solar value chain, including TOPCon solar module, G12R solar cell, BESS, and junction box manufacturing. This integration aims to provide end-to-end solutions, enhance margins, and mitigate supply chain risks. The company reported exceptional Q1 FY26 revenue growth of 202.3% YoY and PAT growth of 386.7% YoY, with FY25 PAT margins close to 15-16%. Solarworld's current order book stands at Rs. 2,500 crores as of July 2025, with significant execution expected in FY26. The company is well-capitalized post-IPO and is poised to capture substantial growth in the BESS market.

Both companies highlight the immense opportunities driven by government initiatives like PM Surya Ghar Muft Bijli Yojana, PM Kusum Yojana, PLI schemes, and the ALMM mandate, which collectively foster domestic manufacturing and widespread solar adoption. Key risks include intense competition, geopolitical uncertainties for international expansion, and supply chain constraints, though both companies are actively managing these. The sector is set for sustained, high-growth trajectory, with innovation in technology and integrated solutions defining the competitive landscape.

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A. Industry Overview & Market Landscape

The Power Infrastructure sector in India, particularly its renewable energy segment, is undergoing a profound transformation, positioning itself as a global leader in sustainable energy transition. The market is characterized by ambitious national targets, significant government support, and a rapidly evolving technological landscape.

Total Addressable Market Size And Growth Rates

India's commitment to clean energy is underscored by its non-fossil fuel capacity, which has already exceeded 250 GW. The nation has set an aggressive target to achieve 500 GW of non-fossil fuel capacity by 2030, a goal that necessitates substantial and continuous investment in renewable energy infrastructure. Solar energy is projected to be the cornerstone of this target, aiming for 280 GW of solar capacity by 2030, representing over 60% of India's planned renewable energy mix. This also aligns with India's carbon neutrality goal by 2070.

As of September 2025, India's cumulative solar capacity stood at 127.33 GW. This figure has seen remarkable growth, rising from 74.3 GW in January 2024 to 119.0 GW in July 2025, and further to 127.33 GW by September 2025. The country added a significant 21 GW in the last six months (H1 FY26) alone. Projections indicate that India is expected to add 40 GW to 50 GW in renewable energy annually, with solar playing a major role.

Specific solar capacity addition projections are highly optimistic:

• FY2024: 15 GW
• FY2025: 23 GW
• FY2026 (Projected): 26-28 GW
• FY2027 (Projected): 30-32 GW
• FY2028 (Projected): 38-40 GW
• FY2029 (Projected): 42-44 GW
• FY2030 (Projected): 46-48 GW