Power transmission stocks: Citi flags 3 buys in 2026

Citi initiation lifts power transmission equipment makers

Shares of power transmission equipment makers rose sharply on Thursday after Citi initiated coverage on the space with bullish views on multiple listed players. The broker started with Buy ratings on Hitachi Energy India, GE Vernova T&D India and CG Power, setting fresh target prices that implied meaningful upside from recent levels. The move added momentum to a broader rally in power and transmission names that has been building on expectations of grid upgrades and higher capex. Investors also tracked company commentary and order book disclosures that point to multi-quarter visibility for key suppliers.

In the BSE Power index, several constituents extended gains, with a set of stocks touching all-time highs during the session. The market action underscored how quickly sentiment can shift in capital goods and grid-facing companies when new coverage, targets, and sector policy cues arrive together.

Hitachi Energy India leads BSE Midcap gainers

Hitachi Energy India jumped 5.6% to Rs 37,175 by around 11:45 am, making it the top gainer on the BSE Midcap index. Separately, the stock also hit a fresh intraday high of Rs 35,495, surpassing its previous high of Rs 35,094 recorded on May 8, 2026. The stock’s strength has been linked to sustained investor interest in HVDC and large transmission buildouts, where long-dated project pipelines can support elevated order visibility.

After its January to March quarter results for FY26 (Q4FY26), Hitachi Energy India reiterated a multi-year growth outlook tied to rising power demand, renewable integration, electrification, and data centre expansion. The company said its total order backlog surged to Rs 29,555 crore in Q4FY26, which it cited as supporting revenue visibility for several quarters.

GE Vernova T&D and CG Power also gain

GE Vernova T&D India Ltd. shares gained nearly 5% to Rs 5,021, and touched an intraday high of Rs 5,045, as investors continued to price in its positioning in power transmission infrastructure. In other reports from the day’s trading, GE Vernova T&D India was also cited as rallying about 9% to around Rs 4,800 in intraday deals.

CG Power and Industrial Solutions traded higher as well, with reports indicating gains of more than 4% during the session. ABB India and other power equipment names were also cited among the day’s gainers, reflecting broad-based buying rather than a single-stock move.

Citi’s ratings and target prices

Citi initiated coverage on Hitachi Energy India with a Buy rating and a target price of Rs 46,700 per share. One cited note described this as implying 25% upside, while another described the same target as implying about 32% upside from the previous close. Citi also started coverage on GE Vernova T&D India with a Buy rating and a target price of Rs 6,200, and on CG Power with a Buy rating and a target price of Rs 1,100.

Among preferred picks, Citi ranked Hitachi Energy India ahead of GE Vernova T&D India, followed by CG Power and Siemens Energy India. Beyond the Citi calls, investor focus remained on the broader theme of transmission upgrades and the next leg of electrification-driven infrastructure additions.

Multiple broker views shape the narrative

The day’s action came alongside several other brokerage initiations and updates on the power equipment space. IDBI Capital initiated coverage on Hitachi Energy India with a Buy rating and a price objective of Rs 35,001, stating that the target implied potential upside of 15.4% from recent closing prices. A separate initiation cited Hitachi Energy India’s HVDC positioning, including over Rs 20,000 crore of order traction in HVDC projects and a 48% share of India’s operational HVDC capacity.

JP Morgan also initiated coverage on the power equipment space, citing a decadal upcycle driven by renewable-led grid expansion, rising electrification, and global demand tailwinds. It initiated Overweight on Hitachi Energy India with a target price of Rs 29,000 and on GE Vernova with a target price of Rs 4,300.

Motilal Oswal initiated coverage on CG Power and Industrial Solutions with a target of Rs 900, and on GE Vernova T&D India with a target of Rs 4,750. It also initiated on Atlanta Electricals with a target of Rs 1,650.

All-time highs across the BSE Power index

Six out of 15 stocks from the BSE Power index were cited as hitting their respective all-time highs, including Adani Power, Bharat Heavy Electricals (BHEL), CG Power and Industrial Solutions, GE Vernova T&D India, Hitachi Energy India and Siemens Energy India. The list points to breadth in the rally, spanning generation, heavy engineering, and T&D-linked equipment.

Power stocks were also reported to have surged up to 9% in parts of the broader run-up, supported by strong earnings, rising capex and transmission upgrades. On one of the strong sessions, the BSE Power index rose nearly 2% during the day, outperforming the broader market.

Policy tailwind: proposal to shift 33 kV network

A key policy headline in the background was the Ministry of Power’s proposal to transfer the 33 kV network from DISCOMs to State Transmission Utilities (STUs). The stated aims include improving planning and coordination, reducing electricity losses, and increasing supply reliability. Market participants have viewed the proposal as a potential structural boost for the transmission and distribution segment, given the scope for network strengthening and better execution accountability.

Valuations and the caution flags investors are watching

While optimism has been strong, the sector has also carried cautionary notes on valuation. Reports cited that current valuations for many players reflect the strong outlook, with many trading at high P/E multiples: CG Power around 110, GE Vernova T&D India near 97 to 101, and Hitachi Energy India over 150. One view also referenced an upgrade to Neutral on Hitachi Energy India with a target implying a 7% downside, highlighting that not all coverage is uniformly positive.

Key data points at a glance

Why this matters for the transmission capex cycle

The transmission and distribution sector is projected to enter a multi-year expansion, linked to India’s National Electricity Plan (NEP) for FY23-32. The plan outlines an investment pipeline of Rs 9 trillion, or about Rs 900,000 crore, into transmission infrastructure to strengthen the national grid and integrate rising renewable capacity. Reports noted that the investment cycle, which began in FY22-23, has already supported growth in order books, revenues and profit margins for industry participants.

For investors, Thursday’s move showed how brokerage initiations can act as a near-term catalyst when they align with visible order backlogs, sector policy signals, and a broader market narrative around electrification and grid upgrades.

Conclusion

Citi’s coverage initiation and Buy calls on Hitachi Energy India, GE Vernova T&D India and CG Power helped trigger strong gains across power transmission and equipment counters, alongside a wider rally in the BSE Power index. With Hitachi disclosing a Q4FY26 order backlog of Rs 29,555 crore and policy discussions underway on shifting the 33 kV network to STUs, the sector remains closely watched for further signals on capex execution and order inflows. The next set of company updates and broker notes is likely to keep attention on HVDC-linked plays and broader transmission upgrade themes.