Sugs Lloyd targets EHV transmission, storage and RESCO growth

Nov 01, 2026•3 min read

Sugs Lloyd Ltd

SUGSLLOYD

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Sugs Lloyd plans to add extra-high-voltage (EHV) transmission, battery energy storage system (BESS) and renewable energy service company (RESCO) projects to its growth strategy. Management says storage and transmission are over and above its FY28 revenue target of about Rs 1,000 crore, while Sugs Renewables Pvt Ltd was formed in August 2026 to bid for and hold RESCO projects.

How will Sugs Lloyd enter EHV transmission?

Sugs Lloyd plans to enter EHV transmission through 132, 220 and 400 kilovolt (kV) state-utility, central and state substation and line packages. Its proposed route includes work under Green Energy Corridor III and acting as a line or substation subcontractor to tariff-based competitive bidding (TCBC) winners, which management says would help it build an EHV execution record.

The move is a step up from Sugs Lloyd’s existing 33 kV work. In its industry assessment, the company identifies 132 kV and 220 kV state-utility packages as the nearest transmission opportunity, while its broader plan includes 400 kV packages. It cites a Rs 9.15 lakh crore transmission market planned through 2032, driven mainly by renewable-energy evacuation, and a Rs 1.57 lakh crore TCBC bidding pipeline.

Green Energy Corridor III is central to the proposed entry because it shifts the focus to state grids, according to the presentation. The programme has a 135 gigawatt renewable-energy evacuation target by FY33, while its approval on 30 September 2026 included Rs 1.36 lakh crore for intra-state transmission lines and substations. Sugs Lloyd’s stated strategy is to pursue state packages and subcontracting work rather than claim immediate prime-contractor capability across the full pipeline.

What is Sugs Lloyd’s battery storage plan?

Sugs Lloyd plans to bid for BESS tenders initially identified in Rajasthan and Bihar, then increase participation in other states. The presentation places storage after utility-scale solar in its market sequence, with bids for solar-plus-storage hybrid projects aimed at state utilities, public-sector companies and commercial and industrial customers.

The market gap cited by Sugs Lloyd is substantial: India had about 4.7 gigawatt hours (GWh) of installed battery storage in May 2026, against a 236 GWh requirement by 2032. The presentation also records more than 35 GWh of standalone BESS already awarded and more than 29 GWh under bidding. These figures describe market activity rather than orders won by Sugs Lloyd.

Solar is the nearer operating base for this expansion. India had about 171 gigawatts (GW) of solar capacity in September 2026 and needs 365 GW by 2032, according to the company’s market data, with 24.4 GW of utility-scale solar added in January to September 2026. Sugs Lloyd says it will pursue engineering, procurement and construction work for state utilities and public-sector companies, where it identifies execution record as more relevant than project scale.

Why did Sugs Lloyd create Sugs Renewables Pvt Ltd?

Sugs Lloyd set up Sugs Renewables Pvt Ltd in August 2026 as a wholly owned subsidiary to bid for and hold RESCO projects. The stated purpose distinguishes the subsidiary from conventional engineering, procurement and construction activity because it is intended to retain qualifying projects rather than only execute construction contracts for another project owner.

The presentation does not disclose a pipeline, investment amount, capacity target or first award for the subsidiary. It positions the vehicle alongside solar and storage as a growth avenue beyond the current order book of Rs 1,067 crore at 30 September 2026. That order book covered 10 states after Madhya Pradesh was added in the second quarter of FY26.

The subsidiary also sits within a client base dominated by public entities. As of 31 July 2026, government utilities, public-sector companies and central schemes accounted for 91% of Sugs Lloyd’s order book. The company’s stated solar approach is to seek utility and public-sector work, while its RESCO vehicle provides a structure to bid for and hold projects where that commercial model applies.

How do the new businesses fit Sugs Lloyd’s FY28 plan?

Management has set an FY28 revenue target of about Rs 1,000 crore, compared with Rs 300.7 crore in FY26, and has said transmission and storage opportunities are additional to that target. The revenue path presented on the 31 July 2026 earnings call shows growth through the 12 months to September 2026 before the FY28 goal.

Period	Revenue (Rs crore)
FY24	65.1
FY25	176.2
FY26	300.7
Twelve months to September 2026	391.0
FY28 management target	About 1,000

Revenue rose by Rs 124.5 crore between FY24 and FY25, then increased by a further Rs 124.5 crore in FY26. Management has also guided to sustaining earnings before interest, tax, depreciation and amortisation (EBITDA) margin at about 15%, but the presentation does not provide a separate revenue or margin target for EHV transmission, BESS or RESCO activity.

Existing work provides part of the disclosed visibility. The Rs 1,067 crore order book at 30 September 2026 was equivalent to 2.7 times revenue for the 12 months to September 2026; Punjab distribution work was valued at Rs 181 crore over 15 months, and Patna underground cabling for Konkan Railway was valued at Rs 542 crore with completion due by March 2028. Separately, Tata Power Odisha network operations and maintenance began on 1 October 2026 and was stated at about Rs 60 crore a year.

What execution route supports Sugs Lloyd’s expansion?

Sugs Lloyd’s bidding funnel shows Rs 1,260 crore of tenders at the final stage, comprising more than Rs 800 crore in power transmission and distribution, more than Rs 400 crore in solar and BESS, and more than Rs 60 crore in niche products. Management guides to winning 15% to 20% of qualified bids by value, while its expected strike rate is 10% to 15% in a state where it is new.

The strategy links new areas to existing execution locations. For distribution reform, Sugs Lloyd plans to bid for re-tendered work in Bihar, Punjab and Odisha, where it says it already has site teams, before extending into other states. Its market assessment identifies Rs 1.00 lakh crore of sanctioned distribution-reform budget still to be used, alongside 4.4 lakh distribution transformers and 1,100 substations still to be installed.

Conclusion

Sugs Lloyd is pursuing a broader mix of grid and renewable-energy opportunities through higher-voltage transmission packages, BESS tenders, solar-plus-storage work and RESCO assets held through Sugs Renewables Pvt Ltd. The strategy combines a Rs 1,000 crore FY28 revenue ambition with a reported Rs 1,067 crore order book, but the presentation does not assign revenue, capacity or investment targets to each new business.

The next disclosed markers are bid conversion and project execution. Management’s plan calls for BESS participation in Rajasthan and Bihar, EHV work through Green Energy Corridor III and subcontracting routes, and a 15% to 20% qualified-bid strike rate; delivery of the Rs 542 crore Patna cabling project is due by March 2028, while Punjab work is scheduled across 15 months.

Frequently Asked Questions

Sugs Renewables Pvt Ltd is Sugs Lloyd’s wholly owned subsidiary, formed in August 2026. Its stated role is to bid for and hold RESCO projects rather than only execute engineering, procurement and construction contracts. The presentation does not disclose an initial project or capacity pipeline for the subsidiary.

Sugs Lloyd plans to pursue transmission work at 132 kV, 220 kV and 400 kV. It identifies 132 kV and 220 kV state-utility packages as the nearest move from its existing 33 kV work. The company also plans to partner TCBC winners as a line or substation subcontractor.

Sugs Lloyd has identified BESS tenders in Rajasthan and Bihar. Management says it plans to increase participation in other states after these initial opportunities. The company also intends to bid solar-plus-storage hybrid tenders for utilities, public-sector companies and commercial and industrial customers.

Management says transmission and storage are over and above Sugs Lloyd’s FY28 revenue target of about Rs 1,000 crore. The target compares with reported FY26 revenue of Rs 300.7 crore and revenue of Rs 391.0 crore for the 12 months to September 2026. No separate financial contribution target for either new activity is disclosed.

Sugs Lloyd reported Rs 1,260 crore of tenders at the final stage. More than Rs 800 crore was in power transmission and distribution, more than Rs 400 crore in solar and BESS, and more than Rs 60 crore in niche products. Management guides to a 15% to 20% win rate by value for qualified bids, falling to 10% to 15% in states where it is new.