Best Electrical Equipment Stocks to Invest in Jan, 2026

What are Electrical Equipment Stocks?

Electrical Equipment stocks represent shares of companies involved in manufacturing and supplying electrical components such as transformers, switchgear, cables, and power distribution equipment. The performance of these stocks is influenced by factors like infrastructure development, government policies on electrification, industrial demand, and technological advancements in energy efficiency.

Electrical Equipment stocks benefit from India’s rapid urbanisation, increased industrialisation, and initiatives like the Production-Linked Incentive (PLI) scheme, which supports domestic manufacturing. 

A major growth phase for Electrical Equipment stocks occurred between 2021 and 2023, driven by government investments and private sector demand. Companies like Havells India and Siemens India saw stock price appreciation as the government pushed for smart grids and renewable energy integration.

In 2023, India’s power sector investment surged by ₹1.3 lakh crore, boosting demand for electrical equipment. Additionally, the expansion of metro projects and industrial parks increased the need for power distribution systems, further enhancing the sector’s long-term potential.

Why You Should Invest in Electrical Equipment Stocks?

You should invest in Electrical Equipment Stocks for 4 main reasons. The reasons are Rising Power Demand, Government Initiatives, Infrastructure Growth, and Technological Advancements.

• Rising Power Demand: India’s increasing electricity consumption, driven by industrial expansion and urbanisation, boosts demand for electrical equipment. In FY2023, India’s power demand grew by 8.5%, benefiting companies like Havells India, which saw a 15% stock increase due to higher sales of transformers and switchgear.
• Government Initiatives: Supportive policies, such as the “Power for All” initiative and the push for renewable energy, create a strong growth environment. In 2023, India’s plan to install 500 GW of renewable capacity by 2030 led to increased demand for electrical infrastructure, helping stocks like Siemens India gain 18% in a year.
• Infrastructure Growth: The rapid expansion of smart grids, metro rail projects, and the electrification of railways ensures long-term industry growth. KEI Industries, a leading cable manufacturer, saw its stock surge 22% in two years as transmission and distribution projects expanded.
• Technological Advancements: Innovations in smart meters, energy-efficient appliances, and automation drive sector growth. Schneider Electric India, benefiting from rising automation in industries, witnessed a 14% rise in stock price in FY2023 due to increasing adoption of smart electrical solutions.

With strong policy support, infrastructure expansion, and technological advancements, electrical equipment stocks present a compelling investment opportunity for long-term stability and growth.

What is the Future of Electrical Equipment Stocks?

The future of Indian electrical equipment stocks looks promising, driven by rapid infrastructure development, government initiatives like “Make in India,” and increasing electrification. The sector benefits from strong demand for power transmission and distribution equipment, with India’s electrical equipment market projected to grow at a CAGR of 8-10% by 2030.

The Union Budget 2025 allocated ₹75,000 crore for power sector modernisation, boosting companies involved in transformers, switchgear, and smart grid solutions. 

Market trends indicate strong investor confidence in electrical equipment stocks. Following increased demand for industrial automation and renewable energy integration, Siemens India reported a 15% YoY rise in revenue in Q3 FY2024, driving its stock price up by ₹120 (7%).

The Indian electrical equipment market, valued at ₹3.5 lakh crore in 2023, is projected to reach ₹6.5 lakh crore by 2030. 

What Factors Affect Electrical Equipment Stock Prices?

Electrical Equipment Stock Prices Are Affected by 4 Main Factors. The factors are Raw Material Costs, Infrastructure Development, Government Policies and Industrial Demand.

• Raw Material Costs: Electrical equipment manufacturers rely heavily on copper, aluminium, and steel, making them vulnerable to commodity price fluctuations. In 2022, a surge in copper prices by 25% increased production costs for companies like Havells India, leading to a temporary stock decline of 12%. Lower raw material costs, on the other hand, improve margins and drive stock growth.
• Infrastructure Development: Increased investments in power transmission, distribution, and electrification projects boost demand for electrical equipment. India’s push for renewable energy and smart grids helped Schneider Electric Infrastructure’s stock rise by 40% in 2023 as government-backed electrification programs expanded. Companies involved in large-scale infrastructure projects tend to benefit from sustained demand.
• Government Policies: Policies on energy efficiency, local manufacturing incentives, and import tariffs affect the sector’s profitability. The Production Linked Incentive (PLI) scheme for electronic components boosted Bharat Electronics’ stock by 35% in 2023 as demand for domestic production increased. However, sudden policy shifts or import restrictions can negatively impact companies relying on foreign components.
• Industrial Demand: The growth of industries such as real estate, data centres, and electric vehicles (EVs) directly affects electrical equipment demand. The rapid expansion of India’s EV sector led to a 50% stock gain for Polycab India in 2023, driven by higher demand for wiring and cables. Economic slowdowns, however, reduce industrial spending, leading to temporary declines in stock prices.
  

Despite these risks, India’s electrical equipment sector has strong long-term growth potential, with the government aiming for 500 GW of non-fossil fuel energy capacity by 2030. Leading companies like ABB India and Siemens are well-positioned to benefit from rising investments in automation, power distribution, and green energy infrastructure.

What are the Advantages of Investing in Electrical Equipment Stocks?

Investing in Electrical Equipment stocks is advantageous for 3 main reasons. The reasons are Rising Infrastructure Development, Government Support, and Demand for Power Solutions.

• Rising Infrastructure Development: India’s push for infrastructure expansion, including smart cities and metro projects, is driving demand for electrical equipment. The power transmission and distribution sector saw a 9% growth in FY23, benefiting companies like ABB India, whose stock surged by 45% in 2023 due to increased order inflows from infrastructure projects.
• Government Support: The Indian government’s initiatives, such as the Production-Linked Incentive (PLI) scheme and electrification projects, are boosting the electrical equipment sector. In FY24, companies like Havells India saw a 15% revenue increase, supported by strong demand for energy-efficient products and policy-driven expansion in rural electrification.
• Demand for Power Solutions: The growing adoption of renewable energy and the electrification of industries is fueling demand for electrical equipment. Schneider Electric India reported a 20% YoY revenue increase in Q3 FY24, driven by rising automation and industrial power solutions.

With India’s electrical equipment market expected to grow at a CAGR of 10-12% until 2030, leading companies like Siemens India and CG Power are well-positioned to capitalise on the nation’s energy transition and industrial expansion.

What are the Risks of Investing in Electrical Equipment Stocks?

Investing in Electrical Equipment Stocks is Risky for 3 Main Reasons. The reasons are Raw Material Price Volatility, Regulatory Uncertainty, and Demand Cycles.

• Raw Material Price Volatility: Electrical equipment manufacturers rely on key raw materials like copper, aluminium, and steel. Price fluctuations in these materials can increase production costs and squeeze margins. In 2022, copper prices surged by over 25%, leading to increased costs for companies like Havells India, which saw a temporary 7% stock correction due to margin pressures. 
• Regulatory Uncertainty: The electrical equipment sector is subject to government policies on safety standards, energy efficiency norms, and import/export duties. Any regulatory changes can impact production costs and market competitiveness. In 2023, stricter energy efficiency regulations for industrial motors led to increased compliance costs for companies like ABB India, causing short-term volatility in its stock. 
• Demand Cycles: The demand for electrical equipment is cyclical, heavily influenced by infrastructure projects, industrial activity, and real estate growth. Economic downturns or slowdowns in infrastructure spending can lead to reduced order inflows, affecting revenue and stock performance. In 2020, during the COVID-19 lockdown, reduced industrial activity led to a 15% decline in Polycab India’s stock price as demand for electrical cables and wires dropped.

Despite these risks, India’s growing focus on infrastructure development and electrification supports long-term sector growth. The Indian electrical equipment market is projected to grow at a CAGR of 8% from 2023 to 2030, with stocks like KEI Industries surging over 180% in the past five years, reflecting the sector’s potential despite its inherent risks.

When Electrical Equipment Stock Prices Go Up?

Electrical Equipment stock prices go up mainly due to 3 reasons. The reasons are Industrial Expansion, Renewable Energy Growth, and Export Opportunities.

• Industrial Expansion: With India’s rapid infrastructure development and manufacturing growth, the demand for electrical equipment in sectors like construction, railways, and industrial automation is rising. The Indian industrial sector grew by 8% in FY23, boosting demand for electrical products like transformers, circuit breakers, and automation solutions. Bharat Bijlee’s stock surged 35% in 2023 due to increased demand from industrial and metro rail projects.
• Renewable Energy Growth: India’s aggressive push toward renewable energy, especially solar and wind power, has fueled demand for electrical equipment such as inverters, substations, and grid integration solutions. The country aims to achieve 500 GW of non-fossil fuel capacity by 2030, creating a surge in investment. Voltamp Transformers saw a 42% stock rise in 2023, driven by strong demand for its power transformers in the solar and wind energy sectors.
• Export Opportunities: Indian electrical equipment manufacturers are gaining traction in global markets due to competitive pricing and quality improvements. India’s electrical equipment exports grew by 17% in 2023, driven by demand from the Middle East, Africa, and Southeast Asia. HPL Electric & Power’s stock rose 28% in 2023, fueled by strong export orders for smart meters and switchgear.

With India’s industrial expansion, clean energy transition, and increasing global demand, electrical equipment stocks offer strong growth potential. Companies like Schneider Electric India, which reported a 25% rise in order bookings in FY23, highlight the sector’s long-term investment appeal.

When Electrical Equipment Stock Prices Go Down?

Electrical Equipment stock prices go down mainly due to 3 reasons. The reasons are Raw Material Price Fluctuations, Regulatory Policies, and Demand Variability.

• Raw Material Price Fluctuations: The electrical equipment industry relies heavily on copper, aluminium, and steel, which are subject to global price volatility. In 2022, copper prices surged by 25%, significantly increasing input costs for manufacturers like Havells India, causing margin pressures and a temporary 8% drop in its stock price. Supply chain disruptions further exacerbate cost fluctuations, affecting profitability.
• Regulatory Policies: Changes in government regulations, such as import duties, energy efficiency norms, and infrastructure policies, directly impact the sector. In 2023, stricter Bureau of Energy Efficiency (BEE) standards for electrical appliances increased compliance costs for manufacturers like V-Guard Industries, leading to a 6% stock decline. Any delays in government-led infrastructure projects can also affect demand and stock valuations.
• Demand Variability: Electrical equipment demand is cyclical and linked to industrial activity, real estate growth, and infrastructure development. A slowdown in construction activity in 2022 led to weaker demand for power distribution equipment, contributing to a 10% decline in the stock price of Schneider Electric India. Seasonal variations and policy shifts in renewable energy adoption can also influence stock performance.

Despite these risks, the Indian electrical equipment sector has strong long-term potential, driven by urbanisation and industrial growth.

The government’s Production Linked Incentive (PLI) scheme for electronics manufacturing has fueled expansion, with companies like Polycab India seeing a 120% stock surge in three years. Investors focusing on long-term infrastructure and smart energy solutions can capitalise on the sector’s growing demand.

How Does Urbanisation Impact the Electrical Equipment Sector?

India’s rapid urbanisation is accelerating the demand for reliable power infrastructure, driving growth in the electrical equipment sector. As cities expand, the need for transformers, switchgear, and underground cabling increases to support residential, commercial, and industrial electricity consumption.

According to a NITI Aayog report, India’s urban population is expected to reach 600 million by 2031, which will require significant investment in smart grids and efficient power distribution systems. This shift benefits companies manufacturing low-loss, high-efficiency equipment, leading to sustained stock performance.

How Are Government Electrification Schemes Driving the Sector?

Government initiatives like Saubhagya Yojana, RDSS (Revamped Distribution Sector Scheme), and Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) have catalysed electrification in rural and semi-urban India. These schemes have created consistent demand for poles, conductors, transformers, and meters.

In FY2023, RDSS saw an allocation of ₹1.2 lakh crore to modernise and upgrade distribution networks, improving the financial health of DISCOMs and enabling better procurement from electrical equipment manufacturers. These policies directly impact order inflows and production volumes across the sector.