India’s HVDC Market to Hit ₹1.6 Lakh Cr: Citi Research

India’s High Voltage Direct Current (HVDC) gear market is poised for significant expansion, with Citi Research estimating its value at ₹1.6 lakh crore. This growth is directly linked to India’s ambitious clean energy targets, aiming for 500 GW of non-fossil power by 2030.

The national grid requires substantial upgrades to efficiently transmit power over long distances from renewable sources, making HVDC technology crucial for minimizing power loss and ensuring grid stability.

Key Market Players and Financials

Three major players are positioned in this burgeoning market: Hitachi Energy India, GE Vernova T&D India, and Siemens Energy India. Each demonstrates distinct capabilities and financial performance within the sector.

Hitachi Energy India

Hitachi Energy India, proficient in both Line Commutated Converter (LCC) and Voltage Source Converter (VSC) HVDC technologies, reported strong performance in FY26. The company plans a significant capital expenditure to expand its manufacturing capabilities.

• FY26 Sales: ₹8,147.7 crore (up 27.6%)
• FY26 Net Profit: ₹987.8 crore (up 157.3%)
• Order Book: ₹29,555.3 crore
• HVDC Sales Contribution: Approximately ₹1,100 crore
• Planned Capex: ₹4,000 crore for a new transformer plant by late 2028

GE Vernova T&D India

GE Vernova T&D India also offers both LCC and VSC systems, securing key VSC terminal station projects in FY26. Notably, this includes a project for Adani Energy Solutions’ 2.5 GW Khavda–South Olpad green corridor.

• FY26 Order Intake: ₹14,776 crore
• Order Book: ₹21,460 crore
• Revenue from long-term HVDC projects expected from FY28–29

Siemens Energy India

Siemens Energy India focuses on VSC technology, anticipating a market shift towards its grid support capabilities essential for large-scale green power integration. Siemens technology currently underpins about 30% of India’s HVDC infrastructure.

• Grid Arm H1 FY26 Sales: ₹2,400 crore (up 29.7%)
• Grid Arm H1 FY26 Order Book: ₹12,500 crore (up 27.5%)
• Planned Investment: ₹2,060 crore to increase large transformer output
• New plant expected operational between 2030 and 2032

Market Challenges and Investment Outlook

The HVDC market presents challenges for new entrants due to the necessity of a proven track record and local manufacturing. Recent regulatory changes, however, allow four China-linked firms to bid for state contracts following a two-year waiver from the Finance Ministry, potentially increasing competition in transformers and switchgear.

Key investment risks include long lead times for HVDC projects, with orders booked years before revenue generation. There are also concerns about potentially high stock valuations already reflecting future growth, along with risks of delivery delays and cost overruns.

Investors are advised to consider margins, cash flow, and short-term billing potential beyond merely evaluating order book size when assessing opportunities in this sector.