When asked whether ABB, Cummins, Power Grid, PSU gencos or financiers would be better positioned for the energy cycle, Joshi said the opportunity spans all categories.
“With India aiming for 500 gigawatts of renewables by 2032, all parts of the power ecosystem—generators, transmitters, financiers and EPC players—stand to benefit. Within PSUs, NTPC and Power Grid are well-placed, with strong capex and growing renewable portfolios.”
He added that companies like ABB and Cummins could gain from rising demand for storage systems, data centres and rail-related applications, while private players like Tata Power look better placed as tariff issues and liabilities move toward resolution.
On why financiers should be viewed as long-term rather than short- or medium-term plays, despite reasonable valuations, Joshi pointed to the nature of power projects.
“Power projects have long gestation periods, so financing benefits take time to show. Delays or cost overruns can affect near-term results, but over four to five years, consistency improves. Valuations and dividend yields are attractive.”With markets near record highs, Joshi was also asked whether earnings could surprise on the upside in H2 and FY27.“H2 should be better because Q2 earnings were resilient. Strong government capex, healthy tax collections, stable deficits and rising consumption can support earnings. If growth moves into double digits and continues into FY27, markets don’t look expensive. A 13–14% earnings growth for FY27 is a realistic base case.”
Overall, Joshi sees a broad, multi-year opportunity in India’s power sector. With supportive policies, expanding capex and a rapid shift toward cleaner energy, several layers of the ecosystem appear aligned for sustained long-term growth.
