Schneider Electric Infrastructure Eyes India’s New Infrastructure Cycle; Electrification, Data Centres and EVs Drive Growth

Schneider Electric Infrastructure Eyes India’s New Infrastructure Cycle; Electrification, Data Centres and EVs Drive Growth

The Electrical Post

Schneider Electric Infrastructure Limited expects India’s emerging infrastructure cycle, increasing electrification, digitalisation, renewable energy adoption, data centre expansion, electric mobility and the Make in India initiative to create significant long-term growth opportunities for the company.

Speaking during the company’s Q1 FY27 Results and Business Update Call, Mr. Udai Singh, MD & CEO, Schneider Electric Infrastructure Limited, said the company aims to lead the new digitalised energy world by offering innovative connected products and solutions to meet the evolving expectations of power distribution customers. He highlighted the company’s focus on balanced business models, superior quality and efficient supply chains to support resilient and sustainable growth and profitability.

The company has also modified its vision to position itself as an “energy technology partner” that electrifies, automates and digitalises every industry, business and home while driving efficiency and sustainability.

India’s Infrastructure Cycle to Support Long-Term Growth

According to Mr. Singh, India is entering a new infrastructure cycle towards 2030, with the macroeconomic outlook remaining strong. He highlighted three key factors, including an expected GDP growth rate of 6.5% to 7% over the next four years.

Per capita GDP is expected to increase by at least 1.5 times by 2030, reaching close to INR 4 lakh. At the same time, per capita electricity consumption is expected to increase to around 1,800–2,000 kWh by 2030, compared with around 1,000 kWh or less in 2014.

However, the company is also facing near-term headwinds, including rupee depreciation and rising commodity and labour costs. Mr. Singh noted that the rupee has depreciated by around 8% since the beginning of the year, while prices of copper, aluminium and steel, along with labour costs, have increased.

Despite these near-term challenges, he said India’s long-term investment outlook remains intact, supported by four fundamental growth levers relevant to the company.

Electrification, Energy Storage and Digitalisation Driving Demand

Electrification remains a major growth driver, with the country targeting an increase in non-fossil fuel capacity from around 300 GW to 500 GW.

Energy storage systems are another significant opportunity. The installed capacity, currently around 13 GWh, is expected to reach more than 200 GWh by 2030.

The rapid expansion of data centres, artificial intelligence and digitalisation is also expected to create additional demand. India’s data centre capacity is projected to increase from around 1.6 GW to approximately 8 GW by 2030, if not more.

The company also highlighted the expected increase in e-commerce users to around 450 million by 2030, while the digital economy is expected to contribute approximately 20% by 2030.

EV Penetration and Vande Bharat Expansion

Urbanisation and electric mobility are also expected to support demand for electrical infrastructure. EV penetration is projected to reach around 30%, compared with approximately 8% currently.

Mr. Singh said the growth in EV adoption would require significant development of EV infrastructure to support the momentum.

The expansion of Vande Bharat trains is another opportunity highlighted by the company. India currently has around 160 Vande Bharat trains, while the government has plans to increase the number to approximately 800.

Schneider Electric Infrastructure supplies circuit breakers used to power these trains, which are manufactured at its Kolkata plant.

Make in India to Support Manufacturing and Capex

The Make in India initiative is expected to encourage greater manufacturing within the country, creating additional capital expenditure requirements and opportunities for companies such as Schneider Electric Infrastructure.

Mr. Singh said the company aims to leverage these conditions to manufacture products in India not only for the domestic market but also for exports. India’s goods exports are expected to reach around US$1 trillion by 2030.

He also highlighted various government initiatives supporting these growth drivers, including the RDSS scheme, green energy corridors, the new energy policy, VGF schemes for BESS, interstate transmission waivers, the DPDP Act, National Data Center Policy, India AI Mission, AI Conclave, railway capex, high-speed rail initiatives, e-Drive and PLI schemes, including the India Semiconductor Mission and rare earth corridors.

According to Mr. Singh, these initiatives represent four growth engines that are driving demand for power infrastructure. Greater power requirements, in turn, will require smarter grids and improved reliability, creating opportunities for the company.

Three Strategic Pillars for Growth

Schneider Electric Infrastructure is focusing on three strategic pillars, including technology leadership, customer differentiation and cost competitiveness.

The company aims to strengthen its position as a technology leader and partner, with customers remaining at the core of its offerings. Its focus is on differentiating its services and solutions through customer value while maintaining cost competitiveness to support profitability.

Strong Wins in Semiconductor and Data Centre Segments

During Q1 FY27, the company secured major wins in high-growth segments such as semiconductors and data centres.

In the semiconductor segment, Schneider Electric Infrastructure supplied transformers equipped with digital solutions for a project in a state in Central India. Mr. Singh described this as the largest front-end fab order received by the company from a customer in this segment.

In the data centre segment, the company supplied medium-voltage panels, transformers, automation devices and panels. The customer selected Schneider Electric Infrastructure based on the technological differentiation offered by the company.

Renewable Energy, Cement and Airport Projects

The company also highlighted strategic wins across renewable energy, cement and airport projects.

In the renewable energy segment, Schneider Electric Infrastructure supplied transformers for solar applications, with the company highlighting their volume and efficiency.

In the cement sector, the company supplied equipment for a cement plant established by a private entity in India, including a project associated with a slurry pipeline.

At an airport in South India, the company supplied an SF6-free RMU pilot, described as an outdoor first-of-its-kind initiative at an Indian airport.

Digital Solutions Strengthen Customer Value Proposition

The company is also expanding its digital solutions across Energy & Chemicals and Utilities.

In Energy & Chemicals, Schneider Electric Infrastructure supplied an integrated energy management system aimed at enhancing reliability and asset performance by bundling digital solutions.

In Utilities, the company highlighted smart grid and transformer monitoring solutions. These digital enhancements were added to equipment previously supplied to a customer, following the customer’s requirement for improved visibility, preventive maintenance and predictive maintenance.

ESG Performance Remains a Key Focus

Schneider Electric Infrastructure also highlighted its ESG performance across its manufacturing operations.

The company said its four manufacturing sites are at 100% renewable electricity sourcing, including on-site solar and other renewable power arrangements.

The company also reported zero recordable workplace incidents across its sites. Gender diversity is another area of focus, with women accounting for close to 20% of the workforce.

Q1 FY27 Orders Reach Record INR 915 Crores

The company recorded INR 915 crores in orders during Q1 FY27, which Mr. Singh described as the highest quarterly order booking in the company’s history.

While year-on-year order growth was around 0.5%, sequential quarterly growth was in double digits. Sales started relatively softly, with year-on-year growth of around 5%, although sequential growth was again in double digits.

Mr. Singh noted that Q1 has historically represented a relatively soft start for the company following the close of the financial year.

The company entered Q2 with a strong backlog of more than INR 2,100 crores, representing growth of approximately 33%.

Commodity Inflation Impacts Gross Margin

Profitability remained under pressure during the quarter, with EBIT reported at INR 32 crores, lower than the previous year.

Mr. Singh said commodity inflation and shortages have impacted gross margins. A significant portion of the orders executed during Q1 originated from the previous year, with the average order turnaround time being around six months. As a result, the impact of current commodity cost increases has not yet been fully reflected in the orders being executed.

The company continues to focus on technology leadership, customer differentiation, cost competitiveness and supply-chain efficiency while positioning itself to benefit from India’s long-term electrification, infrastructure and digitalisation cycle.

As a global leader in energy technology, Schneider Electric helps transform critical industries, buildings and infrastructure into intelligent, connected ecosystems. Leveraging AI for insight, automation for control and digital platforms for scale, the Group drives efficiency, resilience and sustainable outcomes.

Published at : Oct 07, 2026 06:59 AM (IST)

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