3 Large Cap Power Stocks With ROCE Above 25% and Strong Earnings Growth

Synopsis: Three large-cap power sector names are posting record revenues, expanding margins, and sitting on ballooning order books – all while delivering returns on capital that few peers can match.

India’s power equipment and industrial solutions space is having a landmark year. As grid modernization, data centre buildouts, and energy transition spending accelerate, a handful of large-cap names are not just riding the wave – they are scaling earnings, deepening margins, and piling up multi-year order backlogs that promise strong revenue visibility well into FY27 and beyond. Here is a closer look at three such companies worth watching.

Hitachi Energy India

Hitachi Energy India delivered one of its strongest quarters in recent memory, with Q4 FY26 revenue rising 46.2% year-on-year to Rs.2,754 crore. Operating EBITDA for the quarter surged 92% year-on-year to Rs. 452 crore, with EBITDA margins expanding to 16.4% from 9.3% in FY25 – a dramatic improvement that reflects both operating leverage and a richer order mix. Profit after tax for Q4 FY26 stood at Rs.330 crore, up 79.7% year-on-year. 

On a full-year basis, FY26 revenue came in at Rs.8,148 crore, growing 27.6% over FY25, while PAT for the full year reached Rs.988 crore – more than doubling from Rs.384 crore in FY25, a growth of 157%.

The order book tells an equally compelling story. The company’s outstanding order backlog (OBL) stood at Rs.29,555 crore at the end of March 2026, up 53.6% year-on-year from Rs.19,246 crore a year earlier. 

New order intake in Q4 FY26 spanned industries, data centres, utilities, renewables, and transport – including 3x 220 kV AIS transformer bay extensions for a leading data centre in Hyderabad and 70 traction transformers for metro rail projects. The three-year return on the stock stands at 102.87%, and ROCE is at 29.02% – the highest among the three names here.

CG Power & Industrial Solutions

CG Power closed FY26 with its strongest-ever consolidated performance. Full-year consolidated revenue grew 25% year-on-year to Rs.12,418 crore, while PAT (before exceptional items) rose 27% to Rs.1,232 crore. In Q4 FY26 alone, consolidated sales jumped 25% year-on-year to Rs.3,442 crore, with PAT up 32% to Rs.362 crore; also, margins for Q4 FY26 expanded 260 basis points year-on-year to 18.3%.

The Power Systems segment was the star performer, with Q4 FY26 sales climbing 50% year-on-year to Rs.1,487 crore and PBIT margin expanding 287 basis points to 23.8%. For the full year, Power Systems revenue grew 46% to Rs.5,138 crore. 

The consolidated unexecuted order backlog as of 31st March 2026 reached Rs.17,107 crore, up 61% year-on-year, anchored by a Rs.900 crore data centre transformer export order to the US and a Rs.641 crore PGCIL order – the largest single domestic transformer order in CG’s history. ROCE for the year stood at 20% (22% on a standalone basis), and 33.73% over three years.

ABB India

ABB India has sustained steady operational momentum through FY26, with consolidated Q4 FY26 sales at Rs.3,184 crore, broadly flat against Rs.3,010 crore in Q4 FY25. Operating profit for the quarter came in at Rs.408 crore at a 13% OPM. It is worth noting that Q4 FY26 net profit of Rs.1,784 crore was significantly boosted by an exceptional other income of Rs.1,541 crore – likely linked to a one-time divestment or asset monetisation – and is not reflective of underlying business earnings. Stripping that out, the core operating performance remains consistent with the trajectory seen over the past several quarters, where operating profit has held between Rs.400–657 crore and OPM between 13–20%.

Over the trailing twelve months, ABB’s consolidated revenue stood at Rs.13,093 crore, with operating profit of Rs.1,895 crore. ROCE is at 29.93%, among the highest in the large-cap capital goods space.ABB’s diversified portfolio across electrification, motion, process automation, and robotics gives it broad exposure to India’s industrial capex upcycle. 

The stock has delivered 16.16% over three years and trades at a meaningful premium to peers, reflecting the market’s view of its long-cycle earnings durability and balance sheet strength.

The Road Ahead

All three companies are well-positioned to ride India’s multi-year power infrastructure buildout, driven by grid expansion, data centre investments, renewable energy integration, and industrial capex. What sets them apart from the broader capital goods pack is not just earnings growth, but the quality of that growth – expanding margins, rising order backlogs, and ROCE figures that consistently clear the 25% bar.

With combined unexecuted order books running into tens of thousands of crores, revenue visibility for FY27 and beyond remains strong. For investors seeking large-cap exposure to India’s energy and industrial transformation story, these three names offer a compelling mix of scale, execution track record, and structural tailwinds.

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