Current Infraprojects Ltd Management Discussions

Industry Outlook: Grid must grow

Indias electricity generation continues to expand

Total electricity generation in India, including grid-connected renewable generation.

India Power and Infrastructure Outlook

Indias power and infrastructure landscape is entering a phase of sustained investment, supported by rising electricity demand, expanding economic activity and the rapid addition of renewable energy capacity.

The countrys power sector is simultaneously witnessing growth in generation capacity and a structural expansion of the transmission and distribution network required to deliver reliable power across regions.

This is creating a broad-based opportunity across the power infrastructure value chain, including transmission lines, substations, distribution networks, grid modernisation and renewable energy evacuation infrastructure.

The next phase of growth will be defined by stronger transmission networks, modernised distribution systems and infrastructure capable of integrating rapidly expanding renewable capacity.

Rising Power Demand Driving Capacity Expansion

Indias growing economy, increasing industrialisation, urbanisation, rising household consumption and the rapid expansion of data centres, manufacturing and other power-intensive sectors are expected to drive sustained growth in electricity demand. The National Electricity Plan projects Indias peak electricity demand to reach approximately 388 GW by 2031-32, compared with a projected peak demand of around 296 GW for 2026-27. The growth in demand is being accompanied by a significant expansion in generation capacity.

As of January 31, 2026, Indias total installed generation capacity stood at approximately 520.5 GW, of which 272.0 GW, or 52.3%, comprised non-fossil fuel sources. Renewable energy alone accounted for approximately 263.2 GW, or 50.6% of total installed capacity. During FY26, India added more than 52.5 GW of generation capacity up to January 2026, demonstrating the pace of capacity addition across the sector.

-Indias peak power demand is set to rise sharply

-Projected peak electricity demand under Indias National Electricity Plan

The implications extend beyond the requirement for additional generation capacity. Every incremental unit of electricity demand needs to be supported by adequate transmission and distribution infrastructure. This creates a multiplier effect across the power infrastructure ecosystem, as generation growth is accompanied by investments in evacuation systems, substations, grid strengthening and last-mile connectivity.

Cleaner power needs more wire

Non-fossil sources account for more than half of Indias installed capacity

Indias installed generation capacity as of January 31, 2026.

The Energy Mix is Changing, Creating a New Grid Opportunity

The expansion of renewable energy is becoming an increasingly important component of Indias power sector growth. As of January 2026, renewable energy capacity stood at approximately 263 GW, while the country continues to work towards its target of 500 GW of non-fossil fuel installed capacity by 2030. The Ministry of Power estimates that an additional 237.22 GW of renewable energy capacity, along with the associated transmission infrastructure, needs to be added to achieve the 2030 target. This expansion is changing the nature of Indias power infrastructure requirements.

Renewable generation is often concentrated in resource-rich regions, while major consumption centres are distributed across the country. Consequently, the development of renewable generation needs to be accompanied by timely investment in transmission systems, substations and power evacuation infrastructure. The requirement is therefore not limited to adding generation capacity. It extends across the entire electricity ecosystem, creating opportunities for companies involved in electrical infrastructure, EPC execution and renewable-energy infrastructure.

The Revamped Distribution Sector Scheme (RDSS)

Distribution Modernisation is Creating a Second Engine of EPC Growth

While transmission is expanding to connect large generation centres with demand centres, Indias distribution infrastructure is also undergoing a significant transformation.

The Revamped Distribution Sector Scheme (RDSS), with an approved outlay of approximately Rs.3.03 lakh crore, is focused on improving the operational efficiency and financial sustainability of distribution utilities. The programme encompasses infrastructure strengthening, loss reduction, smart metering and modernisation of distribution networks.

The resulting opportunity extends across multiple areas of electrical infrastructure, including distribution lines, substations, feeder segregation, metering systems and network strengthening.

This makes distribution an important complement to the transmission investment cycle. While large transmission projects tend to involve significant network expansion, distribution projects create a broader opportunity pool across states and utilities.

For EPC companies, this diversification is important because it allows participation across different project sizes, geographies and stages of the power value chain.

RAF: Ten Year Visibility

Resource Adequacy Framework (RAF)

Planning is moving from reactive to mandate

The Resource Adequacy framework is institutionalising advance power-sector planning, creating greater forward visibility for the generation, transmission, distribution and associated EPC infrastructure required to serve future demand

Indias power sector is increasingly moving towards advance planning rather than responding to capacity shortages as they emerge. Under Rule 16 of the Electricity (Amendment) Rules, 2022, the Ministry of Power introduced the Resource Adequacy Planning framework, requiring DISCOMs to undertake forward- looking planning and procurement to ensure adequate resources to meet future electricity demand. The framework operates on a 10-year rolling horizon and explicitly considers generation, renewable energy, energy storage and other flexible resources.

The framework effectively changes the nature of future power-sector planning. DISCOMs are required to identify their future resource requirements and take procurement action ahead of the requirement, with the guidelines specifying procurement timelines for different types of resources. The framework also envisages a significant role for long-term contracting, with at least 75% of the required capacity suggested to be tied up through long-term contracts, subject to the applicable planning framework.

State-level implementation gathers pace

Resource-adequacy planning is increasingly being translated into state and DISCOM-level planning. CEAs resource-adequacy reports now cover multiple utilities and states, including Gujarat, Maharashtra, Delhi, Andhra Pradesh, Tamil Nadu and Bihar.

Longer-term EPC opportunity

As power planning becomes more forward- looking and resource requirements are identified years ahead, the associated transmission, distribution and grid infrastructure requirements are also increasingly being planned in advance. This enhances visibility across the Electrical EPC opportunity chain

2022 Rule 16 introduced

Rule 16 of the Electricity (Amendment) Rules, 2022 established the requirement for formal resource-adequacy planning. State Commissions are required to frame regulations, while DISCOMs must prepare resource-adequacy plans aligned with those regulations.

2023 National Resource Adequacy Guidelines issued

The Ministry of Power issued the Resource Adequacy Guidelines in June 2023, creating a framework for advance procurement of generation, renewable energy, storage and other flexible resources to meet future demand. The framework is designed around long-term planning rather than reacting to future shortages.

2026 National planning moves into the next cycle

In April 2026, the Central Electricity Authority issued the Long-Term National Resource Adequacy Plan for 2026-27 to 2035-36, providing a fresh ten-year national planning framework for future resource requirements.

From Regulation to Long-Term Planning

Rs.9.15 lakh crore of Grid to build

Transmission is Becoming a Strategic Infrastructure Priority

The scale of renewable additions and rising electricity demand is creating an unprecedented requirement for transmission infrastructure.

Indias National Electricity Plan envisages the addition of approximately 1.91 lakh circuit kilometres of transmission lines and 1,270 GVA of transformation capacity during 2022-23 to 2031-32.

The scale of investment associated with this expansion is equally significant. The Ministry of Power estimates more than Rs.9.15 lakh crore of investment opportunities in the transmission sector through 2032.

The transmission opportunity is also becoming increasingly sophisticated. Indias grid will need to handle larger and more geographically dispersed renewable generation while maintaining reliability and flexibility. This is driving investment not only in conventional transmission lines, but also in substations, gridstrengthening systems, advanced transmission technologies and inter-regional connectivity.

Inter-regional transmission capacity is planned to increase from approximately 120 GW in December 2025 to 168 GW by 2032, enabling greater movement of power between regions and supporting a more integrated national grid.

Transmission expansion offers a large addressable market

Key transmission additions envisaged under Indias National Electricity Plan for 2022-23 to 2031-32.

Identified transmission investment opportunity through 2032 This scale of planned investment provides strong visibility for the electrical EPC ecosystem over the medium to long term.

- Rs.9.15 lakh crore+—

The next phase: a more integrated power ecosystem

Indias power infrastructure is therefore moving beyond a simple capacity-addition cycle. The next phase is about creating an integrated ecosystem capable of generating, transmitting, evacuating, distributing and managing power efficiently.

The Governments transmission planning incorporates significant investments in energy storage, advanced grid technologies and renewable-energy evacuation infrastructure.

Battery Energy Storage Systems and Pumped Storage Plants are expected to play an increasing role in balancing the grid as renewable penetration rises.

This is likely to gradually expand the addressable market for infrastructure companies from conventional electrical works towards more integrated power and renewable- energy solutions.

Industry Outlook: Electrical EPC

A multi-year market opportunity

Transmission Line EPC

The expansion and strengthening of Indias transmission network is creating a substantial pipeline for transmission-line EPC. Importantly, the opportunity is moving towards higher- capacity networks, including 400 kV and 765 kV systems, as power needs to be transmitted over longer distances.

A recent CRISIL-based industry assessment puts Indias transmission-line EPC market at Rs.20-22 billion in 2024, with the market projected to reach approximately Rs.40-42 billion by 2030, implying a 12-13% CAGR.

India transmission-line EPC market is set to nearly double

Industry estimates and projections for the transmission-line EPC market in India.

This is not simply a "more electricity" story. It is a larger and more technically demanding transmission-construction market, requiring engineering, procurement, erection, testing and commissioning capabilities.

Distribution EPC & Network Strengthening

The distribution opportunity is becoming increasingly project-intensive, with utilities investing in feeder infrastructure, transformer capacity, HT/LT lines, underground cabling and associated electrical works.

A broadening opportunity across the electrical infrastructure value chain

Substation & Transformation EPC

Substations are becoming increasingly important as the grid expands and renewable generation is integrated at scale. New transmission corridors require corresponding transformation capacity, while existing networks need augmentation to handle higher power flows.

The Indian substation market is estimated to grow from Rs.30-32 billion in 2024 to Rs.58- 60 billion by 2030, representing an estimated 11-12% CAGR.

Indias substation market is expected to nearly double

Industry estimates and projections for the Indian substation market.

For EPC companies, this translates into opportunities across transformers, switchgear, busbars, protection systems, control systems, civil works, cabling, testing and commissioning.

Renewable Evacuation is Creating a New Electrical EPC Layer

Renewable projects create EPC requirements outside the solar plant itself. Power must be evacuated from the generation site, stepped up through transformers, connected to substations and transmitted onwards.

CRISIL expects approximately Rs.1 lakh crore of capex in Indias inter-state transmission system across FY26 and FY27, roughly double the Rs.50,000 crore spent across FY24 and FY25. This increased spending is primarily linked to renewable-energy evacuation.

Industry Outlook: Solar EPC

Expanding across the renewable-energy value chain

Utility-scale Solar EPC

Utility-scale projects remain the largest pool of Solar EPC opportunity. Between FY18 and FY26, developers received Letters of Award for approximately 174 GW of utility-scale solar projects. Around 118 GW had signed PPAs and 60 GW had been commissioned, leaving approximately 58 GW in the pipeline at the time of the latest Equirus assessment.

The significance for EPC players is that a sizeable portion of the opportunity has already moved beyond the tendering stage and into project development and execution.

Rooftop & Distributed Solar

The Solar EPC opportunity is also widening beyond large utility-scale projects. Rooftop and distributed solar provide access to commercial, industrial, institutional and residential applications, creating a more diversified project base.

As of 31 July 2026, Indias grid-connected rooftop solar capacity stood at 30.74 GW, within a cumulative solar capacity of 164.59 GW

The rooftop market also continues to receive policy support through programmes such as PM-Surya Ghar and the Ministry of New and Renewable Energys grid-connected rooftop solar programme.

Solar + Storage is the next layer of growth

The next phase of Solar EPC is likely to involve greater integration of energy storage. Industry forecasts indicate that Indias BESS demand could rise from approximately 34.7 GWh during 2022-27 to 236.2 GWh during 2027-32.

New renewable tenders are also increasingly shifting toward firm, round-the-clock and dispatchable renewable-energy formats, where solar is combined with storage or other renewable sources.

Solar + Electrical Integration

A solar project is not simply a module- installation exercise. Its generation has to be converted, collected, stepped up, protected and ultimately connected to the grid.

As Solar projects scale, the electrical content within each project becomes increasingly important, creating natural execution synergies between Solar EPC and Electrical EPC

From Opportunity to Execution

Performance Trajectory: Scaling Up, Broadening the Mix

Against a favourable industry backdrop, FY26 marked a year of accelerated execution, stronger earnings and a broader business mix, with Solar EPC emerging as a significant contributor to growth.

Pipeline strengthened

The Rs.305 crore order book provides a strong base for future execution.

Margins remained resilient

EBITDA margin stood at 14.5%, despite input-cost pressures during the year.

FY26 profitability remained healthy despite moderation in margins from the previous years elevated levels. Geopolitical developments contributed to volatility in raw-material and logistics costs during the year, impacting project economics.

Operational De-risking

Building a more diversified and resilient execution platform

FY26 marked an important step in strengthening the resilience of Current Infraprojects operating model. While the Company continues to build on its established Electrical EPC capabilities, the expansion of Solar EPC, broader geographic participation and a growing mix of projects have progressively diversified the business and reduced dependence on any single opportunity pool.

Diversification across businesses

The Companys portfolio is broadening beyond its established Electrical EPC base. Solar EPC has scaled significantly during FY26, with revenue increasing approximately fourfold. Water EPC and other businesses continue to provide additional diversification.

This creates a broader revenue base across different infrastructure investment cycles.

From One Client Type to a Balanced Mix

Our B2B-to-B2G revenue split in FY26 reflects a business built on deep private-sector relationships, GR Infraprojects, Ashoka Buildcon, L&T, and HG I Infra among them. At the same time, our order book increasingly reflects growing government participation, anchored by RDSS-scheme mandates from Jaipur and Jodhpur DISCOMs.

From Payment Risk to Payment Discipline

A meaningful share of Indias EPC sector remains exposed to slow state- DISCOM payment cycles. Our RDSS-funded contracts, backed directly by the Central Government, carry a payment cycle of 30 days, materially reducing the working capital drag that affects much of our industry.

From Concentrated Execution to Distributed Presence

We operate across 12 states, anchored by high-density execution hubs in Rajasthan and Kerala that allow us to share equipment and engineering resources efficiently. This combination, deep density where we operate most, and breadth beyond it, lets us capture the efficiency benefits of concentration without the risk of being tied to any single regions economic conditions.

Diversification of revenue visibility

For most of our history, CIPLs revenue has come entirely from EPC i contracting: project-based, cyclical, and dependent on winning the next I tender. Our RESCO platform changes that structurally. Its 25-year Power Purchase Agreements generate contracted, non-cyclical income regardless of how any given tender cycle plays out, a genuine second revenue engine, not just a new business line

Risk & Mitigation

Staying resilient in a project-led business

Current Infraprojects earns its returns project by project, so margins and timelines are exposed to input prices, counterparties, approvals and its own execution. Five levers manage that exposure: disciplined bidding, project monitoring, procurement planning, customer diversification and financial controls.

Risk	Impact
External risks
Raw material price volatility	Steel, aluminium, cables and equipment drive project cost; commodity spikes or supply shocks squeeze margins where escalation cannot be passed through.
Supply chain and availability	Shortages or late delivery of modules, transformers and cables delay schedules and raise costs.
Regulatory approvals and right of way	Approval, land, right-of-way or utility delays defer execution and revenue while overheads continue.
Customers and tendering	Aggressive bids or delayed awards hit intake and margins; reliance on a few significant customers, adds exposure to their buying plans.
Renewable energy and PPA risks	Solar and RESCO projects hinge on approvals, grid connectivity, PPA execution, commissioning and counterparty payments; policy shifts alter economics.

Internal and execution risks

Project execution and cost overruns	Dependencies across engineering, procurement, subcontractors, labour and site work; delays or poor resource use cause overruns, as the RHP notes.
Working capital and cash conversion	Costs are paid upfront while collections follow milestones; any mismatch raises working-capital needs.
Execution capability during scale-up	Rapid order growth and new geographies stretch management bandwidth, skilled manpower and systems.
Quality, safety and compliance	Site hazards and quality or safety lapses cause rework, delay and financial or reputational loss.

Mitigation

Procurement planning, vendor management and project-level cost monitoring; price- variation clauses in government contracts give partial cover against input-cost swings.

Early procurement planning, established supplier relationships and close tracking of material requirements against the execution schedule.

Milestone monitoring and active coordination with customers and authorities on approval and site dependencies.

A widening customer and geographic base; projects are selected on execution feasibility and commercial attractiveness, not growth at any cost.

Opportunities are pursued selectively, weighing project economics, contractual structure, counterparty quality and capital requirements.

Project-level monitoring, milestone tracking, site supervision and management review flag deviations early for corrective action.

Milestone-based billing, collection discipline, procurement planning and efficient working- capital rotation.

Project-management systems, execution teams and regional infrastructure are being strengthened as the business scales.

Defined execution processes, technical supervision, testing and commissioning procedures and site-level safety practices.

Outlook & Management Priorities

Building on FY26 momentum

Current Infraprojects enters FY27 with a stronger execution platform, an order book of Rs.305 crore at 31 March 2026 and a business mix that broadened materially during the year. FY26 delivered revenue from operations of Rs. 160.4 crore, EBITDA of f23.2 crore and profit after tax of f14.1 crore. The task now is to convert the order book into profitable execution while deepening project-management systems; Solar EPC remains the principal growth area, with bids placed for Solar and Solar + BESS tenders.

01 Execute the order book

Convert existing orders into timely revenue while holding project quality, margins and customer commitments.

Rs.305 crore order book at 31 March 2026, 1.9x FY26 revenue; Rajasthan 52%, Kerala 36%

02 Scale Solar selectively

Build on the sharp FY26 rise in Solar EPC with discipline in project selection, procurement and execution.

Solar EPC revenue Rs.96.2 crore in FY26, about 4x FY25 and 60% of revenue; 50+ MW commissioned

03 Strengthen the Electrical EPC franchise

Use new utility mandates and wider geographic participation to rebuild and scale Electrical EPC execution.

About f100 crore of RDSS mandates from Jaipur and Jodhpur Discoms, with lEEMA-linked price variation

04 Expand with capital discipline

Evaluate RESCO, PPA-linked and Solar + BESS opportunities selectively, balancing growth potential against capital needs and project economics.

Four RESCO plants, 9.4 MW, on 25-year PPAs; BESS bids being pursued in RESCO or EPC mode

05 Build execution depth

Keep strengthening project monitoring, internal systems, quality processes and delivery capability as scale rises; management has named these as priorities.

45+ certified engineers; NABL-accredited in-house test lab; 80%+ of equipment owned

Disciplined growth

The outlook rests on discipline rather than scale for its own sake: build on the established Electrical EPC foundation, scale the Solar EPC platform and pursue emerging renewable-energy opportunities selectively, with project execution, profitability and capital efficiency as the tests every new mandate must pass.