Synopsis : Ambit Capital has initiated coverage on Schneider Electric Infrastructure with a Buy rating and a target price of Rs 1,400, citing strong growth potential from India's expanding data centre ecosystem, rising exports and large-scale power infrastructure investments.
Schneider Electric Infrastructure has emerged as one of Ambit Capital’s preferred picks in the electrical equipment space, with the brokerage initiating coverage on the stock with a Buy rating and a target price of Rs 1,400, implying an upside potential of nearly 19%.
According to Ambit, the company is well-positioned to benefit from India's accelerating electrification cycle, growing data centre investments and Schneider Electric's strategy of making India a key global manufacturing hub.
One of the biggest growth drivers identified by the brokerage is the data centre segment. Data centres currently contribute around 10-12% of Schneider Electric Infrastructure’s revenue, compared to just 3-4% in FY20. Ambit expects this contribution to rise to nearly 20% by FY29 as India witnesses a sharp increase in data centre capacity.
The brokerage noted that India's installed data centre capacity currently stands at around 1.6-1.7 GW and could expand significantly over the coming years. Investments announced by global technology giants such as Amazon Web Services, Microsoft, Google and Meta, along with domestic players including Reliance Industries, NTT Global Data Centres, CtrlS and Yotta, are expected to drive this expansion.
Apart from domestic demand, exports are emerging as another major opportunity. Schneider Electric's global parent has identified India as one of its four key manufacturing hubs alongside the United States, China and France. Ambit expects this strategy to increase Schneider Electric Infrastructure’s integration into global supply chains and boost export revenues over the next few years.
Exports currently account for around 12% of the company’s revenue and are expected to rise further as Schneider Global continues to expand manufacturing operations in India.
To support future demand, Schneider Electric Infrastructure is investing more than Rs 200 crore across multiple facilities. Capacity expansion projects are underway at Vadodara and Kolkata, covering switchgear panels, transformers, breakers and ring main units.
Ambit believes these investments will help the company cater to growing demand from sectors such as data centres, industrial electrification, power transmission and distribution.
The brokerage also expects profitability to improve steadily. While commodity inflation may create near-term pressure, the company’s growing exposure to higher-margin businesses such as data centres, services and advanced electrical solutions is expected to support margin expansion.
Ambit forecasts EBIT margins to improve from 11.7% in FY26 to 16.8% by FY29, supported by operating leverage and an improving business mix.
Financially, the brokerage expects Schneider Electric Infrastructure to deliver strong growth over the next three years. Revenue is projected to increase from Rs 2,891 crore in FY26 to Rs 5,497 crore by FY29, while net profit is expected to rise from Rs 213 crore to Rs 676 crore during the same period.
Ambit estimates order inflows, revenue and EBIT to grow at a CAGR of 19%, 24% and 40% respectively between FY26 and FY29.
Among electrical equipment companies under its coverage, Ambit currently ranks Schneider Electric Infrastructure as its top preference, ahead of GE Vernova T&D, Hitachi Energy, ABB, Siemens Energy and Siemens.
Conclusion
Ambit's investment thesis on Schneider Electric Infrastructure is built around three structural growth themes — rapid expansion of India's data centre industry, rising export opportunities through Schneider Electric's global manufacturing network and improving profitability through scale and operating leverage. If execution remains on track, the company could emerge as one of the key beneficiaries of India's long-term electrification and digital infrastructure investment cycle.
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