Capital Goods Sector Poised for Strong Q3FY26 Growth Driven by T&D Execution

• Capital goods companies anticipate improved sequential earnings for Q3FY26, driven by post-monsoon recovery, robust order inflows, and enhanced execution in Transmission & Distribution (T&D).
• GE Vernova T&D India expects strong order inflows, including a significant order from Caldwell for South Olpad, boosting its order book.
• Hitachi Energy may see an 80–84% decline in order inflows due to a high base from a previous large HVDC order, while ABB India, KEC International, and Siemens project steady growth.
• T&D-related product companies are forecast to outperform with around 18% growth, led by GE Vernova T&D, Siemens Energy, and Hitachi Energy.
• EBITDA margins are expected to improve for T&D and industrial machinery companies, with GE Vernova estimating 22% margins, though ABB India faces a sharp decline due to weaker pricing and rupee depreciation.

Why It Matters: Capital goods sector expects strong Q3FY26 performance, primarily from T&D execution and order book strength.