Schneider Electric
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Schneider Electric Infrastructure Limited is positioned for long-term growth, driven by robust government capital expenditure and a strong order backlog, which is currently 50% higher year-on-year. Management's focus on innovative solutions, such as the AI-enabled 'One Digital Grid' platform and energy storage systems, aligns with the increasing demand for automation and digitalization in India's energy sector. However, the company faces challenges from volatile raw material prices and geopolitical uncertainties, which have led to flat sales in Q4 FY26. Despite these pressures, Schneider's strategic investments in data centers and manufacturing capacity are expected to drive revenue growth, with projections of a 24% CAGR in revenue and a 40% CAGR in EBIT from FY26 to FY29. The competitive landscape remains challenging, with pricing pressures potentially impacting margins, which are forecasted to improve from 11.7% to 16.8% by FY29. Overall, while the macroeconomic environment in India is supportive, Schneider must navigate external risks to capitalize on its growth opportunities over the next 12-24 months
Why We Like This Stock
- Strong order backlog growth of 50% year-on-year provides execution visibility
- Strategic investments in data centers and innovative solutions are expected to drive significant revenue growth
- Positive macroeconomic conditions in India support the company's long-term growth trajectory
Things To Watch Out For
- Volatile raw material prices and geopolitical uncertainties have led to flat sales in Q4 FY26
- Competitive pricing pressures may compress margins despite expected improvements in EBIT
- The need for substantial upfront investments in advanced technologies could pose risks to profitability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,207 | 2,637 | 2,891 | 2,858 | 3,232 |
| Profit Before Tax (Cr.) | 214 | 333 | 306 | 189 | 246 |
| PBT Margin | 9.7% | 12.6% | 1058.5% | 6.6% | 7.6% |
| Net Profit (Cr.) | 176 | 255 | 224 | 138 | 180 |
| Earnings Per Share | 7.4 | 10.7 | 9.4 | 5.8 | 7.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Ambit Capital | ▲ Buy | 1,400 | 18-Jun-2026 |
| Goldman Sachs | ▲ Buy | 1,475 | 01-Jul-2026 |
Company Overview
Show Company Profile
Schneider Electric Infrastructure Limited designs, manufactures, builds, and services products and systems for electricity distribution in India and internationally. The company offers medium power, distribution, and special transformers; substation automation systems, including power management systems, controllers and RTUs, communication elements, graphic user interfaces, engineering tools, SCADA and EMS gateways, and simulation tools; and ring main units. It also offers medium voltage distribution and grid automation products, such as EasyPact EXE, a vacuum circuit breaker; medium voltage switchgear; microgrids; digital substations; and Ecofit, a medium and low voltage equipment, as well as EcoStruxure grid, an IoT-enabled open and interoperable platform. In addition, the company provides partner managed, and field and automation services. It serves the grid, power, utility, mining, minerals, metal, power generation, oil and gas, and smart city industries, as well as contractors, global strategic alliances, and panel builders. The company was formerly known as Smartgrid Automation Distribution and Switchgear Limited and changed its name to Schneider Electric Infrastructure Limited in December 2011. The company was incorporated in 2011 and is based in Gurugram, India. Schneider Electric Infrastructure Limited is a subsidiary of Energy Grid Automation Transformers and Switchgears India Private Limited.