India’s rapidly expanding data centre industry is creating new investment opportunities across the digital infrastructure value chain, and Schneider Electric Infrastructure (SEIL) is emerging as one of the strongest listed proxies to this multi-year growth theme, according to Ambit Capital.
The brokerage noted that data centres now contribute 10-12% of SEIL’s revenue, a significant increase from just 3-4% in FY20. This translates into a revenue compound annual growth rate of more than 40% from the segment over the past few years.
While data centre orders witnessed a slowdown over the last 9-12 months, recent project announcements and industry commentary indicate that demand is beginning to accelerate again. Ambit estimates India’s installed data centre capacity of around 1.6 GW could expand to between 7 GW and 18 GW by 2032, creating a substantial opportunity for equipment suppliers and infrastructure providers.
The brokerage expects SEIL’s data centre related business to grow at nearly 50% CAGR over the next three years. Growth is expected to be driven not only by rising data centre construction but also by increasing adoption of medium voltage components, which offer higher efficiency and reliability for large scale facilities.
Beyond data centres, Schneider Electric’s global strategy is expected to further strengthen SEIL’s position. Schneider Electric Global is establishing India as one of its four manufacturing hubs alongside the United States, China and France. The company plans to expand manufacturing capacity in India by 2.5 to 3 times compared with 2024 levels, reinforcing the country’s role in its global supply chain.
Ambit cautioned that commodity inflation could pressure margins over the next one to two quarters. However, it believes the fourth quarter FY26 EBIT margin of around 6% represents the bottom of the cycle. The brokerage expects profitability to improve as the company increases its exposure to services, data centres and higher margin transactional products.
Ambit said that SEIL’s orders, revenue and EBIT to grow at a CAGR of 19%, 24% and 40%, respectively, between FY26 and FY29. It believed sustained expansion in data centres and substation automation markets could support long term growth, making SEIL a compelling beneficiary of India’s digital infrastructure buildout.
