Powerica Ltd shares have surged nearly 48% above their initial public offering price of ₹395, closing at ₹584.85 on Friday. The stock, listed on the BSE and NSE on April 2, 2026, has also gained 34.51% over the past six months. Nuvama Institutional Equities initiated coverage with a Buy rating and set a target price of ₹700, implying about 20% upside from the recent close, according to livemint.com.
Nuvama’s bullish stance on Powerica is based on three key growth drivers: a recovery in the diesel generator (DG) business, expansion of its wind independent power producer (IPP) portfolio, and long-term potential in retrofit emission control devices (RECDs). The brokerage expects strong earnings growth from these segments over fiscal years 2026 to 2029, supported by rising data centre demand, more efficient wind turbines, and wider adoption of emission-control technology, per livemint.com.
Powerica’s diversified portfolio includes DG sets, wind power generation, and RECDs. Nuvama projects a compound annual growth rate of around 21% in DG business profit after tax, 44% in wind IPP earnings before interest, taxes, depreciation, and amortisation, and 27% in RECD profit after tax from FY26 to FY29. The DG business benefits from Powerica’s position as one of only three generator original equipment manufacturers in India, reinforcing its steady cash flow base, as reported by livemint.com.
Powerica’s stock performance and growth prospects reflect the company’s strategic positioning in India’s power solutions market. The next quarterly earnings report, expected in late October, will provide further clarity on the company’s progress against these growth drivers, according to livemint.com.