Top 3 Infrastructure Stocks in India by 5-Year CAGR: CG Power, Suzlon Energy and Cummins India

India's infrastructure and capital goods sector has emerged as one of the strongest wealth creators over the past five years, supported by higher government capital expenditure, rising power demand, manufacturing expansion and the clean energy transition. Companies catering to power infrastructure, renewable energy and industrial equipment have delivered exceptional returns, making them attractive candidates for long-term investors.

Based on five-year compound annual growth rate (CAGR), three companies stand out for their remarkable performance: CG Power & Industrial Solutions, Suzlon Energy and Cummins India. Here's a closer look at what has driven their growth.

1. CG Power & Industrial Solutions | 5-Year CAGR: 64.13 per cent

CG Power & Industrial Solutions, formerly known as Crompton Greaves, has transformed itself into one of India's leading electrical equipment manufacturers after becoming part of the Murugappa Group through Tube Investments of India. The company manufactures Transformers, switchgears, motors, drives and Railway electrification systems that serve industries ranging from power and steel to metro rail.

The company has delivered an impressive 64.13 per cent CAGR over the past five years, translating into nearly a 12-fold return for long-term investors.

Its operational performance has remained strong. During Q4FY26, revenue increased 25 per cent year-on-year to about Rs 3,442 crore, while net profit rose 32 per cent to Rs 363 crore. One of the biggest positives was its Order Book, which expanded 61 per cent to Rs 17,107 crore, providing healthy revenue visibility for the coming years.

The power business continued to drive growth with around 50 per cent expansion, although the industrial and railway segments faced pressure due to aggressive pricing and elevated commodity costs. While brokerage Jefferies has maintained a Hold rating, it raised its target price, noting that investments in the Semiconductor business may weigh on earnings in the near term even as the core power business remains robust.

2. Suzlon Energy | 5-Year CAGR: 48.15 per cent

Suzlon Energy has emerged as one of the biggest turnaround stories in the Indian stock market. Once burdened with heavy debt, the wind turbine manufacturer has rebuilt its balance sheet and now holds a net cash position of more than Rs 2,384 crore.

The company's FY26 performance reflected this turnaround. Revenue climbed 54 per cent to Rs 16,679 crore, while profit before Tax surged 67 per cent compared with the previous year.

Suzlon ended the year with an order book of nearly 5.9 GW, while cumulative order intake for its flagship S144 turbine platform crossed 9 GW. Management's long-term strategy under its "Suzlon 2.0" vision includes achieving 10 GW of annual sales and managing 70 GW of renewable energy assets, supported by increasing demand for FDRE and hybrid renewable energy projects.

However, investors should also note that the Securities and Exchange Board of India (SEBI) recently imposed a penalty of Rs 15.95 crore on the company over issues related to past financial statements, highlighting that governance risks remain an important consideration despite the company's strong operational recovery.

3. Cummins India | 5-Year CAGR: 44.64 per cent

Cummins India, the Indian subsidiary of U.S.-based Cummins Inc., manufactures diesel and natural gas engines as well as power generation equipment. The company has quietly delivered consistent earnings growth while benefiting from rising demand across industrial and infrastructure segments.

The stock generated a 44.64 per cent CAGR over the last five years, making it one of the top performers in the infrastructure and capital goods space.

For FY26, the company reported revenue of Rs 11,950 crore, up 18 per cent, while standalone net profit increased 22 per cent to Rs 2,330 crore. The board also recommended a final Dividend of Rs 46 per share, in addition to the interim dividend already paid during the year.

A key growth driver has been the rapid expansion of India's data centre industry. Data centres now contribute 30-35 per cent of Cummins India's domestic power generation revenue as hyperscalers and co-location operators continue to expand capacity. However, exports remain under pressure because of global geopolitical uncertainties, while the stock's valuation of around 72 times earnings suggests investors should carefully monitor future earnings growth.

Outlook

CG Power, Suzlon Energy and Cummins India have all benefited from India's ongoing infrastructure expansion, increasing electricity demand, renewable energy investments and manufacturing-led growth. Although their five-year returns have been exceptional, investors should remember that past performance does not guarantee future returns.

With valuations in several infrastructure stocks becoming expensive, a disciplined and long-term investment approach remains important while evaluating opportunities in this sector.

Disclaimer: The article is for informational purposes only and not investment advice.