Ambit initiated coverage on Schneider Electric with a “buy” rating and a price target of ₹1,400, which indicates an upside potential of 18% from current levels.
The brokerage said that over 10% of the company’s revenue is now derived from the data center segment, a significant increase from the 3% to 4% that was registered in financial year 2020.
Why Is Ambit Bullish on Schneider Electric?
The company’s growth trajectory is expected to be robust, with analysts estimating a ~50% Compounded Annual Growth Rate (CAGR) for the data center business between financial year 2026 and 2029. This segment is projected to be a primary catalyst, driving a 24% group sales CAGR over the same period.
Schneider Electric is also poised to benefit from its global strategy of establishing India as a critical manufacturing hub. This initiative is expected to drive a ramp-up in exports, with the export share of revenue projected to reach approximately 15% by financial year 2029, up from the current 12%, Ambit wrote in its note.
While there are short-term margin risks stemming from commodity inflation, Ambit believes that the company’s fourth quarter EBIT margin of approximately 6% represents the bottom of the cycle. Moving forward, the company’s strategic focus on increasing the mix of “services, data centers, and transactional products” is expected to be a significant tailwind, the brokerage said.
Over financial year 2026-2029, Ambit expects order inflow CAGR of 19%, revenue CAGR of 24% and an EBIT CAGR of 40% for Schneider Electric.
Shares of Schneider Electric are trading 5.9% higher at ₹1,253.5 on Wednesday. The stock has risen 75% so far in 2026.
