SPML Infra Limited is positioning its Battery Energy Storage Systems (BESS) division as a transformational growth driver.
Here’s how the company plans to leverage this division for future expansion
Table of Contents
Strategic Market Positioning
Massive Market Opportunity
India’s BESS market presents exceptional growth potential
- 2026-27: 34.72 GWh required (~$8.4 billion market)
- 2031-32: 236.22 GWh required (~$57 billion market)
- 2047: 1,840 GWh required (~$443.4 billion market)
The government’s mandate requiring minimum 10% battery storage capacity in new solar and wind projects is driving this exponential growth
Technology Partnership Strategy
Exclusive Energy Vault Collaboration
SPML has secured an exclusive 10-year partnership with Energy Vault (USA), providing:
- B-VAULT BESS technology and VaultOS EMS software
- Technology transfer for localized manufacturing
- Continuous upgrades from US-based expertise
- Target deployment: Minimum 500 MWh over next 12 months
This partnership differentiates SPML from competitors relying on Chinese technology, offering both AC and DC block technologies while most competitors provide only DC solutions
Capital-Efficient Manufacturing Model
Smart Assembly & Integration Approach
Rather than capital-intensive cell manufacturing, SPML chose a strategic assembly model
| Aspect | Cell Manufacturing | BESS Assembly |
| Capital Required | ₹4,000-6,000 Cr | ₹200-500 Cr |
| Time-to-Market | 4-5 years | 12-18 months |
| Technology Risk | High | Low |
| Return Profile | Thin margins | High service-led RoCE |
Phased Capacity Expansion
- Phase 1: 2.5 GW plant with ₹125 crore capex
- Phase 2: Expansion to 5 GW with total ₹175 crore investment
- Revenue Potential: ₹2,500 crore (2.5 GW) to ₹5,000 crore (5 GW)
Recent Milestone Achievement
NTPC Landmark Order
In May 2026, SPML secured a ₹1,128 crore contract from NTPC for India’s largest single BESS project:
- Capacity: 250 MW/1,000 MWh at Barauni Thermal Power Station, Bihar
- Technology: Lithium Iron Phosphate (LiFePO4) with 5 MWh liquid-cooled containers
- Timeline: 18-month execution + 15-year O&M contract
- Strategic Impact: Establishes SPML as a leading BESS EPC player
Financial Growth Trajectory
Business Mix Evolution
SPML is transforming its revenue composition
- Historical: ~75% water, ~25% power
- Target: 50-50 mix between water and power (including BESS)
Margin Enhancement
- EPC-only BESS: Minimum 10% margins
- With battery manufacturing: 15-16% margins
- Break-even: Expected within 1 year of operations
Order Pipeline
Management expects ₹5,000 crore worth of BESS orders in the current financial year, with the company already participating in tenders while building manufacturing capacity
Competitive Advantages
EPC Expertise Integration
SPML leverages its proven power EPC capabilities for seamless BESS integration:
- Engineering and commissioning expertise
- Ability to provide integrated renewable-plus-storage solutions
- Pre-qualification status for BESS annuity tenders
First-Mover Positioning
- Early entry into localized, large-scale BESS manufacturing
- 30-40+ GWh targeted volume manufacturing over next 10 years
- Strategic positioning as India catches up with global BESS adoption
Future Growth Strategy
Full-Stack Provider Vision
SPML aims to become a comprehensive energy storage infrastructure provider covering:
- Design and assembly
- Integration and commissioning
- Lifecycle management and O&M services
Market Participation Approach
The company is not waiting for plant completion to capture market share:
- Already bidding for BESS orders
- Will execute EPC initially, then integrate own manufacturing
- Building order book parallel to facility setup
SPML Infra’s BESS division represents a strategic pivot into a high-growth, technology-led infrastructure vertical that could fundamentally transform the company’s growth trajectory and market positioning over the next decade
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