As the Union Budget 2025 approaches, expectations are running high for policies that could further accelerate India’s renewable energy growth. The government has already made significant strides in promoting clean energy, and industry stakeholders are looking forward to additional incentives and investments in the sector.
- The PM Surya Ghar Muft Bijli Yojana has gained massive traction, offering up to 300 units of free electricity per month through rooftop solar installations.
- Over 12.8 million registrations and 1.4 million applications have been recorded for the scheme so far.
- With subsidies reaching up to 60% for systems up to 2kW, the initiative has made renewable energy more accessible to households across India.
The renewable energy sector anticipates that the upcoming budget will address key enablers like the timely signing of Power Purchase Agreements (PPAs) and the expansion of transmission infrastructure. These developments have sparked investor interest in leading renewable energy companies, positioning them for potential gains in the near term.
Here are five key renewable energy stocks to watch out for ahead of the budget:
1. NTPC Limited
NTPC is a major player in India’s power sector, generating and distributing electricity to various utility providers. It has a well-diversified portfolio spanning coal, gas, hydro, solar, and wind energy.
Financial Performance:
- Revenue for Q3 FY25 stood at Rs 450.5 billion, up from Rs 428.2 billion in Q3 FY24.
- Operating profit surged 17% YoY to Rs 133.2 billion.
- Operating profit margin improved to 30% (vs. 27% in Q3 FY24).
- Net profit slightly declined by 0.7% YoY to Rs 51.7 billion.
NTPC is set to expand its coal mining capacity and aims to achieve 60 GW of renewable energy by FY32, positioning itself as a key player in India’s green energy transition.
2. Adani Green Energy (AGEL)
Part of the Adani Group, AGEL is among India’s largest renewable energy firms, focusing on solar, wind, and hybrid power solutions. It is also actively exploring green hydrogen as part of its sustainability efforts.
Financial Performance:
- Revenue for Q3 FY25 increased by 2.3% YoY to Rs 23.6 billion.
- Operating profit declined 4% YoY to Rs 16 billion.
- Net profit surged 85.2% YoY to Rs 4.7 billion, boosting net profit margin to 20% (from 11.1% in Q3 FY24).
AGEL has a robust pipeline, with 6 GW of renewable capacity expected to be added in FY25 and a long-term target of 50 GW by 2030.
3. KPI Green Energy
Operating under the Solarism brand, KPI Green Energy provides end-to-end renewable energy solutions, including land acquisition and project development for independent and captive power producers.
Financial Performance:
- Revenue for Q2 FY25 soared 67% YoY to Rs 3.6 billion.
- Operating profit jumped 88.7% YoY to Rs 1.3 billion, with a margin increase to 37% (vs. 33% YoY).
- Net profit doubled to Rs 700 million, improving net margin to 19.4% (vs. 16.3% in Q2 FY24).
With strong growth metrics, KPI Green Energy is well-positioned to capitalize on India’s growing demand for renewable power.
4. Inox Wind
A leader in the wind energy sector, Inox Wind manufactures wind turbines and provides comprehensive wind power solutions. It also operates Inox Green Energy Services, India’s only listed wind O&M services company.
Financial Performance:
- Revenue for Q2 FY25 surged 98% YoY to Rs 7.3 billion.
- Operating profit jumped to Rs 1.7 billion (vs. Rs 480 million in Q2 FY24).
- Net profit stood at Rs 902 million, with a margin of 12.3%.
With a strong client base, including Tata Power and NTPC, and a growing wind energy portfolio, Inox Wind remains a solid renewable energy investment option.
5. Borosil Renewables
Borosil Renewables is India’s only manufacturer of solar glass, making it a crucial part of the green energy supply chain. The company specializes in high-quality, toughened glass used in solar photovoltaic panels.
Financial Performance:
- Q2 FY25 total sales stood at Rs 3.7 billion.
- Operating profit declined slightly to Rs 290 million, with a margin of 8%.
- The company reported a net loss of Rs 130 million, impacted by weaker overseas performance.
Despite short-term setbacks, Borosil Renewables remains strategically positioned in India’s solar energy ecosystem, supported by increasing domestic demand.
Final Thoughts
With the Union Budget 2025 expected to introduce more incentives for green energy, these stocks are likely to gain further traction among investors. NTPC, AGEL, KPI Green Energy, Inox Wind, and Borosil Renewables are well-positioned to benefit from India’s push toward a low-carbon economy.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a financial advisor before making investment decisions.