India solar sector has seen tremendous growth driven by government support, increasing investments and push towards renewable energy. Solar is leading this transition with a target of 500 GW of renewable energy by 2030. Here are the top solar energy stocks in India with their operational capacity, market cap and recent investments.
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Solar Energy Stocks: Industry Overview
India’s solar capacity has grown exponentially over the last decade from 2.6 GW in 2014 to 90.76 GW as of 30th September 2024. This includes 70.05 GW of ground mounted solar, 14.30 GW of grid connected rooftop solar and 2.63 GW of hybrid projects and 3.78 GW of off-grid solar.
This growth is due to favourable government policies like the Production-Linked Incentive (PLI) scheme to boost domestic manufacturing of solar panels and components. Also significant foreign direct investment (FDI) has been attracted to the sector which has led to further expansion and innovation. The government’s commitment to renewable energy is visible in various initiatives like Pradhan Mantri-Surya Ghar Muft Bijli Yojana which aims to provide free electricity through rooftop solar installations. So the Indian solar market is full of opportunities for investors and companies.
Adani Green Energy: Pioneer of Solar Energy Stocks
Adani Green Energy (AGEL), is one of India’s largest renewable energy companies. Founded in 2015, AGEL has grown its operational capacity to over 11 GW across various states. As of Oct 2024, the company has a market cap of INR 2,45,842 crore and a share price of INR 1,552. AGEL’s strategic partnerships have accelerated its growth; recently it has partnered with TotalEnergies to develop a new solar portfolio of over 1,150 MW in Gujarat. This partnership will make AGEL a global renewable energy player and contribute to India’s clean energy goals.
Market Cap: INR 1,55,703 crore
Revenue: INR 9,220 crore
Profit After Tax (PAT): INR 1,260 crore
ROCE (%): 9.65%
P/E Ratio: 121
Waaree Energies: New Player in Solar Power Stocks
Waaree Energies is a prominent player in India’s solar energy sector, recognized as the largest manufacturer of solar photovoltaic (PV) modules with an impressive operational capacity of 12 GW. The company has established a significant market presence, holding 21% of the domestic solar module market and 44% of solar module exports as of FY24.
With a market capitalization of approximately INR 83,780 crore, Waaree Energies is considered a strong investment option among solar stocks in India. The company is actively involved in large-scale projects, including supplying 900 MW of modules for a major solar power plant in Jaisalmer, Rajasthan.
Market Cap: INR 78,721 crore
Revenue: INR 11,398 crore
Profit After Tax (PAT): INR 1,274 crore
ROCE (%): 43.6%
P/E Ratio: 79.6
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NTPC Green Energy
NTPC Green Energy, a subsidiary of NTPC, is India’s largest renewable energy public sector company (excluding hydro) as of 30th September 2024. It has a renewable portfolio of 3220 MW of solar and 100 MW of wind projects across 6 states to mitigate location specific generation risks. The company develops utility scale renewable projects for public sector undertakings and Indian corporates and serves 17 offtakers through 41 solar and 11 wind projects. With a total portfolio of 16996 MW (3320 MW operational and 13576 MW contracted or awarded) and 9175 MW in pipeline, its total capacity including pending agreements is 26071 MW.
Market Cap: INR 1,04,697 crore
Revenue: INR 1,963 crore
Profit After Tax (PAT): INR 345 crore
ROCE (%): 7.60%
P/E Ratio: 304
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Sterling and Wilson Renewable Energy
Sterling and Wilson Renewable Energy Ltd is an EPC company for solar power projects. With a market cap of INR 12,188 cr as of 11th Nov 2024, Sterling and Wilson is a leader in the solar EPC space. The company has worked on many big projects in India and internationally. Sterling and Wilson Renewable Energy has got INR 328 cr contract to build 1,000 MWh battery energy storage system in Rajasthan and 20 MW floating solar project in Karnataka.
Market Cap: INR 10,484 crore
Revenue: INR 3,035 crore
Profit After Tax (PAT): INR (211) crore
ROCE (%): 3.77%
KPI Green Energy: Best Pick Among Solar Power Stocks
KPI Green Energy is a major player in India’s renewable energy space, developing and operating solar power plants. In Q2 FY 2024-25, the company reported a remarkable 101% growth in profit after tax (PAT), reaching INR 69.8 crore, alongside a revenue increase of 67.4% to INR 361.4 crore.
KPI Green has secured significant contracts, including a recent 200 MW solar project in Khavda, Gujarat, and has raised INR 1,000 crore through a Qualified Institutional Placement (QIP). With a focus on sustainability and expansion, KPI aims to install 1,000 MW capacity by 2025, enhancing its position in the green energy stocks.
Market Cap: INR 10,264 crore
Revenue: INR 1,024 crore
Profit After Tax (PAT): INR 162 crore
ROCE (%): 21.6%
P/E Ratio: 44.4%
Orient Green Power: A Top Choice in Solar Energy Stocks to Invest in India
Founded in 2006, Orient Green Power generates power from renewable sources like wind and biomass but is now focusing more on solar. With a market cap of INR 2,465.71 cr as of Sep 2024, it’s one of the most affordable green energy stocks for investors.
The company’s strategy is to increase its operational capacity through new project development and increase its market share in the renewable space.
Market Cap: INR 1,894 crore
Revenue: INR 271 crore
Profit After Tax (PAT): INR 38 crore
ROCE (%): 6.97%
P/E Ratio: 75.1
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Zodiac Energy: A Promising Contender Among Solar Power Stocks in India
Zodiac Energy is a well known player in India’s renewable energy space, solar power solutions. In September 2024, the company secured a contract to develop 30 MW of ground-mounted solar projects for the Ahmedabad Municipal Corporation for INR 154 crore. This project is expected to generate 1.42 crore units of electricity annually and will be completed within 18 months. Zodiac Energy has an installed capacity of over 80 MW and has executed more than 300 MW of solar projects, catering primarily to government and commercial clients. The company is committed to sustainable energy solutions in India.
Market Cap: INR 736 crore
Revenue: INR 220 crore
Profit After Tax (PAT): INR 11 crore
ROCE (%): 22.4%
P/E Ratio: 54.7
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Conclusion
Indian solar stock market has many opportunities for investors looking to ride the growing demand of renewable energy solutions. Adani Green Energy and Waaree Energies are among the best solar companies in India, leading the charge towards achieving India’s ambitious clean energy targets while offering substantial returns on investment.
With ongoing government support and increasing private sector participation through acquisitions and joint ventures, the outlook for these best solar stocks in India remains positive as they contribute significantly to India’s transition towards sustainable energy sources. Investing in these stocks supports environmental goals and has potential to give returns.