Looking for solar energy stocks in India? Since the signing of the Paris Climate Accord in 2015, where global leaders pledged to limit the increase in average global temperature below 2°C above pre-industrial levels, the focus has turned towards reducing the use of fossil fuels across various economic activities.
As a result, countries worldwide started solarizing their economies, creating enormous opportunities for solar companies. In India, the government has set an ambitious target of meeting 50% of its energy requirements from renewables. A big chunk of this requirement will be met through solar energy stocks. As of October 2022, the country’s total installed renewable energy capacity was 166 GW and is likely to grow to 500 GW by 2030. About 60% is expected to be solar power.
Here are India’s top solar energy stocks likely to benefit from the rising demand for solar power.
Top 6 Solar Energy Stocks List in India
- Tata Power
- Adani Green
- Borosil Renewables
- Suzlon Energy
- KPI Green Energy
- Urja Global
Tata Power
| Market Cap | CMP (as of 26th Nov 2023) | All-time High Level | PE Ratio | 5 yr CAGR Return | ROCE (FY23) |
| ₹ 82,488 crore | ₹258 | ₹298.05 | 24.2 | 28% | 14.34% |
Tata Power is a solar energy stock which is one of India’s oldest and largest integrated solar energy power-generating and distributing companies and has operated since 1915. With the changing global power landscape, Tata Power has focused on increasing the share of renewable energy in its energy mix. Renewable energy accounts for 38% of its energy mix, which it plans to grow to 70% by 2030 and 100% by 2045.
The company’s current solar capacity is 3,191 MW, with 1,460 MW under construction. It is also present in the wind energy segment with an operational plant of 1,007 MW and a 2,300 MW hybrid plant under construction. Tata Power Solar Systems Limited (TPSSL), a Tata Power subsidiary, is India’s largest manufacturer of solar panels and related products.
In FY23, Tata Power’s revenue from renewable energy was ₹8,196.91 crores, up 5.8% from ₹7,748.9 the previous fiscal. And, in H1FY24, the company reported total renewable revenue at ₹4,235 crores, an increase of 14.7% from the same period in the previous fiscal from ₹3,693 crores.
Adani Green
| Market Cap | CMP (as of 26th Nov 2023) | All-time High Level | PE Ratio | 5 yr CAGR Return | ROCE (FY23) |
| ₹ 1,48,566 crore | ₹938 | ₹3,050 | 102 | 81% | 3.74% |
Adani Green is next among the top solar energy stocks. Incorporated in 2016, Adani Green is one of India’s largest renewable energy power producers, with operational assets of 8,404 MW, 1,899 MW of assets at the near completion stage, and 10,131 MW of assets under construction.
In FY23, the company’s total revenue was ₹5,825 crores, up 54% from ₹3,783 crores in FY22. And, in H1FY24, total revenue came in at ₹4,029 crores. Adani Green is consistently generating industry-leading EBITDA margins of 90%+. In FY23 and H1FY24, the EBITDA margin stood at 92%.
Borosil Renewables
| Market Cap | CMP (as of 26th Nov 2023) | All-time High Level | PE Ratio | 5 yr CAGR Return | ROCE (FY23) |
| ₹ 5,432 crore | ₹416 | ₹833 | 129 | 47% | 9.94% |
Borosil Renewables makes it to the top solar energy stocks list. It manufactures one of the critical components of solar panels, i.e., solar glass, and is India’s first and only manufacturer. It has a combined solar glass manufacturing capacity of 1350 TPD (equivalent to solar glass for 8.5 GW solar modules).
The company has a global presence with most international clients based in Western Europe and Turkey, and exports contribute 25% to the revenue. In FY23, the company reported a total income of ₹913.77 crores. In H1FY24, the company’s total income stood at ₹768.77 crores and reported an EBITDA margin of 9.5%.
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Suzlon Energy
| Market Cap | CMP (as of 26th Nov 2023) | All-time High Level | PE Ratio | 5 yr CAGR Return | ROCE (FY23) |
| ₹ 54,668 crores | ₹40.6 | ₹422.10 | 148 | 51% | 20.27% |
Most of us know of that solar energy stock Suzlon. It is the world leader in wind energy and has recently expanded into the solar energy sector. It specializes in providing end-to-end solutions for solar power projects, assisting clients in acquiring solar power plant projects, and helping them set up a profitable operation.
In FY23, the company earned a revenue of ₹5,990.16 crores, up by 6.8% compared to the previous fiscal at ₹5,603.97 crores. In H1FY24, the company reported revenues at ₹2,790.37 crores, marginally down by 1.2% compared to last fiscal year. The EBITDA margins in FY23 and H1FY24 stood at 14.1% and 15.6%, respectively.
KPI Green Energy Limited
| Market Cap | CMP (as of 26th Nov 2023) | All-time High Level | PE Ratio | 3 yr CAGR Return | ROCE (FY23) |
| ₹ 4,390 crores | ₹1,215 | ₹1,263 | 32.6 | 70.24% | 25.53% |
KPI Green is another solar energy stock which is Gujarat-based solar and wind power generating company. It develops, builds, owns, operates, and maintains solar and hybrid power plants as an independent power producer or service provider to captive power producers. The company has executed over 331 MW of solar projects and has an order pipeline of 546 MW.
In FY23, the company reported a total income of ₹647.03 crores, witnessing a massive jump of 179% from ₹231.51 crores in FY22. And, in H1FY24, total income was reported at ₹406.51 crores, up by 43.66% from ₹282.95 crores in H1FY23. The EBITDA margin in FY23 and H1FY24 is 32.65% and 35.05% respectively.
Urja Global
| Market Cap | CMP (as of 26th Nov 2023) | All-time High Level | PE Ratio | 5 yr CAGR Return | ROCE (FY23) |
| ₹ 641 crores | ₹12.2 | ₹33.40 | 300 | 25% | 1% |
Urja Global is another solar energy stock which is one of the leading renewable energy developers providing end-to-end solutions to solar power projects. It is into the design, consultancy, integration, supply, installations, commissioning, and maintenance of off-on-grid solar plants.
In FY23, the company earned a total revenue of ₹41.41 crores, down by 44.4% from ₹74.53 crores in FY22. And, in H1FY24, total income is reported at ₹21.32 crores, up by 4% from ₹20.50 crores.
Solar energy will play a crucial role in achieving energy security and is also pivotal in the global shift towards sustainable practices. The rapid increase in setting up solar energy businesses shows the potential for growth and innovation in India’s renewable sector.
However, with China still dominating the solar energy supply chain, it poses a significant risk to the profitability of Indian businesses. Furthermore, the sector receives considerable assistance from the government through policy initiatives, which is a big plus. Still, a change or shift in policy could impact businesses.
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FAQs on Solar Energy Stocks in India
Which is the best Solar Energy Stock in India?
In the dynamic landscape of solar energy stocks in India, it’s prudent to approach the quest for the best with a balanced perspective. Different stocks may align with varying investment goals and risk tolerances. Engage in comprehensive research, considering factors like market performance, sustainability practices, and overall reputation. A diversified approach and consultations with financial experts can guide you toward better investment decisions in this evolving sector.
Is Solar Energy stock an investment?
Yes, investing in solar energy can be a sustainable financial decision. In India, various solar energy stocks offer opportunities for investors looking to contribute to renewable energy while potentially gaining returns. Consider exploring stocks in the solar energy sector for an environmentally conscious investment approach.
Will solar energy stocks rebound?
The rebound of solar stocks depends on various factors such as market trends, government policies, and the overall performance of the renewable energy sector. Investors should closely monitor solar industry developments, including technological advancements and shifts in global energy policies, to make informed predictions about the potential rebound of solar stocks in India.
Should I invest in Solar energy stocks?
Investing in solar stocks can be a strategic decision for those seeking exposure to the growing renewable energy sector. However, it’s essential to conduct thorough research, assess the financial health of solar companies, and stay informed about industry trends. Consider factors like government initiatives, technological advancements, and global energy demand before investing in India’s solar stocks. Diversification and a long-term investment perspective are key considerations for those contemplating solar energy investments.
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