List of the Top Energy Sector Stocks in India

What are Energy Stocks in India?

Energy stocks in India are shares of companies that produce, generate, refine, transmit, or distribute energy. These companies operate across traditional energy sources like coal, oil, and natural gas, as well as renewable sources like solar, wind, hydro, and green hydrogen.

About the Top Energy Stocks India 2025

1. Reliance Industries Ltd: Reliance, founded in 1966, operates across energy, retail, and digital businesses. The company is investing in solar, battery systems, and green hydrogen to build a clean-energy ecosystem.
2. NTPC Ltd: NTPC, founded in 1975, is India’s largest power generator, expanding into renewable energy and green hydrogen. The company runs pilot projects for hydrogen mobility, industrial use, and blending while scaling solar and wind capacity.
3. Oil and Natural Gas Corporation Ltd (ONGC): ONGC, founded in 1956, is India’s largest oil and gas producer, working to diversify into clean energy. The company is exploring green hydrogen, offshore wind, and carbon-reduction initiatives alongside traditional exploration.
4. Adani Power Ltd: Adani Power, founded in 1996, focuses on thermal power generation. The company sits in a portfolio transitioning toward cleaner energy opportunities over time.
5. Power Grid Corporation of India Ltd: Power Grid, founded in 1989, operates India’s national electricity transmission network. The company plays a key role in integrating renewable energy through high-capacity corridors, grid-stability solutions, and infrastructure.

Budget Implications on the Energy Sector in 2025-26

• Renewable Energy: ₹26,549 cr. has been allocated to the Ministry of New and Renewable Energy. This is a 53.5% increase from last year and supports faster expansion of clean power.
• Nuclear Energy: ₹20,000 cr. has been set aside for nuclear research and new technologies such as Small Modular Reactors (SMRs). Policy changes are planned to help start at least five SMRs by 2033.
• Clean Technology Manufacturing: The budget supports the development of a domestic clean-energy equipment ecosystem. This includes solar cells, EV batteries, electrolysers, wind turbines, and high-voltage transmission equipment.

How to Invest in Energy Stocks in India?

Here is how you can invest in energy stocks in India:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
2. Research the energy stocks in India using tools like Tickertape Stock Screener, which provides 200+ filters to track energy share price, their market cap, P/E ratio and more.
3. Place a ‘Buy’ Order on the energy stocks that align with your investment thesis.

Benefits of Investing in Energy Shares in India

• Exposure to a Core Economic Sector: Energy companies play a key role in powering industries, transport, and households. This makes the sector important to economic activity and long-term demand trends.
• Participation in Energy Transition Trends: With the shift toward renewables, electric mobility, and green hydrogen, some energy companies are investing in new technologies. Exposure to this sector allows investors to follow these evolving trends.
• Diverse Sub-Sectors to Explore: The energy sector includes oil and gas, utilities, renewable energy, battery manufacturing, and grid infrastructure. This variety provides exposure to different business models and market cycles.

Risks of Investing in Energy Sector Stocks In India

• Price and Commodity Volatility: Energy companies, especially in oil and natural gas, depend on global commodity prices. Sudden movements caused by geopolitical tensions, supply cuts, or demand shifts can lead to unpredictable earnings and stock price fluctuations.
• Regulatory and Policy Uncertainty: Energy is a policy-dependent sector. Changes in taxes, subsidies, environmental laws, or government decisions on pricing and distribution can impact profitability.
• High Capital Requirements: Energy businesses often require large upfront investments in infrastructure, exploration, manufacturing, or technology. Delays, cost overruns, or financing challenges may affect returns and create pressure on balance sheets.
• Transition and Technology Risk: As India accelerates toward renewable energy and green technology, companies focused on coal or conventional power may face declining demand or the need for costly upgrades.

Factors to Consider Before Investing In Energy Stocks In India

• Type of Energy Segment: The energy sector includes traditional fuels (coal, oil, and gas), utilities, and renewables like solar, wind, and green hydrogen. Each segment has different growth prospects, risks, and policy influences.
• Government Policy and Regulation: Energy pricing, subsidies, carbon emission rules, and domestic manufacturing incentives can affect profitability. Budget announcements, long-term energy transition plans, and sector reforms play an important role in shaping future performance.
• Pricing Model: Some companies operate under regulated tariffs (like power utilities), while others depend on global commodity prices. Understanding how revenue is generated helps assess stability and risk.
• Technology and Innovation: Advancements in battery storage, electrolysers, nuclear SMRs, or grid infrastructure may affect long-term competitiveness. Companies adapting to newer technologies may be better positioned for future demand patterns.