Best Energy Stocks in India for 2025 on NSE

Over the past few years, India has connected hundreds of millions of its citizens to electricity. This has prompted the adoption of highly efficient LED lighting in most homes and encouraged the expansion of renewable energy sources. Notably, solar energy stocks have gained significant attention, as they represent a crucial segment of this expanding market.

Considered the fastest-growing economy in the world, business leaders and investors in India are backing the best renewable energy stocks in India, including solar energy stock options like KPI Green Energy, effortlessly. Therefore, in this blog, we will discuss some key insights about India’s energy sector, a power sector penny stocks list, and why you should consider investing in energy stocks.

Best Energy Stocks in India

Here is a list of the top 10 energy stocks in India based on their 5-yr CAGR, sorted from highest to lowest:

Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Note: The data in this energy stock list is dynamic and subject to real-time changes. This data is derived from Tickertape Stock Screener.

🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.

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Top Energy Stocks in India: An Overview

Here are brief overviews of the energy sector companies in India above:

Ujaas Energy Ltd

Ujaas Energy Limited, initially incorporated as “M AND B Switchgears Private Limited” on June 9, 1999, started as a private entity with the Registrar of Companies in Gwalior, covering Madhya Pradesh and Chhattisgarh. Among the top-performing energy stocks, it transitioned to a public limited company in November 2010, changing its name to “M AND B Switchgears Limited.”

Taylormade Renewables Ltd

Taylormade Renewables Limited began as a private company in Ahmedabad, Gujarat, on 28th July 2010. As one of India’s leading green energy companies in renewable energy, Taylormade Renewables Limited specialises in solar concentrators, CPC collectors, thermal energy solutions, etc.

Rattanindia Enterprises Ltd

RattanIndia Enterprises Ltd was originally incorporated as Indiabulls Infrastructure & Power Limited on 9th November 2010. It operates in manpower supply, human resource consultancy, payroll management, and technology-related services. 

Websol Energy System Ltd

Websol Energy System Limited, established in February 1990, is a prominent Indian manufacturer of photovoltaic monocrystalline solar cells and modules. Operating from a modern integrated facility at Falta SEZ, West Bengal, this energy company in India has consistently produced high-quality solar products since 1994, earning global trust. 

Adani Green Energy Ltd

Adani Green Energy Limited stands as one of India’s top renewable energy companies, managing a project portfolio of 20,434 MW. Among the top-performing energy stocks, it was established in 1988 by visionary industrialist Gautam Adani. Adani Group began as a commodity trading business, with Adani Enterprises Limited as its flagship renewable energy company.

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How to Invest in Energy Stocks via smallcase?

We understand how scary it might sound to deal with challenges alone. Therefore, at smallcase, popular SEBI-licensed financial professionals from Windmill Capital have introduced an easy way to invest in the best energy stocks in India. Introducing Energy Tracker smallcase. 

The Energy Tracker smallcase enables investors to track the performance of the top energy sector stocks in India. An energy tracker is an exchange-traded fund (ETF) or index fund that invests in a basket of energy-related stocks or other securities.

This smallcase consists of the top energy stocks in India, including companies in Coal, power transmission & distribution, power trading, gas distribution, power generation and oil & gas.

Green Energy smallcase by Niveshaay

Electric Mobility smallcase by Windmill Capital

Energy Tracker smallcase by Windmill Capital

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Here are a few popular smallcases among new investors:

What are Energy Stocks in India?

Energy stocks include companies operating in the energy industry, such as oil and gas exploration and production companies, energy utilities, and renewable energy companies. These best energy stocks in India are an essential part of the stock market, as they play a crucial role in meeting the energy needs of individuals, businesses, and entire economies. Energy stocks 2025 provide investors with the opportunity to participate in a sector that is essential to the economy.

Relevant Union Budget 2025-26 Implications on the Energy Sector

The Union Budget 2025-26 introduces key policy measures and financial allocations to strengthen India’s energy sector. It focuses on expanding renewable energy, enhancing nuclear power capacity, securing petroleum reserves, and promoting clean technology manufacturing. Here are the major budgetary measures impacting the sector:

• Renewable Energy Expansion: The government has allocated Rs. 26,549 cr. to the Ministry of New and Renewable Energy for 2025-26, marking a 53.5% increase from the previous fiscal year. 
• Nuclear Energy Development: A significant policy shift involves proposed amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, enabling private sector participation in nuclear energy. The budget has earmarked Rs. 20,000 cr. for nuclear research and development, focusing on Small Modular Reactors (SMRs). The goal is to operationalise at least 5 SMRs by 2033.
• Strategic Petroleum Reserves: The government has allocated Rs. 5,597 cr. to expand India’s strategic petroleum reserves to enhance energy security. This initiative aims to mitigate risks from global supply disruptions and includes developing new reserve facilities in Karnataka and Odisha.
• Support for Clean Technologies: The budget highlights the development of a green power technology ecosystem, supporting the domestic production of solar photovoltaic cells, electric vehicle batteries, electrolysers, wind turbines, and high-voltage transmission equipment.
• Green Hydrogen Mission: The National Green Hydrogen Mission has received an allocation of Rs. 600 cr., reinforcing the government’s focus on green hydrogen as a key pillar of the clean energy transition.
• Solar Energy Initiatives: An allocation of Rs. 0.01 cr. for off-grid solar power initiatives has been made. The budget outlines an allocation of Rs. 1,500 cr. for grid-connected solar power projects.

Why Invest in Energy Stocks in India?

Investing in the top energy stocks in India can be a lucrative option if you have the financial capacity to handle their inherent volatility. While energy stocks 2025 may exhibit price fluctuations, they can potentially deliver substantial returns. This is primarily due to their sensitivity to supply and demand dynamics. If you seek higher returns and are comfortable with some volatility, top energy companies in India might align with overall sustainable energy investments.

How to Choose the Best Energy Sector Stocks in India?

Choosing the best stocks in the energy sector in India involves understanding the market dynamics, the types of energy companies, and the factors that drive profitability and growth. Here’s a step-by-step guide to help investors make informed decisions when selecting stocks in this vital sector.

• Understand the Different Segments of the Energy Sector: The energy sector includes traditional energy companies involved in oil, gas, and coal extraction and distribution, as well as green energy companies India. 
• Analyse Market Trends and Government Policies: Investors should stay updated on market trends and key government initiatives such as the National Solar Mission and UDAY. This aims to promote clean energy and improve power distribution efficiency, while also monitoring the regulatory environment.
• Evaluate Financial Health and Performance Metrics: Before investing, it’s essential to assess the energy stocks growth through financial indicators such as net margin, return on equity, and return on assets to measure profitability. You can also examine debt levels, especially for capital-intensive operations like power generation.
• Consider Technological and Competitive Advantages: Companies that invest in innovation, like advanced solar battery storage, are often better positioned to capture future growth. Those with strong market positions or higher market share tend to benefit from operational efficiencies and greater pricing power within a competitive landscape.
• Review Dividend History and Yield: For income-focused investors, evaluating dividend yield and the consistency of payouts over time is important, as energy companies with a stable or growing dividend history often reflect sound financial health and lower volatility.

Advantages of Investing in Energy Shares in India

The energy sector stocks encompass a wide range of industries from traditional oil and gas companies to emerging renewable energy companies. Let’s explore some of the prime advantages listed below: 

• High Dividend Yield: Energy shares in India, including renewable energy shares, can offer high dividend yields, making them attractive to investors looking for regular income. Many high-potential energy stocks have stable earnings and cash flows, which allows them to pay consistent and growing dividends over time.
• Potential for High Returns: The best energy stocks have the potential to deliver high returns. This happens especially during periods of economic growth and rising demand for energy. As energy demand increases, companies may experience higher revenues and profits, leading to potential capital appreciation for investors.
• Diversification: Stocks in energy can provide diversification benefits to an investor’s portfolio. Investing in a mix of energy companies across various sub-sectors. Such as oil and gas exploration, refining, petrochemicals, and renewable energy, can reduce the overall risk of an investor’s portfolio.

What is the Nifty Energy Index?

The Nifty Energy Index is a stock market index that measures the performance of 10  companies operating in the energy sector in India. The National Stock Exchange of India (NSE) designed the energy sectoral index. The Index reflects the performance and it is one of the indices in the NSE.

The Nifty Energy Index formula:

The Nifty Energy Index is helpful for investors as it provides them with a benchmark to measure India’s energy market stocks performance. By tracking the index’s performance, investors can gain insight into the overall health of the energy sector stock in India. 

Overview of the Energy Sector Stocks in India

The energy sector stock in India has undergone significant changes over the last decade.

Coal is still the primary energy source, accounting for approximately 70% of India’s total electricity generation. On the other hand, renewable energy sources like wind, solar, and hydropower have significantly increased over 23% of India’s installed power capacity. Additionally, India is also investing in nuclear energy, with a plan to increase nuclear Indian energy stocks, from 6.7 GW in 2021 to 22.5 GW by 2031. 

The country aims at an ambitious target of achieving 450 GW of renewable energy capacity by 2030. This target includes 280 GW of solar, 140 GW of wind, 10 GW of bioenergy, and 5 GW of small hydro projects. Considering the dire need to produce greener energy, the government has also launched various initiatives to promote energy efficiency. This includes initiatives such as the Perform, Achieve, and Trade (PAT) scheme and the Ujala scheme.

By 2040, renewable energy is expected to account for more than half of India’s electricity generation. With a plan to reduce its dependence on imports, the government also focuses on developing electric mobility. It aims to achieve 30% electric vehicle penetration by 2030 to achieve Prime Minister’s net zero emission target by 2070.

Types of Energy Sector Stocks

The energy sector in India derives stocks in the form of four channels that have been listed below: 

• Thermal: Since fossil fuels dominate the energy sector, the production of thermal energy has primarily contributed to the energy sector stocks in India. Thus, as of May 2022, India has a total Thermal installed capacity of 236.1 GW. However, the rest of the power is generated from coal largely and then from Diesel, Lignite, and Gas.
• Renewable Energy Stocks: Renewable energy refers to the energy obtained from natural resources, such as sunlight, wind, rain, and geothermal heat. With a target of achieving 450 GW of renewable energy by 2030, the interest in renewable energy stocks NSE is expected to dominate the market. 
• Hydro: The water movement generates hydropower, also known as hydro energy, which is a renewable energy source. Hydro energy accounts for about 13% of India’s total energy consumption, making hydro power stocks in India a popular investment opportunity for investors interested in the top power sector stocks in India. 
• Nuclear: Considered as the smallest energy segment, Nuclear energy is generated through nuclear energy reactions. Accounting for only 2.5% of the country’s nuclear energy stocks in India, it is generated from nuclear power plants. 

Risks Associated with Energy Stocks?

Energy sector stocks, including clean energy stocks, can be a valuable addition to a well-diversified investment portfolio. However, it is critical to understand its challenges to be prepared to tackle them efficiently. Some of the primary challenges are:

• Volatility: Energy stocks in India, including a list of green energy stocks in India, can be highly volatile due to fluctuations in global oil prices, changes in government policies related to the energy sector, and geopolitical risks. Investors in the best power stocks in India should be prepared for stock price fluctuations and market conditions changes.
• Environmental Concerns: The energy sector significantly contributes to greenhouse gas emissions and climate change. In response, energy companies are under increasing pressure to reduce their carbon footprint and invest in renewable energy due to environmental concerns. Failure to adapt to this changing landscape may result in reputational risks and regulatory challenges for energy companies.
• Geopolitical Risks: The energy sector in India is also subject to geopolitical risks, including tensions with neighbouring countries and supply chain disruptions. These risks can impact the operations of energy companies and lead to higher costs and lower profitability.

Who Should Explore Top Energy Stocks?

Investing in top energy stocks can be a strategic move for various types of investors, each with different financial goals and risk tolerances. Below, we explore the profiles of investors who might be particularly well-suited for adding top energy stocks to their portfolios.

• Long-term Investors: Energy stocks, especially those from well-established companies, often provide stable dividends. Investors looking for consistent income might find energy stocks for long-term growth attractive as they pay higher yields than other sectors.
• Value Investors: The traditional energy sector (like oil and gas) is highly cyclical, often correlated with fluctuations in commodity prices. Value investors can buy stocks at a low price during a downturn and benefit from substantial gains when the market recovers.
• Risk-Tolerant Investors: The energy sector can be prone to significant price swings influenced by geopolitical events, energy policy changes, and oil and gas price fluctuations. Investors who are comfortable with high volatility and can manage the risks associated with such fluctuations might find these stocks suitable.
• ESG-focused Investors: As the world shifts towards sustainable energy solutions, investing in renewable energy helps support this transition. These investments align with the environmental, social, and governance (ESG) criteria, appealing to socially conscious investors.

Factors Affecting the Top Energy Sector Stocks in India

The growing demand for renewable energy has primarily influenced by the top energy stocks in India. Therefore, before investing in an energy stock in India, let’s understand some of its factors. 

• Global Oil Prices: As energy companies are involved in oil exploration, production, and distribution, oil price fluctuations can directly impact their revenues and profits. Higher oil prices can lead to higher profits, while lower oil prices can lead to lower profits.
• Government Regulations: Governments regulate the energy sector to ensure the environment and consumers’ safety. For example, if the government imposes stricter regulations on carbon emissions, the best energy stocks may have to invest more in technology to comply, which can reduce their profitability. 
• Weather Conditions: The weather can also affect energy sector stocks, particularly in the renewable energy sector investments. For example, solar power generation can be impacted by the amount of sunlight received. Extreme weather events such as hurricanes and droughts can also affect the energy sector stocks, particularly regarding energy supply and infrastructure damage.

Political Factors: For example, instability in oil-producing countries can lead to higher oil prices, which can benefit energy companies. On the other hand, if trade restrictions are imposed on energy imports or exports, the growth potential of the top energy stocks can be limited.

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To Wrap It Up…

In conclusion, the Indian energy sector offers a variety of investment opportunities, from traditional oil and gas companies to emerging green energy stocks. Investing in Indian green energy stocks promotes sustainable development and offers the potential for high returns as the world moves towards a more sustainable future. With government support and increasing demand for renewable energy, the future of energy stocks in India is poised for growth in the coming years.

Frequently Asked Questions on Energy Stocks in India

Stocks Under Budget

If you are looking for stocks under a particular price range, here’s the collection of stocks under a specifc budget:

Popular Group of Companies on NSE