Top Battery Stocks in India

What are Battery Stocks?

Battery stocks represent companies that produce, develop, or distribute batteries and energy storage solutions. These companies manufacture batteries for electric vehicles, renewable energy storage, consumer electronics, and more. Since the introduction of lithium-ion batteries in the 90s, they have become essential for powering devices like smartphones, electric vehicles, and drones. While India imports most EV batteries, semiconductors, and Battery Management Systems from China, Japan, and Korea, local efforts are underway to develop batteries specifically tailored to the Indian market.

About Top 5 Battery Stocks in India

• Exide Industries Ltd: It is a leading manufacturer of lead-acid batteries for automotive, industrial, and submarine uses, known for quality and a broad distribution network.
• Amara Raja Energy & Mobility Ltd: Amara Raja Energy & Mobility Ltd specialises in automotive and industrial battery solutions, a key player in energy storage and mobility solutions in India and abroad.
• HBL Power Systems Ltd: It is a manufacturer of specialised batteries and power electronics for industrial, military, and aerospace applications, with a strong domestic and international presence.
• Eveready Industries India Ltd: Eveready Industries India Ltd is known for dry cell batteries, flashlights, and other electrical products, serving consumer needs across India.
• CLN Energy Ltd: CLN Energy Ltd Focuses on renewable energy solutions, specialising in solar power generation and energy storage, contributing to India’s clean energy transition.

How to Invest in the Best Battery Stocks in India?

Here is how one can invest in top battery stocks in the NSE in India:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
2. Conduct thorough research on Indian battery stocks using tools like Tickertape Stock Screener, which offers 200+ filters to customise your analysis.
3. Place a ‘Buy’ Order on the battery stocks of your choosing. 

Note: Investors should conduct thorough research and consult a financial advisor before investing in shares of leading battery companies in India.

Union Budget 2025-26 Update on Battery Sector in India

The Union Budget 2025-26 includes announcements that are expected to impact the battery sector and the top battery stocks in India, aligning with the country’s commitment to sustainable energy and self-reliance in key technologies.

• Customs Duty Exemptions on Critical Minerals: Customs duty on critical minerals, including lithium-ion batteries, cobalt, and copper, has been exempted to boost domestic manufacturing, reduce import dependency, and promote battery sector growth in India.
• Policy for Recovery of Critical Minerals: The government will launch a policy for the recovery of critical minerals from mining by-products. This will help strengthen the domestic supply chain for battery manufacturing by tapping into previously underutilised resources.

Battery Industry in India - A Brief Overview

• Growth Drivers in Indian Battery Market: Government schemes like FAME, PLI for ACC batteries, and renewable energy incentives are driving the Indian battery market’s growth.
• Market Expansion Factors: Environmental awareness, urbanisation, and technology are the key drivers for the growth of the Indian battery market.
• Challenges for the Battery Industry: High battery costs, lack of standardisation, and limited recycling infrastructure pose challenges.
• Impact of India’s Carbon Emission Reduction Target: India’s carbon reduction goals are boosting demand for battery storage, especially lithium-ion.
• Government Initiatives for Battery Manufacturing: Programs like Make in India and PLI for battery manufacturing promote domestic production.
• Expected Growth: The market is projected to grow at a 16.8% CAGR, reaching USD 15.65 bn by 2029.

Advantages of Investing in Battery Stocks

• Market Growth: The demand for top lithium-ion battery stocks in India is increasing due to the growth of EVs, renewable energy, and portable devices, presenting potential growth and investment opportunities.
• Shift Towards Green Energy: As renewable energy grows, batteries are needed for energy storage and grid stabilisation, supporting sustainability and clean energy in India.
• Technological Innovation: Major Indian battery companies are advancing energy density, faster charging, and longer lifespan, boosting vehicle battery market share and overall profitability.
• Sustainability Focus: As the world shifts to sustainability, battery stocks related to renewable energy storage and green tech may have long term growth in the clean energy transition.
• Diversification Potential: The battery stocks in India may offer exposure to the rapidly growing green energy and tech sectors, helping diversify your portfolio into emerging markets.

Risks of Investing in Battery Shares

• Highly Competitive: The battery industry is highly competitive, with many players impacting the growth of lithium-ion battery stocks in India. 
• Regulatory Changes: Government policies and regulations on vehicle battery shares in India can significantly affect the battery market. Stay informed about potential regulatory changes impacting lithium manufacturers.
• Supply Chain Challenges: India’s battery manufacturers rely on global supply chains. Any disruptions in raw material availability can affect lithium stock prices and company performance.
• Market Volatility: EV battery stocks in India for 2025 may be influenced by market volatility, driven by economic factors and investor sentiment, potentially affecting the performance of companies.

Factors To Consider When Investing In Battery Stocks in India

• Indian Battery Market: The Indian battery market is growing due to the increasing demand for EVs and renewable energy storage, driving interest for top battery stocks and lithium batteries.
• EV Battery Demand: EV demand is driving interest in electric vehicle battery stocks in India. Growth depends on scaling up and analysing lithium battery trends and EV battery prices.
• Battery Stocks with Strong Fundamentals: To assess battery companies listed on NSE, review financial health, which includes revenue, profit margins, innovation, and share price history for growth.
• Government Initiatives: Government policies promoting electric vehicles and renewable energy will boost lithium stocks in India through incentives and policy changes.
• Market Competition: The Indian battery market is highly competitive, with big companies and small cap stocks fighting for market share. Understanding competition will help you identify sector leaders.