India’s solar energy sector has come a long way in the last few years. As per media reports, India now ranks as the third-largest solar energy producer worldwide, surpassing Japan.
Data from the International Renewable Energy Agency (IRENA) underscores this accomplishment, showing that India generates an impressive 108,494 GWh of solar energy, outstripping Japan’s production of 96,459 GWh.
With the solar industry expanding at a fast pace, investors are wondering which companies will successfully ride this wave and seize the most significant opportunities.
Three companies are emerging as contenders to watch—Vikram Solar, Insolation Energy, and Sterling and Wilson Renewable Energy.
The reason to watch these solar stocks is due to their individual approaches to growth and plans for the next three years, besides the robust growth of the industry.
Here’s a closer look at what lies ahead. This is not a stock recommendation in any form nor a fundamental analysis.
#1 Vikram Solar
Vikram Solar is a leader in solar energy solutions, specialising in the production of high-efficiency photovoltaic (PV) modules and offering comprehensive EPC (engineering, procurement, and construction) services.
In August 2025, Vikram Solar listed its shares via an IPO. The company has set ambitious goals for expanding its production capacity over the next three years.
| Area of Operations | Why to Watch the Stock of Vikram Solar |
| Photovoltaic modules and EPC services. | Expansion of module manufacturing. and plans to enter cell manufacturing. Plans to increase capacity four-fold. Solid financials for Q2 FY26. |
To support the growing demand, the company is expanding its capacities and is on track to scale up its module manufacturing capacity from 4.5 GW to 17.5 GW.
Additionally, Vikram Solar plans to backward integrate by entering cell manufacturing, targeting a capacity of 12 GW by FY27. In tandem with its capacity expansion, the company is also ramping up its workforce to support its growth ambitions and enhance operational excellence.
This expansion plan marks a nearly four-fold increase from the company’s existing capacity.
Financial Highlights
| Rs m | FY 2025 | FY 2024 |
| Total Revenues | 34,595.3 | 25,239.6 |
| Total Expenses | 32,421.6 | 24,050.4 |
| Net Profit Margin % | 4.08 | 3.17 |
| Profit After Tax | 1398.3 | 797.2 |
On the financial front, the company recently reported strong numbers for Q2 FY26. Revenues for Q2 FY26 grew 93.7% on a YoY basis, to Rs 11,099 million (m).
EBITDA for the quarter stood at Rs 2,350 m, an increase of 225.9% YoY. EBITDA margins stood at 21.17% for Q2 FY26 compared to 12.59% in Q2 FY25. Net profits for Q2 FY26 grew 1,636.5% YoY to Rs 1,285 m and PAT margins stood at 11.58%.
Vikram Solar has received several orders recently. In September 2025 it has announced a major order of 200 MW high-efficiency solar modules from AB Energia, a specialist in end-to-end EPC solutions for commercial and industrial (C&I) solar projects.
It also received another recent order of 336 MW solar module supply order from Larsen & Toubro (L&T) for the Khavda Renewable Energy Park project in Gujarat.
The company had an order book of 11.15 GW as on 30 September 2025.
With new capacities coming online, backward integration strengthening its value chain, and a robust demand outlook driven by India’s energy transition, the company should see sustained growth in the coming quarters. Execution would remain a key challenge.
#2 Insolation Energy
Next on our list is Insolation Energy.
The company was the first solar module manufacturing company in India to be listed on the stock exchange.
The company has installed solar PV modules for more than 500 projects to date, totalling more than 5.5 GW of capacity.
| Area of Operations | Why to Watch the Stock of Insolation Energy? |
| Solar module manufacturing. | Recently expanded and begun commercial operations in Rajasthan. Plans to complete new facility in MP, including aluminium framing. Compounded profit growth has been a solid 162.9% over the last three years. |
Insolation Energy has big plans for the future. The company’s fully owned subsidiary, Insolation Green Energy Private Limited, recently started commercial operations of its new 4.5 GW PV module manufacturing facility in Rajasthan.
The subsidiary and the Rajasthani government have inked a Rs 100 bn memorandum of understanding for the production of components, solar power generation (IPP), EPC projects, and parks by 2030.
The company has purchased land in Madhya Pradesh for the construction of a new, manufacturing facility that will produce 4.5 GW of solar cells and 18,000 MT of aluminium framing.
Financial Highlights
| Rs m | FY 2023 | FY 2024 | FY 2025 |
| Total Revenues | 2,794 | 7,372 | 13,338 |
| Total Expenses | 2,606 | 6,562 | 11,724 |
| Net Profit Margin % | 3.8 | 7.5 | 9.5 |
| Net Profit | 107 | 555 | 1,262 |
On the financial front, Insolation Energy has seen a compounded sales growth of 83.6% over the last three years. The compounded profit growth was 162.9% over the last three years.
Moving ahead, Insolation Energy is exploring opportunities in battery energy storage systems (BESS) and solar wafer manufacturing as part of its comprehensive strategy for forward and backward integration across the value chain.
Insolation Energy is at the forefront of advancing India’s clean energy transition. With strong financial performance, a scalable business model, and a focus on quality and execution, the company is strategically placed to capitalise on significant opportunities in the years ahead.
#3 Sterling and Wilson Renewable Energy
Next on our list is Sterling and Wilson Renewable Energy.
The company offers a range of turnkey and balance of system (BoS) solutions for utility-scale, and floating solar power projects. Sterling and Wilson Renewable Energy also offers solar plus storage solutions, and hybrid projects including wind.
| Area of Operations | Why to Watch the Stock of Sterling and Wilson? |
| EPC catering largely to the solar power space. | Under-construction projects of 12.8 GWs, giving revenue visibility. Turnaround in operations in FY25. |
The turnkey EPC solutions comprise design, engineering, procurement, construction, project management, testing, supply, installation and commissioning to operation and maintenance and connecting the solar power project to the grid.
All project design and execution services excluding the procurement of modules and components are offered as part of the BoS solutions.
Financial Highlights
| Rs m | FY 2023 | FY 2024 | FY 2025 |
| Total Revenues | 20,150 | 30,354 | 63,019 |
| Total Expenses | 31,386 | 30,427 | 60,376 |
| Net Profit Margin % | -58.3 | -6.9 | 1.4 |
| Net Profit | -11,750 | -2,108 | 856 |
The company recently reported numbers for Q2 FY26. Revenue grew 70% YoY in, aided by higher execution pace in domestic and international EPC projects.
The company incurred a P&L write-off due to adverse arbitration ruling in a US subcontractor case (Rs 5,800 m), which led to a consolidated EBITDA loss of Rs 4,700 m.
Moving ahead, at the moment the company has under-construction projects of 12.8 GWs. This gives it good revenue visibility for the coming years.
Sterling and Wilson Renewable Energy is positioned for growth driven by expanding renewables demand globally. However, execution risks remain.
Should You Consider Solar Energy Stocks?
Given the growth prospects, supportive government policies, India’s solar capacity potential, and robust industry players, solar energy stocks in India are potentially attractive investment opportunities for 2026 and beyond.
However, investors should be mindful of risks, conduct thorough research, and consider diversification strategies.
Happy investing.
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