India has made strong progress in its clean energy transition. According to a recent press release from PIB (Press Information Bureau), India now has 267 GW of non-fossil fuel electricity capacity. This means half of the country’s total installed power now comes from clean sources like solar, wind and hydro — achieved much earlier than planned.
The same PIB note also said that India will need about US $ 300–350 billion (around Rs 30 lakh crore) in investment to reach the target of 500 GW of non-fossil capacity by 2030. This plan has drawn interest from global investors and highlights a long runway of clean energy spending ahead.
Given this backdrop, FY26 looks set to be another year where renewable energy and clean power investments remain a major theme. Capacity additions are happening fast, and policies continue to support growth. If this momentum stays, renewable capex should continue to shape outcomes in the power sector through the year.
For this reason, we have focused on power companies that are well-placed to benefit from the next phase of renewable spending. The stocks we discuss here have the right scale, execution track record and financial strength to capture a meaningful share of the opportunities ahead, rather than smaller or unproven names.
The four pillars of India’s green grid
#1 Adani green energy: Aggressive scaling amidst high leverage
Adani Green Energy incorporated in 2015, is a holding company of several subsidiaries engaged in renewable power generation within the group and is primarily involved in renewable power generation and other ancillary activities. It is a part of the behemoth Adani Group.
Adani Green Energy continued to expand at a strong pace in the first nine months of FY26. Growth was supported by steady project execution and new capacity coming on stream. Its operational renewable capacity rose 48% year-on-year (YoY) to 17.2 GW, after adding 5.6 GW of fresh projects.
Power generation increased 37% to 27.6 billion units as more solar, wind and hybrid plants became operational. A large part of the expansion is centred on the Khavda renewable park in Gujarat. About 7.7 GW is already operational there. The company plans to scale this up to 30 GW by 2029. It is also developing projects in Rajasthan, Andhra Pradesh and other states.
Adani Green remains focused on reaching 50 GW of installed capacity by 2030. How well it executes large projects and manages long-term funding will play a key role in sustaining growth in the coming years.
In the past year, Adani Green Energy share price tumbled 22%.
Adani Green Energy Share Price 1-Year Share Price Chart
#2 NTPC: Leveraging a Legacy Moat for Green Dominance
NTPC (National Thermal Power Corporation) along with its subsidiaries/ associates & join ventures (JVs) is primarily involved in generation and sale of bulk power to State power utilities. Other business of the group includes providing consultancy, project management & supervision, energy trading, oil & gas exploration and coal mining.
NTPC saw higher project activity in the first half of FY26 as several expansion plans moved ahead. During the period, it awarded contracts for around 3 GW of renewable capacity. It also issued a limited notice to proceed for the 2,400 MW Meja Phase-II project, which is still waiting for final clearances.
The company has secured land and grid connectivity for another 1,200 MW. Its solar land bank has now expanded to about 22.8 GW. Investment levels also increased. Group capital spending rose to Rs 23,115 crore in H1 FY26, covering thermal, renewable and storage assets.
Beyond Thermal: The Storage Bet
NTPC is also working on large battery projects. These include 5 GW alongside thermal plants and more than 5,000 MWh near solar sites. Most of these projects are expected to be completed over the next three years.
The company has raised its long-term capacity target to 149 GW by 2032 and 244 GW by 2037, with an estimated capex of Rs 7 lakh crore. It is also advancing nuclear and overseas projects, including Bangladesh and Sri Lanka. Timely execution and funding discipline will shape NTPC’s growth outlook.
In the past year, NTPC share price is up 4.6%.
NTPC Share Price 1-Year Share Price Chart
#3 Tata Power: Dominating the Value Chain from Wafers to Rooftops
Tata Power is primarily involved in the business of the generation, transmission and distribution of electricity. It aims to produce electricity completely through renewable sources. It also manufactures solar rooftop solutions. The Tata group company is India’s largest vertically-integrated power company.
Tata Power kept its focus on expanding its clean energy and network businesses in the first half of FY26, even as it managed operations across generation, transmission and distribution. The company’s total capacity (installed and planned) stood at about 26.3 GW at the end of the period. Around 17.5 GW of this came from renewable and green sources.
Projects totaling another 10.4 GW are currently under construction or in different stages of development. Management said the solar and wind pipeline has crossed 7.6 GW, supported by its in-house EPC arm and manufacturing facilities.
Investment activity remains strong. Tata Power operates close to 5 GW of integrated solar manufacturing capacity and is preparing to expand into wafers and ingots. It is also developing more than 2.8 GW of pumped storage and battery projects.
Grid & Transmission: The Hidden Value
In transmission, projects worth over Rs 1 lakh crore are planned from FY27 onwards.
Going ahead, the company is building its growth strategy around renewables, storage and distribution reforms. Timely execution and financial discipline will remain central to its long-term outlook.
In the past year, Tata Power share price is down 1.8%.
Tata Power Share Price 1-Year Share Price Chart
#4 NHPC: Balancing the Grid with Pumped Storage
NHPC, a Navratna public sector utility, is Government of India’s flagship hydroelectric generation company. The company is primarily involved in the generation and sale of bulk power to various power utilities. Its other business includes providing project management, construction contracts, consultancy assignment services and trading of power.
NHPC continues to build a large development pipeline as it expands its presence in hydropower and other renewable segments. At present, NHPC has 30 operating power stations, together accounting for about 8,333 MW of installed capacity. Of this, about 7,771 MW comes from hydro projects, while 562 MW is from solar and wind assets.
Projects with a combined capacity of 9,704 MW are under construction. This includes 8,514 MW of hydro plants and 1,190 MW of solar projects. Another 7,666 MW of capacity is at different stages of statutory clearance. The longer-term pipeline remains sizeable.
NHPC has identified around 22,770 MW of projects under survey and investigation. This includes about 20,880 MW of pumped storage schemes, which are expected to play a larger role in balancing renewable power. Hydro generation in H1 FY26 stood at 20,491 million units, accounting for nearly 19% of India’s total hydro output.
With approvals moving gradually and policy support increasing for storage projects, NHPC’s growth outlook will depend on timely clearances, steady execution and access to long-term funding for its expanding portfolio.
In the past year, NHPC share price is up marginally.
NHPC Share Price 1-Year Share Price Chart
Valuations
Let’s now turn to the valuations of the companies in focus, using the Enterprise Value to EBITDA multiple as a yardstick.
Valuations of Companies in focus
| Sr No | Company | EV/EBITDA Ratio | Industry Median | ROCE |
| 1 | Adani Green Energy | 18.9 | 39.2 | 8.7% |
| 2 | NTPC | 8.9 | 8.4 | 9.9% |
| 3 | Tata Power | 10.8 | 11.2 | 10.8% |
| 4 | NHPC | 15.6 | 12.2 | 7.4% |
The numbers show clear differences. Adani Green Energy is trading at around 18.9 times EV/EBITDA. This is much lower than the industry median of 39.2 times, even though it remains one of the fastest-growing renewable players.
NTPC is currently trading at around 8.9 times EV/EBITDA, which is close to the sector median of 8.4 times. This is in line with its steady earnings profile.
Tata Power is valued at about 10.8 times, almost matching the benchmark of 11.2 times, helped by improving returns and a diversified business. NHPC, on the other hand, is trading at around 15.6 times, above the sector median of 12.2 times, even though its return on capital remains relatively low at 7.4%.
Taken together, the market seems to be backing companies that can execute projects well and keep funding risks under control. The longer-term renewable opportunity remains strong.
But investors need to judge how much of this growth is already reflected in current prices. The best opportunities usually emerge when good businesses are available at reasonable valuations.
Conclusion
India’s clean energy push is now a long-term theme rather than a short-term cycle. Policy support is steady. Capacity additions are continuing. Funding access has also improved over the years.
This suggests that renewable investment will remain active in FY26 and beyond. But the sector is no longer easy. Competition has increased. Tariffs are tight. Delays and cost pressures remain part of the business.
This makes stock selection important. Companies with strong balance sheets and a history of delivering projects on time are better placed to benefit from the next phase of growth. Expansion plans alone will not drive returns.
What will matter is execution and financial discipline. The opportunity is still attractive. But investors will need to stay focused on fundamentals and valuations as the renewable capex cycle moves forward.
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Ekta Sonecha Desai has a passion for writing and a deep interest in the equity markets. Combined with an analytical approach, she likes to deep into the world of companies, studying their performance, and uncovering insights that bring value to her readers.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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