India’s Nuclear Power Sector just changed forever.
As of 5 May, 2026, India’s Nuclear capacity stands at just 7.5 GW, according to the World Nuclear Association.
The government aims to reach 100 GW by 2047, a 13x expansion, which is essential for India’s energy transition and security. Getting there will cost an estimated $214 billion (around ₹20 lakh crore), as per Singapore’s Nuclear Business Platform.
That kind of capital cannot come from the state alone.
So in December 2025, Parliament acted. The SHANTI Act received presidential assent on 20 December, scrapping the 63-year-old Atomic Energy Act and opening nuclear power to private ownership for the first time.
The SHANTI Act: Why 2025 Was the ‘1991 Moment’ for Nuclear Power
Small Modular Reactors (SMR) are central to this push. To this end, the 2026 Union Budget allocated ₹20,000 crore specifically for SMR development. This allocation will be used to design and commission five indigenous SMRs by 2033.
The government’s ultimate goal is to increase nuclear energy’s contribution to the national electricity mix from the current 3% to 25% by 2050. Against this backdrop, this article examines three stocks that could emerge as winners.
#1 Kirloskar Brothers: The High-Precision Pump Maker
Kirloskar Brothers (KBL) is India’s pioneer in manufacturing high-precision pumps for the nuclear power sector. With increasing private sector participation, KBL anticipates immense potential to expand its contributions to both domestic and global nuclear power projects.
From Secondary Systems to Primary Heat Transfer: KBL’s High-Margin Pivot
Historically, KBL has been a major player on the secondary side of nuclear plants. It has previously supplied the primary and secondary sodium pumps for India’s Bhavini Fast Breeder Reactor. KBL has also supplied pumps to international markets, highlighting its expertise.
The company delivered pump sets to the International Thermonuclear Experimental Reactor in France, the world’s largest magnetic confinement plasma physics project. Additionally, KBL’s joint venture, Kirloskar Ebara Pumps, serves the nuclear energy sector, broadening its overall footprint.
But they are now making strides on the more complex primary side. KBL has successfully designed and developed a full-scale hydraulic prototype of the Primary Coolant Pump also known as the Primary Heat Transfer Pump.
700 MWe PHWRs: The Breakthrough in Indigenous Technology
It will be utilized for India’s fleet of 700 MWe Pressurized Heavy Water Reactors (PHWRs). This is a first of its kind in India and a historic achievement. The pump’s performance during prototype testing far exceeded the expectations of the Nuclear Power Corporation of India (NPCIL). Now, KBL is preparing to participate in major fleet orders.
KBL has also proactively invested approximately 2% of its annual turnover in developing two additional types of primary circuit pumps. Both of these have passed all tests required by NPCIL, and a third primary pump is expected to be ready shortly.
Scaling for 2047: Strategic R&D and Order Book Expansion
On the secondary side, KBL provides a full suite of lowest-lifecycle-cost pumps, including large circulating water pumps. KBL recently secured an order to supply condensate extraction pumps for a nuclear power plant in Karnataka.
In addition, the company also successfully commissioned Circulating Water and Auxiliary Service Water pumps, specifically Metallic Volute Pumps for an atomic power plant in Rajasthan. Overall, as India expands its nuclear capacity to 100 GW by 2047, KBL sees immense potential to expand the high-value contributions to nuclear power projects internationally.
#2 Walchandnagar Industries: Monetizing India’s 220 MWe Small Reactors
Walchandnagar Industries (WIL) is a heavy engineering, manufacturing, and project execution company.
The ‘DNA’ Shift: Pivoting to High-Barrier Strategic Sectors
Today, WIL has strategically transformed its business to focus heavily on sectors of critical national interest, specifically Defence, Nuclear, and Aerospace (referred to as its DNA). DNA accounted for 39% of revenue in FY25.
WIL has been a key contributor to India’s nuclear energy infrastructure for over 40 years, maintaining deep partnerships with the Department of Atomic Energy. The company operates in a highly oligopolistic market with extreme barriers to entry. It is one of only four qualified manufacturers in India’s nuclear segment.
The company is already qualified to supply Class I nuclear components. WIL specializes in manufacturing critical, high-precision core equipment required for “Nuclear Island” and Balance of Plant systems.
For India’s 22 operational nuclear reactors (with a total capacity of 7.5 GW), WIL has supplied key hardware, including Calandrias (14), End Shields (3), and Moderator Heat Exchangers (4).
For upcoming reactors, WIL possesses the manufacturing capability to supply a complete set of Nuclear Steam Supply Systems. This includes steam generators, distillation columns, reactor headers, and ECCS accumulators. The company primarily competes with major players like L&T, Godrej, and BHEL.
The 220 MWe Opportunity: Why WIL’s Small Reactor Focus Protects Against Rivalry
WIL management estimates that nuclear capacity will increase by nearly 3X over the next 5-6 years. The Government of India also plans to set up 50 ‘Bharat Small Reactors’ (BSRs), each with a capacity of 220 MWe.
Under this pipeline, an investment of around ₹200,000 crore is expected for equipment. WIL is qualified to supply equipment worth around ₹700 crore for each BSR plant. Thus, the total opportunity size WIL translates to ₹35,000 crore.
The ₹1,000 Crore 700 MW Pressurized Heavy Water Reactors Opportunity
For the larger 700 MW Pressurized Heavy Water Reactors, WIL qualifies for ₹1,000 crore worth of equipment per plant. Currently, WIL’s manufacturing is heavily focused on Pressurized Heavy Water Reactors and Fast Breeder Reactors, both of which are central to India’s Stage I and Stage II nuclear programs.
Nuclear Waste: Capturing a ₹56,000 Crore Global Aftermarket
Beyond power, WIL is targeting the rapidly growing global nuclear waste management market, which is expected to reach US $5.9 billion (around ₹56,000 crore) by 2034. As the number of nuclear plants increases, managing High-Level Waste and Intermediate-Level Waste is becoming a major challenge.
To this end, leveraging its nuclear expertise, WIL is targeting spent-fuel storage facilities, waste-management plants, and heavy-water (D2O) upgradation plants.
#3 HCC: Positioning for the ₹54,000 Crore ‘Fleet Mode’ Tenders
Hindustan Construction Company (HCC) is an engineering and construction firm specializing in large-scale, complex infrastructure projects. HCC has been a cornerstone in building India’s nuclear infrastructure. It is positioning itself for the upcoming privatization and expansion in nuclear energy.
The 60% Dominance: Leveraging a 14-Reactor Track Record
To leverage these new opportunities, management reiterated its dominant historical position, noting that of the 24 nuclear reactor buildings in India today, HCC has built 14. Overall, HCC has delivered nearly 60% of the country’s nuclear power plant construction. This positions the company to use its existing expertise to compete more effectively.
To capture a larger share of the upcoming market, HCC is expanding its focus beyond purely civil construction to also include allied mechanical, electrical, and instrumentation works.
Navigating the ₹54,000 Crore ‘Fleet Mode’ Tenders
HCC is actively preparing for large-scale tenders expected from the Nuclear Power Corporation of India. The government plans to issue tenders for these 700 MW reactors in “fleet mode.” This will encompass six units simultaneously, along with their auxiliary equipment. NPCIL will issue these tenders shortly.
The size of these upcoming packages is expected to range between ₹8,000-9,000 crore each, totalling ₹54,000 crore. Of this, civil works (HCC expertise) account for approximately 40% to 50% of the total value.
HCC’s management estimates that the actual ground-level execution and awarding of contracts for these major projects will commence around August to October 2027.
Strategic Progress: From RAPP 7&8 to Fast Breeder Facilities
In addition to the upcoming opportunity, construction at the Fast Reactor Fuel Cycle Facility (FRFCF) project is progressing well. This project is a critical component of India’s fast-breeder reactor program and requires highly complex, nuclear-grade structural work.
The company has also recently completed the civil works for the Rajasthan Atomic Power Project (Units 7/8) and the front-end blocks of the Integrated Nuclear Recycle Plant at the Bhabha Atomic Research Center.
The Valuation Check: Is the Nuclear Renaissance Already Priced In?
With superior growth and profitability, Kirloskar Brothers leads the return ratios (Return on Capital Employed (ROCE) and Return on Equity (ROE)) chart. HCC’s profitability has remained relatively weak, as reflected in its lower ROE. Walchandnagar continues to be loss-making; therefore, its return ratios remain negative.
From a valuation perspective, Kirloskar trades at a premium to the 5-year historical median but at a discount to the industry median, while HCC trades at a premium to both.
| Valuation Comparison (X) | |||||
| Price-to-Earnings Multiple | Return Ratios | ||||
| Company | Company | 5Y Median | Industry | ROCE (%) | ROE (%) |
| Kirloskar Brothers | 33.3 | 26.8 | 40.2 | 27.6 | 21.6 |
| HCC | 36.7 | 24.3 | 18.6 | 25.2 | -0.7 |
India’s nuclear sector is entering a once-in-decades expansion cycle, with the government targeting a capacity jump from 7.5 GW to 100 GW by 2047. Against this backdrop, companies such as Kirloskar Brothers, Walchandnagar Industries, and HCC are positioning themselves across critical areas of India’s nuclear value chain.
Yet execution capability, profitability, and balance sheet strength will ultimately determine which players convert this ₹20 lakh crore opportunity into sustained shareholder returns. This is because nuclear projects have a longer gestation period, require substantial working capital and regulatory approvals, and depend on the government for orders, all of which can pose risks.
That said,keep these stocks on your watchlist to see how they tap into upcoming demand.
Disclaimer
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data were unavailable have we used an alternative, widely accepted, and widely used 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 educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
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