The world is moving toward environmentally friendly energy production. Unlike coal or gas plants, nuclear reactors produce virtually no greenhouse gas emissions during operation. Thus, with growing electricity demand, nuclear power offers a low-carbon, high-reliability alternative that can reduce dependence on coal without compromising grid stability.
India’s nuclear energy ambitions are entering a pivotal decade. The Indian government is now accelerating its nuclear expansion plan, and plans to increase capacity from 8.1 gigawatts (GW) to 22.8 GW by 2032. The move comes at a time when India is shifting towards clean energy to achieve energy security and reduce its dependence on coal.
In the long term, the government plans to achieve 100 GW of nuclear power capacity by 2047 as per the Nuclear Energy Mission. Similarly, we have selected these four companies with exposure to India’s expanding nuclear power value chain…
#1 BHEL
BHEL is a key player in India’s nuclear power sector, associated with India’s three-stage nuclear programme for over five decades. As of FY25, BHEL accounts for 56% of the nuclear power installed capacity (secondary side) in the country.
India’s only Indigenous supplier of Nuclear turbine–generator sets
BHEL supports all three phases of India’s nuclear program and manufactures key equipment. It is India’s sole indigenous supplier of nuclear steam turbines and generators for nuclear power plants. It is also the sole India manufacturer of nuclear turbine generator sets.
BHEL has supplied a total of 45 Nuclear Steam Generators, which is cited as the highest number by any manufacturer in India. The 45th Steam Generator was delivered to the GHAVP Nuclear Power Plant during FY25.
Expanding presence across reactor technologies
BHEL’s power utility installed base includes 14 nuclear-based utility sets commissioned in India since inception, with a total capacity of 4,740 megawatt (MW). BHEL supplies critical equipment across the primary and secondary islands of nuclear plants across various ratings, including 220 MWe, 540 MWe, and 700 MWe.
BHEL also successfully commissioned 3 units of India’s highest rated 700 MWe based on PHWR technology (Pressurised Heavy Water Reactors) at Kakrapar and Rawatbhata. The major supplies for these projects included the Turbine–Generator, Nuclear Steam Generators, Reactor Headers, PCP Motors, C&I Package, and Generator Transformers.
EPC leadership in upcoming nuclear projects
The company developed the Secondary side Steam Cycle for Advanced Heavy Water Reactors (AHWR). BHEL offers complete Engineering, Procurement, and Construction (EPC) solutions for the Turbine Generator island of PHWRs, FBRs (Fast Breeder Reactors), and AHWRs.
BHEL is executing the EPC of Turbine Island Packages for 6 units of Gorakhpur, Haryana, Anu Vidyut Pariyojana and Kaiga Atomic Power Plants. BHEL, with its strong footing in nuclear power, is well-positioned to contribute to India’s 100 GW nuclear power capacity by 2047.
#2 NTPC
NTPC considers nuclear energy a key component of its long-term sustainability roadmap. The company says nuclear power provides reliable, high-quality base-load electricity with minimal carbon emissions, which is essential for India’s energy security and achieving decarbonisation goals.
Strategic Ventures strengthening nuclear entry
NTPC has operationalised its nuclear entry strategy through dedicated corporate entities and collaborations.
- Anushakti Vidhyut Nigam Limited (ASHVINI): It is a joint venture between NTPC (49%) and Nuclear Power Corporation of India (51%), formed with the goal of building, owning and operating nuclear power plants in India.
The Government of India approved the transfer of the Mahi Banswara Rajasthan Atomic Power Project from NPCIL to Ashwini on 13 September 2024. The company is on the verge of starting work on the Mahi Banswara project.
- NTPC Parmanu Urja Nigam Limited: Incorporated on 7 January 2025, NPUNL is a wholly owned subsidiary established to spearhead NTPC’s nuclear business development.
- Nuclear Cell: NTPC has a dedicated Nuclear Cell in Mumbai for close coordination with crucial stakeholders, including the Department of Atomic Energy, Bhabha Atomic Research Centre, NPCIL, and the Atomic Energy Regulatory Board.
Pushing ahead with small modular reactor (SMR) development
NTPC is actively pursuing both conventional and advanced nuclear technologies. It is exploring Small Modular Reactors (SMR) to provide clean, base-load energy, particularly through the potential conversion of select coal-fired units.
The NTPC Board approved a draft Memorandum of Understanding (MoU) with BARC for the indigenous development of SMRs. NTPC is also in discussions with Holtec (USA) to explore the adoption of foreign SMR technology in India, subject to the Government of India clearance.
This is in line with the Rs 200 billion allocated by the government for research and development in SMRs. It plans to commission at least five domestically designed SMRs by 2033, underlining the strategic importance of this technology.
Identifying sites and securing state partnerships
Additionally, NTPC’s Nuclear Cell has identified 28 potential nuclear project sites across various states. MoUs for nuclear project development have been signed with the Governments of Madhya Pradesh and Chhattisgarh. It is in discussions regarding land and water availability with state governments.
NTPC is also exploring the possibility of acquiring foreign uranium assets for joint techno-commercial investigations. NTPC is also exploring collaboration with Clean Core Thorium Energy, USA, to assess the potential use of ANEEL (Advanced Nuclear Energy for Enriched Life) fuel in India.
#3 Larsen & Toubro
Larsen & Toubro operates in several business areas in the nuclear sector, focusing on construction and advanced manufacturing, and the strategic development of next-generation reactors. Larsen serves both the domestic and international markets.
Expanding role across nuclear construction and manufacturing
The Heavy Civil Infrastructure business performs civil construction work for nuclear power plants. Its specialisation is in the construction of pressurised heavy water reactors, light water reactors and natural draft cooling towers.
Restructuring Power EPC into CarbonLite Solutions
Larsen has also restructured its power EPC segment to CarbonLite Solutions, reflecting its pivot toward nuclear turbine island solutions. The Heavy Engineering business manufactures engineered-to-order equipment for the nuclear power plant sectors.
Pushing boundaries with Small Modular Reactor (SMR) Development
Its nuclear business unit manufactures critical components such as steam generator assemblies, end shields, pressurizers, calandria and equipment for fusion reactors and fast breeder reactors.
Additionally, Larsen is also actively involved in the development of SMRs.
It has also received regulatory approval by the U.S. Department of Energy for the transfer of SMR technology to India. Larsen was one of only three Indian companies selected for this transfer, positioning it to lead the commercialisation of nuclear energy in the country.
Among recent achievements, Larsen has secured the Nuclear Island Mechanical Package for the Gorakhpur Haryana Anu Vidyut Project from Nuclear Power Corporation of India. Larsen is seeing increased order flow from the international market in its nuclear equipment business.
#4 MTAR Technologies
MTAR specialises in supplying highly specialised products and critical fuel-handling equipment for the core of the nuclear reactors. The Company is one of the top three suppliers providing precision engineering requirements to the Indian Civil Nuclear Power sector.
What does MTAR supply to India’s nuclear programme?
MTAR supplies fueling machine heads, coolant channel assemblies, fuel transfer systems, and drive mechanisms. The company supplies these products to Nuclear Power Corporation of India Limited (NPCIL) and the Department of Atomic Energy.
The Civil Nuclear segment of MTAR reported a revenue of ₹54 million in Q1 FY26, and ₹184 million (2.7% of total revenue) in FY25. MTAR expects to deliver nuclear orders worth ₹600 million in FY26, with exponential growth anticipated from FY27 onwards.
Large order pipeline to drive growth momentum
The company expects to receive large orders worth about ₹10 billion from the Department of Atomic Energy in the next three to six months. MTAR has submitted quotations for this purpose and expects orders from the upcoming Kaiga-5 and -6 reactors (two new 700 MW reactors).
Additionally, the company expects to receive orders for planned refurbishment reactors in Madhya Pradesh, Rajasthan, Chennai, and Tarapur. These orders are expected to be announced within three to six months.
To meet the anticipated high volume of timely orders, MTAR is setting up a new dedicated plant adjacent to its existing units. This will not only expand its manufacturing capacity but also significantly address the bottlenecks it faces.
MTAR anticipates strong momentum with year-on-year growth projected in the range of 35% to 40% starting in FY2027. MTAR also sees potential long-term orders (₹15–20 billion) from the remaining 10 fleet reactors planned by the government.
The opportunity is huge, but what about valuations?
From a valuation perspective, BHEL and MTAR are trading at a significant premium to their median and industry price-to-earnings (P/E) multiples. NTPC is trading at a slight premium to the median, but at a discount of more than 50% to industry valuations. Following a rerating over the past few years, Larsen is also trading at a premium to both median and industry valuations.
Valuation Comparison (X)
| Company | Current P/E | 10-Year Median P/E | Industry P/E |
| BHEL | 179 | 61.0 | 50.5 |
| NTPC | 13.4 | 11.7 | 29.2 |
| Larsen & Toubro | 33.9 | 27.5 | 21.2 |
| MTAR Tech | 175 | 76.7 (3-Year) | 64.0 |
India’s nuclear power expansion is not just an energy transition—it’s a manufacturing revival in motion to support the country’s growing needs. As the country targets 22.8 GW by 2032 and 100 GW by 2047, companies like BHEL, NTPC, Larsen & Toubro, and MTAR Technologies stand to gain from rising reactor orders and localisation thrust. While valuations are elevated in parts of the sector, the long-term visibility, policy tailwinds, and strategic importance of nuclear energy make this bet hard to ignore.
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 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 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.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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