The world is hooked to India’s energy transition story. The solar panel has become the global icon of progress. To the casual observer, India’s journey to “Net Zero by 2070” is a story written in silicon and glass.
While that might be partially true, it is not the only player.
To power a $10 trillion economy, India requires a base-load source that is as steady as it is carbon-free. The answer is the quiet, complex, and increasingly inevitable… NUCLEAR Energy.
The Regulatory Catalyst: Breaking the Gated Fortress
For decades, the Indian nuclear sector was a gated fortress, a state-run operation characterized by long gestation periods and Soviet-style secrecy.
However, that era ended with the Union Budget 2025-26 and the introduction of the SHANTI Bill (Sustainable Harnessing and Advancement of Nuclear Technology for India).
This legislation has effectively opened the flood gates by pledging to increase capacity from the current 8.1 GW to a staggering 100 GW by 2047.
At the centre of this Rs 20,000 crore nuclear revolution are not the familiar blue-chip biggies, but a few specialized underdogs.
It’s no surprise that the smart money is already riding this opportunity. The question now remains is whether valuations factor in all the growth, or is there some left for the retail investor.
Let’s dig into two stealth mode stocks that are driving the Net Zero mission for 2070.
MTAR Technologies: The Moat of Precision
Founded in 1969 and incorporated in 1999, MTAR Technologies develops and manufactures components and equipment for the defense, aerospace, nuclear and clean energy sectors. The company’s current market cap is Rs 7,383 cr.
But how is the company at the centre of India’s Nuclear energy mission?
You see, if nuclear energy is a game of millimetres, MTAR Technologies is the master of the board.
Headquartered in Hyderabad, MTAR has transitioned from a specialized workshop into a high-tech powerhouse with a solid moat. They don’t just build components; they build the parts that simply refuse to fail.
MTAR’s product suite includes fuel machining heads, complex mechanical assemblies that load and unload fuel while a reactor is live and water-lubricated bearings. These are products that have a highly selective barrier to entry, that prevents a majority of engineering firms from even placing a bid.
Let us look at the financials to see if this moat helps in growing the business.
The sales of the company have grown at a compound rate of 26% from Rs 214 cr in FY20 to Rs 676 cr in FY25, and for H1FY26, the sales have been Rs 292 cr.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was Rs 121 cr for FY25, which is a 16% compound growth from the FY20 figure of Rs 58 cr. And for H1FY26, the EBITDA logged by the company is over Rs 45 cr.
Net Profits have seen a drop since the FY23 spike. For H1FY26, the profits recorded are Rs 15 cr.
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Profit/Rs Cr | 31 | 46 | 61 | 103 | 56 | 53 |
The share price of MTAR Technologies was around Rs 970 when listed in March 2021 and as of closing on 23rd January 2026 it was Rs 2,400. This is a 147% jump in about 5 years.
Now while the profits have dropped in the recent years, the real story lies in the order inflow for the company. As of the end of September 2025, the company’s order book stood at close to Rs 1,300 cr. And in December 2025, the company bagged another Rs 504 cr in nuclear orders via Megha Engineering.
The stock trades at a premium P/E of 165x. This is a scarcity premium or the price for owning the only private-sector hands capable of touching India’s nuclear fuel assemblies. This while its peers from the industry average around 53x, and this list includes names like Bharat Electronics and Hindustan Aeronautics.
Walchandnagar Industries: The Legacy of Critical Infrastructure
While MTAR is the nimble scalpel of the industry, Walchandnagar Industries is its enduring muscle.
Founded in 1908, Walchandnagar is a legacy name that has supplied critical hardware for every stage of India’s nuclear program, from the first research reactors to the complex Fast Breeder Reactors at Kalpakkam.
But for years, the company was seen as a value trap bogged down by legacy debt and operational friction. That story is undergoing a radical rewrite. Under its “DNA” (Defence, Nuclear, Aerospace) strategy, the company is executing a financial metamorphosis.
Walchandnagar’s unique advantage is its massive fabrication capability. They are one of the very few Indian firms capable of manufacturing a Calandria, the massive reactor vessel that houses the core.
As India pivots toward Fleet Mode procurement (ordering 10 reactors at a time), Walchandnagar’s massive shop floors become what can only be seen as indispensable.
With a market cap of Rs 1,032 cr, the company also a big player in the defense sector. In FY 2023-24, the company qualified in 4 new missile programs thereby making WIL qualified for a total of 10 missile programs of DRDO. It received the first sample batch order of ASTRA missile, and the order was for full-fledged production.
The financials of the company currently look a bit off putting, with a drop in sales, massive operating losses and net profits looking like a distant dream since FY23.
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Sales/Rs Cr | 298 | 326 | 299 | 322 | 302 | 259 |
| EBITDA/ Rs Cr | 35 | 20 | 23 | -34 | 1 | -71 |
| Profit/Rs Cr | -65 | -57 | -38 | 20 | -42 | -86 |
The share price of Walchandnagar Industries was around Rs 62 in January 2021 and as of closing on 23rd January 2026 it was Rs 152.
However, the company has recorded a significant de-leveraging from Rs 448 cr in 2022 to Rs 194 cr as of 25th January 2026, backed by aided by capital infusion and asset sales.
Now, while the company reported a loss of Rs 86 cr in FY25 due to one-time provisions for Tamil Nadu Electricity Board orders, the operating margin in the Nuclear & Defense vertical is showing a structural uptick.
The company’s order book stood at Rs 670 cr (excluding sugar sector orders on hold) in December 2025, with defense and nuclear being the major contributors.
In fact, the company also confirmed in a response to price movement queries that Nuclear is the primary contributor to its portfolio, aligning the company with India’s new nuclear energy mission to reach 100 GW of capacity.
The SMR Revolution: Small Modular Reactors, Big Modular Gains
The real curiosity hook for these stocks isn’t the massive 700MW PHWRs of the past; it’s the Small Modular Reactor (SMR).
The SHANTI Bill has earmarked massive funds for these factory-built nuclear batteries. SMRs can be deployed at industrial clusters, powering steel plants in Odisha or refineries in Jamnagar, without the 15-year wait time of traditional plants.
MTAR is already developing actuators and bearings for the Bharat Small Modular Reactor (BSMR), while Walchandnagar is leveraging its experience with the 220 MW PHWR design (the base for India’s Bharat Small Reactor program).
This shift from Project-based revenue to Product-based manufacturing will possibly and fundamentally change their cash-flow cycles, reducing the working-capital intensive nature of the businesses.
Strategic Verdict: Driving The Nuclear Vision
India’s climate pledge is non-negotiable. To achieve Net Zero by 2070, the nation needs 100 GW of nuclear power. This isn’t just a policy goal; it is an industrial necessity. While solar and wind provide the speed, Nuclear provides the stability.
This puts MTAR and Walchandnagar in a spot that deserves all eyeballs. However, these are not get rich quick tickets. Nuclear energy has long gestation periods. But for the investor seeking an entry into India’s energy security and nuclear future, these two underdogs represent the entry-level gatekeepers to an atomic future.
They are the only companies whose balance sheets are directly correlated to India’s sovereign ability to keep the lights on in a carbon-neutral world. It will be a fascinating ride to see how these companies and their stocks fare in the years to come. Add them to a watchlist?
Disclaimer:
Note: We have relied on data from www.Screener.in and www.trendlyne.com 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.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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