In a positive long-term policy push for nuclear power, the Union Cabinet approved the Shanti Bill (Sustainable Harnessing of Advancement of Nuclear Energy for Transforming India). The bill is a meaningful boost for India’s nuclear power value chain, as it also opens the sector to private-sector participation and caps vendor liability—factors that had earlier limited broader involvement.
According to Antique Stock Broking, nuclear power currently accounts for 1.7% of installed capacity, with the Central Electricity Authority planning to increase this to 2% by FY30. However, the government’s longer-term objective of 100 gigawatt (GW) of nuclear power capacity by 2046 implies that nuclear power could account for over 5% of total installed capacity over time.
In the near term as well, capacity addition is set to pick up. The government plans to increase nuclear capacity from 8.1 GW to 22.8 GW by 2032. The bill is expected to expedite the target, position nuclear power as the backbone for data centers, and 24X7 electricity. With ambition now supported by a clearer policy framework, the focus shifts to which stocks across the nuclear power value chain are expected to benefit.
#1 MTAR Technologies: The Precision Play for Reactors
Nuclear power is a key focus area for MTAR Technologies, which specializes in manufacturing precision-engineered systems specifically for the clean energy-civil nuclear power segment. The company supplies complex and highly differentiated components for the core of nuclear reactors, specifically for Pressurized Heavy Water Reactors.
The main products in the civil nuclear power sector include fueling machine heads, FM bridges and columns, fuel transfer systems, drive mechanisms, fuel locator assemblies, sealing and shielding doors, and coolant channel assemblies. This can meet all the equipment requirements of a 700 MWe PHWR nuclear plant, which accounts for approximately 20-25% of the total equipment scope.
Fleet expansion and refurbishment open a multi-year order runway
With the commissioning of a new fabrication facility, MTAR is also qualified to manufacture additional products, like End Shields, Calandrias, and Self-Elevating Platforms. It has participated in tenders for these products. The Company has the capacity to address orders from up to four reactors simultaneously, covering both new construction and refurbishment projects.
Small modular reactors and fleet orders set the stage for sustained growth
MTAR states that the expansion of nuclear power includes the development of at least five indigenously designed Indian Small Modular Reactors by 2033. This could open up two main avenues for orders for MTAR: the construction of new reactors and the repair of existing reactors.
In new reactor projects, the Indian government has approved the construction of 14 new Pressurized Heavy Water Reactors with a total fleet capacity of 9.8 GWe. Also, five operating reactors have been selected for refurbishment to extend their operational life, and the Nuclear Power Corporation of India Limited has initiated tendering for the critical assemblies required for these projects.
An ₹800-crore near-term order pipeline
MTAR expects orders worth about ₹800 crores in the Nuclear Division by FY26 end. It is close to receiving anticipated “fleet reactive orders” worth about ₹500 crores for Kaiga 5 and 6 in the coming weeks. These orders are expected to be executed within the next 3 years. Also, MTAR expects refurbishment reactor orders in FY26.
In the medium term, MTAR expects to receive about ₹1,000 crores in orders from the upcoming Kaiga 5 & 6 projects and the refurbishment of five existing reactors. The remaining 10 fleet reactors present a potential order inflow of ₹1,500-2,000 crore over the next 6–7 years.
In the long run, the company expects to report 35-40% year-on-year from FY27 onwards, backed by a strong pipeline of new and refurbishment orders.
Revenue from Clean Energy- Civil Nuclear Power segment stood at ₹18.4 crore in FY25, accounting for 2.7% of total revenue. In the first half of FY26, the segment reported revenue of ₹10.5 crore. As of 30 September 2025, the segment order book stood at ₹150 crore, accounting for 11.6% of the total order book of ₹1,297 crore.
#2 NTPC: The power giant’s nuclear pivot
For NTPC, nuclear power is a key focus area for diversification and achieving its long-term clean energy goals, providing reliable, low-carbon baseload power that is crucial for India’s energy security. NTPC is working to rapidly expand nuclear capacity, aiming to add an incremental 2.1 GW by 2037.
Building a dedicated nuclear platform through subsidiaries and joint ventures
NTPC is developing its nuclear portfolio through a dedicated subsidiary and a joint venture. This includes NTPC Nuclear Energy Corporation, a wholly owned subsidiary established on 7 January 2025, specifically to pursue nuclear business development. Another one is Anushakti Vidhyut Nigam (ASHVINI), a joint venture with the Nuclear Power Corporation of India (NPCIL).
Mahi Banswara marks NTPC’s entry into large-scale nuclear execution
A major milestone in NTPC’s nuclear energy journey was the laying of the foundation stone for the Mahi Banswara Rajasthan Atomic Power Project in Banswara, Rajasthan, on 25 September 2025. This project comprises four units of 700 MW each, totaling 2800 MW.
The estimated total capital expenditure is about ₹50,000 crore. The completion time is set at six years from the first day of concrete pouring, with completion expected by December 2032.
The excavation contract for Units 1 and 2 has already been awarded, and the remaining packages, including the nuclear island and turbine-generator (TG) package, are expected to be awarded within the current financial year. The power generated is slated for consumption by the states of Rajasthan, Gujarat, Chhattisgarh, and Andhra Pradesh.
SMRs and global partnerships shape the next phase of nuclear growth
NTPC is exploring several avenues and technologies for future nuclear development. Upon receiving government approval, it plans to explore Small Modular Reactors (SMRs), Pressurized Heavy Water Reactors (PHWRs), Pressurized Water Reactors (PWRs), and Fast Breeder Reactors (FBRs).
The Indian government has allocated ₹20,000 crore for the research and development of SMRs. NTPC is exploring converting select coal-based units into SMR-based nuclear facilities. NTPC is also exploring partnerships with international nuclear companies, including a partnership with the Bhabha Atomic Research Centre for indigenous SMR development.
Discussions are also underway with Holtec (U.S.) for foreign SMR technology. NTPC’s nuclear cell has identified 28 potential nuclear project sites across eight states. For this, NTPC is examining options for nuclear fuel security, including coordinating with the Uranium Corporation of India to conduct joint technical and commercial due diligence on overseas uranium assets.
#3 BHEL: The only indigenous choice for nuclear turbines
BHEL has been central to India’s nuclear power journey for more than five decades. It is closely aligned with the country’s three-stage nuclear programme. As of FY25, the company accounted for nearly 56% of India’s installed nuclear power capacity on the secondary side, underscoring its strong position in the domestic nuclear ecosystem.
Sole indigenous supplier of nuclear turbine-generator sets
BHEL is India’s only indigenous supplier of nuclear turbine-generator sets. It supports all three phases of the nuclear programme and manufactures critical equipment required for nuclear power plants. It is also the sole domestic manufacturer of nuclear steam turbines and generators. These capabilities make BHEL a crucial player in the country’s nuclear project.
Over the years, BHEL has supplied a cumulative 45 nuclear steam generators. This is the highest number delivered by any manufacturer in India to date. The 45th steam generator was supplied to the GHAVP nuclear power plant during FY25, further strengthening the company’s execution track record in this segment.
Diversified presence across reactor technologies
BHEL’s nuclear installed base spans 14 utility-scale nuclear units commissioned since inception, with a total capacity of 4,740 megawatts. The company supplies key equipment across both the primary and secondary islands of nuclear plants, serving reactors with capacities of 220 MWe, 540 MWe, and 700 MWe. BHEL’s ability to service multiple reactor sizes has kept it relevant as India’s nuclear programme has evolved.
This was evident in the successful commissioning of 3 units of India’s highest-rated 700 MWe PHWRs at Kakrapar and Rawatbhata. For these projects, BHEL supplied a wide range of critical systems, including turbine-generator sets, nuclear steam generators, reactor headers, PCP motors, control and instrumentation packages, and generator transformers.
EPC capability positions BHEL for the next phase of nuclear expansion
Beyond conventional PHWRs, BHEL has diversified its footprint across reactor platforms. It developed the secondary-side steam cycle for Advanced Heavy Water Reactors and offers end-to-end EPC solutions for turbine generator islands. This EPC capability positions BHEL not only as an equipment supplier but also as a system integrator for nuclear power projects.
Currently, BHEL is executing EPC contracts for turbine island packages across six nuclear units at Anu Vidyut Pariyojan and Kaiga Atomic Power Plants. With a strong presence, BHEL remains well placed to play a material role in India’s long-term nuclear capacity expansion, including the country’s ambition to scale nuclear power capacity to 100 GW by 2047.
Strong visibility ahead, though valuations warrant auction
BHEL and NTPC, whose businesses are capital-intensive, have poor return ratios, including both Return on Capital Employed (RoCE) and Return on Equity (RoE). MTAR has a strong RoCE, indicating its capital efficiency, but its lower RoE suggests weak return on shareholder funds.
Valuation-wise, both BHEL and MTAR are trading at significant premiums to their median and industry price-to-earnings (P/E) multiples. However, NTPC’s valuation is almost in line with the median but at a 50%+ discount to the industry. BHEL’s P/E is inflated on account of a significant loss in Q1 of FY26.
Valuation Comparison (X)
| Company | Current P/E | 10-Year Median P/E | Industry P/E | RoCE (%) | RoE (%) |
| BHEL | 174 | 61.5 | 44.2 | 4.9 | 2.1 |
| NTPC | 13.1 | 11.7 | 26.5 | 9.9 | 12.1 |
| MTAR Tech | 158.0 | 74.7 (~5-Year) | 58.3 | 17.4 | 7.5 |
That said, India’s nuclear power expansion is set to revive to support the country’s growing energy needs. The SHANTI BILL, which opens up this sector to private participation, is expected to open orders for private companies. As the country targets 22.8 GW by 2032 and 100 GW by 2047, these companies stand to gain. Although BHEL and MTAR are highly valued, the long-term visibility, policy support, and strategic importance of nuclear energy make this sector worth watching.
Disclaimer
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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.
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