Imagine India’s clean energy path as that marathon runner. The runner is young and quick, and like India’s surging renewable capacity, ready to run the distance. But halfway through, it starts to get tired. That is what happens to renewable energy when it gets dark or the winds stop.
Battery storage is the energy pack that is strapped to the back of the runner. It provides the added thrust, maintains the pace, and makes it possible to reach the finish line without tripping. This is no longer an abstract concept — the transition is already beginning.
The Trillion-Rupee Push for Grid Stability
According to a report by the Institute of Energy Economics and Financial Analysis, between 2022 and May 2025 period, approximately 12.8 GWh of battery energy storage capacity was sold. Having said that, it must be noted that most of this capacity is not yet active today, with a substantial pipeline still under development.
The push stems from India’s goal to reach 500 GW non-fossil capacity by 2030 and the necessity to firm up intermittent solar and wind. The Central Electricity Authority estimates that more than 400 GWh of storage will be needed by 2031-32, with over half of it from BESS.
The Tipping Point for Storage
To drive adoption, the government has launched a Rs 91 billion viability gap funding program, PLI incentives to encourage advanced battery production, and an energy storage obligation increasing to 4% by 2030. Hybrid tenders involving storage have already jumped from 12% in 2021 to almost 50% in 2024.
In an earlier piece, we looked at how ancillary companies are benefiting from the renewable revolution. Storage is the next frontier — the critical enabler that will ensure renewable power can be delivered round the clock.
With this emerging opportunity in mind, we introduce 5 Battery Storage Stocks to Watch in India’s Energy Transition. The five companies chosen leverage strengths in manufacturing, utility-scale execution, and engineering, procurement, and construction (EPC) capabilities. They are not marginal players but integral stakeholders setting India’s storage destiny, and the most likely to make a difference as auctions convert into projects and projects into revenues.
The Key Contenders
#1 Exide Industries
Exide Industries is primarily engaged in the manufacturing of storage batteries and allied products in India.
Exide Industries, which has a long history of producing lead-acid batteries, is positioning itself as a strong player in energy storage.
The company commissioned three battery energy storage system (BESS) projects in FY25, providing integrated solutions that involve the use of containers, power conversion systems and battery management systems. Its initial focus is on the commercial and industrial segment, with systems under 2MW/4MWh, where the demand is rising as companies look to reduce diesel genset usage.
Demonstrating these capabilities at Elecrama, one of the industry’s largest shows, Exide attracted robust interest in its BESS offerings. Management takes this as proof that storage systems are moving from pilot projects to mass deployment.
Alongside lead-acid based storage, Exide is making a large-scale push into lithium-ion. Through subsidiary Exide Energy Solutions Ltd (EESL), the company is setting up a 12 GWh greenfield lithium-ion cell plant in Bengaluru, backed by a Rs 3,602 crore investment. Phase I, with 6 GWh capacity, is expected to be operational in FY26. A 1.5 GWh pack and module facility at Prantij, Gujarat is already running, supported by a technology tie-up with China’s SVOLT.
Exide has committed more than Rs 1,000 crore in the lithium project to date, with additional funding lined up to stay on schedule with construction. The facility will have mobility and stationary storage applications, building on India’s efforts towards renewables integration and grid resilience.
Concurrently, Exide continues to build on its proven lead-acid platform, with continuous product enhancements for data centres, telecom and UPS applications. Recycling is still at its heart, with around three-fourths of its lead requirements being supplied internally through recovery, reinforcing sustainability credentials.
The strategy of the company is to straddle traditional and innovative chemistries—leadership in lead-acid while ramping up in lithium-ion. With BESS projects already ongoing, a giga-scale factory under development, and large capital committed, Exide is transforming from a battery maker to an end-to-end energy storage solutions player.
#2 Amara Raja Energy & Mobility
Amara Raja Energy & Mobility, the flagship company of the Amara Raja Group, is the technology leader and is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry.
Amara Raja Energy & Mobility is ramping up its transition into energy storage under its New Energy business. Lithium pack installations have surpassed the 100 MW threshold in the telecom space, where the company still maintains over half the market share.
These lithium packs are also utilized as backup for telecom towers, where diesel gensets are replaced with them to ensure stable operations during grid outages. This places them at the heart of Amara Raja’s stationary energy storage solution, contrasting its mobility-oriented batteries.
The firm is putting sizeable investments into Amara Raja Advanced Cell Technologies, its New Energy subsidiary. Construction has already begun for a one gigawatt-hour (GWh) gigafactory, which is planned to be commissioned in FY27. The initial line will make NMC 21700 cylindrical cells, targeting primarily two-wheelers and power tools, but management has left the facility open for conversion to LFP chemistries that become increasingly important for grid and storage applications.
Facilitating this build-out, a customer qualification plant and research laboratory are planned to be operational by the close of FY26. These facilities will support advanced cell design, testing, and validation, enhancing the company’s ability to address both mobility and stationary storage requirements.
Amara Raja is also increasing its recycling footprint. Refining operations have commenced at its Cheyyar facility, with battery breaking lines likely to settle down by late 2025. Recycling is viewed as the key towards supply security, cost management, and long-term sustainability.
Aside from telecom, the firm is building energy storage solutions in three segments: retail home, commercial and industrial, and grid-level systems. Separate teams are building each vertical, with management seeing storage as a key driver of future growth.
Through the integration of early telco traction, long-term gigafactory initiatives, and a circular model through recycling, Amara Raja is placing itself among India’s next-generation domestic leaders in the energy storage system.
#3 Tata Power Company
Tata Power Company, a Tata Group company, 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 roofs and plans to build 1 lakh electric vehicles (EV) charging stations by 2025 The company is India’s largest vertically-integrated power company.
Tata Power has already started construction of a 2,800 MW pumped hydro storage pipeline, out of which 1,000 MW is currently being constructed and the rest would follow within nine months. It is also leading hydro projects in Bhutan, such as a 600 MW plant currently being developed.
These storage investments are aimed at complementing the 5.5 GW of renewable projects under implementation, where the battery energy storage systems are also set to play an increasingly important role. They are the backbone of Tata Power’s plan for making its renewable portfolio firm and dispatchable to help the company provide 24×7 clean power to commercial and industrial consumers.
On the distributed side, the business is scaling behind-the-meter and rooftop solar with bundled battery storage. Demand has taken off under initiatives such as PM Surya Ghar, with month-on-month rooftop unit sales increasing from 1,000 in March last to 20,000 by June 2025. Volumes are set to hit 40,000–50,000 units per month later this year, highlighting the size of the residential and C&I opportunity.
To back this strength, Tata Power is investing serious capital. The company has guided for Rs 25,000 crore of annual capex, where a major portion is going towards renewables, pumped hydro and grid-connected storage facilities. The management has said returns on these investments will begin trickling in over the next couple of years as projects are commissioned.
By integrating giant pumped hydro projects, grid-scale renewable with storage, and distributed solar-plus-battery solutions, Tata Power is setting itself up to be one of the most integrated energy storage companies in India. The focus is evident: storage is not a fringe add-on anymore but a core part of its clean energy play.
#4 JSW Energy
JSW Energy, a part of the JSW Group, and its subsidiaries are primarily engaged in the business of generation of power from its power assets located at Karnataka, Maharashtra, Nandyal and Salboni. It is the holding company for the JSW group’s power business.
JSW Energy is emerging as a significant player in India’s energy storage market, incorporating large-scale pumped hydro and battery systems into its renewable growth strategy. The company has contracted for 29.4 GWh of storage capacity, divided between pumped storage projects (PSP) and battery energy storage systems (BESS).
A significant highlight in the quarter was the execution of a 12 GWh PSP deal with Uttar Pradesh Power Corporation Ltd, to be supplied over the next six years. JSW has also contracted 1.2 GWh of BESS deals, evidencing the increasing demand for firm renewable supply. To support this aspiration, it is establishing a battery assembly facility in Pune, with 5 GWh capacity per annum for BESS at an initial investment of Rs 165 crore. Trial production is likely to start by the end of Q2 FY26.
The management observed that the Pune unit will concentrate on mounting imported cells into containerised solutions specific to storage projects, seeing even stricter limits on China imports of batteries. This reduces risks to supply chains as it facilitates scaling up domestic storage capacity.
In addition to battery manufacturing facilities, JSW is investing in wind blade manufacturing facilities in southern and western India that will reduce logistics expenses and provide timely equipment supplies. This integrated method is planned to strengthen its renewable and storage execution pipeline.
Its under-development pipeline of 13 GW of generation assets is completely committed under long-term power purchase deals, with storage likely to have a central function in firming renewable capacity. Capex guidance for FY26 is set at ₹15,000–18,000 crore, much of which is committed to storage-linked assets.
By integrating long-gestation pumped hydro schemes, near-term BESS deployments, and a domestic assembly footprint, JSW Energy is emerging as one of India’s most credible integrated storage developers. The move represents a definitive bet on storage as the anchor enabler of its growth driven by renewables.
#5 Sterling & Wilson Renewable Energy
Sterling and Wilson Solar Renewable Energy is one of the leading end-to-end solar EPC solutions providers globally and is also engaged in the operation and maintenance (O&M) of solar power projects. The company is part of Reliance – Mukesh Ambani group.
Sterling and Wilson Renewable Energy (SWREL) is becoming a player to reckon with in battery energy storage, fitting India’s gathering renewables momentum. The company has established a robust solar EPC order pipeline of over 30 GW, 26 GW of which is in India, and management has emphasized that above and beyond solar, it is actively pursuing BESS opportunities as well as targeted hybrid EPC orders.
Globally, SWREL is pursuing prospects in Europe and Africa, with emphasis on the pairing of solar with battery storage. The company noted that especially European markets are now opening up for BESS projects, adding to the growth of renewables in the region.
In the local market, management highlighted an evident change: tenders are now more and more becoming firm and dispatchable renewable energy contracts with battery integration as a requirement. According to new government regulations, all solar tenders should have a minimum of 20% battery capacity, thereby providing a structural cash flow stream for EPC companies such as SWREL.
Even though Q1 order inflows of the company did not have new BESS projects, management assured that it is in advanced discussions with major private customers for hybrid orders involving solar, wind, and storage. The company anticipates significant revenue contribution from this segment from FY27 as execution speeds up.
SWREL’s approach is to ride the turnkey EPC experience to offer a seamless integration of storage with solar and wind assets. Management expects that in the medium term, 10% of revenues may come from battery schemes, increasing even further as policy-driven storage obligations come into play.
By consolidating its leadership solar EPC footprint with an expanding emphasis on storage-linked tenders, Sterling and Wilson is poised to become a serious domestic as well as international player in the energy storage value chain. The shift highlights the way in which storage is taking centre stage in the business model of India’s top renewable contractors.
Valuations
Let’s now take a look at the valuations of these storage-linked companies, using the Enterprise Value to EBITDA metric.
Current VS Historic Valuations Comparison
| Sr No | Company | EV/EBITDA | 10-year EV/EBITDA |
| 1 | Exide Industries | 19.2 | 12.1 |
| 2 | Amara Raja Energy & Mobility | 11.2 | 12.0 |
| 3 | Tata Power Company | 11.1 | 9.3 |
| 4 | JSW Energy | 17.6 | 7.6 |
| 5 | Sterling & Wilson Renewable Energy | 18.1 | 4.2 |
The comparison clearly shows that valuations have re-rated significantly, with all stocks, other than Amara Raja, trading quite above their long-term averages. In a few instances, multiples are over twice historical levels, highlighting market enthusiasm for energy storage as a structural growth theme.
This sharp re-rating indicates investors are already factoring in policy tailwinds, big project pipelines, and storage having the potential to become essential to India’s renewable build-out. Though this optimism is based on real opportunities, it does pose the question of how much of the upside is factored into prices right now.
As history has revealed, the finest investment opportunities normally lie around the time when valuations have returned to closer to long-term means, or lower. In the current high multiples, the challenge for investors will be to balance the high growth prospects against the risk of paying too high a price for an industry that remains in the early days of execution.
Investor Takeaway: High Growth at a High Price?
India’s energy transition is gaining momentum, but success will ultimately be determined by how well storage solutions are scaled. The firms mentioned here — ranging from manufacturers, utilities, and EPC providers — demonstrate that storage is no longer a marginal concept but a space drawing capital, partnerships, and policy initiatives.
Each of the above company contributes a unique capability, from gigafactories and recycling to pumped hydro and hybrid developments. Collectively, they are the building blocks of an ecosystem that will support India’s 2030 and 2031–32 energy goals.
Meanwhile, investors need to appreciate that the industry is still at an early phase of implementation. Even if tenders and capex announcements look encouraging, real operating capacity is still limited. Valuations also have run ahead of past averages, mirroring high expectations that might not necessarily hold in near-term delivery. This does not negate the opportunity but does emphasize the role of selectivity, patience, and keeping a close eye on execution.
In essence, storage is poised to become the backbone of India’s renewable future. The only question for investors is not if this theme will play out, but how soon, and who are the best positioned players to deliver lasting value. Until then, these five stocks provide an early view of India’s storage story — combining growth potential with the uncertainties inherent in any emerging sector.
Disclaimer
Note: We have relied on data from http://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 dig deep into the world of companies, studying their performance, and uncovering insights that bring value to her readers.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
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