India’s energy sector is stepping into a new phase of fast growth. This is mainly because the government has big clean energy goals, private companies are investing a lot, and people are now more focused on using renewable energy like solar and wind.
The Union Budget 2025–26 gave ₹26,549 crore to the Ministry of New & Renewable Energy—a jump of 39% from last year. Out of this, ₹20,000 crore is for the PM Surya Ghar rooftop solar scheme. This support shows the country is serious about clean energy. Investors are excited because many of these energy companies have the potential to become multibagger stocks—shares that can multiply in value in the coming years.
Top Renewable Energy Leaders to Watch
India aims to increase its clean energy share from 16% in 2022 to 40% by 2047. Here are some top companies helping make that happen:
- Adani Green Energy Ltd.
With 8.4 GW of power capacity already in use and a target of 50 GW by 2030, Adani Green is one of India’s biggest clean energy companies. With a 5-year CAGR (Compound Annual Growth Rate) of over 120%, it could offer multibagger returns. - Tata Power Company Ltd.
Tata Power is working on renewable projects worth 10,000 MW and has partnered with the Asian Development Bank for $4.25 billion in clean energy funding. It’s seen as a strong and steady player in green energy. - JSW Energy, KPI Green Energy, NHPC, and Borosil Renewables
These companies are also gaining investor attention. They have delivered CAGRs ranging from 30% to 90%, showing consistent growth over the past few years.
Small & Mid-Cap Multibaggers in Focus
Mid- and small-cap energy stocks are often more risky but also offer higher growth potential. Some of the key names in this space include:
- Suzlon Energy Ltd.
A well-known name in wind energy, Suzlon has posted a 5-year CAGR of ~100%. Its PE ratio is over 150×, suggesting big returns—but also higher risks. - Waaree Renewable Technologies Ltd.
This stock jumped 16% in one day just before its Q1 earnings, showing investor excitement. It is part of the growing group of niche solar-linked mid-cap stocks. - Others to Watch
- ACME Solar
- RattanIndia Power
- BF Utilities
These small-cap stocks are known for their strong upside potential as they grow along with India’s renewable push.
Diversified Energy Players & High-Value Bets
Some large and diversified companies are also catching attention due to their energy-related plans:
- Oil India Ltd.
This government-owned company is in the fossil fuel sector, but analysts believe it could double in value over the next 3 years. From ₹459 in June 2025, a target of ₹630 has been set by brokerage firm Avendus Spark. - Reliance Industries – New Energy Division
Reliance is investing $10 billion in green projects like solar, hydrogen, and battery factories in Gujarat. Experts say this new division could soon earn as much profit as its oil-to-chemical business and may reach a valuation of $26 billion in the next 5–7 years. - Siemens Energy (India)
Jefferies predicts its EPS (earnings per share) could grow at 50% CAGR till 2027. With increasing capex, analysts suggest a target price of ₹3,500 per share. - Indian Energy Exchange (IEX)
IEX shares jumped 8% after its Q1 profit rose 25% YoY. The recent approval for “market coupling” by CERC could boost trading volumes and make IEX a promising multibagger stock.
Conclusion
India’s renewable energy shift is not just a policy move—it’s an investment opportunity. Here’s a quick snapshot:
For long-term investors with an appetite for growth and some risk, the Indian energy sector offers powerful multibagger possibilities. Stocks like Adani Green, Tata Power, and mid-caps like Suzlon and Waaree can deliver strong returns if India sticks to its green goals.
F.A.Q.
– What are multibagger stocks in the energy sector?
Multibagger stocks are shares that can multiply in value—often 2x, 5x, or even 10x—over time. In the energy sector, these are companies expected to grow significantly due to government support, rising demand, and green energy adoption.
– Which are the top renewable energy multibagger stocks in India right now?
Some of the leading picks include Adani Green Energy, Tata Power, JSW Energy, Suzlon Energy, and Waaree Renewable Technologies. These companies are expanding capacity and benefiting from policy tailwinds.
– Is it safe to invest in small-cap energy stocks like Suzlon or Waaree?
While small-cap stocks offer high growth potential, they also carry higher risk due to price volatility and execution challenges. Investors should assess their risk appetite and diversify wisely.
– How is the government supporting renewable energy growth in India?
The Union Budget 2025–26 allocated ₹26,549 crore to renewable energy, including ₹20,000 crore for rooftop solar under the PM Surya Ghar scheme. India also aims to increase clean energy share to 40% by 2047.
– What are the risks in investing in energy sector stocks?
Risks include high stock valuations, policy changes, global trade challenges (like solar import tariffs), and delays in large-scale projects. It’s important to monitor earnings and regulatory developments closely.
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