4 Green Hydrogen Stocks with Strong Growth Plans in India (2026)

India targets 5 MMTPA green hydrogen production by 2030. Budget 2026-27 allocated Rs 3,500 Cr to the green hydrogen mission. NTPC Green Energy MCap Rs 77,665 Cr. Reliance Industries committed Rs 75,000 Cr to clean energy by FY30.

The four green hydrogen stocks featured here represent different parts of the value chain that India needs to build if it is to meet its 2030 targets under the National Green Hydrogen Mission. From upstream energy generation to midstream infrastructure and downstream manufacturing, NTPC Green Energy, Reliance Industries, Indian Oil Corporation, and Larsen and Toubro each bring a different capability set to what is shaping up as one of the decade’s most policy-supported industrial transitions. As of 19 August 2026, all four green hydrogen stocks are actively deploying capital or announcing capacity milestones in this space.

India’s ambition to produce 5 MMTPA of green hydrogen by 2030 is not a vague aspirational target; it comes with tenders, viability gap funding, and export incentives. The government’s Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme has already sanctioned Rs 3,500 crore in the FY27 budget. This policy framework makes these four green hydrogen stocks worth tracking for investors who want exposure to the energy transition before it becomes mainstream in market valuations.

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What Are Green Hydrogen Stocks?

Green hydrogen stocks are shares of companies involved in producing, transporting, storing, or using hydrogen that is generated entirely from renewable energy sources through a process called electrolysis. Unlike grey hydrogen (made from natural gas) or blue hydrogen (grey with carbon capture), green hydrogen has zero net carbon emissions at the point of production.

In India, green hydrogen stocks span PSUs like NTPC and IOC that are building production capacity, conglomerates like Reliance that are vertically integrating the full value chain, and capital goods manufacturers like L&T that are making the electrolyzers and equipment needed to scale production. The sector is in early commercialisation, meaning most revenue impact will appear from FY28 onwards as projects move from pilot to scale.

Why Do These Four Green Hydrogen Stocks Have Strong Growth Plans?

India’s green hydrogen push is driven by three converging forces: climate commitments (net zero by 2070), energy security (reducing oil import dependence worth $100B+ annually), and export opportunity (Europe has mandated 10 MMTPA green hydrogen imports by 2030, creating a natural market for low-cost Indian production). All four of these green hydrogen stocks are positioned to benefit from at least two of these three tailwinds.

The Budget 2026-27 raised the National Green Hydrogen Mission outlay to Rs 3,500 crore, and the Ministry of New and Renewable Energy has issued tenders for 7,000 MTPA of green hydrogen production incentives (SIGHT scheme). This funding is now translating into viable project economics for the companies covered in this article, making their growth plans more concrete than they were even 12 months ago.

4 Green Hydrogen Stocks with Strong Growth Plans

Data as of 19 August 2026, NSE. Prices are indicative and change in real time.

1. NTPC Green Energy Limited (NTPCGREEN)

Listed in 2024 and headquartered in New Delhi, NTPC Green Energy is the dedicated renewable and green hydrogen subsidiary of NTPC Limited. Its growth plan is anchored in an ambitious target of 60 GW renewable energy capacity by FY32, which forms the feedstock foundation for its green hydrogen ambitions. The company has announced plans for five Green Hydrogen Hubs across India, targeting 1 MMTPA of green hydrogen production as part of the national mission.

NTPC Green Energy benefits from NTPC’s decades-long project execution capability and government ownership, reducing counterparty risk for offtakers significantly. Among green hydrogen stocks, it is the most pure-play exposure to the theme. The PE of 128.01 reflects that the company is still in capital deployment mode rather than revenue harvesting, which is typical of early-stage energy infrastructure names. Its market capitalisation of Rs 77,665 crore reflects investor confidence in the parent NTPC’s backing and the long-term demand visibility from the national mission. The company remains debt-funded for growth, with D/E at 1.67, which is acceptable for a capital-heavy infrastructure business.

2. Reliance Industries Limited (RELIANCE)

Headquartered in Mumbai and founded in 1958, Reliance Industries is India’s largest company by market capitalisation and has made one of the most ambitious commitments to green hydrogen among listed Indian green hydrogen stocks. The company has pledged Rs 75,000 crore in clean energy investments over five years, targeting a fully integrated green energy complex at its Jamnagar site in Gujarat.

The Jamnagar New Energy Gigafactory will manufacture solar modules, hydrogen electrolyzers, advanced batteries, and fuel cells at a single location, giving Reliance a vertically integrated position that no competitor can match at this scale. The company targets 1 MTPA of green hydrogen production from this facility once fully commissioned. Despite the massive investment commitment, Reliance’s core Jio and Retail businesses continue to fund its transition, and its PE of 20.25 remains below the industry average of 16.95 (adjusting for the energy sector classification), making it the most value-oriented name among large-cap green hydrogen stocks. ROE of 8.94% reflects the current investment cycle but is expected to improve materially as new energy assets turn operational.

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3. Indian Oil Corporation Limited (IOC)

Founded in 1959 and headquartered in New Delhi, Indian Oil Corporation is India’s largest oil refiner and fuel marketing company. It is also the operator of India’s first commercial-scale green hydrogen plant, commissioned at its Mathura refinery in Uttar Pradesh. The Mathura facility produces green hydrogen using solar-powered electrolyzers, and IOC plans to scale this to 7,000 metric tonnes per annum of green hydrogen capacity by FY27 across its refinery network.

IOC’s green hydrogen strategy focuses on replacing grey hydrogen currently used in its refineries with green alternatives, which reduces both carbon footprint and long-term feedstock costs. The company is also piloting hydrogen fuel cell buses and has partnered with L&T on an electrolyzer supply chain. Among these green hydrogen stocks, IOC offers the most compelling value proposition on traditional metrics: PE of 5.45, ROE of 19.18%, and a dividend yield of 5.84%. The market has yet to fully re-rate IOC for its clean energy transition, which many analysts see as a medium-term valuation opportunity for investors tracking green hydrogen stocks with income characteristics.

4. Larsen and Toubro Limited (LT)

Founded in 1938 and headquartered in Mumbai, Larsen and Toubro is India’s premier engineering and construction conglomerate. Its entry into green hydrogen stocks comes through equipment manufacturing: L&T operates an alkaline electrolyzer manufacturing unit at its Baroda facility with an initial capacity of 50 MW per annum, which it plans to scale significantly. The company has a partnership with ReNew Power for green hydrogen supply and is developing a Hydrogen Research and Experience Centre (HREC) in collaboration with IOCL.

For L&T, green hydrogen is an additive growth engine layered on its existing Rs 6.5 lakh crore order book, which spans infrastructure, defence, hydrocarbon, and technology projects. The electrolyzer business, while nascent, positions L&T as a critical supplier in the green hydrogen value chain rather than a producer, insulating it from commodity price swings in hydrogen markets. With an ROE of 14.72%, PE of 28.62, and debt-to-equity of 1.15 (driven largely by project financing rather than speculative leverage), L&T is the most financially stable name among these four green hydrogen stocks and carries the lowest execution risk given its track record on large capital projects.

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What Are the Key Growth Drivers for Green Hydrogen Stocks in India?

National Green Hydrogen Mission with Rs 19,744 crore outlay: The government’s flagship programme provides viability gap funding (VGF), production-linked incentives under the SIGHT scheme, and infrastructure support for green hydrogen stocks. This creates a floor of demand for producers who qualify under the mission’s framework.

European green hydrogen import mandates: The EU has mandated that 40% of its hydrogen consumption by 2030 (10 MMTPA) must come from renewable sources, and India is well-positioned as a low-cost producer. Export contracts could materially boost the revenue outlook for Indian green hydrogen companies from FY28 onwards.

Refinery decarbonisation driving captive demand: India’s refining sector currently uses about 7 MMTPA of grey hydrogen, which costs more than green hydrogen will once electrolysis scales up. Companies like IOC and BPCL are already replacing grey hydrogen with green alternatives, creating a large captive market for green hydrogen stocks in the industrial segment.

Electrolyzer manufacturing via PLI scheme: The Production Linked Incentive scheme for electrolyzers is driving domestic manufacturing investment from companies including L&T and Thermax. Lower electrolyzer costs directly reduce the production cost of green hydrogen, improving project economics for all producers.

Declining renewable energy costs reducing hydrogen production costs: Solar tariffs in India have fallen to Rs 2.00-2.50 per unit, making green hydrogen production increasingly cost-competitive with grey hydrogen. As this parity approaches, the commercial case for green hydrogen stocks improves substantially without requiring additional government support.

What Risks Should Investors Consider Before Buying Green Hydrogen Stocks?

Technology and cost risk: Green hydrogen production is still materially more expensive than grey hydrogen in India. Until green hydrogen production costs fall to Rs 150-180 per kg (from current Rs 350-400 per kg), large-scale commercial off-take without government support remains limited.

Long gestation periods: Projects announced today typically have 4 to 7 year commissioning timelines. This means green hydrogen stocks may see limited earnings impact for several years even from confirmed investments, making them unsuitable for investors with short investment horizons.

Regulatory and policy execution risk: SIGHT incentives and VGF disbursements depend on project commissioning milestones and government budget allocations. Any delay in disbursements can affect project cash flows for all four green hydrogen stocks covered here.

Competition from international players: As India opens up green hydrogen export markets, companies may face competition from producers in the Middle East, Australia, and Chile who have lower renewable energy costs and are already scaling production. This could compress margins for Indian exporters.

How to Choose the Right Green Hydrogen Stock?

Look for balance sheet strength: Green hydrogen projects require multi-year capital before generating returns. Companies with strong parent balance sheets (like IOC’s backing from the Indian government, or Reliance’s Jio/Retail cash flows) carry less execution risk than smaller players with limited capital reserves.

Check whether the company is in production or in planning: NTPC Green Energy has moved beyond planning into actual capacity commissioning, while some smaller names are still at MOU stage. Revenue impact from green hydrogen stocks only materialises when capacity turns operational.

Assess core business valuation separately: Reliance and L&T have large profitable core businesses that justify part of their valuation independently. The green hydrogen opportunity is an upside option on top of a fundamentally sound base business. IOC at PE 5.45 effectively gives you green hydrogen exposure almost for free.

Monitor electrolyzer cost trends: The most important forward indicator for green hydrogen stocks is the global cost of alkaline and PEM electrolyzers. Track quarterly announcements from L&T and global benchmark data to gauge how quickly production economics are improving.

How to Invest in Green Hydrogen Stocks in India?

Step 1: Use the Univest Screener to filter green hydrogen stocks by market cap and profitability. For each company, check whether its core business is profitable before assigning value to the green hydrogen component. IOC’s 19.18% ROE and 5.84% dividend yield provide a reliable income foundation even if the green hydrogen thesis takes time to play out.

Step 2: Size positions based on the stage of each company’s green hydrogen programme. NTPC Green Energy is a pure-play with high execution risk and high PE; position sizing should reflect this. Reliance and L&T are diversified conglomerates where green hydrogen is additive upside, warranting a larger allocation if valuations are reasonable.

Step 3: Plan for a 5 to 7 year investment horizon. Green hydrogen stocks are infrastructure-like investments. The thesis plays out over years, not quarters. Benchmark progress against mission milestones (SIGHT disbursements, capacity commissioning dates) rather than quarterly earnings beats.

Step 4: Monitor policy developments every Union Budget cycle. SIGHT scheme allocations and VGF rates are set annually, and any reduction or delay signals risk. Conversely, any increase or extension of the programme is a positive catalyst for all four green hydrogen stocks.

Understanding green hydrogen stocks requires patience because the sector is pre-revenue at scale. Yet green hydrogen stocks are among the few places in Indian equities where government policy, corporate capital commitment, and global demand are all aligned simultaneously. Tracking quarterly commissioning milestones is the right framework for evaluating green hydrogen stocks rather than near-term earnings multiples.

Conclusion

NTPC Green Energy, Reliance Industries, Indian Oil Corporation, and Larsen and Toubro represent four distinct entry points into India’s emerging green hydrogen stocks universe, each with a different risk-return profile and timeline to revenue impact. IOC offers near-term value alongside the green hydrogen option; Reliance brings integrated scale; L&T offers equipment manufacturing upside; and NTPC Green Energy is the pure-play for investors who want concentrated exposure. As always, consult a SEBI-registered investment advisor before making any equity investment in green hydrogen stocks or any other sector.

Frequently Asked Questions

What is the best green hydrogen stock in India in 2026?

Ans. There is no single best green hydrogen stock in India; each of the four companies covered here offers a different risk-return profile. IOC is the most value-oriented at PE 5.45, while NTPC Green Energy is the most pure-play exposure. Reliance offers the largest vertically integrated green energy investment, and L&T provides equipment manufacturing upside. The right choice depends on your investment horizon, risk tolerance, and existing portfolio exposure.

What is India’s green hydrogen production target?

Ans. India’s National Green Hydrogen Mission targets 5 million metric tonnes per annum (MMTPA) of green hydrogen production by 2030, with 125 GW of associated renewable energy capacity. The mission has a total government outlay of Rs 19,744 crore spread over six years, with the SIGHT scheme providing production-linked incentives to domestic producers.

Is green hydrogen profitable in India yet?

Ans. Green hydrogen production is not yet broadly profitable in India without government support. Production costs are currently Rs 350-400 per kg, while commercial viability requires costs below Rs 150-200 per kg. The economics are expected to improve as electrolyzer costs fall and renewable energy tariffs decline further. Most green hydrogen stocks will not see meaningful profit contribution from hydrogen until FY28 or FY29.

How does L&T benefit from green hydrogen without being a producer?

Ans. Larsen and Toubro benefits from green hydrogen as an equipment manufacturer and engineering contractor rather than a producer. Its alkaline electrolyzer manufacturing facility at Baroda supplies electrolyzers to green hydrogen projects, and its engineering division takes EPC contracts for green hydrogen plants. This positions L&T to earn margins from the capex cycle without taking commodity price risk on hydrogen itself.

What is NTPC Green Energy’s target capacity?

Ans. NTPC Green Energy is targeting 60 GW of renewable energy capacity by FY32, which includes solar, wind, and hydropower assets. Within this, the company has announced plans for 1 MMTPA of green hydrogen production through five Green Hydrogen Hubs located across India. Progress is subject to land acquisition, regulatory clearances, and SIGHT incentive disbursements.

Are green hydrogen stocks suitable for long-term investors?

Ans. Green hydrogen stocks are best suited for investors with a 5 to 7 year investment horizon who are comfortable with high uncertainty in early-stage industrial themes. For investors who want exposure with lower near-term risk, IOC and L&T offer green hydrogen upside alongside profitable core businesses. Pure-plays like NTPC Green Energy carry higher short-term volatility. Please consult a SEBI-registered advisor before investing.