Power Sector Stocks in India for 2025

Power Sector Stocks – power stocks represent the companies that generate, transmit, and distribute electricity. Nowadays, investors often consider these stocks as the most potential investment opportunities because of the industry’s diversification. In 2024, PM-Surya Ghar Muft Bijli Yojana was introduced with an outlay of Rs 75,000 crores. 

“Power is not just for TV sets and charging mobile phones. This electricity is critical to the industrial development of this area. If there is electricity, small-scale industry will grow”. ~ Narendra Modi (Prime Minister of India).

In the above statement, the Prime Minister highlighted the importance of electricity in boosting small-scale industry. Also, we stand at fourth in terms of power consumption. Thus, investing in power sector stocks might prove to be impeccable for investors. We’ve picked the top 10 power sector stocks in India. These stocks might help you create a diversified investment portfolio. 

Power Stocks List By Market Capitalisation

*Data is updated as of 30th January 2025. 

Disclaimer: It is to be noted that the above power stocks list is for informational purposes only. You should research or consult your financial advisor before investing in these stocks.  Also, the data mentioned in the table is subject to change timely. 

What are Power Sector Stocks?

The power sector stocks refer to the equities of business organisations engaged in electricity generation, transmission and distribution across diverse sectors. With a rapidly growing industry outlook, these stocks are often seen as stable investment options for millions of investors in India. To invest in power stocks, you should understand the types of power stocks in India and the factors/risks associated with them. 

Investors looking to invest in top power sector stocks may generate returns because of the steady demand for electricity. Moreover, the power sector stays resilient even during the economic slowdowns. Explore the section below to gain a deeper understanding of power companies’ stocks and aspects related to investments. 

Overview of Power Sector Stocks in India

As backed by government support, the power sector in India is currently valued at Rs 40 trillion. Have a quick scan of potential power stocks to get higher returns on investment. 

1. NTPC Limited 

NTPC Limited, or National Thermal Power Corporation Limited, generates electricity. The company has a capacity of 16% of India’s energy generation capacity (76,475.68 MW). Moreover, the organisation aims to increase this capacity to 130 GW by the end of 2032. 

The PE ratio of NTPC Ltd. stands at 14.30, and the stock has delivered a 2.29% dividend yield for its investors in the past years. NTPC has been considered one of the best power stocks in India, showing growth at a CAGR of 13% in its operating income. 

2. Power Grid Corporation of India Limited

Power Grid Corporation of India Limited was founded in 2015 and is headquartered in Gurugram, Haryana. The company is engaged in bulk power generation and distribution. In November 2024, Power Grid Corporation’s director approved the transfer of 26% of residual equity shareholdings in four companies to PGInvIT. 

The PE ratio of Power Grid Corporation of India stands at 17.51, and the share has provided a dividend yield of 3.97% to its investors. It has been considered one of the best power sector stocks in 2025 and exists with steady growth potential to deliver returns in the long run.  

3. Adani Power Limited

Adani Power Limited was founded in 1996 and is headquartered in Ahmedabad, Gujarat. The company is recognised as the largest thermal power producer with a capacity of 15,300+ MW. Bangladesh was one of the major customers of Adani Power. However, in December 2024, Bangladesh’s interim government accused Adani Power of breaching a multi-billion dollar agreement. 

Investors consider it one of the top power sector stocks in India but suggested staying informed about trending updates on Adani’s issue with Bangladesh before investing in it. The PE ratio of Adani Power Limited is 15.52, and the company’s market capitalisation is Rs 1,96,000 crore. 

4. Adani Green Energy Limited

Adani Green Energy Limited was founded in 2015 and is headquartered in Ahmedabad, Gujarat. The company is engaged in the development and operation of solar, hybrid, and wind power plants in India. In the context of wind energy, Adani Green Energy has a capacity of 5,300+ MW across diverse regions. Gautam Adani, Founder of Adani Group, is likely to invest approximately $100 billion to set up the biggest energy park in India. 

This energy park will be developed and operated by Adani Green Energy Ltd. and is expected to produce 5 million tonnes of green energy by the end of 2030. The PE ratio and PB ratio of Adani Green Energy Limited stand at 123.33 and 1.56, and its market capitalisation is Rs 1,54,000 crore. 

5. Tata Power Company Limited

Tata Power Company Limited was established in 1911 and is headquartered in Mumbai, Maharashtra. The company is engaged in power generation with an employee base of 23,000+ people. With a rich legacy in the green and renewable energy sector in India, Tata Power Company manages large government and private projects to generate revenue. 

The aim of Tata Power is to increase its production capacity by 25% by the end of 2025. This aim would likely provide benefits to investors looking to generate long-term returns in this share. The PE ratio of Tata Power Company Limited stands at 30.14, and this one of the best power sector stocks has declared a dividend yield of 0.57% during FY24-25.  

6. JSW Energy Limited

JSW Energy Limited was founded in 1994 and is headquartered in Mumbai, Maharashtra. The company is engaged in power generation and distribution practices. JSW Energy Ltd. is considered one of the leading power sector stocks in India. It has also signed a MoU (Memorandum of Understanding) with Korea’s POSCO Group. 

JSW operates in two major segments: thermal and renewables. The renewable energy segment includes sources like hydro, wind, solar, and other ancillary services. The PE ratio of JSW Energy Limited is 44.13, and the company has delivered a dividend yield of 0.41% for its investors. 

7. NHPC Limited

NHPC Limited was founded in 1975 and is headquartered in Faridabad, Haryana. The company is engaged in the development and integration of hydroelectric power. To generate higher revenue, NHPC has collaborated with Tata Power Renewable Energy for the installation of rooftop solar projects. 

“NHPC is set to double its installed capacity by Finacial Year 2025-26”. ~ (Mr Rajendra Prasad Goyal, Chairman and MD of NHPC Ltd).

Recently, Ventura Securities has considered NHPC as one of the best power sector stocks in India and gave it a buy rating. Moreover, the PE ratio of NHPC Ltd. is 25.56, and the stock has delivered a dividend yield of 2.51% in the past year. 

8. Torrent Power Limited

Torrent Power Limited was founded in 1996 and is headquartered in Ahmedabad, Gujarat. The company is engaged in power generation, transmission, and distribution. Besides this, the company also manufactures power cables across different regions. Torrent Power has a huge customer base across different states like Uttar Pradesh, Daman & DIU, Maharashtra, Gujarat, and more. 

With the ownership of India’s oldest power station, “362 MW AMGEN”, a 51 MW solar photovoltaic power plant was developed at Charanka Solar Park in Gujarat. The PE ratio of Torrent Power Limited stands at 31.74, and the stock has declared a dividend yield of 1.08%. 

9. CESC Limited

CESC Limited was founded in 1879 and is headquartered in Kolkata, West Bengal. The company is engaged in power generation and distribution practices in India to earn revenue and profitability. It is the sole distribution company serving 567 square kilometres of the area administered under the Kolkata Municipal Corporation.  

CESC Limited has its own transmission and distribution system to supply power to the customers. The PE ratio of CESC Limited stands at 13.50, and this one of the best power stocks in India has delivered a 3.16% dividend yield for investors. 

10. Reliance Power Limited

Reliance Power Limited was founded in 1995 and is headquartered in Mumbai, Maharashtra. It has the largest integrated power generation and coal mining project of 3,960 MW and aims to serve affordable power for 42+ crore people. 

The company manages power generation and distribution projects across the globe. In the past few decades, Reliance Power has become one of the most popular power sector stocks in India. It has delivered healthy returns in past years. The PE ratio of Reliance Power Limited is 13.45, and its market capitalisation stands at Rs 15,680 crore. 

Power Sector Stocks Based on 1-Year Returns

*Data is updated as of 30th January 2025. 

Dividend Yield in Power Sector Stocks 

*Data is updated as of 30th January 2025. 

Also Read: Solar Penny Stocks in India 2025

Factors to Consider for Power Sector Stocks

We all know the increasing demand for electricity in India and the world. Power sector stocks add some diversification to our investment portfolios. However, a few people still need clarification on the factors that could help them identify the top 10 power stocks in India.  Consider the factors mentioned below to make informed investment decisions. 

1. Government Policies

The government of India is consistently implementing policies and initiatives for the power sector to promote renewable energy in India. These policies may include the National Electricity Policy, PM-Surya Ghar: Muft Bijli Yojana, and the Production Linked Incentive scheme. The power companies may benefit from such initiatives. Choose the power sector stock backed by government support and focused on reducing coal-based electricity generation. 

2. Energy Sources

In India, power companies utilise eco-friendly energy sources like hydro, thermal, and renewable sources to meet the country’s energy requirements. Exploring the renewable energy sources being utilised in your chosen power sector stocks is essential. Investing in such companies might bring vulnerabilities to market fluctuations. 

3. Financial Performance

Assess the financial position of the power company concerning its capital expenses, debt, revenue, and net profit. The power sector stocks with healthy financial performance might offer investors with steady growth potential and impressive levels of returns in the Indian share market. 

4. Technological Landscape

The companies in the power stocks list seamlessly integrate new/innovative technologies into their business structure. These include storage solutions, transmission methods, digitalisation, and smart grids. Consider power sector stocks operating with effective cash flow positions and the capability to integrate technological innovations promptly. 

5. Electricity Demand

Check for the electricity demand in India or at the global level. Higher demand might encourage sales/revenue of power companies in India. Invest in power sector stocks with a wise order book and giant projects. The rise in demand for energy encourages the profitability of the power stocks and may offer investors healthy returns. 

Benefits of Power Stocks in India

As discussed above, the power sector in India is valued at Rs 40 trillion and is recognised as one of the fastest-growing industries in the world. Investors may seek several advantages apart from their capital appreciation in power stocks investment. 

• Government Support

The government of India is consistently promoting the use of renewable energy sources in power generation and transmission. To do so, different schemes and subsidies have been introduced. Investors can benefit from upcoming government initiatives in the renewable energy sector to generate returns from power sector stocks. 

• Long-Term Growth

For those looking to hold shares long-term, power stocks could be a stepping stone to wealth generation. These companies often come with long-term contracts with state and central governments. It gives them a consistent revenue stream and the ability to deliver exponential returns. 

• Consistent Demand

Inelastic demand for electricity indicates that power sector stocks could remain resilient in economic downturns. We all know that power is a basic necessity nowadays. Thus, power companies can enjoy steady revenue growth over a while. 

• Diversified Industry Exposure

Investment in power stocks offers investors with diversified industry exposure. The power sector considers the energy requirements of different industries like textile, chemical, agriculture, FMCG, etc. With the help of diversified industry exposure, investors can look for predictable returns over a more extended period. 

Risks Associated With Power Stocks in India

This is all about the benefits of investing in power sector stocks. Now is the right time to explore some of the challenges/risks associated with power stocks that may create hurdles for you. Explore the risks mentioned below and make your investment journey smoother. 

1. Regulatory Risks

Dynamic regulations in India’s business environment might significantly impact the company’s performance. Stay informed about all the expected regulatory changes and assess the firm’s capability to comply with them. It would help you avoid significant losses in the power sector stocks in India. 

2. Political Risks

Any political change may result in bringing new policies, budget fluctuation, leadership change, and more. These factors might influence inconsistent support for power companies’ stocks in India and may also impact the long-term profitability of the investors. 

3. Market Volatility

Indian stock market is susceptible to changes in prices, demand, and supply of products. High volatility may impact the valuation of power stocks in India. Avoid investing in highly volatile market situations to safeguard your investment portfolio from significant losses. 

4. Infrastructure Risks

As India is in the developing phase. And undeveloped infrastructure or outdated technology may hinder the growth potential of power companies. It incurs high maintenance costs and capital expenditure on businesses, which may impact their financial performance in the long term. 

How to Invest in Power Sector Stocks

It is quite easy to invest in power sector stocks in India. You just need a Demat account or financial consultant. Explore the steps below to invest wisely in power stocks to generate significant returns. 

• Step 1: Research the top 10 power sector stocks in India.
• Step 2: Conduct a financial analysis of the power companies. 
• Step 3: Open a Univest Demat Account to invest in. 
• Step 4: Consider buy/sell/hold ratings from Univest to invest wisely. 
• Step 5: Search for the selected shares and add funds you wish to invest in. 
• Step 6: Place a buy order for power stocks and execute it. 
• Step 7: Track your returns in the portfolio section and wait to book profit. 

Power Sector Stocks Investment With Univest

Univest, a trusted stock advisory company, helped hundreds of people generate stable returns from the Indian stock market. With the Univest Pro plan, you can get daily stock recommendation alerts. The app is easy to use and offers a seamless user interface. Univest can make your investment journey in power sector stocks convenient by providing screeners mentioned below: 

Screeners on Univest 

Key Takeaways

• India’s power sector is valued at Rs 40 trillion and has an innovative technological landscape.
• Power sector stocks are recognised as potential investment options to build wealth. 
• The government insists on and promotes power companies to use renewable energy sources efficiently. 
• Investment in power stocks might diversify one’s portfolio to generate healthy returns. 
• Electricity demand is increasing daily, encouraging most investors to invest in power sector stocks. 
• Many power stocks offer stable dividend income and seem an impressive opportunity for investors. 

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FAQs on Power Stocks 

1. What are best power stocks?

Best Power Stocks #1: NTPC Limited

Best Power Stocks #2:  Power Grid Corporation of India Limited

Best Power Stocks #3: Adani Power Limited

Best Power Stocks #4: Adani Green Energy Limited

Best Power Stocks #5: Tata Power Company Limited

2. How can I invest in power stocks?

You can invest in power sector stocks through a demat account. Open your demat account on Univest with zero opening fee and no brokerages. Buy shares of the power industry easily through a Demat account or apply for a power company’s IPO to get shares. 

3. Is it safe to invest in Power stocks?

Power stocks in India come with both ROI and risks. However, it is considered a more stable investment than other sectors’ stocks. Power sector stocks often deliver healthy returns and may diversify your investment portfolio. It is recommended that thorough research be conducted on fundamentally strong stocks in the power sector to make an informed investment decision.  

4. Which are the leading power companies in India?

Leading power generation and distribution companies include NTPC Limited, Tata Power Company Limited, Adani Power Limited, Reliance Power Limited, and Adani Green Energy Limited. 

5. How do you choose fundamentally strong power stocks?

From the pool of options, you can pick the fundamentally strong stocks in the power sector in India by considering diverse factors. These factors include demand/supply fluctuations, market volatility, technological landscape, and government policies. You can also get help from Univest screeners to choose such stocks for your portfolio diversification. 

6. Which power companies are listed on NSE?

Some power companies listed on the NSE (National Stock Exchange) are mentioned below.

• NHPC Ltd (NSE: NHPC)
• Adani Power Ltd. (NSE: ADANIPOWER)
• JSW Energy Ltd. (NSE: JSWENERGY)
• CESC Ltd. (NSE: CESC)
• Adani Green Energy Ltd. (NSE: ADANIGREEN)

Popular Stocks to Consider 

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