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  5. NTPC Green to Waaree Energies: Explore Budget 2025 allocations for renewable energy and stock reactions

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NTPC Green to Waaree Energies: Explore Budget 2025 allocations for renewable energy and stock reactions

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By Sreenivas Ajankar

5 min read | Updated on February 02, 2025, 15:17 IST

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SUMMARY

Renewable energy stocks saw a strong recovery following Budget 2025, which allocated ₹26,549 crore to the Ministry of New and Renewable Energy, up 53.5% from FY25. Key schemes like PM Surya Ghar and PM-KUSUM received significant funding.

Stock list

NTPCGREEN
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KPIGREEN
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ADANIGREEN
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WAAREEENER
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ACMESOLAR
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SUZLON
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INOXWIND
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Look at the stock movement of major renewable energy companies on Budget Day.

Look at the stock movement of major renewable energy companies on Budget Day.

Renewable energy stocks posted a smart recovery in the week ending February 1, as Finance Minister Nirmala Sitharaman announced various measures to boost investment in the green energy sector. The Union Budget 2025-26 allocated ₹26,549 crore to the Ministry of New and Renewable Energy, up 53.5% against revised estimates of ₹17,298 crore for FY25.

The Budget 2025-26 allocated higher budgets to flagship government schemes like PM Surya Ghar, PM-KUSUM. PM Surya Ghar Muft Bijli Yojana received the highest budget allocation of ₹20,000 crore for FY26, while PM KUSUM allocation grew by 3% to ₹2,600 crore. The National Green Hydrogen Mission received ₹600 crore.

The Finance Minister also announced plans to set up a green power technology ecosystem and a new manufacturing mission under the Make in India initiative. In her Budget speech, she outlined the government’s initiative to boost the production of solar photovoltaic (PV) cells, electrolysers, and grid-scale batteries, key components for renewable energy players.

Following the Budget announcement, renewable energy stocks rallied up to 15% on Saturday. Meanwhile, shares of major listed players in the green energy space rallied up to 23% this week as strong earnings posted by these companies for the December 2024 quarter (Q3FY25) also boosted sentiment.

Here’s a look at the stock movement of major renewable energy companies on Budget Day:

NTPC Green Energy

Shares of NTPC Green Energy gained over 5% to hit an intraday high of ₹120.69 per share on Budget Day. Higher allocations for the renewable energy sector in Budget 2025-26 led to strong buying in the shares. However, the stock later pared all of its gains owing to profit booking to close 0.57% lower at 114.25 apiece.

Last week, NTPC Green’s Q3FY25 standalone net profit jumped 52.3% to ₹89.4 crore compared to ₹58.7 crore in the same quarter a year ago. Revenue for the quarter grew 4.1% year-on-year to ₹460.9 crore, up from ₹442.6 crore in Q3FY24.

Operating profit, or EBITDA (earnings before interest, taxes, depreciation, and amortisation), declined 2.3% to ₹384.6 crore in Q3FY25 compared to ₹393.6 crore in Q3FY24. EBITDA margins slipped 83.5% during the quarter from 88.9% in Q3FY24.

KPI Green Energy

KPI Green Energy shares were locked in a 5% upper circuit on Saturday. The stock rose after the company, through its subsidiary, developed and commissioned 40.16 MW of Renewable Power Projects under the Captive Power Producer (CPP) segment.

A higher capex allocation of ₹35,460 crore for the renewable energy sector will indirectly benefit the company. KPI Green Energy announced earlier this week that it signed a contract agreement with Coal India Ltd to develop a 300 MWac grid-connected ground-mounted solar photovoltaic plant with operation and maintenance (O&M) services for five years at Gujarat Industries Power Co. Ltd’s solar park in Khavda, Gujarat. The contract value is ₹1,311.4 crore, with completion expected by November 2025.

Before that, KPI Green Energy on Wednesday said that it signed a memorandum of understanding (MoU) with the Odisha government to establish renewable energy parks in Ganjam district.

Waaree Energies

Shares of Waaree Energies Ltd rallied more than 6% intraday to hit ₹2,557 on Budget Day. The government's record allocation to its flagship rooftop solar scheme, PM Surya Ghar, is expected to be positive for the company, which is a leading manufacturer of solar PV modules.

Waaree Energies reported a whopping 296% increase in its consolidated net profit to ₹492.68 crore for Q3FY25, compared to the year-ago period. Revenue for the quarter increased by 116% from ₹3,457 crore in the preceding fiscal. The company said its order book stood at 26.5 GW, valued at ₹50,000 crore as of January 2024.

Adani Green Energy

Adani Green Energy Ltd shares rose 5.2% following the Budget announcement but saw profit booking in the last half of the trading period, closing flat at ₹998 per share. despite overall postive sentiments.

News reports emerged that the Sri Lankan government will renegotiate the power purchasing agreement with Adani Green Energy for a 484 MW wind power project to bring the cost under $0.06 per unit. The previous government's decision to sign a 20-year power purchase agreement for the 484 MW wind plants at 8.2 cents US was disputed, as local bidders had offered lower unit prices.

ACME Solar Holdings

Shares of ACME Solar Holdings rose over 8% intraday during the Budget 2025 speech amid higher allocations for solar power-based government schemes like PM-KUSUM. However, the stock pared some of its gains to close 1.32% higher at ₹218 apiece.

The company's net profit surged 155% in the December quarter to ₹112 crore compared to ₹44 crore in the year-ago period. Revenue from operations rose 5% to ₹349 crore during the quarter compared to ₹332 crore in Q3FY24.

The company’s chief executive officer, Nikhil Dhingra, also told media outlets that ACME Solar plans to make capital expenditure exceeding ₹40,000 crore over the next three and a half years in efforts to expand its capacity to 7 gigawatts by FY28 from the current capacity of 2,450 megawatts.

Suzlon Energy

Shares of Suzlon Energy Ltd jumped over 10% this week after net sales came in at ₹2,974.83 crore for the December quarter, up 90.6% from ₹1,560.47 crore a year ago. Quarterly net profit came in at ₹386.9 crore, up 90.5% from ₹203.04 crore a year ago. Moreover, Suzlon’s Group chief financial officer Himanshu Mody said in a media interview that he expects the March quarter to be better than the December quarter.

Inox Wind

Shares of Inox Wind Ltd closed over 2% higher at 172 per share on Saturday. Recently, the company reported an 81% increase in revenue at ₹911.27 crore in the December quarter compared to ₹503.45 crore in the year-ago period. Its net profit grew to ₹116.65 crore during the quarter compared to ₹1.07 crore in Q3FY24.
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About The Author

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Sreenivas Ajankar is a Deputy Editor at Upstox. He has over nine years of experience in capital markets and has been associated with Upstox since April 2022. Previously, he worked as a Lead Equity Analyst. His primary expertise lies in equity research and analysis. His areas of expertise include stock investment and analysis and business valuation.

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