Waaree Energies to NTPC Green: How renewable energy companies performed in Q3FY25?

Renewable energy companies had a dream run during the quarter ended December 2024 (Q3FY25), with most of them recording a sharp rise in net profit and revenue.

Leading players in the sector saw significant capacity addition during this period as India rushed to build its targeted 500 GW of renewable energy capacity by 2030.

Waaree Energies (YTD return: ▼ 23.77%)

Revenue for the quarter increased by 116% to ₹3,457 crore, compared to ₹1,596 crore reported in the year-ago period. Meanwhile, the company has an orderbook of 26.5 GW valued at ₹50,000 crore as of January 30, 2025.

Premier Energies (YTD return: ▼ 28.97%)

The company's revenue also increased by 140.6% year-on-year to ₹1,713 crore in Q3 FY25. At the end of the December quarter, the company had an order book worth ₹6,946 crore. The board of directors declared an interim dividend of 50%, or ₹0.50 per share, on the face value of ₹1 per paid-up equity share for FY25.

NTPC Green Energy (YTD return: ▼ 16.11%)

Revenue from operations rose 13.2% to ₹505.08 crore in Q3FY25 compared to ₹446.14 crore in the same quarter the previous year.

Suzlon Energy (YTD return: ▼ 16.18%)

The company said that its order book is at the highest ever at 5.5 GW, with the commercial and industrial segments along with public sector units (PSUs) together constituting 80% of the total order book.

KPI Green Energy (YTD return: ▼ 25.08%)

The company also announced a third interim dividend of ₹0.20 per equity share. The record date for interim dividend payment has been set as February 18.

Adani Green Energy (YTD return: ▼ 11.98%)

Revenue from operations, however, grew by just 2.3% YoY to ₹2,365 crore in the quarter compared to ₹2,311 crore in the year-ago period.

Key challenges ahead for the sector

December quarter results are quite encouraging for the sector, with many companies reporting double-digit growth. However, the recent pullback by the United States on the green energy transition after US President Donald Trump declared a national energy emergency and encouraged higher fossil fuel production. This decision could impact India’s solar photovoltaic (PV) module exports. In 2023 and 2024, the US accounted for over 95% of India’s PV module exports.

Another key challenge for the sector is concern surrounding funding for fierce capacity addition in the domestic markets. According to reports, India needs ₹2 lakh crore in funding annually to achieve the ambitious goal of 500 GW of renewable energy capacity. However, the sector attracts investments of only ₹75,000 crore per year, leaving a shortfall of ₹1.25 lakh crore. Hence, any funding crunch could impact India’s goal of green energy transition.

The recent sell-off in renewable energy stocks is due to a decline in the broader markets, higher valuation and investors resorting to profit bookings.