India’s renewable energy reserves are forming a growing part of the country’s energy sector, reflecting a transformational journey marked by rapid growth and strong investment opportunities. India’s renewable energy capacity has grown rapidly over the past decade – from just 52 GW in 2010 to more than 175 GW by 2023.
In recent years, India’s renewable energy reserves have emerged as a great investment opportunity. The government’s ambitious targets – such as achieving 450 GW by 2030 – have played a key role in attracting both domestic and foreign investment in the climate and energy sectors. In this blog, we will talk about 5 Renewable energy penny stocks that can give you high returns.
Best Renewable Energy Penny Stocks
The following Top 5 Renewable Energy Penny Stocks in India 2025 have been selected based on market performance, innovation and growth potential, making them promising candidates for investment leading up to 2025. They represent a mix of India’s key players in its growing renewable energy sector.
1. NHPC Ltd
NHPC, a flagship public sector utility and hydropower producer under the Government of India, plays a key role in the country’s energy sector. The company has a power generation capacity of 7,097 MW, of which 6,971 MW is from hydropower and 126 MW is from renewable energy. It contributes 15% of India’s total hydropower generation capacity. NHPC is involved in bulk power generation and sales, project management, construction contracting, consultancy services and power trading to various utilities.
The company is currently constructing 15 solar and hydropower projects with a total capacity of 10,449 MW, including projects in joint ventures and associates. The company has a market capitalization of ₹76,945 crore and a current stock price of ₹76.6. Although sales and profit growth have slowed down, NHPC has been showing stable financial performance, maintaining a dividend yield of 2.48%, ROCE of 7.67% and ROE of 9.61%. The company’s debt-to-equity ratio is 0.85, supported by 67.4% promoter holding.
2. SJVN Ltd
SJVN, recognized as a Navaratna company, is primarily involved in electricity generation and offers consultancy services for hydro-power projects. The company operates six power plants across India with a total capacity of approximately 2,017 MW. Its key projects include the Nathpa Jhakri Hydro Power Station (1,500 MW) and the Rampur Hydro Power Station (412 MW) in Himachal Pradesh, which are the largest and second-largest hydro power plants in the country, respectively. Other projects include the Khirvire Wind Power (47.6 MW) in Maharashtra, Charanka Solar Power (5.6 MW) in Gujarat, Sadla Wind Power (50 MW) in Gujarat, and a grid-connected solar plant at NJHPS (1.3 MW).
SJVN has a market capitalization of ₹38,088 Cr and a current stock price of ₹96.9, with a 52-week high of ₹170 and a low of ₹93.4. The company’s stock has a P/E ratio of 41.2 and a book value of ₹37.2. It offers a dividend yield of 1.86% and has reported a return on capital employed (ROCE) of 4.99% and a return on equity (ROE) of 5.90%. SJVN’s earnings per share (EPS) stand at ₹2.54, with sales growing by 12%, though profit growth has declined by 10.8%. The company has a debt-to-equity ratio of 1.63, with a total debt of ₹23,884 Cr. It is supported by strong promoter holding at 81.8%, while foreign institutional investors (FII) hold 2.42%, domestic institutional investors (DII) hold 4.10%, and the public holds 11.6%.
3. NTPC Green Energy Ltd
Established in April 2022, NTPC Green Energy Limited (NGEL) is a renewable energy subsidiary of NTPC Limited, a Central Public Sector Enterprise. NGEL specializes in the development, construction and operation of renewable energy projects primarily in solar and wind power. It operates through long-term Power Purchase Agreements (PPAs) and has established itself as India’s largest renewable energy public sector enterprise, excluding hydropower, as of September 30, 2024.
NGEL has a market capitalization of ₹98,015 crore and its current stock price is ₹116, with a 52-week high of ₹155 and a low of ₹112. The company’s stock has a P/E ratio of 284, indicating its high growth potential in the renewable energy sector, although it is not currently paying any dividend. NGEL’s return on capital employed (ROCE) is 7.60% and return on equity (ROE) is 6.20%, supported by 1,057% growth in sales and 101% growth in profit. The company has a debt-to-equity ratio of 2.20 and total debt of ₹18,044 crore, which is supported by 89% promoter holding, 2.24% foreign institutional investors, 5.21% domestic institutional investors and 3.54% public holding.
4. Waa Solar Ltd
Waa Solar Ltd, founded in 2009, operates in the renewable energy sector, primarily focusing on solar power generation and transmission. The company is a subsidiary of Madhav Power Pvt. Ltd., which also operates in the infrastructure and real estate sectors. Waa Solar Ltd’s business model revolves around the development of solar power projects, investment in Special Purpose Vehicle (SPV) companies, and the potential expansion into the Engineering, Procurement, and Construction (EPC) segment for solar projects.
The company has undertaken several notable projects, including a 10.25 MW ground-mounted solar photovoltaic (PV) project in Surendranagar, Gujarat, and a 100 KWP solar power installation at Raja Bhoj Airport in Bhopal, which operates on a Build, Own, and Operate (BOO) model. The Surendranagar project spans 59.80 acres and is one of the key projects in the company’s portfolio.
Waa Solar Ltd has a market capitalization of ₹146 Cr and a current stock price of ₹110. Despite the challenges of a 62.9% drop in sales and an 87.9% reduction in profit growth, the company remains focused on expanding its operations. The stock has a high P/E ratio of 112, reflecting the market’s expectations for future growth, although the company does not currently pay a dividend. It has a relatively low debt-to-equity ratio of 0.34, indicating manageable levels of debt. The company’s promoter holding stands at 67.8%, with public holding at 32.2%.
The company’s financial health shows some weaknesses, with a reported net profit of ₹1.30 Cr on total sales of ₹17.4 Cr. However, Waa Solar Ltd continues to focus on its core renewable energy projects and the expansion of its portfolio, making it a company to watch in the growing solar power market.
5. Gita Renewable Energy Ltd
Gita Renewable Energy Ltd (GREL), established in 2010, is involved in generating electricity from renewable sources such as wind, solar, and hydro power. The company also provides operations and maintenance services for renewable energy projects, including those constructed by third parties.
With a market capitalization of ₹60.2 Cr and a current stock price of ₹146, GREL has seen significant sales growth of 412%, but it has struggled with a sharp decline in profitability, as evidenced by a 95.6% drop in profit growth. Despite being debt-free, with no external borrowings, the company’s high P/E ratio of 232 reflects market expectations for future growth. However, its return on capital employed (ROCE) of 2.71% and return on equity (ROE) of 1.91% highlight the challenges it faces in generating substantial returns. The company remains largely controlled by its promoters, who hold 69.9%, while public holding stands at 30.1%.