8 Nuclear Power Stocks Poised to Benefit from Budget 2025's Renewed Nuclear Energy Push

India is gearing up for a nuclear energy revolution. With a strong focus on small modular reactors (SMRs) outlined in the Union Budget 2025, the government is setting the stage for significant growth in this sector.

Russian nuclear giant Rosatom, with over six decades of expertise, has offered its services to India, potentially bringing SMRs to coastal regions.

The US and France have also expressed interest in collaborating with India to develop this technology, boosting India's ambitious goal of achieving 100 GW of nuclear energy by 2047.

With Rs 200 billion (bn) earmarked for SMR research and development, India's heightened focus on nuclear energy is opening up significant opportunities for microcap stocks.

Here are 8 stocks set to benefit from Budget 2025's SMR Support.

#1 Patels Airtemp

First on the list is Patels Airtemp.

Patels Airtemp is a standout in the nuclear sector, poised to benefit from the government's budget allocation for nuclear energy.

The company is one of only three in India to hold the prestigious "N-NPT" authorization, enabling it to manufacture Heat Exchangers and Pressure Vessels for nuclear power plants. This has positioned Patel Airtemp in the elite group of manufacturers for critical nuclear power plant equipment.

It's one of the few global organisations to acquire the ASME N - NPT Stamp for manufacturing nuclear-grade applications.

Patel Airtemp's expertise is in designing and producing heat transfer equipment, such as shell and tube heat exchangers, air fin coolers, and pressure vessels tailored for nuclear plants.

With ISO 9001-2015 certification from TUV-SUD, the company is a trusted supplier in the nuclear power industry.

Patels Airtemp's Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	2,374.0	2,554.0	3,032.0	2,815.0	3,708.0
Revenue Growth (%)	57.3	7.6	18.7	(-7.2)	31.7
Net Profit	113.0	114.0	124.0	112.0	148.0
Net Profit Margin (%)	4.8	4.4	4.1	4.0	4.0
Return on Equity (%)	12.6	11.4	11.2	8.6	10.3
Return on Capital Employed (%)	21.4	20.5	18.5	18.4	20.9

Source: Equitymaster

Between FY20 and FY24, its revenue and net profit grew at an impressive CAGR of 19.7% and %, respectively. The company has maintained consistent financial strength, with an average RoE of 10.8% and RoCE of 19.9%.

Going forward, the company plans to continue to grow and improve its operations to meet future requirements.

For more details, see the Patels Airtemp company fact sheet and quarterly results.

#2 Walchandnagar Industries

Next on the list is Walchandnagar Industries.

As India accelerates its nuclear ambitions, Walchandnagar Industries (WIL) remains a key beneficiary, given its four-decade-long expertise in manufacturing critical components for the nuclear sector.

The company has been a trusted partner of the Department of Atomic Energy (DAE), Nuclear Power Corporation of India Limited (NPCIL), Bhabha Atomic Research Centre (BARC), and Bharatiya Nabhikiya Vidyut Nigam (BHAVINI).

WIL specialises in producing Class-I nuclear components, adhering to stringent international safety and quality standards, and is actively involved in installation and integration activities at nuclear power plant sites.

The company has played a crucial role in supplying critical equipment for India's nuclear projects, including 220 MWe to 700 MWe Pressurized Heavy-Water Reactors (PHWRs) and the Prototype Fast Breeder Reactor (PFBR) at Kalpakkam.

Beyond domestic projects, Walchandnagar Industries has gained international recognition, having been assessed by global nuclear players such as Atomstroyexport and Atomenergomash (Russia), EDF (formerly AREVA, France), Westinghouse, and GE.

With India's nuclear expansion gaining momentum and global partnerships strengthening, Walchandnagar Industries is well-positioned to capitalise on future opportunities in the nuclear power sector.

Walchandnagar Industries Financial Snapshot (FY20-24)

(Rs m, Consolidated)	Mar-20	Mar-21	Mar-22	Mar-23	Mar-24
Revenue	2,981	3,256	2,992	3,221	3,024
Revenue Growth (%)	(-18.1)	9.3	(-8.1)	7.7	(-6.1)
Net Profit	(-655.0)	(-572.0)	(-381.0)	196	(-418.0)
Net Profit Margin (%)	(-22.0)	(-17.6)	(-12.7)	6.1	(-13.8)
Return on Equity (%)	(-24.3)	(-27.0)	(-21.5)	7.5	(-13.3)
Return on Capital Employed (%)	5.2	7.0	9.6	24.1	2.5

Source: Equitymaster

Over the years, its revenue has seen some growth but continues to operate at a loss. The company's RoCE and RoE average 1.5% and 9.7% over the last 5 years.

With India's ongoing nuclear expansion, the company is positioned to be a significant beneficiary of this growth.

For more details, see the Walchandnagar company fact sheet and quarterly results.

#3 KSB

Next on the list is KSB.

As a leading manufacturer of high-performance pumps, valves, and other essential equipment, KSB stands to benefit from the heightened focus on nuclear energy, particularly with its specialised products for both primary and secondary circuits, as well as auxiliary systems.

KSB offers a diverse range of products crucial for nuclear power plants, including reactor coolant pumps with shaft seals (Class 1), seal-less reactor coolant pumps (Class 1), and nuclear auxiliary pumps (Class 1-3).

It also supplies boiler feed pumps, cooling water pumps, condensate pumps, recirculation pumps, process and seal-less pumps, and pumps for highest-temperature applications (Gen. IV), which are vital for advanced nuclear power projects.

KSB also specialises in pumps handling salt, lead, and sodium (Gen. IV), along with safety valves, butterfly valves, and gate valves designed for the rigorous demands of nuclear power plants. These products are instrumental in ensuring the safety, reliability, and efficiency of nuclear reactors.

KSB's Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	12,939.0	12,081.0	14,973.0	18,220.0	22,472.0
Revenue Growth (%)	18.4	(-6.6)	23.9	21.7	23.3
Net Profit	1,007.0	938.0	1,494.0	1,827.0	2,087.0
Net Profit Margin (%)	7.8	7.8	10.0	10.0	9.3
Return on Equity (%)	12.2	10.5	14.8	16.0	16.0
Return on Capital Employed (%)	17.6	18.0	20.4	22.0	21.9

Source: Equitymaster

Between FY20 and FY24, KSB's revenue and net profit have surged with an impressive CAGR of 15.5% and 23.9%, respectively.

The company has demonstrated consistent financial strength, with an average RoE of 13.9% and RoCE of 20%.

Going forward, KSB aims to expand its global presence by increasing the availability of spare parts and expanding its business with standard products.

For more details, see the KSB company fact sheet and quarterly results.

#4 Azad Engineering

Next on the list is Azad Engineering.

Another beneficiary of this allocation is Azad Engineering.

With a strong foothold in the nuclear power sector, the company stands out for its expertise in manufacturing critical components for nuclear turbines.

As the first Indian company approved to supply essential rotating parts for nuclear turbines, Azad Engineering is poised to leverage the growing demand for advanced nuclear power infrastructure.

The company designs and manufactures key parts for nuclear turbines, including airfoils and blades, which are integral to nuclear power plant operations. It has established a long-term supply agreement with General Electric (GE) Steam Power, further solidifying its position in the industry.

In a strategic move to expand its global footprint, Azad Engineering entered into a partnership with Arabelle Solutions, a French company, in November 2024.

This partnership includes a supply agreement worth approximately Rs 3.4 bn (US$ 40 m), through which Azad Engineering will provide critical rotating and stationary components essential for nuclear power generation worldwide.

Azad Engineering Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	-	1,227.0	1,945.0	2,517.0	3,408.0
Revenue Growth (%)	-	-	58.5	29.4	35.4
Net Profit	-	115.0	295.0	85.0	586.0
Net Profit Margin (%)	-	9.4	15.1	3.4	17.2
Return on Equity (%)	-	12.7	24.5	4.2	9.1
Return on Capital Employed (%)	-	16.3	22.2	15.4	19.1

Source: Equitymaster

From FY22 to FY24, the company achieved a CAGR growth of 40.6% in sales, while its net profit saw a growth of 72.1%.

Going forward, the company plans to expand further in nuclear power space.

For more details, see the Azad Engineering company fact sheet and quarterly results.

#5 Triveni Turbine

Next on the list is Triveni Turbine.

While not directly involved in nuclear power plants, the company's turbines are widely used in industrial power plants, making them a crucial part of the broader energy infrastructure.

Triveni Turbines manufactures steam turbines that are utilized in various power generation sectors, including conventional thermal plants and renewable energy projects.

Their turbines are known for reliability and high efficiency, making them a valuable asset in both primary and secondary power circuits of energy plants.

As India looks to increase its nuclear power capacity and diversify energy sources, Triveni Turbines' role in renewable energy storage systems and waste heat recovery systems provides added value.

The company's extensive experience in turbine technology positions it to benefit from the increased demand for energy equipment, driven by the nation's push for 100 GW of nuclear power by 2047.

Triveni Turbine's Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	8,179.0	7,026.0	8,522.0	12,476.0	16,539.0
Revenue Growth (%)	(-2.6)	(-14.1)	21.3	46.4	32.6
Net Profit	1,218.0	1,025.0	2,702.0	1,929.0	2,695.0
Net Profit Margin (%)	14.9	14.6	31.7	15.5	16.3
Return on Equity (%)	23.0	16.1	31.5	25.4	28.1
Return on Capital Employed (%)	30.4	21.2	42.9	33.9	37.8

Source: Equitymaster

In the last five years, the revenue has grown at a CAGR of 14.5%. Its net profit has also grown at a healthy CAGR of 21.9% in the last five years.

The RoE and RoCE also averaged 24.8% and 33.2% in the last five years.

Going forward, the company plans to expand its capacity, gear up its export sales team, and increase its supply chain capacities.

For more details, see the Triveni Turbine company fact sheet and quarterly results.

#6 Kirloskar Brothers

Next on the list is Kirloskar Brothers.

The company is a global leader in providing pumps for nuclear power projects, collaborating with governments and nuclear power entities worldwide.

Kirloskar Brothers manufactures primary and secondary sodium pumps for nuclear reactors and primary coolant pumps, making it a crucial player in nuclear infrastructure.

Additionally, the company provides pumping solutions for critical applications such as heat transfer, high-temperature and high-pressure systems, boiler feed systems, and circulating water pumps.

Kirloskar Brothers' Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	31,354.0	27,165.0	30,576.0	37,302.0	40,012.0
Revenue Growth (%)	(-6.4)	(-13.4)	12.6	22.0	7.3
Net Profit	683.0	1,539.0	815.0	2,251.0	3,395.0
Net Profit Margin (%)	2.2	5.7	2.7	6.0	8.5
Return on Equity (%)	7.2	13.9	6.9	16.0	19.8
Return on Capital Employed (%)	16.4	19.0	12.9	23.3	28.4

Source: Equitymaster

Between FY20 and FY24, Kirloskar Brothers' revenue has grown at a CAGR of 3.6%.

The growth has led to a RoCE and RoE averaging 12.8% and 20% over the last 5 years.

Going forward, the company plans to expand its presence, aiming to contribute further to India's renewable energy goals while providing efficient and reliable water solutions.

For more details, see the Kirloskar Brothers company fact sheet and quarterly results.

#7 Ratnamani Metals & Tubes

Next on the list is Ratnamani Metals & Tubes.

With Budget 2025 reinforcing nuclear energy expansion, Ratnamani Metals & Tubes stands to gain from the growing demand for specialized components in the sector. The company is a key supplier of stainless steel and alloy steel tubes and pipes used in nuclear power plants.

It plays a crucial role in providing critical piping solutions for reactors, ensuring high-performance and safety standards.

Ratnamani Metals & Tubes' Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	25,857.0	22,981.0	31,388.0	44,744.0	50,591.0
Revenue Growth (%)	(-6.2)	(-11.1)	36.6	42.6	13.1
Net Profit	3,075.0	2,760.0	3,226.0	5,123.0	6,251.0
Net Profit Margin (%)	11.9	12.0	10.3	11.4	12.4
Return on Equity (%)	18.0	13.9	14.4	19.7	19.9
Return on Capital Employed (%)	22.7	18.1	19.3	27.2	27.6

Source: Equitymaster

In the last five years, the revenue has grown at a CAGR of 12.9%. Its net profit has also grown at a healthy CAGR of 19.8% in the last five years.

Going forward, the company plans on expanding its stainless steel production capabilities through backward integration by setting up an in-house stainless steel long products unit.

For more details, see the Ratnamani Metals company fact sheet and quarterly results.

#8 Power Mech Projects

Next on the list is Power Mech projects.

With India prioritizing nuclear energy to enhance energy security, Power Mech is well-positioned to capitalize on the growing opportunities in the sector.

The company made a significant entry into the nuclear space in May 2024, securing a Rs 5,632.3 million contract from Bharat Heavy Electricals Ltd (BHEL) for civil works at the Kaiga Atomic Power Project in Karnataka, commissioned by the Nuclear Power Corporation of India Ltd (NPCIL).

The contract involves civil, structural, and architectural work for the turbine island package of two 700 MWe Pressurized Heavy-Water Reactors (PHWRs), increasing the plant's capacity from 880 MW to 2,280 MW.

Power Mech Projects Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	21647.0	18841.0	27105.0	36012.0	42067.0
Revenue Growth (%)	(-4.3)	(-13.0)	43.9	32.9	16.8
Net Profit	1291.0	(-486.0)	1385.0	2073.0	2484.0
Net Profit Margin (%)	6.0	(-2.6)	5.1	5.8	5.9
Return on Equity (%)	13.6	(-5.4)	13.3	16.3	13.5
Return on Capital Employed (%)	24.5	2.1	24.5	28.4	25.4

Source: Equitymaster

Power Mech Projects' revenue grew at a CAGR of 13.2% and net profit grew at 11.9% from FY20 to FY24. The company has maintained its financial health, with an average RoE of 11.3% and average RoCE of 21%.

Going forward, the company plans to increase its reach in nuclear space.

For more details, see the Power Mech Projects company fact sheet and quarterly results.

Conclusion

With the Union Budget 2025 prioritizing modular nuclear reactors and increased R&D funding, microcap companies in the nuclear sector are well-positioned to capitalize on the upcoming growth.

As India aims to boost its nuclear power capacity by 70% over the next five years and triple it by 2031-32, these companies stand to benefit from rising demand for critical equipment and infrastructure.

However, investing in microcap nuclear stocks requires careful consideration, as these companies often face challenges such as long project cycles, regulatory hurdles, and financial volatility.

While the sector presents a compelling growth opportunity, investors should assess individual company fundamentals, corporate governance, order books, and execution capabilities before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...