Top Wind Energy Shares in India 2024: Wind Energy Companies to Add to Your Watchlist

Environmental concerns are a top priority for all nations, and India is actively seeking solutions in the renewable energy sector.

From setting ambitious goals (500GW by 2030) to pumping serious cash into solar (Rs 100 billion) and wind power (Rs 9.3 bn), the government is backing renewables big time.

India is a powerhouse in wind turbine manufacturing, boasting an annual capacity of 10-12GW. In 2022, the country became the fourth largest global wind market, with wind power contributing to 35% of 121GW renewable installations.

While there has been a slowdown recently, underutilised capacity presents a golden opportunity for the domestic wind energy companies. By ramping up domestic manufacturing, India can become a wind energy leader, reaching 140GW of wind capacity by 2030.

Wind Energy companies, looking at the potential, are expanding like never before. With government support, rising environmental awareness, and a thriving industry, India's wind energy sector is poised for growth at an expected CAGR of 8% between 2024-2029.

Here are the top wind energy stocks spearheading India's wind energy push from the forefront.

These stocks are filtered using Equitymaster's powerful Indian stock screener.

#1 Inox Wind Energy

First on the list is Inox Wind Energy, which provides services for erection, procurement, and commissioning (EPC) of wind farms.

The company was formed through a composite arrangement scheme between GFL, Inox Renewables, and Inox Wind Energy. It is a part of the INOXGFL conglomerate with a rich history of 90 years.

In the past one year, shares of the company have surged over 400%.

Inox Wind Energy serves as the holding company of Inox Wind (IWL). Currently, it is undergoing strategic amalgamation with IWL.

In December 2022, promoters of the company sold their own stake in GFL and infused Rs 6,230 m equity in Inox Wind, the parent company of Inox Wind Energy.

So, why were the promoters selling a stake in a fast-growing, well-performing business in a sunrise industry (speciality chemicals for electric vehicles) and infusing equity money in a loss-making company?

This raised great investor interest in Inox Wind Energy as markets believe that when promoters are investing in a company, either something big is about to happen or shares are undervalued.

This was supported by a government policy announcement in January 2023. The government in January 2023, came out with a policy document which talked about changes in the way auctions will be conducted for wind power plants.

The company has recently showed promising signs following the amalgamation and concluded wind energy tenders with reasonable tariffs.

Inox Wind Energy Financial Snapshot (2021-2023)

	FY21	FY22	FY23
Total Revenue (in Rs m)	8,491	6,276	10,084
Operating Profit Margin (in %)	-37.8	-57	-71
Net Profit (in Rs m )	-3,318	-4,956	-6,647
Net Profit Margin (in %)	-46.3	-83.3	-90.6

Source: Equitymaster

#2 Inox Wind

Next on the list is Inox Wind, which is a part of the Inox Group. It manufactures cutting-edge wind turbine generators and offers full wind energy solutions.

The company handles everything from assessing wind resources to acquiring sites, building infrastructure and maintaining wind farms. The company has four manufacturing plants that annually churn out 1900 MW of nacelles and hubs, 1600 MW of blades, and 600 MW of towers.

The company's production capacity is about to be ramped up, with an additional 3.3 MW wind turbine generator coming online in FY24. Its promoter, Inox Wind Energy, infused Rs 8 bn into the company through equity share sale in October 2023.

Further, the company recently sold a 50MW solar project to reduce debt and return significant equity to investors.

The company also has a 10 GW wind farm O&M capacity, with a 1000 MW annual addition through 2026, tripling its revenue-generating fleet to 3,000 MW. It is also growing organically through smart acquisitions.

Inox Wind had a remarkable year, with its shares gaining 477.9% over the last 12 months.

Last year, the company commissioned 80 MW for big players like Continuum and Renew Power. It has a massive 1,327 MW order book, translating to a Rs 70 bn revenue boom over the next two years. It is already well underway on a 150 MW project and just kicked off execution on a 200 MW project.

The company also has an innovative 3.3 MW wind turbine suited for India's low wind zones, opening doors to a whole new market.

Inox Wind Financial Snapshot (2021-2023)

	FY21	FY22	FY23
Total Revenue (in Rs m)	7,870	6,553	10,115
Operating Profit Margin (in %)	-27	-50	-70.1
Net Profit (in Rs m )	-3,071	-4,826	-6,707
Net Profit Margin (in %)	-43.2	-77.3	-91

Source: Equitymaster

#3 KPI Green Energy

Next on the list is KPI Green Energy, which is a part of KP Group and has been leading clean energy for over a decade. It is an expert in developing, building, and managing solar power plants and wind-solar hybrid projects under the brand name 'Solarism'.

The company's order book for commercial and industrial clients (CPP/EPC) has skyrocketed, growing from Rs 3.5 bn in May 2022 to Rs 5.12 bn in February 2023. It has also signed a game-changing MOU with the Government of Uttarakhand to develop a 500 MW solar park under the CPP model.

It has also won 88 MW projects in Q3FY24, and the total order book stands at 524 MW across various segments. Even though the debt is used for capacity expansion, the booming order book shows that the company's strategy is paying off.

KPI Green Energy is also riding on the bullish wind energy market with its stock price gaining 482.5% over the last year.

The company has set a target of achieving 1000 MW capacity by 2025 with a 250 MW portfolio of own IPP projects that can generate a steady income stream for several years.

Understanding the importance of diversification, the company also targets a 740 MW portfolio of CPP, O&M projects, and lease income. It has ventured into wind-solar hybrid projects, recognising added benefits, flexibility, and grid stability.

KPI Green Energy Financial Snapshot (2021-2023)

	FY21	FY22	FY23
Total Revenue (in Rs m)	1,039	2,315	6,470
Operating Profit Margin (in %)	61.5	47.3	32.3
Net Profit (in Rs m )	144	432	1,096
Net Profit Margin (in %)	13.9	18.8	17

Source: Equitymaster

#4 KP Energy

Next on the list is KP Energy, which is a part of KP Group of Surat. It specialises in developing wind power infrastructure at scale, from finding the ideal locations to acquiring land permits and constructing entire wind farms.

KP Energy is a trusted partner for WTG manufacturers, IPPs, and CPPs. Its EPCC segment also generates a steady stream of income.

The company has an 18.4 MW wind and solar power portfolio and has aims to reach 100 MW by 2025. Its subsidiary, KP Energy OMS Limited, provides O&M support for wind farms.

The share price of KP Energy is on an upward trajectory, shooting up by 592.4% in the last year.

The company is in high demand with a current order book of Rs 55.8 bn. It has 715.6 MW of wind power projects under construction. The Sidhpur project has already commissioned 138.6 MW and is on track to complete 50.4 MW.

KP Energy is at the forefront of innovation with a 23.1 MW wind-solar hybrid project for Aditya Birla Renewable Energy. It has also landed its largest-ever order - a 464.1 MW wind energy project for NTPC REL.

A 30.1 MW wind turbine order for its Vagra site signifies its commitment to becoming a major IPP. It is also in talks with MNCs for high-profile EPC projects.

KP Energy Financial Snapshot (2021-2023)

	FY21	FY22	FY23
Total Revenue (in Rs m)	731	2,538	4,420
Operating Profit Margin (in %)	24.9	13.8	16.1
Net Profit (in Rs m )	61	183	439
Net Profit Margin (in %)	8.5	7.3	10

Source: Equitymaster

#5 Orient Green Power

Next on the list is Orient Green Power, which is engaged in developing, owning, and operating a diversified portfolio of wind energy power plants. It has state-of-the-art wind energy plants in Tamil Nadu, Karnataka, and Gujarat.

In FY23, the sales of power accounted for 93% of its income, an improvement from 83% in FY22. The company is now opting out of the REC scheme in FY23 to focus more on power generation.

The company generates 86% of its revenue from sales within the country, compared to 76% previously. It also focuses on international markets and generates 14% from its global clients.

Following the trend of wind energy stocks, stock price of Orient Green Power has also increased by 165.7% in the last year.

Orient Green Power is looking to quadruple its capacity to 1 GW from the current 400 MW. It is also diversifying into the solar energy market to capitalise on the sector's growth.

The solar expansion project will be conducted in two phases of 19.8 MW each, allowing for measured growth.

It has strategically disposed of 10.5 MW of windmills and land parcels that have reached the end of useful life. This added to a one-time profit of Rs 223 m, boosting its bottom line.

The company has successfully slashed its borrowing costs by refinancing Rs 7.2 bn debt and leveraged the LPS scheme to collect long-pending dues from state-owned electricity companies.

Orient Green Power Financial Snapshot (2021-2023)

	FY21	FY22	FY23
Total Revenue (in Rs m)	2,627	3,152	2,916
Operating Profit Margin (in %)	66.9	81.2	74.7
Net Profit (in Rs m )	-507	466	351
Net Profit Margin (in %)	-19.9	15	13.6

Source: Equitymaster

#6 Tata Power Company

Next on the list is Tata Power Company, India's largest private power company. It has a total generation capacity of 14,464 MW and has a presence across the entire power value chain, including hydro, wind, solar, and thermal.

Tata Power has pioneered energy sector technology, process, and platform and generates 39% of its capacity using clean sources, which is expected to become 54% after new project completions. It became the first company to ship over 1GW solar modules in 2017.

What started as a power generation company relying on coal, Tata Power has transitioned into a clean power company by 2023, aiming to use 100% clean sources in the upcoming years.

Shares of the company have shot up over 110% over the past year.

Owing to the revised tariff regulations from Jharkhand State Electricity Regulatory Commissions (JERC) for FY2022 to FY2026, Tata Power Company has recognised additional revenue of Rs 720 m pertaining to earlier years and Rs 160 m pertaining to previous quarters of the current financial year.

Tata Power registered a strong growth, becoming a Rs 1 trillion market cap company. It acquired the 344-circuit kilometre Bikaner III Neemrana II transmission line to facilitate the evacuation of 7.7 GW of renewable energy and secured the lowest bidder status for the construction of the 80-circuit kilometre Jalpura Khurja transmission line.

Tata Power Financial Snapshot (2021-2023)

	FY21	FY22	FY23
Total Revenue (in Rs m)	331,426	437,819	565,773
Operating Profit Margin (in %)	25.4	21.1	19.2
Net Profit (in Rs m )	14,849	26,234	38,097
Net Profit Margin (in %)	4.5	6.1	6.9

Source: Equitymaster

#7 Suzlon Energy

Next on the list is Suzlon, which now has a presence in 17 countries with 12,860 wind turbines installed.

In India, the company has completed one-third of total wind power installations of 11,000 MW. It has 32% of the country's installed wind capacity.

The order book delivery was lower for the past year mainly because its deliveries hinge on specific site requirements. Also, clients rescheduling their deliveries resulted in potential delays with grid connections and land acquisitions. There was a delay in working capital access.

However, the company has turned the situation around, accumulating a massive order book in December 2023.

As of January 2024, Suzlon has a total order book of 3,127 MW, with a recent surge of 867 MW from industry giants like Everrenew and Evren. The company is laser-focused on securing high-value projects with top margins. The 642 MW order from Evren is the largest project Suzlon has ever secured in India.

The OMS business, boasting a massive 14.5 GW wind capacity, is focused on supplying wind components in the burgeoning wind energy sector. SE Forge, a key subsidiary of Suzlon, is set to benefit immensely from this surge.

Suzlon's share price has shot up by 437.6% in the last year.

Supported by healthier margins, the company shows higher EBITDA growth of 44.9% on a YoY basis. The company has also substantially reduced its net finance costs by 94%.

Suzlon Energy Financial Snapshot (2021-2023)

	FY21	FY22	FY23
Total Revenue (in Rs m)	33.656	66,651	59,902
Operating Profit Margin (in %)	40	13.8	59.5
Net Profit (in Rs m )	1,003	-1,662	28,873
Net Profit Margin (in %)	3	-2.5	48.4

Source: Equitymaster

#8 Indowind Energy

Next on the list is Indowind Energy.

Indowind Energy develops wind farms, manages wind assets, and generates green power for sale to utilities and corporations.

In November 2023, the company took a step towards growth with the strategic merger with Ind Eco Ventures Ltd (IEVL). It brings IEVL's 100% shareholding under the Indowind Energy umbrella, which will help with expansion and consolidation.

Going with the sector's flow, Indowind Energy stock price has surged over 130% in the past year.

The company has plans to add significant capacity with a 25 MW wind farm and 25 MW solar project. The company plans to invest Rs 4 bn for these ambitious projects over the next four years.

For its growth plans, the company is making a strategic move to raise Rs 394 m by issuing convertible warrants, which can be converted into shares.

Indowind Energy Financial Snapshot (2021-2023)

	FY21	FY22	FY23
Total Revenue (in Rs m)	207	270	349
Operating Profit Margin (in %)	51.4	26.6	21
Net Profit (in Rs m )	2	1	-193
Net Profit Margin (in %)	1.2	0.5	-56.7

Source: Equitymaster

#9 Siemens

Next on the list is Siemens.

Siemens offers products and integrated solutions for industrial manufacturing applications. It also supplies intelligent infrastructure for efficient and clean power generation, transmission, and distribution for passenger and freight transportation.

In FY23, Siemens provided cutting-edge solutions across industry verticals. It offered digitalisation solutions such as Additive manufacturing, IT-OT integration, 5G, and cybersecurity solutions.

The company implemented Digital Twin technology in the green energy sector to optimise resource utilisation. Its G-AVATAR data centre monitors energy consumption across 1300 locations.

Owing to its commitment to the green energy sector, among other reasons, the company's share price has rallied by 68.4% in the past 1 year.

Its Green Hydrogen project is set to revolutionise the sector.

Siemens promotes efficient rail travel with steel tank traction transformers for 9,000 HP locomotives. It has recently secured major orders to supply power transformers to India's largest electric power transmission utility.

The company achieved a 138.8% increase in new orders, amounting to Rs 463,829 million.

The company is also poised to become a key player in the EV revolution by acquiring Masstech Control's e-mobility business. The recent capex of Rs 4.2 bn will increase production capacity for power transformers and vacuum interrupters - key components in clean energy infrastructure.

Siemens Financial Snapshot (2021-2023)

	FY21	FY22	FY23
Total Revenue (in Rs m)	134,895	164,555	201,163
Operating Profit Margin (in %)	11	11	12.6
Net Profit (in Rs m )	10,298	12,619	19,619
Net Profit Margin (in %)	7.8	7.8	10

Source: Equitymaster

#10 Adani Green Energy

Next on the list is Adani Green, which is a driving force in renewable energy solutions through its subsidiaries.

The company's core focus is providing innovative renewable energy solutions. It is currently building the world's largest solar power plant in Khavda, Gujarat. This will serve as a blueprint for large-scale renewable energy projects.

Adani Green has secured PPAs for their 8 GW solar tender, solidifying its position as a renewable energy leader with a total portfolio of 20.8 GW capacity.

In the past one year, shares of the company have rallied by 124.3%.

Adani Green has upscaled its financing framework to create a US$ 1.36 bn in addition to fueling its growth, successfully completing cash-backed funding of US$ 750 m. By refinancing operational assets, the company gained US$ 400 m.

The company's operational capacity surged by 16% YoY. It is fuelled by new Greenfield projects - 700 MW solar-wind hybrid, 300 MW wind, and 150 MW solar projects. The growing capacity and improved efficiency have increased the company's energy sales by 59%.

Adani Green Financial Snapshot (2021-2023)

	FY21	FY22	FY23
Total Revenue (in Rs m)	37,540	55,770	91,610
Operating Profit Margin (in %)	69	69.6	61.6
Net Profit (in Rs m )	1,820	4,890	9,730
Net Profit Margin (in %)	5.8	9.5	12.5

Source: Equitymaster

#11 ABB India

Next on the list is ABB India, which supplies a comprehensive range of engineering solutions, products, and services.

The company secured a 35% order increase in emerging and traditional segments in FY2023. Staying committed to its initiatives, 50% of the company's manufacturing campuses are now water positive and overall, GHG emissions were reduced by 87.3%.

The share price of ABB India has shot up by 92.9% over the last year.

ABB achieved double-digit operational growth with 54% EBITDA growth in FY23. The company exhibited strong ROCE performance, registering 21.0% growth in FY23, reaching a new all-time high. The company also has a robust cash position at Rs 47.3 bn.

Its electrification segment experienced a 24% increase in order growth in FY23 compared to FY22. It secured key orders from OEMs, data centres, and major metals and energy players. Premiumisation is leading to a shift towards higher spending and asset investments.

ABB India Financial Snapshot (2021-2023)

	FY21	FY22	FY23
Total Revenue (in Rs m)	59,459	71,429	88,011
Operating Profit Margin (in %)	5.6	9.2	14.6
Net Profit (in Rs m )	2,304	5,325	10,256
Net Profit Margin (in %)	4	7.7	12

Source: Equitymaster

#12 Timken India

Next on the list is Timken India.

Timken India engineers and manufactures bearings and mechanical power transmission components. Its manufacturing facility in Jamshedpur is behind significant breakthroughs in bearing technology. The company is a crucial partner to the world's largest wind turbine manufacturers.

The company has diversified into newer markets such as renewable energy, automation, etc., tripling its revenue to US$ 1.3 b in FY23. From 2013 to 2023, Timken's wind energy revenue has grown at a CAGR of 20+%.

Shares of Timken India have gained around 8% in the last year.

The company has grown over the last decade through product and channel diversification. Since 2010, it has completed at least one acquisition, continuously expanding its revenue streams. A total of $3 bn of capital has been invested in 20 businesses, adding over $1 bn in revenue.

The company has plans to achieve solid top-line growth with positive macros and organic outgrowth. Its focus on working capital and asset efficiency supports the overall capital allocation strategy.

Timken has invested US$ 70 m to expand its manufacturing capacities to scale up to meet increased demand for wind energy solutions. This is in addition to its US$ 75 m commitment earlier in 2020.

Timken India Financial Snapshot (2021-2023)

	FY21	FY22	FY23
Total Revenue (in Rs m)	14,301	22,175	28,598
Operating Profit Margin (in %)	17.9	23.2	20
Net Profit (in Rs m )	1,432	3,271	3,907
Net Profit Margin (in %)	10.2	14.8	13.9

Source: Equitymaster

#13 TD Power Systems

Last on the list is TD Power Systems.

The company manufactures AC generators and electric motors for various applications, specifically designed to suit customers' needs. It has 42+ GW installed capacity and a global presence in 104 countries.

TD Power Systems has an extensive product portfolio catering to a wide variety of turbines, including steam, gas, hydro, and wind. With 6,183 generators manufactured and a total output capacity of 44,538 MW delivered, it boasts a remarkable track record.

Over the last year, the company's shares have rallied 94.3%.

The company's primary revenue streams are sales to turbines and engine OEMs. Its top clients contribute to 65% to 70% of its revenue.

As of 2023, the company's total order book is Rs 11.5 bn. TD Power Systems has two manufacturing plants in Bangalore.

In FY25, the company has allocated Rs 1.5 bn for its third plant. Owing to a 23% increased order inflow in FY23 compared to the previous year, the company expects at least 17% growth with a potential upside of 3% to 5% for FY25.

TD Power Systems Financial Snapshot (2021-2023)

	FY21	FY22	FY23
Total Revenue (in Rs m)	6,029	8,141	8,921
Operating Profit Margin (in %)	13.1	13.1	15.5
Net Profit (in Rs m )	452	705	968
Net Profit Margin (in %)	7.6	8.8	11.1

Source: Equitymaster

In Conclusion

The Indian offshore wind market is projected to gain momentum through 2027, with annual installations forecasted to peak at 5 GW in 2025.

From 2023 to 2027, India's wind market presents an opportunity for 21.1 GW installations, supporting major and minor players in the sector.

To evolve into a global export hub, four key steps are CRITICAL:

• Establishing a robust and sustainable domestic market
• Align manufacturing capabilities with global product portfolios
• Demonstrate cost leadership by investing in new machinery, R&D, and skilled workforce
• Implement export incentives

This presents a wave of opportunities for companies across the wind energy sector. These companies can achieve significant growth by proactively strategising, investing in capabilities, and capitalising on government initiatives.

Investors can benefit from the growth potential of this sector by carefully looking for companies with a proven track record in wind energy and robust financial health.

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...