5 Nuclear Power Stocks to Add to Your Watchlist in 2025

Nuclear energy in India is gaining momentum, with the government targeting a massive expansion to 100 GW by 2047, up from 8,880 MW today.

Only solar and wind energy cannot be relied upon for nations clean energy needs as these are intermittent sources of energy. So nuclear energy is a very essential and strategic to India's power needs.

Union budget also allocated Rs 200 bn for nuclear innovation, including small modular reactors (SMRs), which could lower costs and improve efficiency.

The nuclear sector is no longer a state monopoly, offering immense investment opportunity. So now is the right time to look at promising nuclear power stocks.

Here are the 5 nuclear power stocks to add to your watchlist in 2025.

We have filtered these stocks using the Equitymaster's HYPERLINK "https://www.equitymaster.com/stock-screener/best-nuclear-power-stocks-in-india?utm_source=screenerhomepage&utm_medium=website"best nuclear power stocks

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#1 Larsen & Toubro

First on the list is Larsen & Toubro (L&T) an Indian multinational conglomerate engaged in EPC Projects, Hi-Tech Manufacturing, and Services, operating in over 50 countries worldwide.

Coming to its, nuclear power business, the company contributes significantly to all 22 operational nuclear reactors in India.

It makes critical equipment and systems such as reactor vessels, components for heavy water plants, fuel re-processing plants, and plasma reactors.

L&T is one of the few entities globally that possesses full integrated capability in nuclear manufacturing, from raw material to the production of reactors.

It's involved in both equipment supply and engineering, procurement, and construction (EPC) work within the sector.

L&T is now exploring opportunities in Small Modular Reactors (SMRs), which are smaller than conventional nuclear reactors and can be factory-assembled and transported.

It has received considerable interest from global players regarding SMRs and is in discussions with the Nuclear Power Corporation of India (NPCIL) for the deployment work of Bharat Small Reactors, following a request for proposal.

Coming to its financial performance, the company has delivered a top-line growth of 18% compounded annual growth rate (CAGR) over a 3-year period and a net profit CAGR of 23%.

The last 3-year average return on equity (ROE) has been 14%.

L&T's nuclear business unit has successfully delivered four steam generators for NPCIL's Kaiga 5 & 6 units. As the demand for nuclear projects rises in the future L&T will be one of the key beneficiaries.

For more details, check out Larsen & Toubro's financial factsheet.

#2 NTPC

Second on the list is NTPC, India's largest power generation utility. It plays a strategic role in the country's power sector, accounting for about 17% of the total installed capacity and around 22% of power generation in the country.

The company has a diverse business portfolio that extends beyond conventional thermal generation to include hydro, renewables, nuclear, and other energy-related activities such as consulting, power trading, and coal mining.

NTPC is now significantly expanding its nuclear power business, aiming for 30 GW of nuclear capacity, pursued through two primary avenues.

First, NTPC has partnered with Nuclear Power Corporation of India (NPCIL) through the joint venture company, Anushakti Vidhyut Nigam (ASHVINI), established for commissioning Pressurized Heavy Water Reactor (PHWR) nuclear projects.

The Government of India has approved the transfer of the Mahi Banswara Rajasthan Atomic Power Project (4 x 700MW) to ASHVINI, making it the first project under this collaboration.

NTPC holds a 49% stake in this specific joint venture, with NPCIL as the lead partner. Additionally, the Chutka project (2 x 700 MW) in Madhya Pradesh is also being considered for transfer to ASHVINI, with modalities for asset transfer in progress.

Secondly, NTPC has incorporated a wholly owned subsidiary, NTPC Parmanu Urja Nigam, in January 2025, specifically for undertaking nuclear energy business and exploring advanced nuclear technologies.

This includes the development of Pressurized Water Reactors, Fast Breeder Reactors (FBRs), and Small Modular Reactors (SMRs).

Coming to its financial performance, the company has delivered a top-line growth of 12% CAGR over a 3-year period and a net profit CAGR of 13%.

The last 3-year average ROE has been 13%.

Looking ahead, NTPC plans to become a 130-plus gigawatt (GW) company by 2032.

A major component of this growth is renewable energy (RE), targeting 60 GW+ by 2032. Currently, there's a 34 GW+ RE portfolio and pipeline, with 7 GW operational, 18 GW contracted and awarded, and 9 GW under pipeline.

In nuclear power, NTPC aims to develop 30 GW, with a long-term anticipation of around 20 GW by 2050. The first project is a joint venture (49% NTPC, 51% NPCIL) in Mahi Banswara, Rajasthan, with groundbreaking activities expected soon.

For more details, check out NTPC's financial factsheet.

#3 Tata Power Company

At number three comes the Tata Power Company one of India's largest vertically integrated power companies, operating across the entire power value chain.

Its diverse business clusters include renewables, conventional generation, transmission and distribution, and new-age energy solutions.

Regarding its nuclear power business, Tata Power has shown a keen interest in the Small Modular Reactor (SMR) market.

However, the company's progress in this area is contingent upon changes in the law that would permit private sector involvement in nuclear power plants, as well as a clear definition of the civil liability law.

Once these legal frameworks are established, Tata Power will proceed to articulate its plans for implementing SMRs and other nuclear facilities. While a definitive business model for this sector is yet to be detailed, it is expected to be a cost-plus model.

Discussions are also underway regarding the possibility of accelerating the timeline for small modular nuclear reactors to as little as 3 to 4 years.

Coming to its financial performance, the company has delivered a top-line growth of 15% CAGR over a 3-year period and a net profit CAGR of 24%.

The last 3-year average ROE has been 12%.

The company is actively incubating new-age energy businesses and is strategically moving away from coal power plants to renewables and consumer businesses like solar rooftop, EV charging, and home automation.

In the renewables business, it has achieved a capacity addition of 1,026 megawatts (MW) in FY25, marking the first time they added over 1 GW. It aims to commission nearly 2.5 to 2.7 GW of renewable projects in FY26.

For more information, check out Tata Power Company's financial factsheet.

#4 Bharat Heavy Electricals

Fourth on the list is Bharat Heavy Electricals (BHEL) India's flagship engineering and manufacturing Central Public Sector Enterprise (CPSE).

The company is a leading manufacturer of power plant equipment, including nuclear, hydro, thermal, and renewables. It also serves other sectors of the economy such as transportation, defence, etc.

BHEL's offerings extend to power generation capacity equipment, locomotives, strategic defence supplies, transmission equipment, and various industrial products.

With a major focus on its nuclear power business, BHEL stands out as the only Indian company actively involved in all three stages of the Indian Nuclear Programme: The 1st stage Pressurized Heavy Water Reactor (PHWR), 2nd stage Fast Breeder Reactor (FBR), and 3rd stage Advanced Heavy Water Reactor (AHWR).

BHEL possesses the capability to design, engineer, manufacture, and supply both primary equipment - reactor headers and end shields - and secondary equipment, including steam turbines, generators, and heat exchangers, for nuclear plants.

The company has supplied Steam Turbine Generator sets for about half of India's total installed nuclear capacity.

BHEL signed a memorandum of understanding (MoU) with Nuclear Power Corporation of India (NPCIL) on 12 April 2023, to collaboratively pursue business opportunities in nuclear power plants based on PHWR technology.

Recent achievements in the nuclear sector include the supply of the 45th steam generator for the GHAVP nuclear plant, the highest number by an Indian manufacturer, and the successful synchronization of the 700 MWe unit #7 of the Rajasthan Atomic Power Project (RAPP).

Coming to its financial performance, the company has delivered a top-line growth of 10% CAGR over a 3-year period and a net profit CAGR of 7%.

The last 3-year average ROE has been 2%.

Looking, BHEL is targeting a 12-15% YoY revenue CAGR from FY25. This target is based on the company's current order book and its potential for execution.

In the power sector, the government plans to finalize orders for over 80 GW of thermal power plants by 2032. BHEL expects around 10 GW of thermal power projects to be ordered annually in the next few years, including FY25, FY26, and FY27.

For more information, check out Bharat Heavy Electricals' financial factsheet.

#5 Power Mech Projects

Fifth on the list is Power Mech Projects a leading industrial services and construction company, providing a wide array of services primarily within the power and infrastructure sectors.

The company's business is diversified - industrial construction, mining, infrastructure construction, manufacturing & heavy fabrication, and industrial services across power plants, refineries, petrochemical facilities, steel plants, and water systems.

Regarding its nuclear power business, Power Mech Projects has made a notable entry by securing its first project in this sector.

This contract, valued at Rs 5.63 bn, is for the civil and structural works on the turbine island of 2 x 700 MW units (Stage 5 and 6) at the Kaiga Nuclear Power Corporation.

The order was awarded by BHEL, acting as the primary supply and execution agency for NPCL (Nuclear Power Corporation), the project developer.

Coming to its financial performance, the company has delivered a top-line growth of 25% CAGR over a 3-year period and a net profit CAGR of 32%.

The last 3-year average ROE has been 17%.

Looking ahead, the company plans to leverage the Rs 111 tn investment under the National Infrastructure Pipeline (NIP) and Gati Shakti Scheme to drive growth across various sectors. It's also focusing on growing its exports.

For more information, check out Power Mech Projects' financial factsheet.

Snapshot of Best Nuclear Power Companies on Equitymaster's Stock Screener

Here's a table that shows the best nuclear power companies across various parameters.

Conclusion

As fossil fuel dependence wanes and renewable sources like solar and wind face intermittency challenges, nuclear energy is emerging as a dependable and scalable solution to meet base-load demand.

With supportive government policies, significant budgetary allocation, and increasing private participation, the nuclear sector is poised for a multi-decade growth trajectory.

But investing in nuclear power stocks is not without its risks. Regulatory approvals, long project gestation periods, and evolving safety norms can delay or derail progress.

Also, geopolitics, fuel supply challenges, and public perception around nuclear safety are persistent challenges.

It's important to conduct thorough research on the financials and corporate governance of these companies before considering any investment, ensuring they align with your financial goals and risk tolerance.

Happy investing.

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