Nuclear Power's Gold Rush: 5 Stocks to Watch in 2026

Nuclear power is becoming a pillar in India's clean energy strategy.

While green energy like solar and wind brings more headlines, nuclear energy's importance lies in its baseload consistency. It generates electricity regardless of the weather conditions.

India has 7.5 GW of nuclear capacity and 11 reactors are being built. According to the Department of Atomic Energy, this expansion will add another 8.2 GW by 2031.

The government's long-term target is 22 GW is supported by Civil Nuclear Cooperation agreements with the US, France, and Russia. Moreover, India has set an even more ambitious target of 100 GW of nuclear capacity by 2047.

This government push is opening a gold rush for companies involved in nuclear engineering, procurement, and construction contracts, heavy equipment manufacturing, reactor component supply, and civil construction.

Legal improvements, including relaxed liability rules and up to 49% foreign direct investment (FDI) in nuclear power, are bringing in investments across the value chain.

With India advancing its nuclear energy plans, companies with solid balance sheets and execution strengths potentially stands to benefit.

Stock Screening Criteria

We applied a strict three-year screen to Equitymaster's Stock Screener to identify fundamentally strong nuclear-linked companies.

Stocks must play a direct role in EPCs, manufacturing reactor equipment, power generation, or civil works.

They must have had consistent revenue and profit over the last three years. The PE must be less than the sector average of 40.

#1 Larsen & Toubro (L&T)

L&T is a global EPC leader and India's engineering giant. Its heavy engineering department provides reactor pressure vessels, steam generators, and specialized forgings for India's nuclear plants.

It has implemented critical projects for the Nuclear Power Corporation of India Limited and works with global reactor suppliers, too. Nuclear energy is part of L&T's Rs 6.13 trillion order book as of June 2025.

In FY25, the revenue grew 16% YoY to Rs 2,557 bn, while profit after tax grew 13.6% YoY to Rs 176.8 bn. The company's order book crossed Rs 6,128 bn, with a small contribution from nuclear infrastructure.

Larsen & Toubro (L&T) Financial Snapshot

P&L Items (Rs m)	FY23	FY24	FY25
Net Sales	1,833,407	2,211,129	2,557,345
Net Profit	126,249	155,697	176,874
Return on Equity	14.2	18.1	18.2
Return on Capital	17.9	21.3	21.9

Source: Equitymaster

As per its latest quarterly report, the hydrocarbon order inflow increased steadily, offering a revenue pipeline. The energy segment's net revenue grew 47% YoY, while the Hi-Tech manufacturing net revenue grew 75% YoY.

The robust order execution and ramp-up helped the company maintain an operating margin of 13%.

The management has targeted a 20% growth in its construction and mining segment this year and aims to double its sales in the next five years.

#2 NTPC

The National Thermal Power Corporation Ltd is the biggest power producer in India.

With its joint ventures and subsidiaries, it generates and sells power to state governments. NTPC plans to expand beyond coal into green energy and nuclear power.

It has signed agreements with Nuclear Power Corporation of India Ltd to develop the 2,800 MW Mahi Banswara project and established the NTPC ParmanU Urja Nigam Ltd to manage its nuclear energy efforts.

All these efforts fit into NTPC's plan to contribute 30 GW to India's 100 GW nuclear energy target by 2047.

Financially, NTPC delivered Rs 1,849 bn revenue in FY25 and a net profit of Rs 239.5 bn.

NTPC Financial Snapshot

P&L Items (Rs m)	FY23	FY24	FY25
Net Sales	1,733,382	1,754,106	1,849,265
Net Profit	171,214	213,325	239,532
Return on Equity	11.6	13.3	13
Return on Capital	10.6	11.5	11.8

Source: Equitymaster

The company generated 439 BUs in FY25, its highest ever. Strict maintenance processes and real-time monitoring have ensured operations were efficient and allowed for higher plant availability.

A regulated tariff model and low fuel cost volatility have helped NTPC deliver steady returns.

Going forward, the company announced an investment of Rs 960 bn in Chhattisgarh. This capital expenditure included Rs 800 bn for a 4,200 MW nuclear project.

#3 Tata Power Company

Tata Power is one of India's largest vertically-integrated utilities dealing with traditional power, thermal, green energy, and nuclear-linked EPC partnerships.

It has partnerships with NPCIL for nuclear project operations.

The company's sales grew 6.5% YoY to Rs 654 bn in FY25, while net profit rose 11.5% YoY to Rs 47.7 bn.

Tata Power Company Financial Snapshot

P&L Items (Rs m)	FY23	FY24	FY25
Net Sales	551,091	614,489	654,782
Net Profit	38,097	42,801	47,754
Return on Equity	13.2	13.2	13.3
Return on Capital	16.5	14.9	13.8

Source: Equitymaster

Renewables contributed 44% of the capacity. Record rooftop solar installations helped the company retain its first position in the solar market.

Moreover, its nuclear partnerships are also gaining importance.

The company has plans to expand its green power generation capacity to supply 100% clean energy by 2045. Nuclear power will be a significant part of the company's growth in the renewable energy space.

#4 Anup Engineering

Anup Engineering is a niche engineering firm that demerged in 2018 from Arvind Ltd.

It manufactures reactors, pressure vessels, and heat exchangers for the oil & gas and petrochemical industries.

The company's revenue rose 33% YoY to Rs 7.3 bn in FY25 from Rs 5.5 bn in FY24. The profit after tax grew to Rs 1.18 bn in FY25, up 14.3% YoY.

Anup Engineering Financial Snapshot

P&L Items (Rs m)	FY23	FY24	FY25
Net Sales	4,113	5,504	7,328
Net Profit	514	1035	1183
Return on Equity	11.8	20.1	19.4
Return on Capital	15.6	22.6	24.1

Source: Equitymaster

The consolidated order book as of 30 April 2025 was Rs 7.41 bn, as mentioned in the May 2025 investor update.

This steady growth was driven by the diversified EPC contracts and its consulting-led associations. Better order execution and efficient operations also helped Anup Engineering grow.

Over the next few years, the company will set up a manufacturing plant to manage equipment weighing 1000 MT at Kheda, Gujarat, in Phase I.

In Phase II, it plans to invest Rs 0.5 bn for an additional manufacturing bay by the third quarter in FY26. Anup Engineering plans to grow at 25-30% YoY.

#5 Engineers India

Engineers India Ltd is a Navratna Public Sector Unit and among the foremost engineering and project management advisors under the Ministry of Petroleum & Gas.

It offers consultancy and engineering services from project concept, planning, design, and engineering to procurement and implementation, maintenance, and monitoring.

It works largely in petroleum refining, petrochemicals, and oil & gas. However, it has recently entered the nuclear and defense sectors.

On 12 August this year, it signed an MoU with NPCIL to help develop the Bharat Small Modular Reactors (SMRs).

Engineers India Financial Snapshot

P&L Items (Rs m)	FY22	FY23	FY24
Net Sales	29,120	33,282	32,822
Net Profit	3,429	3,442	3,602
Return on Equity	19.4	17.5	16
Return on Capital	25.5	22.9	21.4

Source: Equitymaster

The revenue fell marginally to Rs 30.88 bn in FY25. However, the operating profit rose 17% YoY to Rs 5.1 bn for the same period. The net profit grew from Rs 3.4 bn in FY24 to Rs 3.6 bn.

This steady growth was led by EIL's sectoral and product diversification, efficient inflow of repeat orders with marquee clients, and a stable capacity utilisation since FY23.

Improved export performance helped augment sales and margins in FY25.

In the coming years, the company will focus on increasing complex equipment sales, exploring export avenues with a targeted margin over 20%.

It will invest in exploring the oil & refining industry for opportunities, as global oil demand is set to grow to 112.3 million barrels a day(mb/d) by 2029.

Disadvantages to Keep in Mind

• The nuclear projects need a lot of capital to become operational, which could delay execution.
• Interruptions due to safety permissions.
• Difficulty in land acquisitions.
• India imports most of its uranium. Changes in uranium prices and supply conditions can affect the project.
• Cost overruns and execution delays could stress the working capital.

Conclusion

India's electrification roadmap is no longer just about coal.

Nuclear power delivers the baseload solidity that green energy cannot, making it a crucial source in India's energy mix.

India's nuclear equipment and civil works market is projected to grow from US$ 6 bn in 2024 to over US$ 13 bn by 2030, as per the International Energy Agency and the Indian Electrical & Electronics Manufacturers Association.

The government's National Infrastructure Pipeline has allocated over Rs 3.5 tn for power transmission and generation, most of it to support nuclear-power infrastructure.

With power demand expected to triple by over the long term, new technologies like Small Modular Reactors (SMRs), and upcoming international collaborations, the nuclear sector is beginning its golden era.

Done right, nuclear-linked stocks could power not just India's grid, but also your portfolio returns.

However, for investors, due diligence is a must.

Investors should evaluate the companies' fundamentals, corporate governance, and valuations of the stocks as key factors when conducting due diligence 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...