Today, we recommend two stocks from the green energy sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 26%. India’s renewable energy sector is experiencing robust growth, with significant capacity additions in solar and wind power, as the country aims towards achieving 500 GW of renewable capacity by 2030. We also analysed the market’s performance on Tuesday to understand what may lie ahead for the stock indices in the coming days.
1. KPI Green Energy
- Current price: ₹ 516
- Target price: ₹ 625
- Upside: 21.1%
- Time frame: 12-14 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
The KP Group is a well-known renewable energy company in India, founded in 1994. With its publicly traded firms, KPI Green Energy, KP Energy, and KP Green Engineering, it has developed over 5.75 GW of solar, wind, and hybrid assets. KPI Green Energy was established in 2008 and specializes in solar and hybrid energy solutions. In addition to building, owning, operating, and maintaining power plants as an independent power producer, it also provides services to captive power producers under the “Solarism” brand.
The firm has 3 GW of orders in hand, more than 6,275 acres of land bank, and more than 503 MW of IPP installed capacity as of Q1FY26. It has a good client base of entities, including Coal India Limited, Zydus Lifesciences Limited, Aditya Birla Renewable Energy, Tata Motors, L&T Limited, and the Indian Air Force, etc.
Operating revenue increased 75% year over year from Rs 350 crore in Q1FY25 to Rs 614 crore in Q1FY26. The revenue portion of IPP was 10% as of FY25, but the revenue share of CPP was 90%. From Rs 132 crore in Q1FY25 to Rs 217 crore in Q1FY26, EBITDA also grew 64% year over year. From Rs 66 crore in Q1FY25 to Rs 111 crore in Q1FY26, profit after tax rose by 68%. The firm has 3+ GW of cumulative impending capacity, 1.2+ GW of future capacity as an Independent Power Producer (IPP), and more than 1.8 GW of upcoming capacity as a Captive Power Producer (CPP), as of Q1FY26.
It has a total installed capacity of 1+ GW, with 503+ MW installed as an Independent Power Producer (IPP) and 447+ MW installed as a Captive Power Producer (CPP). The IPP produces a strong EBITDA margin of around 85% to 90%, whereas the CPP has an EBITDA margin of roughly 20% to 22%. Therefore, after the additional capacity, the overall EBITDA margin would be between 32% and 33%. KPI group is targeting to reach the capacity of 10+ GW by 2030. As of Q1FY26, it has a presence of over 108 sites, a huge growth from 38 sites in Q1FY25. In Q1FY26, KPI Green Energy received a repeat order from Avichal Power Private Limited for the development of a 100 MW Solar Power Project in Gujarat.
Risk Factor
In Gujarat, the Group is fully operating (IPP+CPP). The risk of geographic concentration raises the regulatory risk associated with any negative changes in state policy or an increase in regional competition, which may have an impact on the group’s margins. It is exposed to project execution risk; any delay in the project may hamper the profitability of the company. It is susceptible to power purchase agreement termination and tariff rates, which may hamper the margins and operations of the company.
2. NTPC Green Energy Ltd
- Current price: ₹ 103
- Target price: ₹ 130
- Upside: 26.21%
- Time frame: 12-14 months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
NTPC Green Energy is the largest renewable energy public sector company in India (aside from hydro) in terms of operating capacity. It serves as the umbrella organization for NTPC’s green business initiatives. In order to guide NTPC’s green energy trajectory and help the firm achieve its lofty target of 60 GW by FY32, NGEL concentrates on both organic and inorganic initiatives.
Energy storage, hybrid power, solar, wind, and green hydrogen are just a few of the diverse business endeavors that NGEL is involved in. With a capacity of over 3.4 GW, the company has finished 17 projects and is working on 24 more.
NGEL reported operating revenue of Rs 2,210 crore in FY25, up 12.5% from Rs 1,963 crore in FY24. EBITDA increased by 19.4% to Rs 2,173 crore from Rs 1,819 crore in the previous year. Profit after tax rose 38% to Rs 474 crore.
NTPC Renewable Energy Ltd., a wholly owned subsidiary of NTPC Green Energy, won a 500 MW solar power contract in the Solar Energy Corporation of India Ltd. auction for the building of 2,000 MW of solar photovoltaic power plants connected to the interstate transmission system. There is also an auction for the installation of energy storage devices with a combined capacity of 1,000 MW and 4,000 MWh.
The company and the industries department of Bihar have signed a memorandum of understanding for the construction of renewable energy projects in the state, such as green hydrogen mobility projects, ground-mounted and floating solar arrays, and battery energy storage systems. Additionally, NTPC Renewable Energy was awarded a 1,000 MW solar PV power project by Uttar Pradesh Power Corporation Ltd.
As of April, the company had a competitive tariff-based bid order book for the construction of 3.5 GW of continuously operational hybrid projects, 0.2 GW of wind projects, and 9.8 GW of solar projects. By 2032, NTPC intends to use NGEL to boost its renewable energy capacity to 60 GW.
In Q1 FY26, the company reported revenue from operations of Rs 680.21 crore, an increase of 17.6% YoY. PBT rose by a solid 51% YoY to Rs 277.10 crore from Rs 183.44 crore. Profit after tax jumped to Rs 220.48 crore from Rs 138.61 crore, surging by 59% YoY.
Risk Factor
With approximately 13.5 GW of capacity being built in NGEL and its subsidiaries, 1.9 GW in Ayana, and an additional 1.8 GW in other joint ventures, NTPC Green Energy is susceptible to schedule and cost overruns in these under-construction assets. The company’s primary project execution methods include engineering, procurement, and construction; these methods also include processes to claim liquidated damages for commissioning delays. Cost hikes for projects that weren’t awarded are still possible.
Market Recap August 12th, 2025
The Nifty 50 had a muted start on Tuesday at 24,563.3, down -22 points from the previous close of 24,585. The index was volatile throughout the day and ended at 24,487, below the 24,500 level. The index closed below all three EMAs, i.e, the 20-day, 50-day, and 100-day EMAs, but above the 200-day EMA. By the close, the Nifty 50 had dropped -97.65 points, or -0.40%. The BSE Sensex mirrored this trend, falling by -368.49 points, or -0.46%.
It had its opening at 80,508.5 and settled at 80,235.5. The Nifty 50’s RSI was at 39.56, while it still held above the 200-day EMAs. The BSE Sensex RSI stood at 39.19, staying well below the overbought level of 70. Although it slipped below the 20-day, 50-day, and 100-day EMAs, it managed to close above the 200-day EMAs. The Bank Nifty Index ended in the red, closing at 55,043.7, losing -467.05 points or -0.84%.
The sectoral indices also showed a mixed trend on Tuesday’s trade. The Nifty Pharma Index was among the major gainers, closing at 21,753, up 148.85 points, or 0.69%. Alkem Laboratories Ltd was the biggest gainer, increasing 6.3%, followed by Biocon Ltd, which gained 3.74%, and Granules India Ltd, up 3.3%. The Nifty Media Index followed the gains, closing at 1,647.5, up 9.85 points or 0.6%. Stocks like Sun TV Network Ltd gained 1.6%, followed by other media stocks like PVR Inox Ltd, Nazara Technologies Ltd, and Tips Music Ltd, which rose up to 1.5%. The Nifty Healthcare Index was also among the top gainers, closing at 14,385, up by 83.80 points or 0.59%.
Among the major losers, the Nifty Finance index plunged the most on Tuesday’s trading session. The index decreased by -270.50 points or -1.02%, closing at 26,135.3. Bajaj Finance Ltd was the major loser, dropping 2.83%, followed by Muthoot Finance Ltd, Cholamandalam Investment & Finance, and HDFC Bank, which declined by up to 2.2%. Another major laggard was the Nifty Private Bank Index, which closed at 26,560, losing -218.05 points, or 0.81%. Major losers include RBL Bank Ltd, HDFC Bank Ltd, ICICI Bank Ltd, and IDFC First Bank Ltd, whose shares declined by up to 2%.
Asian markets were broadly on a mixed note, with Hong Kong’s Hang Seng Index gaining 62.87 points, or 0.25%, to close at 24,969.68. Whereas the Shanghai Composite Index closed at 3,665.92, gaining 18.37 points, or 0.50%. South Korea’s KOSPI Index closed on a negative note at 3,189.91, down -16.86 points, or -0.53%. However, Japan’s Nikkei 225 Index closed in the green at 42,718.17, gaining 897.69 points, or 2.15%. The US Dow Jones Futures were trading at 43,996.29, up 22.19 points, or 0.05%, as of 4:52 p.m. IST.
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