Shares of renewable energy stocks gained ahead of the Union Budget 2025. Market experts are watching closely for announcements on increased capex within the renewables space as well announcements of PLI schemes for promoting the sector.
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Finance minister Nirmala Sitharaman has allocated Rs 48,396 crore towards the power sector, including new and renewable energy, in her Budget for the financial year 2025-26. The outlay is an increase of 30 percent over the previous year’s allocation of Rs 37,143 crore (revised estimate) and 22 percent over the budget estimate of Rs 39,602 crore. Of the Rs 48,396 crore, the power ministry received Rs 21,847 crore and the ministry of new and renewable energy (MNRE) Rs 26,549 crore,
The Ministry of New and Renewable Energy (MNRE) allocated around Rs 19,100 crore in 2024-25 -- a 143 percent increase over the revised estimate of the previous fiscal. While the largest allocation – around 45 percent -- was towards solar power grids, the PM Surya Ghar Muft Bijli Yojana, which was approved in February 2024, saw the second-highest funding allocation of around 33 percent.
The total allocation for renewables has doubled over the past two years. In conversations prior to the budget experts told Moneycontrol that they are anticipating continued increase in allocation as the long-term technologies is the key focus of the sector for which there is a need to allocate more to encourage private and PSU participation.
Waaree Energies stocks gained 4 percent and were trading at Rs 2,503. On january 30, they reported a four-fold jump in net profit at Rs 492.7 crore ffor the quarter ended December 31 against Rs 124.5 crore in the previous fiscal. Shares of Waaree Renewable Technologies also gained 3 percent and was trading at Rs 1044.
Inox Wind gained 8 percent to Rs 181 during morning trades on February 1 after the company reported a 96 percent year-on-year increase in revenue for Q3FY25. For the quarter ending December 2024, revenue was Rs 994 crore. For the quarter, the renewable major reported a consolidated profit after tax (PAT) to Rs 239 crore.
KPI Green Energy stocks also gained 5 percent to trade at Rs 385.65 after it was reported that KPI Green Energy and its wholly owned subsidiary, KPIG Energia, have successfully developed and commissioned a total of 40.16 MW of renewable power projects for esteemed clients under the captive power producer (CPP) segment.
Suzlon shares hit the upper circuit to rise 5 percent for the fourth consecutive session after the energy major reported a strong Q3 on January 30. The net sales came in at Rs 2,974.83 crore for December quarter, up 90.64% from Rs. 1,560.47 crore a year ago. Quarterly net profit came in at Rs 386.92 crore in Q3FY25, up 90.56% from Rs 203.04 crore a year ago. EBITDA stands at Rs 527.04 crore for Q3FY25, up 105.18% on year.
Other renewable stocks like NHPC, SJVN, NTPC Green and Adani Green were also trading higher. At 10 am, Adani Green was trading 4.3 percent higher at Rs 1040.75, NTPC Green was trading 3.7 percent higher at Rs 118.57, SJVN was trading 5 percent higher at Rs 102.8, NHPC also gained around 2 percent and was trading at Rs 82.28.
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