Top Green Hydrogen Stocks in February 2025 – 5YR CAGR Basis: Adani Green Energy, NTPC and More

According to the Ministry of New and Renewable Energy, global demand for green hydrogen and its derivatives, such as green ammonia, is projected to exceed 100 million metric tons (MMT) by 2030. India aims to capture approximately 10% of this global market, with an estimated annual export potential of 10 MMT of green hydrogen/green ammonia.

The country’s National Hydrogen Mission has set ambitious targets to develop green hydrogen production capacity, attracting investments worth over ₹8 lakh crore by 2030 and creating more than 6 lakh jobs in the sector.

With the green hydrogen sector poised for significant growth, there is increasing interest from investors looking to benefit from this rising demand. In this blog, we will look at key companies involved in green hydrogen production and distribution that could play a role in the development of India’s clean energy future as the sector expands through 2025 and beyond.

Top Green Hydrogen Stocks in February 2025

Note: The best green hydrogen sector stocks list provided here is as of January 31, 2024. The stocks are sorted as per their 5-year CAGR.

Overview of the 5 Best Long-Term Stocks in India

1. Adani Green Energy Ltd

Adani Green Energy Limited, is on track to become the world’s largest renewable energy producer by 2030. As part of the Adani Group’s broader vision, the company is also exploring the emerging green hydrogen space.

In Q3 FY25, Adani Green Energy demonstrated robust financial growth, with a 92.19% year-on-year increase in net profit, reaching ₹492 crore. Revenue for the quarter stood at ₹2,365 crore, marking a modest 2.34% YoY growth.

Key metrics:

• ROCE: 10.82%
• ROE: 8.87%

2. NTPC Ltd

NTPC Green Energy Limited (NGEL) is setting up India’s first Green Hydrogen Hub at Pudimadaka, Andhra Pradesh. This project, in partnership with the Government of Andhra Pradesh, will focus on the production of 1500 TPD of Green Hydrogen and its derivatives such as Green Methanol, Green Urea, and Sustainable Aviation Fuel.

NTPC’s Q3 FY25 performance showed a positive trajectory with the company reporting a 3% year-on-year increase in its net profit, which rose to ₹4,711 crore. revenue showed a solid performance, reaching ₹40,872 crore, marking a 6% increase compared to the same period last year.

Key metrics:

• ROCE: 10.63%
• ROE: 13.17%

3. Larsen and Toubro Ltd

L&T’s Green Hydrogen Plant, located at the A M Naik Heavy Engineering Complex in Hazira, is a pioneering project designed to produce high-purity hydrogen using both Alkaline and PEM electrolyser technologies. The plant currently produces 15 tonnes of hydrogen per annum (TPA), with plans to expand to 30 TPA.

Larsen & Toubro (L&T) reported a consolidated net profit of ₹3,359 crore for Q3 FY25, reflecting a 13.9% year-on-year growth. The company’s revenue for the quarter rose by 17.3%, reaching ₹64,668 crore, driven by strong order book execution and growth in its Projects & Manufacturing businesses.

Key metrics:

• ROCE: 18.48%
• ROE: 12.67%

4. Oil and Natural Gas Corporation Ltd

ONGC’s efforts in developing green hydrogen technologies, such as thermochemical cycles and innovative storage solutions, aim to scale up production while overcoming technical and commercial challenges, thus supporting a cleaner, more efficient energy ecosystem.

State-owned ONGC reported a 17% increase in its standalone net profit for Q2 FY25, reaching ₹11,984 crore, compared to ₹10,238 crore in the same period last year. However, the company saw a 4% decline in revenue from operations, which stood at ₹33,881 crore, down from ₹35,163 crore a year ago.

Key metrics:

• ROCE: 15.62%
• ROE: 14.73%

5. Gail (India) Ltd

GAIL (India) Limited has made significant strides in renewable energy by setting up its first Green Hydrogen Plant at Vijaipur, Madhya Pradesh. The 10 MW plant, utilises a Proton Exchange Membrane (PEM) electrolyser to produce 4.3 tonnes per day (TPD) of hydrogen. This hydrogen has a purity of 99.999%.

In Q3 FY25, GAIL (India) Ltd reported a net profit of ₹3,867.4 crore, marking a 44.7% sequential growth. The company’s revenue for the quarter stood at ₹34,937 crore, reflecting a 6.2% increase from the previous quarter.

Key metrics:

• ROCE: 12.92%
• ROE: 13.91%

Top Green Hydrogen Stocks by Market Capitalisation

Best Green Hydrogen Stocks by Sub-Sector

What are Green Hydrogen Stocks in India?

Green Hydrogen Stocks in India refer to shares of companies involved in the production, development, and distribution of green hydrogen, a clean and sustainable energy source produced through the electrolysis of water using renewable energy such as wind or solar power.

These stocks represent companies that are investing in green hydrogen as a means to reduce carbon emissions and combat climate change.

In India, several companies across different sectors are entering the green hydrogen space, aiming to become key players in the energy transition. These companies typically focus on:

1. Hydrogen Production: Companies that produce green hydrogen using renewable energy sources.
2. Infrastructure Development: Companies involved in setting up the infrastructure needed for green hydrogen production, storage, and distribution.
3. Technology and Innovation: Companies investing in advanced technologies, like electrolysis systems and fuel cells, to improve the efficiency and scalability of green hydrogen.

Challenges of Investing in Green Hydrogen Stocks

1. High Production Costs

The cost of producing green hydrogen can be high, primarily due to the technology used in the electrolysis process. However, as demand grows and technological improvements are made, there is potential for cost reduction through increased efficiency.

2. Infrastructure Limitations

The infrastructure for the storage, transportation, and distribution of green hydrogen is still underdeveloped. This gap offers a significant opportunity for companies in India to invest in building new infrastructure, such as pipelines and storage facilities, which can also drive job creation and economic growth.

3. Fossil Fuel Competition

While fossil fuels remain more affordable than green hydrogen, their long-term environmental impact creates an opportunity for green hydrogen companies in India to position themselves as a more sustainable and viable alternative as awareness of fossil fuel harm increases.

4. Regulatory and Policy Uncertainty

The regulatory and policy frameworks for green hydrogen production are still in the early stages. This presents an opportunity for policymakers to collaborate with industry leaders to create favourable incentives, supporting the growth of green hydrogen stocks in India.

Conclusion

In conclusion, while the green hydrogen sector in India presents significant growth potential, it is essential for investors to make investment decisions based on their individual financial goals and objectives. Given the complexities and challenges within this emerging industry, it is prudent to seek guidance from a qualified financial advisor before making any investment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.