Best Solar Stocks in April 2025 5yr CAGR Basis: Adani Green Energy, Orient Green Power & More

India is making rapid strides in the solar energy sector, fueled by the government’s strong commitment to renewable energy. The country’s installed solar capacity has grown exponentially from 2.6 GW in 2014 to 84.27 GW, marking a significant milestone in its clean energy journey. This impressive expansion has positioned India as the world’s 5th largest solar power producer, underscoring its dedication to reducing carbon emissions and enhancing energy security.

As the sector continues to grow, investor interest in solar power stocks is also rising. Many investors are exploring opportunities in top solar companies listed on the Indian stock market, which are playing a key role in the country’s renewable energy transition. These firms offer a promising avenue for investment in one of India’s fastest-growing industries.

Best Solar Stock in April 2025 Based on 5Y CAGR

Note: The best solar stocks list is as of April 02, 2025. The stocks are sorted based on the 5Y CAGR. The following parameters have been used to screen the stocks.

Overview of the Best Solar Stocks in April 2025

1. Orient Green Power Company Ltd

Founded in 2006 in Chennai, Orient Green Power Company Limited is a leading independent power producer specialising in wind energy. It operates wind farms across Tamil Nadu, Andhra Pradesh, Gujarat, Karnataka, and Croatia, reaching a 300 MW capacity by 2011 through strategic acquisitions and expansion.

In Q3 FY25, Orient Green Power reported a total income of ₹34.50 crore, reflecting a 1.53% increase. However, the company faced losses, with an operating profit of ₹-10.39 crore, a PAT of ₹-24.02 crore, EBITDA of ₹16.67 crore, and an operating margin of -30.12%.

Key metrics:

• Earning per share (EPS): ₹-0.21
• Return on equity (ROE): -2.10%

2. Adani Green Energy Ltd

Adani Green Energy Limited (AGEL) develops, owns, and operates solar, wind, and hybrid power plants across India. It supplies electricity to government bodies and corporations, leveraging advanced technologies to reduce the Levelised Cost of Energy (LCOE) and improve operational efficiency.

Adani Green Energy Limited (AGEL) posted strong Q3 FY25 results, fueled by capacity expansion and improved efficiency. Revenue from power supply grew 13% YoY to ₹1,993 crore, while EBITDA rose 13% YoY to ₹1,848 crore, highlighting robust operational performance.

Key metrics:

• EPS: ₹2.35
• ROE: 4.91%

3. BF Utilities Ltd

BF Utilities Ltd. is an Indian company focused on electricity generation through wind energy and infrastructure projects. Operating in the wind and infrastructure sectors, it manages MW Wind Farm, supporting sustainable energy production and infrastructure growth in India.

In Q3 FY25, BF Utilities reported net sales of ₹8.92 crore in September 2024, marking a 13.29% YoY decline. The quarterly net loss widened by 166.16% to ₹0.97 crore, while EBITDA grew 37.87% to ₹2.33 crore, up from ₹1.69 crore in September 2023.

Key metrics:

1. EPS: ₹6.71
2. ROE: 15.33%

4. SJVN Ltd

SJVN Limited, formerly Satluj Jal Vidyut Nigam, is a public sector enterprise engaged in electricity generation and transmission across India, Nepal, and Bhutan. Established in 1988 and headquartered in Shimla, it operates hydro, wind, and solar power projects while also offering consultancy services.

In Q3 FY25, SJVN Limited reported a net profit of ₹138.97 crore, with total income increasing to ₹760.76 crore from ₹607.72 crore YoY. The board approved an interim dividend of ₹1.15 per share, payable from March 6, 2025, with a record date of February 21.

Key metrics:

• EPS: ₹2.55
• ROE: 6.87%

5. KKV Agro Powers Ltd

KKV Agro Powers Limited, a subsidiary of the Chennai Silks Group, develops and operates solar and wind energy projects in Tamil Nadu and Andhra Pradesh. Founded in 2012 as Nachas Wind Energy, it rebranded in 2015 and also engages in precious metals trading alongside power generation.

Key metrics:

• EPS: ₹4.76
• ROE: 4.46%

Best Solar Stock in April 2025 Based on Market Cap

Note: The best solar stocks list here is as of April 02, 2025. The stocks are sorted based on the market cap. 

Best Solar Stocks in April 2025- Based on Net Profit Margin

Note: The best solar stocks list here is as of April 02, 2025. The stocks are sorted based on the net profit margin. 

Key Factors to Consider Before Investing in Solar Energy Stocks in India

As India accelerates its transition to renewable energy, solar power stocks are drawing increasing investor interest. However, before investing in top solar companies, it is essential to evaluate several factors that can impact returns. From financial performance to government policies, multiple elements influence the success of solar energy investments.

1. Financial Performance: A Crucial Indicator

A solar company’s financial health is a key determinant of its long-term sustainability and profitability. Investors should analyse revenue growth, profit margins, cash flow, and overall financial stability to assess a company’s ability to withstand market fluctuations. Firms with strong balance sheets and consistent profitability are better positioned for long-term success.

2. Global Economic Factors and Market Volatility

The solar energy sector relies heavily on global supply chains, making it susceptible to economic fluctuations. Disruptions in sourcing raw materials like solar panels and lithium-ion batteries can affect production costs and margins. Investors must keep an eye on global trade policies, currency fluctuations, and supply chain dynamics, as these factors can directly impact Indian solar companies.

3. Competitive Edge in a Rapidly Expanding Market

With India’s solar energy sector growing at a fast pace, competition among companies is intensifying. As solar power becomes more cost-effective, demand for solar equipment is surging. Investors should focus on companies with a sustainable competitive edge, such as technological advancements, cost leadership, brand reputation, and a strong pipeline of solar projects.

4. Government Policies and Regulatory Support

The Indian government plays a pivotal role in shaping the solar energy market through subsidies, tax incentives, and favorable policies. Monitoring regulatory changes, tariff structures, and government initiatives is crucial for evaluating the long-term potential of solar energy investments. A supportive policy environment can significantly enhance growth opportunities for solar companies.

Challenges in Solar Energy Investments

While solar energy stocks offer promising opportunities, the sector also faces several challenges that investors must evaluate before making investment decisions.

1. High Initial Investment and Long Payback Period

One of the primary challenges in the solar industry is the substantial upfront investment required for setting up solar power plants, manufacturing units, and supporting infrastructure. The long payback period can deter investors from seeking quick returns, making financial planning and capital efficiency crucial factors to consider.

2. Dependence on Imports and Limited R&D

Despite rapid growth, India’s solar sector remains heavily dependent on imported solar panels, batteries, and other key components. This reliance increases costs and exposes companies to global supply chain risks. Additionally, the lack of a strong domestic research and development (R&D) ecosystem limits technological innovation and competitiveness in the global market.

3. Land Acquisition and Regulatory Hurdles

Large-scale solar projects require extensive land acquisition, which can be complex and time-consuming due to legal, environmental, and bureaucratic challenges. Delays in obtaining government approvals and navigating regulatory processes can slow project execution and impact revenue generation for solar companies.

4. Limited Awareness and After-Sales Support

Despite growing awareness of renewable energy, adoption of solar power remains limited, particularly in rural areas. Additionally, concerns over warranty support, maintenance services, and the reliability of implementation partners continue to be obstacles for consumers. Investors should assess how well a company addresses these challenges when evaluating its long-term growth potential.

Conclusion

India’s solar energy sector offers lucrative investment opportunities, fueled by rapid capacity expansion, favourable government policies, and rising demand for clean energy. However, investors must evaluate financial stability, supply chain risks, and regulatory factors. 

Despite challenges like high costs, import reliance, and bureaucratic hurdles, companies with strong fundamentals and strategic advantages are well-positioned to thrive in India’s renewable energy transition.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

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