Renewable energy is driving the expansion of India’s power sector, with nearly 86 percent of the 33 gigawatts (GW) of power capacity added in the financial year 2024-25 (FY25) coming from renewable sources, according to a report by Antique Stock Broking.
The report highlighted that India’s total installed power capacity has now reached 475 GW, following the addition of 33 GW over the past year. A significant portion of this addition was fueled by renewable energy, underscoring the country’s ongoing transition to clean energy.
“India’s installed power capacity reached 475 GW in FY25, with 33 GW added over the past year. Notably, 86 percent of this capacity addition came from renewable sources,” the report stated.
As a result, the share of renewables in India’s total installed power capacity has risen to 36 percent, showing a consistent increase from previous years.
In March 2025 alone, India added 5 GW of new power capacity, all of which was sourced from renewable energy. This robust addition in a single month reflects the growing policy support and heightened investor interest in the renewable energy sector.
The report emphasized that this trend signals a structural shift in India’s energy mix, with renewables becoming a central component. This momentum is expected to benefit companies throughout the clean energy value chain.
Additionally, the report provided an update on power generation trends, noting that India’s power generation growth, which was strong at around 6 to 7 percent year-on-year (YoY) in February and March 2025, had slowed to about 2 percent YoY in April 2025. However, there were signs of improvement as power generation, which showed no growth in the first 10 days of April, picked up in the latter part of the month.
Due to a combination of slower growth and a high base from the previous year, short-term power prices have dropped by 14 percent YoY in April 2025. Despite this, stocks in the power sector have performed well, with gains ranging from 10 to 20 percent over the past two to three months.
The report noted that the average valuations for power stocks are currently around 2.2 times price-to-book value (PBV), which is about one standard deviation above historical averages. This premium is believed to be driven by expectations of higher capital expenditure and increased project capitalization within the sector.
