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

India is rapidly advancing in the solar energy sector, driven by the government’s aggressive push toward renewable energy. The country’s installed solar capacity has surged from 2.6 GW in 2014 to 84.27 GW, marking a significant leap in its clean energy ambitions. This growth has positioned India as the 5th largest nation globally in solar power capacity, reinforcing its commitment to reducing carbon emissions and achieving energy security.

With the sector’s expansion, investor interest in solar power stocks has been on the rise. Many are exploring opportunities to invest in top solar companies listed on the Indian stock market. These companies play a crucial role in driving the nation’s renewable energy transition, offering investors exposure to one of the fastest-growing segments of the economy.

Best Solar Stock in March 2025 Based on 5Y CAGR

Note: The best solar stocks list is as of February 28, 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 March 2025

1. Orient Green Power Company Ltd

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

In Q3 FY2024-25, Orient Green Power reported a total income of ₹34.50 crores (up 1.53%), but faced losses with an operating profit of ₹-10.39 crore, PAT of ₹-24.02 crore, EBITDA of ₹16.67 crores, 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 in India. It supplies electricity to government entities and corporations, using advanced technologies to lower the Levelized Cost of Energy (LCOE) and enhance efficiency.

Adani Green Energy Limited (AGEL) delivered strong Q3 FY25 results, driven by capacity expansion and efficiency. Revenue from power supply rose 13% YoY to ₹1,993 crore, while EBITDA increased 13% YoY to ₹1,848 crore, showcasing solid operational performance.

Key metrics:

• EPS: ₹2.35
• ROE: 4.91%

3. SJVN Ltd

SJVN Limited, formerly Satluj Jal Vidyut Nigam, is a public sector company generating and transmitting electricity in India, Nepal, and Bhutan. Incorporated in 1988, it operates hydro, wind, and solar power projects and provides consultancy services, based in Shimla, India.

In Q3FY25, SJVN Limited reported a net profit of ₹138.97 crore last year, with total income rising to ₹760.76 crore from ₹607.72 crore. 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%

4. KKV Agro Powers Ltd

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

Key metrics:

• EPS: ₹4.76
• ROE: 1.32%

5. BF Utilities Ltd

BF Utilities Ltd. is an Indian company engaged in electricity generation through windmills and infrastructure projects. Operating in wind energy and infrastructure segments, it manages MW Wind Farm, contributing to sustainable energy production and infrastructure development in India.

BF Utilities in Q3 FY25 reported net sales of ₹8.92 crore in September 2024, down 13.29% YoY. Quarterly net loss widened by 166.16% to ₹0.97 crore, while EBITDA improved 37.87% to ₹2.33 crore from ₹1.69 crore in September 2023.

Key metrics:

• EPS: ₹6.71
• ROE: 15.33%

Best Solar Stock in March 2025 Based on Market Cap

Note: The best solar stocks list here is as of February 28, 2025. The stocks are sorted based on the market cap. 

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

Note: The best solar stocks list here is as of February 28, 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 shift towards renewable energy, solar power stocks have gained significant attention from investors. However, before investing in the top solar companies in India, it is crucial to evaluate multiple factors that could influence returns.

 From financial performance to government policies, several aspects play a role in determining the success of solar energy investments.

1. Financial Performance: A Key Indicator

The financial health of a solar energy company is a crucial factor for investors. Evaluating revenue growth, profit margins, cash flow, and overall financial stability can help determine the company’s ability to sustain growth and generate returns. Companies with strong balance sheets and consistent profitability are better positioned to navigate market fluctuations.

2. Impact of Global Economic Factors

The solar energy sector is highly dependent on global supply chains, and various economic factors can impact stock performance. Supply chain disruptions, especially in sourcing raw materials like solar panels, lithium-ion batteries, and other essential components, can impact production costs and profitability. Investors must monitor global trade policies, currency fluctuations, and raw material availability, which can significantly impact Indian solar companies.

3. Competitive Advantage in a Growing Market

India’s solar energy sector is expanding rapidly, leading to increased competition among solar companies. With solar power becoming more cost-effective, demand for solar equipment is rising. Investors should look for companies with sustainable competitive advantages, such as technological innovation, cost leadership, brand reputation, and robust project pipelines.

4. Government Policies and Regulatory Support

Government policies and incentives play a crucial role in shaping the future of India’s solar energy market. The Indian government has introduced various subsidies, tax incentives, and policies to encourage solar power adoption. Monitoring policy changes, tariff structures, and regulatory developments is essential for assessing long-term investment potential in solar energy stocks.

Challenges in Solar Energy Investments

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

1. High Initial Investment and Long Payback Period

One of the biggest challenges in the solar industry is the high upfront investment cost. Setting up solar power plants, manufacturing units, and infrastructure requires substantial capital, and the payback period is often long. This can deter investors looking for quick returns.

2. Dependence on Imports and Lack of R&D

Despite its strong growth, India’s solar sector relies heavily on imported solar panels, batteries, and technology, increasing costs and supply risks. A lack of domestic research and development (R&D) infrastructure further limits innovation, making the industry vulnerable to global market fluctuations.

3. Land Acquisition and Bureaucratic Hurdles

Setting up large-scale solar projects requires significant land acquisition, which can be time-consuming and complex due to legal and bureaucratic challenges. Delays in securing government approvals can slow down project execution, affecting revenue generation for solar companies.

4. Limited Awareness and After-Sales Support

A lack of awareness, especially in rural areas, hinders the widespread adoption of solar energy. Additionally, concerns over warranty support and maintenance services from implementation partners remain a major challenge for solar power users. Investors should consider how well a company addresses these concerns when assessing its growth potential.

Conclusion

India’s solar energy sector presents significant investment opportunities, driven by rapid capacity expansion, supportive government policies, and growing demand for clean energy. However, investors must carefully assess financial stability, global supply chain risks, and regulatory factors before investing. 

While challenges such as high initial costs, import dependence, and bureaucratic hurdles exist, companies with strong fundamentals and strategic advantages are well-positioned to benefit from India’s transition to renewable energy.

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.