India’s renewable energy sector has achieved a significant milestone, contributing to 86% of the country’s new power capacity additions in the fiscal year 2024–25 (FY25). As per a recent Antique Stock Broking report, while 33 gigawatts (GW) of capacity was added across this period, most of it was achieved through clean energy sources, which shows the country’s focus on renewable power.
Renewables Fuel Power Capacity Expansion
The report points out that India’s total installed capacity power has crossed 475 GW, with a rise of 33 GW last year. Surprisingly, 86% of this growth was from clean sources, which is an enormous shift to clean energy.
India ordered 5 GW of fresh power capacity in March alone in 2025, all renewable. The strong monthly build is reflective of improving policy support and growing investor demand in the renewable energy space.
Structural Change in Energy Mix
The growing proportion of renewables in India’s energy mix is a structural change. According to the report, this trajectory is an unmistakable indicator that renewables are emerging as a pillar of strength in India’s energy sector.This momentum is expected to benefit companies across the clean energy value chain.
Power Generation Trends and Market Impact
While the renewable sector is booming, the report also provides insights into power generation trends. India’s power generation growth, which was strong at around 6 to 7% year-on-year (YoY) in February and March 2025, has slowed to about 2% YoY in April 2025. However, there were signs of improvement during April, as power generation showed no growth in the first 10 days but picked up in the latter part of the month.
Due to the combination of slower growth and a high base from last year, short-term power prices have declined by 14% YoY so far in April 2025. Despite this, power sector stocks have performed well, gaining between 10% and 20% over the past two to three months.
Investment and Valuation Insights
The report indicates that 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 supported by expectations of higher capital expenditure and increased project capitalization in the sector.
Conclusion
India’s significant shift towards renewable energy in FY25 underscores the nation’s dedication to sustainable development and energy security. As renewables become a central component of the energy mix, the country is poised to reap environmental and economic benefits, setting a precedent for other nations to follow.
