Nuclear energy is increasingly becoming an important part of the modern energy sector.
India currently has around 8 gigawatts (GW) of nuclear energy capacity. The central government aims to increase it to 20 GW in 2032 and 100 GW in 2047.
The Finance Minister, Nirmala Sitharaman, had proposed to set up the nuclear energy mission in the 2025 budget. The mission has an investment of Rs 20,000 crore. It also aims to develop at least five small homemade nuclear reactors by 2033.
This is part of India’s goal to achieve net-zero carbon emissions by 2070.
Changing rules
Recently, The Indian Express reported that the government is planning to change laws that will allow private players to enter the atomic energy sector.
This includes amendments to the Atomic Energy Act, 1962, which will allow private players to enter the field. Changes are also proposed for the Civil Liability for Nuclear Damage Act, 2010. This will limit the liabilities for equipment vendors if a nuclear accident happens.
Changes in these rules are expected to bring private and even foreign players to the field.
Stocks that could benefit from nuclear push
Even though there are power companies which will benefit from the reported regulation changes, for this article, we are only looking at stocks that are currently involved in nuclear production. Most of these companies are involved in producing equipment for nuclear plants.
India’s sole nuclear power operator is the Nuclear Power Corporation of India (NPCIL).
Bharat Heavy Electricals (BHEL)
BHEL is one of the companies that produces equipment for nuclear plants.
The company in FY25 had a total order inflow of Rs 92,534 crore. In the power sector, it had won Rs 81,349 crore worth of orders. The company did not provide a break up of how much orders it won in nuclear energy sector.
In April, BHEL announced it had signed a technology transfer agreement with the Bhabha Atomic Research Centre. The partnership is in the area of electrolyzer systems for hydrogen production.
The company in April, 2023 announced a Memorandum of Understanding (MoU) with NPCIL to explore opportunities in Pressurized Heavy Water Reactor (PHWR) technology for nuclear power plants.
In November 2023, it had also signed a Memorandum of Cooperation (MoC) with Electricité de France S.A., France (EDF). EDF is a French state-owned nuclear operator.
The agreement was to localise “maximize the local content of the Jaitapur Nuclear Power Plant Project (6×1650 MWe) to be established by NPCIL”
BHEL has gained over 6% in the year so far. In FY25, the company’s revenue had grown by 18% to Rs 28,339 crore. Its profit was up 89% to Rs 534 crore. However, the company’s Return on Capital Employed (ROCE) is at 4.46% and Return on Equity (ROE) is around 2%.
Hindustan Construction Company (HCC)
HCC is another company that manufactures equipment related to nuclear power plants. HCC has contributed 60% to India’s installed nuclear capacity, the company said in its earnings call.
The company constructs reactors, turbine generators, and cooling towers for nuclear projects.
In FY 2025, the company contributed to the Rajasthan Atomic Power Project – Units 7 & 8 and the Integrated Nuclear Recycle Plant (INRP) of BARC at Tarapur. Both of these projects were commissioned in FY25.
The company had an order backlog of Rs 11,852 crore in the financial year. In the nuclear energy sector, the company had an order inflow of around Rs 3,800 crore.
The company’s financials took a dive in FY25 as its sales fell by 20% to Rs 5,603 crore. Its profit plunged by 78% to Rs 112.6 crore.
The company’s shares have also been weak, declining by 22% in the year so far. HCC has an ROE of 2% and an ROCE of 25.6%.
Larsen & Toubro (L&T)
Engineering major L&T is also engaged in equipment production for nuclear energy. The company recently dispatched the fourth Steam Generator (SG) to Kaiga Atomic Power Station in Karnataka. In 2022, it won an order from NPCIL to build natural draught cooling towers and a cooling water pump house for the Rawatbhata Atomic Power Project.
The company’s order inflow in the energy segment in FY25 was at Rs 87,569 crore. L&T posted a Rs 2.5 lakh crore revenue, which increased by 16%. Its net profit jumped by 15% to Rs 15,037 crore.
L&T’s stock has given a negative return with a 0.89% decline in the year so far. The company has an ROE of 16% and ROCE of 14%
MTAR Technologies
MTAR Technologies is another company that is engaged in nuclear energy. The company works in civil nuclear power. As of the December quarter, the company had an order book of Rs 1,031 crore. Civil nuclear power segment made up 13% of the total order book.
The company, until Q3, had executed Rs 16 crore of orders in civil nuclear power. In February 2025, the company had won Rs 200 crore worth of orders in clean energy. Among these, it had a Rs 1.27 crore order from NPCIL.
The company’s 9-month revenue in FY25 increased by 12% to Rs 492.9 crore. But its net profit fell 23% to Rs 39.2 crore in the same period. The company is yet to announce its fourth quarter results.
MTAR Technologies’ stock had fallen by 1.5% in 2025 so far. It has an ROE of 8.3% and ROCE of 11.4%.
Other companies are looking to enter the fray
With regulations easing for companies to enter into nuclear energy field, investors can expect more companies in this field. Companies like Reliance Industries, Adani Power, and Vedanta were reportedly interested in entering the field.
NTPC is also reportedly looking to invest around $62 billion (around Rs 5.30 lakh crore) to develop 30 GW of nuclear power over the next two or three decades.
Conclusion
In short, there is currently only one company that is handling nuclear energy in India. However, that is about to change with the new rules, which will allow private companies to enter. The Rs 20,000 crore nuclear mission project is also expected to bring more opportunities to companies in the sector.
Disclaimer
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Ananthu C U is an equity market journalist who has written about listed companies, equity market regulations, and economic development. He is deeply interested in increasing his knowledge about the equity market, the Indian economy and listed Indian companies. He generally tracks infrastructure, power and financial companies.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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