Which Companies Make Nuclear Power in India?

As global populations surge and technology becomes ever more integrated into daily life, our demand for electricity is reaching new heights. From keeping our devices powered to sustaining homes and businesses, electricity has become the backbone of modern society.

In recent years, India has been making significant strides in transitioning from coal-based power to renewable energy sources. Among these, nuclear power has emerged as a central player.

Over the past year, nuclear energy has captured the attention of investors and analysts alike, who see its transformative potential in driving the global economy forward.

Nuclear energy stands out in the push to reduce fossil fuel dependency, offering a reliable, green solution that goes beyond the intermittent nature of wind and solar power.

Unlike these sources, nuclear energy provides a constant, eco-friendly resource that aligns with the world's growing energy needs.

In this article we will explore the top nuclear power companies in India, shaping the future of clean, dependable energy.

#1 NTPC

First on the list is NTPC.

NTPC is a key player in the power sector, producing and distributing large quantities of electricity to various utility providers. It's a leading Indian central public sector undertaking (PSU) in the power generation sector.

It's under the ownership of the Ministry of Power and the Government of India. Its core function is the generation and distribution of electricity to State Electricity Boards in India.

On 11 September 2024, the Indian government granted approval for the establishment of Anushakti Vidhyut Nigam (ASHVINI), a Joint Venture (JV) between the Nuclear Power Corporation of India (NPCIL), which holds a 51% stake, and NTPC, with a 49% share.

ASHVINI is charged with the responsibility of constructing, owning, and operating nuclear power plants in accordance with the Atomic Energy Act's regulations.

In addition, the government has granted exemptions allowing NPCIL to invest over Rs 5 billion (bn) and NTPC to invest over Rs 50 bn in a single JV or subsidiary.

The JV aims to enhance the nation's nuclear power output through significant investments, technological expertise, and effective project management. Alongside MBRAPP, ASHVINI will pursue additional nuclear power projects across the country.

Previously, in May 2023, NPCIL and NTPC signed a supplementary JV agreement to collaborate on the development of nuclear facilities in India.

Apart from this in August 2024, NTPC announced its intention to establish a 100% nuclear power subsidiary, tentatively named NTPC Nuclear Power Company.

NTPC Chairman and Managing Director Gurdeep Singh emphasised that nuclear capacity, including the development of small modular reactors, is pivotal to the company's future plans.

The new subsidiary will explore potential sites across various states, including Gujarat, Tamil Nadu, Chhattisgarh, Odisha, and Karnataka. Each location will require approval from the Atomic Energy Regulatory Board before any development can proceed.

NTPC Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	1,075,592.00	1,092,052.00	1,301,051.00	1,733,382.00	1,753,867.00
Revenue Growth (%)	9.2	1.5	19.1	33.2	1.2
Net Profit	119,020.00	149,694.00	169,603.00	171,214.00	213,325.00
Net Profit Margin (%)	11.1	13.7	13	9.9	12.2
Return on Equity (%)	10	11.9	12.5	11.6	13.3
Return on Capital Employed (%)	10	8.8	9.9	10.6	11.5

Source: Equitymaster

Coming to financials, the sales and net profit have grown at a 5-year CAGR of 12.2% and 8.7%, respectively. The returns have been strong, with the RoE and RoCE averaging over 11.9% and 10.2%, respectively.

Going forward, NTPC plans to capitalise on the government's nuclear goals. India aims to significantly increase its nuclear energy capacity, expanding from 7,480 MWe in 2024 to 22,480 MWe by 2031-32.

This ambitious plan involves building 10 new reactors, adding 8,000 MWe across several states, including Gujarat, Rajasthan, Tamil Nadu, Haryana, Karnataka, and Madhya Pradesh.

By 2050, India targets deriving 25% of its electricity from nuclear sources, with a total capacity goal of 1,094 GW. These developments in the nuclear sector will enhance NTPC's strategic positioning.

For more details, see the NTPC company fact sheet and quarterly results.

#2 BHEL

Next on the list is Bharat Heavy Electricals, or BHEL.

The company is a giant in India's electrical industry. Founded in 1964, BHEL is one of the oldest and most established public sector enterprises in the country.

It manufactures a wide range of transformers, including power transformers, instrument transformers, and specialized transformers used in various industries.

The company designs, engineers, manufactures, and supplies primary-side (reactor headers, end shields, etc.) and secondary-side (steam turbines, generators, heat exchangers, etc.) equipment for nuclear power plants.

BHEL has supplied steam turbine generator sets for nearly 50 per cent of the country's total installed nuclear capacity.

In 2023, Bharat Heavy Electricals and Nuclear Power Corporation have inked an initial pact to jointly pursue business opportunities in nuclear power based on pressurised heavy water reactor technology.

Its steam turbine generator set for Unit 1 (220 MW) of NPCIL's Kaiga Nuclear Power Plant in Karnataka created a world record of 962 days of continuous operation in December 2018, proving the best-integrated performance of the nuclear reactor and turbine system.

With the operation of 22 commercial nuclear power plants in India, NPCIL is the sole Indian organisation responsible for the design, construction and operation of thermal nuclear power plants in India and has over 580 reactor years of safe operating experience.

During a recent visit of Prime Minister Modi to Russia, it was announced that India and Russia are discussing the construction of 6 more high-power nuclear power plants.

These power plants are reportedly going to be built by BHEL and Power Mech Projects in collaboration.

BHEL Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	186,259.00	149,163.00	182,411.00	197,989.00	201,068.00
Revenue Growth (%)	(-28.2)	(-19.9)	22.3	8.5	1.6
Net Profit	(-14,684.0)	(-26,997.0)	4,447.00	6,541.00	2,822.00
Net Profit Margin (%)	(-7.9)	(-18.1)	2.4	3.3	1.4
Return on Equity (%)	(-5.1)	(-10.4)	1.7	2.7	1.2
Return on Capital Employed (%)	(-0.2)	(-12.0)	3.5	5.4	4.4

Source: Equitymaster

From FY20 to FY24, the company achieved a CAGR degrowth of 5% in sales, while its net profit saw a degrowth by 22.4%.

Going forward, BHEL's management says that it expects revenue to compound at the rate of 12-15% in the medium term. The company has also guided for order wins of Rs 25 billion (bn) for the year.

The company also has a lot of projects in the pipeline and the opportunity can be close to Rs 650-700 bn potential order inflow over the next few years.

For more details, see the BHEL company fact sheet and quarterly results.

#3 L&T

Next on the list is L&T.

Larsen & Toubro (L&T) is a major force in the Indian nuclear space, wielding expertise across various aspects of nuclear power projects.

L&T enjoys a dominant market share in manufacturing key nuclear components in India, particularly:

• Steam Generators: These crucial heat exchangers transfer thermal energy from the reactor core to generate steam for electricity production. L&T holds over 50% of the domestic market share for these components.
• End Shields: L&T manufactures these structures that provide structural support and radiation shielding for the reactor core.

Apart from this, L&T is the first Indian company to receive the prestigious ASME N-Stamp certification, a critical requirement for manufacturing nuclear components that meet the highest international safety standards.

The company has successfully maintained this certification for over two decades. It's the only company in India to have been audited by the US Nuclear Regulatory Commission (NRC) and successfully qualified each time. This emphasises their adherence to stringent US regulations.

L&T has also exported Class-1 nuclear components under demanding US NRC regulations and ASME Section III requirements, showcasing their global competence.

Beyond manufacturing, L&T plays a pivotal role in nuclear power plant construction and critical piping system fabrication, leveraging extensive engineering and project management experience.

Their global footprint includes manufacturing the world's largest cryostat for ITER in France, a testament to their capability in international nuclear projects.

L&T's Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	1,454,524.00	1,359,790.00	1,565,212.00	1,833,407.00	2,211,129.00
Revenue Growth (%)	7.6	(-6.5)	15.1	17.1	20.6
Net Profit	101,678.00	46,690.00	102,911.00	126,249.00	155,697.00
Net Profit Margin (%)	7	3.4	6.6	6.9	7
Return on Equity (%)	15.3	6.2	12.5	14.2	18.1
Return on Capital Employed (%)	16.6	13.2	16.7	17.9	21.3

Source: Equitymaster

L&T's revenue and net profit have grown at a 5-year CAGR of 10.3% and 10%, respectively. This robust growth has led to a strong RoCE and RoE averaging 13.3% and 17.1% over the last 5 years.

With its longstanding expertise and market dominance, L&T is well-positioned to capitalise on increased nuclear plant construction stemming from the India-Russia deal

This strategic partnership presents significant opportunities for L&T to further enhance its role in India's nuclear energy expansion.

For more details, see the L&T company fact sheet and quarterly results.

#4 Tata Power

Next on the list is Tata Power.

Tata Power Company Ltd is primarily involved in the business of the generation, transmission, and distribution of electricity.

The company aims to produce electricity completely through renewable sources. It also manufactures solar roofs and plans to build 100,000 EV charging stations by 2025.

Tata Power, already among the largest renewable energy players, is stepping up its investments in this space, picking up a 40% stake in a hydropower project in Bhutan, while also keen to explore opportunities to develop small modular nuclear reactors.

Tata Power is interested in entering the nuclear power sector and is in discussions with the government to invest in India's nuclear energy sector.

Tata Power is gearing up for a significant Rs 200 bn capital expenditure in FY25, building on its Rs 120 bn investment in FY24.

The primary focus of this funding is to expand its renewable energy capacity and enhance its transmission and distribution networks.

Notably, the company is also exploring a potential entry into nuclear energy, aiming to diversify its energy portfolio further and align with India's growing focus on sustainable and stable power sources.

Tata Power's Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY19	FY20	FY21	FY22	FY23
Revenue	291,364.00	327,033.00	428,157.00	551,091.00	614,489.00
Revenue Growth (%)	(-2.5)	12.2	30.9	28.7	11.5
Net Profit	17,267.00	14,849.00	26,234.00	38,097.00	42,801.00
Net Profit Margin (%)	5.9	4.5	6.1	6.9	7
Return on Equity (%)	9.6	7.1	11.7	13.2	13.2
Return on Capital Employed (%)	13.1	11.5	12.4	16.5	14.9

Source: Equitymaster

Between FY20 and FY24, Tata Power's revenue and net profit have surged with an impressive CAGR of 15.5% and 9.4%, respectively.

The company has demonstrated consistent financial strength, boasting an average RoE of 11% and RoCE of 13.7%.

Going forward, the management has guided for improved financial performance with a focus on renewable energy projects despite industry challenges.

For more details, see the Tata Power company fact sheet and quarterly results.

#5 HCC

Next on the list is HCC.

Hindustan Construction Company (HCC) is another stalwart in India's nuclear power industry, renowned for its pivotal role in shaping the nation's nuclear infrastructure.

It has a distinguished track record. HCC has been instrumental in constructing over 60% of India's current nuclear power generation capacity, including landmark projects such as the Kudankulam Nuclear Power Plant, the largest in India, and the Rajasthan Atomic Power Plant, the country's first indigenous facility.

HCC's expertise spans the entire spectrum of nuclear power plant construction, encompassing critical structures like reactor buildings, supporting infrastructure, and intricate water systems.

Recognised as a leader in the field, HCC not only contributes significantly to advancing nuclear technology within India but also undertakes projects internationally, such as nuclear power plant constructions in countries like Bangladesh.

Additionally, HCC is involved in the Integrated Nuclear Recycle Plant at BARC. Overall, HCC is positioning itself as a leader in advancing nuclear infrastructure both domestically and globally.

HCC's Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	94,443.00	82,484.00	106,683.00	82,699.00	70,067.00
Revenue Growth (%)	(-10.4)	(-12.7)	29.3	(-22.5)	(-15.3)
Net Profit	1,970.00	(-6,100)	5,717.00	(-525.0)	5,294.00
Net Profit Margin (%)	2.1	(-7.4)	5.4	(-0.6)	7.6
Return on Equity (%)	(-26.0)	46.3	(-86.7)	7.4	(-313.9)
Return on Capital Employed (%)	142.4	147.4	322.2	21.6	105.9

Source: Equitymaster

The company has a strong RoCE averaging 147.9 over the last 5 years.

Going forward, the company plans to widen its offering in the nuclear space.

For more details, see the HCC company fact sheet and quarterly results.

#6 Power Mech Projects

Next on the list is Power Mech projects.

Power Mech Projects is steadily emerging as a significant player in India's nuclear power sector.

The company marked its entry with a landmark contract in May 2024, securing a Rs 5,632.3 m order from Bharat Heavy Electricals Ltd (BHEL) to carry out civil works for the Nuclear Power Corporation of India Ltd's (NPCIL) upcoming units at the Kaiga Atomic Power Project in Karnataka.

This project, slated for completion in 32 months with an additional 12-month service guarantee, involves comprehensive civil, structural, and architectural work on the turbine island package for two new 700 MWe Pressurized Heavy-Water Reactors (PHWR), which will boost the plant's capacity from 880 MW to 2,280 MW.

Beyond this project, Power Mech is well-positioned to expand its nuclear portfolio further. The company's expertise in managing high-stakes engineering and construction work has not gone unnoticed, especially as India's nuclear ambitions intensify.

Power Mech Project's Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	21,647.00	18,841.00	27,105.00	36,012.00	42,067.00
Revenue Growth (%)	(-4.3)	(-13.0)	43.9	32.9	16.8
Net Profit	1,291.00	(-486.0)	1,385	2,073.00	2,484.00
Net Profit Margin (%)	6	(-2.6)	5.1	5.8	5.9
Return on Equity (%)	13.6	(-5.4)	13.3	16.3	13.5
Return on Capital Employed (%)	24.5	2.1	24.5	28.4	25.4

Source: Equitymaster

Power Mech Projects' revenue grew at a CAGR of 13.2% and net profit grew at 11.9% from FY20 to FY24. The company has maintained strong financial health, with an average RoE of 11.3% and average RoCE of 21%.

As part of the broader push for nuclear energy, there is growing speculation that Power Mech may continue to secure contracts for additional nuclear facilities beyond its work with BHEL.

Furthermore, Power Mech stands to benefit as India and Russia strengthen their nuclear collaboration, with plans to add six large nuclear units and smaller facilities across the country.

This alignment could provide Power Mech with ongoing opportunities, reinforcing its role within the nuclear power landscape and contributing to India's energy self-sufficiency goals.

For more details, see the Power Mech Projects company fact sheet and quarterly results.

#7 Walchandnagar Industries

Next on the list is Walchandnagar Industries.

Walchandnagar Industries (WIL) stands as a stalwart in India's nuclear sector with a rich legacy spanning over four decades of collaboration with key entities like the Department of Atomic Energy, Nuclear Power Corporation of India Limited, Bhabha Atomic Research Centre, and Bharatiya Nabhikiya Vidyut Nigam.

Specialising in the manufacturing of critical equipment for nuclear power plants, WIL is accredited to supply Class-I nuclear components, adhering to stringent international codes and inspection standards.

The company's expertise extends to major installation and integration activities at nuclear plant construction sites.

WIL has played a pivotal role in supplying critical equipment for various nuclear projects in India, including reactors ranging from 220 MWe to 700 MWe PHWRs and the Fast Breeder Reactor (PFBR) at Kalpakkam.

Their capabilities have garnered international recognition, with assessments from leading global entities like Atomstroyexport and Atomenergomash (Russia), AREVA (now EDF, France), Westinghouse, and GE.

Walchandnagar's Financial Snapshot (FY20-24)

(Rs m, Consolidated)	Mar20	Mar21	Mar22	Mar23	Mar24
Revenue	2,981.00	3,256.00	2,992.00	3,221.00	3,024.00
Revenue Growth (%)	(-18.1)	9.3	(-8.1)	7.7	(-6.1)
Net Profit	(-655.0)	(-572.0)	(-381.0)	196	(-418.0)
Net Profit Margin (%)	(-22.0)	(-17.6)	(-12.7)	6.1	(-13.8)
Return on Equity (%)	(-24.3)	(-27.0)	(-21.5)	7.5	(-13.3)
Return on Capital Employed (%)	5.2	7	9.6	24.1	2.5

Source: Equitymaster

The company has a strong RoCE and RoE averaging 1.5% and 9.7% over the last 5 years.

With India's ongoing nuclear expansion, the company is positioned to be a significant beneficiary of this growth.

For more details, see the Walchandnagar company fact sheet and quarterly results.

#8 WPIL

Next on the list is WPIL.

WPIL (Worcester Pump & Industrial Ltd.) has established itself as a key player in India's pump industry, particularly within the nuclear power sector.

The company supplies essential pumping solutions tailored to nuclear power plants, ensuring reliable and safe operations.

These include cooling water pumps, vital for maintaining the reactor's temperature and safeguarding critical components, and auxiliary cooling water pumps that provide backup cooling in case of primary system failures.

WPIL also contributes vertical turbines, which support the nuclear power plant's energy needs by aiding electricity generation in hydro facilities. Furthermore, their mixed flow pumps play a critical role in nuclear plants by managing water circulation and condensate pumping.

WPIL's Financial Snapshot (FY20-24)

(Rs m, Consolidated)	FY20	FY21	FY22	FY23	FY24
Revenue	9,089.00	9,948.00	11,813.00	16,055.00	16,644.00
Revenue Growth (%)	(-21.4)	9.5	18.7	35.9	3.7
Net Profit	527	761	1,180.00	1,779.00	1,930.00
Net Profit Margin (%)	5.8	7.6	10	11.1	11.6
Return on Equity (%)	11.6	14	18.6	22	15.5
Return on Capital Employed (%)	15.2	18.7	24.2	29.6	23.7

Source: Equitymaster

The revenue and net profit have grown at a 5-year CAGR of 7.6% and 4.3%, respectively. This robust growth has led to a strong RoCE and RoE averaging 16.3% and 22.3% over the last 5 years.

Going forward, WPIL's focus on the government's nuclear energy mission, along with its strong domestic and international order books, is expected to drive its growth.

#9 MTAR Technologies

Next on the list is MTAR Technologies.

MTAR Technologies is a Hyderabad-based company that manufactures components and assemblies for the nuclear power sector. It has been a major contributor to India's civilian nuclear power program since its inception in 1970.

The company has established relationships with leading Indian organisations such as NPCIL (Nuclear Power Corporation of India Limited). It has also worked on India's space program, defence, and global clean energy sectors.

MTAR makes coolant channel assemblies for civilian nuclear reactors, including sealing plugs, shielding plugs, liner tubes, and end fittings. They also make pressure vessels, tanks, vessels, calandria, nuclear headers, and CASKs for nuclear fuel storage.

It has developed special hollow ball screws for nuclear power plants. The company has exclusive facilities for designing, manufacturing, and testing these ball screws.

MTAR Technologies' Financial Snapshot (FY20-24)

(Rs m, Consolidated)	Mar20	Mar21	Mar22	Mar23	Mar24
Revenue	2,138.00	2,464.00	3,220.00	5,738.00	5,808.00
Revenue Growth (%)	16.4	15.3	30.7	78.2	1.2
Net Profit	313	461	609	1,034.00	561
Net Profit Margin (%)	14.7	18.7	18.9	18	9.7
Return on Equity (%)	13.9	9.7	11.7	16.7	8.3
Return on Capital Employed (%)	22.3	14.8	16.3	22.2	12.3

Source: Equitymaster

Between FY20 and FY24, MTAR Tech's revenue and net profit have surged with an impressive CAGR of 25.9% and 7.4%, respectively.

The company has demonstrated consistent financial strength, boasting an average RoE of 12% and RoCE of 17.6%.

Going forward, the company plans to expand further in the nuclear power space.

To know more, check out MTAR Technologies' financial factsheet and latest quarterly results.

#10 Venus Pipes & Tubes

Last on the list is Venus Pipes & Tubes.

The company manufactures stainless steel pipes and tubes.

Its products are mainly bifurcated into seamless pipes and welded pipes, which it supplies to many niche user industries, including oil and gas, thermal, solar, and nuclear power, defence, aerospace, and automobile.

The company is also manufacturing value-added premium products such as hygienic SS and titanium-grade tubes to capture the growth in the nuclear sector.

The company also plans to undertake a backward integration initiative for its hollow pipes to reduce import dependency and expand its margins.

Venus Pipes & Tubes' Financial Snapshot (FY20-24)

(Rs m, Consolidated)	Mar20	Mar21	Mar22	Mar23	Mar24
Revenue	1,778.00	3,093.00	3,870.00	5,524.00	8,022.00
Revenue Growth (%)	49.7	74	25.1	42.8	45.2
Net Profit	41	236	317	442.2	860
Net Profit Margin (%)	2.3	7.6	8.2	8	10.7
Return on Equity (%)	25.4	59.2	24.6	13.7	21.2
Return on Capital Employed (%)	31.7	62.5	35	20	31.3

Source: Equitymaster

Between FY20 and FY24, Venus Pipes' revenue and net profit have surged with an impressive CAGR of 46.5% and 20.3%, respectively.

The company has demonstrated consistent financial strength, boasting an average RoE of 28.8% and RoCE of 36.1%.

Looking ahead, the company intends to invest in capacity expansion and product diversification, focusing on specialised stainless steel and titanium welded tubes, which hold potential for nuclear applications.

However, it has not yet disclosed any concrete plans for direct involvement in nuclear power projects.

For more details, see the Venus Pipes & Tubes company fact sheet and quarterly results.

Conclusion

Apart from the 10 mentioned above, these are a few microcap stocks are too involved in the nuclear power sector: Konstelec Engineers, DP Wires, Kirloskar Electric, Patels Airtemps, and Konstelec Engineer.

India is gearing up for a substantial expansion in its nuclear power sector, aiming to increase its nuclear generation capacity by 70% over the next five years.

As announced by Union Minister Jitendra Singh, this ambitious plan will raise the country's capacity to 13.08 gigawatts (GW) with the addition of seven new reactors.

India's nuclear power capacity is projected to triple by 2031-32. From the current 8,180 MW, the nation plans to scale up to 22,480 MW as part of its broader mission to achieve net-zero emissions by 2070.

The expansion will be powered by 21 reactors at various development stages, including nine reactors under construction with a combined capacity of 7,300 MW and twelve reactors in pre-project stages totaling 8,000 MW.

Further supporting this initiative, the Union Budget 2024 has allocated funds for developing modular nuclear reactors and advancing R&D. India is also enhancing its nuclear collaboration with Russia, planning to build six additional high-powered nuclear plant units along with smaller plants.

These developments are poised to strengthen the nuclear sector's role, though careful research remains essential for investors considering this space.

Nevertheless, it is always prudent to conduct thorough research before making any investment decisions. Ensure investment aligns with your financial objectives and matches your risk tolerance level.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...