India is working towards becoming energy independent by 2047 and reaching net-zero emissions by 2070. One of the biggest steps in this journey is the use of green hydrogen, a clean fuel made from renewable energy sources like solar and wind. Unlike traditional fuels, green hydrogen does not release harmful carbon emissions, making it a great alternative for industries like transportation, steel production, and shipping.
To promote its growth, the Indian government has introduced the National Green Hydrogen Mission and set aside ₹600 crore in the FY 2024-25 budget for its development. As more companies invest in this technology, green hydrogen is becoming an important part of India’s clean energy future. In this article, we will look at some of the best green hydrogen stocks in India that could offer great opportunities for investors.
What is Green Hydrogen
Green hydrogen is a clean fuel made by using renewable energy, like solar or wind power, to split water into hydrogen and oxygen. This process, called electrolysis, does not produce carbon emissions, making it environmentally friendly. Green hydrogen can be used for electricity generation, transportation, and industrial processes, helping to reduce pollution and fight climate change.
Best Green Hydrogen Stocks in India – Future of Clean Energy Investment
| Stock Name | Market Cap (₹ Cr) | 1Y Return (%) |
|---|---|---|
| Reliance Industries Ltd | 16,33,492.73 | -21.64 |
| NTPC Ltd | 3,06,123.75 | -8.95 |
| Power Grid Corporation of India Ltd | 2,38,327.97 | -10.37 |
| Indian Oil Corporation Ltd | 1,64,399.46 | -30.48 |
| Tata Power Company Ltd | 1,09,696.01 | -11.3 |
| JSW Energy Ltd | 80,068.17 | -0.08 |
| Adani Green Energy Ltd | 1,28,583.84 | -56.42 |
| GAIL (India) Ltd | 1,04,787.04 | -18.11 |
| Bharat Petroleum Corporation Ltd | 1,06,184.92 | -20.68 |
Overview of Best Green Hydrogen Stocks in India
India’s green hydrogen sector is growing rapidly, with major energy companies investing in this clean fuel to reduce carbon emissions and support sustainability goals. From industry giants like Reliance Industries and NTPC to renewable energy leaders like Adani Green Energy and Tata Power, several companies are actively developing hydrogen projects.
Government initiatives, such as the National Green Hydrogen Mission, are further accelerating growth in this space. Below, we explore the top green hydrogen stocks in India and their contributions to the clean energy revolution.
1. Reliance Industries Ltd
Reliance Industries Ltd (RIL) is at the forefront of India’s green hydrogen transition, leveraging its expertise in renewable energy, petrochemicals, and technology. The company is investing ₹75,000 crore in green hydrogen production and is building a 1 GW green hydrogen facility in Jamnagar, Gujarat, expected to be operational by 2025. RIL plans to use solar and wind energy storage to scale up production, ensuring cost efficiency and sustainability.
Beyond green hydrogen, Reliance is also developing eco-friendly chemicals, fertilizers, and e-fuels by combining green hydrogen and CO₂ as raw materials. Its diversified business spans oil refining, digital services, retail, and renewable energy, making it one of India’s most influential conglomerates. With an annual revenue growth rate of 9.69% and a debt-to-equity ratio of 50.37%, RIL maintains a strong financial position.
The company’s market cap stands at ₹16,33,492.73 crore, and despite short-term stock fluctuations, its long-term compounded growth in sales and profit demonstrates its resilience and innovation.
Financial Performance & Growth Metrics
| Growth Metrics | 10 Years | 5 Years | 3 Years | TTM (Trailing 12 Months) |
|---|---|---|---|---|
| Compounded Sales Growth | 8% | 10% | 24% | 7% |
| Compounded Profit Growth | 13% | 12% | 16% | -1% |
| Stock Price CAGR | 20% | 22% | 4% | -12% |
| Return on Equity (ROE) | 10% | 9% | 9% | 9% |
2. National Thermal Power Corporation (NTPC)
National Thermal Power Corporation (NTPC) is India’s largest power producer, established in 1975. With an installed capacity exceeding 75,000 MW, it plays a crucial role in India’s energy sector, operating 89 power stations, including coal, gas, hydro, and renewable energy plants.
NTPC is expanding its green energy portfolio, targeting 130 GW by 2032, with 60 GW from renewables. It has strategic coal and gas supply agreements and maintains a high Plant Load Factor (PLF) of 75.9%, surpassing the national average. The company also invests in green hydrogen, e-mobility, and energy trading. NTPC’s market cap stands at ₹3.06 lakh crore, and it has a steady financial performance, with a net profit margin of 11.32%. Through its joint venture with Indian Oil, it is developing 650 MW of renewable projects.
NTPC’s Financial Growth Metrics
| Growth Metrics | 10 Years | 5 Years | 3 Years | TTM / Last Year |
|---|---|---|---|---|
| Compounded Sales Growth | 9% | 12% | 17% | 6% |
| Compounded Profit Growth | 6% | 7% | 11% | 13% |
| Stock Price CAGR | 10% | 30% | 36% | 5% |
| Return on Equity (ROE) | 12% | 12% | 13% | 14% |
3. Power Grid Corporation of India Limited (PGCIL)
Power Grid Corporation of India Limited (PGCIL) is India’s largest power transmission company and a Maharatna CPSU under the Ministry of Power. The Government of India holds a 51.34% stake in the company as of March 31, 2021. Incorporated in 1989, PGCIL operates an extensive transmission network spanning 1,77,790 Ckm of lines, 278 substations, and a transformation capacity of over 5,28,761 MVA, transmitting more than 45% of India’s electricity. The company also operates in telecom via PowerTel, offering a 1,00,000 km optic fiber network.
Additionally, PGCIL provides consultancy services in transmission, sub-transmission, and distribution across 23 countries. In FY24, it secured 13 TBCB projects with a tariff of ₹2,888 Cr and has an order book of ₹86,700 Cr, with 80% dedicated to renewable energy evacuation. The company achieved a capex of ₹12,500 Cr in FY24 and aims for ₹15,000 Cr in FY25, with a long-term outlay of ₹2,07,500 Cr until 2032. It has partnered with ISRO for geospatial monitoring and Africa50 for Kenya’s first PPP-mode transmission project. PGCIL is expanding into emerging sectors like renewable energy, battery storage, green hydrogen, and data centers. It has initiated an 85 MW solar project in Madhya Pradesh and a pilot green hydrogen project at Neemrana. The stock has a market cap of ₹2,48,931 Cr, a P/E ratio of 16.0, a book value of ₹99, and a dividend yield of 4.20%. While it maintains a high dividend payout (65%), it has delivered modest sales growth of 5.51% over five years.
CAGR Growth Rates
| Metric | 10 Years | 5 Years | 3 Years | TTM |
|---|---|---|---|---|
| Sales Growth | 11% | 6% | 5% | -1% |
| Profit Growth | 13% | 8% | 8% | -1% |
| Stock Price CAGR | 12% | 25% | 19% | 1% |
| Return on Equity | 17% | 19% | 19% | 19% |
4. Indian Oil Corporation Ltd (IOCL)
Indian Oil Corporation Ltd (IOCL), India’s largest state-owned oil refining and marketing company, is expanding its presence in green hydrogen and renewable energy while maintaining leadership in the petroleum sector. With a 42% market share in petroleum products, 11 refineries, and over 61,000 customer touchpoints, IOCL plays a crucial role in India’s energy infrastructure. The company is investing in solar, wind, biofuels, EV charging stations, and hydrogen fuel technology to support clean energy transition.
Financially, IOCL has recorded a revenue CAGR of 44.8% and a net profit CAGR of 25.6% over three years, with a strong ROE of 25.19%. Its pipeline network spans over 19,500 km, handling crude oil, petroleum products, and gas. The company has committed ₹2.5 lakh crore to capex, including refinery expansions, petrochemical projects, and a 1 GW renewable energy initiative. Additionally, it is strengthening EV infrastructure and collaborating with Panasonic for battery manufacturing. With a strategic focus on clean energy and sustainability, IOCL is positioned as a key player in India’s evolving energy landscape.
| Growth Metrics | 10 Years | 5 Years | 3 Years | 1 Year/TTM |
|---|---|---|---|---|
| Compounded Sales Growth | 5% | 8% | 29% | -3% |
| Compounded Profit Growth | 22% | 19% | 24% | -79% |
| Stock Price CAGR | 8% | 16% | 16% | -22% |
| Return on Equity | 16% | 16% | 18% | 26% |
5. Tata Power Company Ltd
Tata Power Company Ltd is India’s largest vertically integrated power company, engaged in electricity generation, transmission, and distribution, with a strong focus on renewable energy. It operates a 4,633 Ckm transmission network across multiple states and serves 12.5 million customers in Mumbai, Odisha, and Delhi. The company has a total power generation capacity of 880 MW from hydro and over 9,300 MW from thermal sources, along with a renewable energy portfolio of 5,384 MW. It aims to expand its clean energy capacity to 15,000 MW in the next five years and achieve 100% clean energy by 2045.
Tata Power has also ventured into solar roof manufacturing and EV charging infrastructure, operating over 1.3 lakh EV charging stations. In February 2025, it signed an MoU with ONGC for Battery Energy Storage Systems. The company plans to spend ₹10,000 Cr on capex in Q4 FY25. Despite delivering a strong profit CAGR of 74.2% over five years and maintaining a 22.8% dividend payout, its stock trades at 3.33 times its book value, with an ROE of 11.3%. The market cap stands at ₹1,12,077 Cr, with a stock price of ₹351.
6. JSW Energy Ltd
JSW Energy is a leading power generation company and part of the JSW Group. It is set to launch its first green hydrogen plant in March 2025, with a capacity of 3,800 tonnes per year using 25MW of renewable electricity. The company has signed a seven-year contract with JSW Steel and an MoU to supply 90,000 tonnes of green hydrogen and 720,000 TPA of green oxygen by 2030. Additionally, it has been allotted 6,800 TPA capacity under SECI’s SIGHT program, reinforcing its commitment to green energy expansion.
7. Adani Green Energy
Adani Green Energy, a key player in India’s renewable sector, is expanding its green hydrogen ambitions alongside its vast solar and wind energy portfolio. Established in 2015, the company is driving India’s clean energy transition with large-scale projects and strategic partnerships. With a market cap of ₹1,28,583.84 crore, Adani Green remains a top green hydrogen stock, despite a one-year return of -56.42%. The company’s strong 5-year revenue growth of 38.22% outpaces the industry average, reinforcing its leadership in India’s decarbonization and renewable energy future.
8. GAIL (India) Ltd
GAIL (India) Limited, a leading state-owned natural gas company, is making significant strides in the green hydrogen sector. With an extensive infrastructure of over 15,600 km of gas pipelines and ongoing expansion projects, GAIL is well-positioned to integrate hydrogen into India’s energy landscape.
The company is actively investing in renewable energy, including solar, wind, and biofuels, to support its hydrogen initiatives. With a net profit margin of 7.28% and an ROE of 13.91%, GAIL stands out as a strong contender in India’s green hydrogen market. Its strategic investments and expertise in gas distribution give it a competitive edge in driving India’s hydrogen economy forward.
9. Bharat Petroleum Corporation Limited (BPCL)
Bharat Petroleum Corporation Limited (BPCL) stands as a key player in India’s oil and gas sector, with a strong push toward green hydrogen initiatives. With a remarkable 5-year net income growth of 28.05%—outpacing industry averages—and a robust ROE of 41.59%, BPCL is emerging as a compelling choice for investors eyeing green hydrogen opportunities. The company’s diversified portfolio spans refining, fuel services, industrial solutions, and international trade, reinforcing its market dominance. Its commitment to innovation and sustainability, along with a market cap of ₹1,14,714 crore, positions BPCL as a formidable force in India’s evolving energy landscape.
Why Invest in Green Hydrogen Stocks?
Investing in green hydrogen stocks offers a strong potential for long-term growth as the world moves towards clean energy solutions. Green hydrogen is expected to play a major role in this transition, providing significant opportunities for investors.
Key Benefits of Green Hydrogen Investments
✅ Environmental Sustainability – Green hydrogen helps reduce dependence on fossil fuels and cuts carbon emissions, supporting global climate change goals.
✅ High Growth Potential – With increasing demand for clean energy, the green hydrogen industry is projected to expand, offering promising returns over time.
✅ Government Support & Incentives – Many governments, including India, are investing heavily in green hydrogen projects, providing subsidies and financial support to boost the sector.
✅ Technological Advancements – Green hydrogen companies are leading innovation in renewable energy, making investments in this space attractive for future growth.
✅ Diversification & Risk Balance – Adding green hydrogen stocks to your portfolio can enhance stability and tap into the growing clean energy market.
National Green Hydrogen Mission – A Big Push for Clean Energy
In Budget 2023-24, the Indian government allocated ₹19,744 crore to promote green hydrogen. The goal is to increase annual production to 5 million tonnes by 2030, cut greenhouse gas emissions by 50 million tonnes, and reduce reliance on imported fossil fuels. This mission will position India as a global hub for green hydrogen manufacturing and drive the transition towards sustainable energy.
The Future of Green Hydrogen
Green hydrogen is set to revolutionize heavy industries and transportation by replacing fossil fuels with a cleaner alternative. As investments grow and technology advances, this sector will play a critical role in reducing global carbon footprints and meeting sustainable development goals.
Conclusion
Green hydrogen is key to a sustainable future, offering immense growth potential and reducing carbon emissions. With strong government support and rising demand, it presents a valuable investment opportunity while driving India toward energy independence.