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India's Nuclear Power Surge: Stocks to Watch
19 Oct
Summary
- India targets 100 GW nuclear power by 2047, requiring a ₹20 lakh crore investment.
- BHEL dominates domestic nuclear power, supplying key components and EPC.
- TARIL secured its first nuclear order, opening new high-margin growth avenues.
India is embarking on an ambitious nuclear power expansion, targeting 100 GW by 2047, which necessitates an estimated ₹20 lakh crore investment. This growth is supported by policy shifts encouraging private participation and a focus on technological advancements like Small Modular Reactors (SMRs).
Bharat Heavy Electricals Limited (BHEL), a public sector undertaking, plays a pivotal role, commanding 60% of India's installed nuclear power capacity on the secondary side. BHEL is the sole domestic supplier of nuclear steam turbines and generators, contributing significantly to India's three-stage atomic program.
Transformers and Rectifiers (India) Limited (TARIL) has achieved a significant milestone by securing its maiden nuclear power order from NPCIL for the Kaiga Units 5 & 6 project. This entry into the nuclear sector, a high-margin niche, positions TARIL for potential repeat business as India expands its nuclear fleet.
BHEL reported strong Q2FY27 financial performance with revenue up 24% and net profit more than doubling. TARIL also demonstrated robust growth in Q2FY27, with revenue increasing by 60.7% and net profit up 116.8%, driven by increased capacity utilization.
The future success of both companies hinges on their execution capabilities. BHEL must translate its substantial order backlog into sustained earnings, while TARIL needs to leverage its first nuclear order into a stream of recurring business.
