Best Utilities Stocks in India

Investing in utilities stocks has always been a strategic move for investors seeking stability and consistent returns. The utilities sector, comprising companies that provide essential services like electricity, water, and gas, is especially important for economies like India, where energy demand is rising alongside rapid urbanisation and industrial growth.

As India embraces renewable energy, privatisation, and technological advancements, the best utility stocks in India present avenues for long-term growth. This blog explores the top utilities stocks in India, the trends driving their performance, and various aspects revolving around utility stocks.

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Overview of Top Utilities Stocks in India

Here’s a detailed look at the best utility stocks in India, their strengths, and why they are worth considering for your investment portfolio.

1. NTPC

NTPC is India’s largest integrated power producer, operating a portfolio spanning coal, gas, hydro, and renewables. Notably, it commissioned a 1,980 MW supercritical plant in Chatra (North Karanpura) recently—its first such with air-cooled condensers, reducing water usage by two-thirds. In renewables, NTPC's 100 MW floating solar installation at Ramagundam became fully operational in July 2022, bolstering its renewables portfolio to 217 MW in the southern region. These milestones underscore NTPC’s dual strategy: scaling traditional thermal capacity while aggressively expanding low-carbon energy.

2. Power Grid Corporation

Power Grid maintains India’s largest transmission network, managing interstate/regional load, smart grids, and international interconnections. It has boosted FY26 capex guidance to ₹28,000–30,000 cr and FY27 to ₹35,000 cr, targeting ₹1.08 lakh cr over three years, including major HVDC projects like Khavda–Nagpur and Pang–Leh . Additionally, it recently acquired MEL Power Transmission for ₹8.53 cr, expanding its transmission footprint . The company also approved ₹656 cr for transformer and ULDC system upgrades. These capex commitments reflect its central role in India’s grid modernisation.

3. Adani Power

Adani Power is a leading private thermal generator, with key plants like Mundra, Tiroda, and Udupi. It recently won a 1,500 MW contract to supply power to Uttar Pradesh from a new 2×800 MW ultra-supercritical plant, representing a US$ $2 bn investment and expected commissioning by FY 2030. The project aligns with India’s strategy to stabilise state-level power demand. This expansion marks an aggressive move despite macro headwinds, reinforcing Adani’s commitment to scaling capacity in the domestic thermal market.

4. Adani Green Energy

Adani Green is India’s largest renewables-focused utility, managing ~14.2 GW of solar and wind assets. It announced a staggering ₹31,000 cr capex commitment for FY 26 to add 5 GW capacity, as part of its 50 GW-by-2030 goal. The company also participates in Gujarat’s 30 GW hybrid park under SECI initiatives. Its robust build-out highlights a clear play on scale and energy storage integration, positioning itself to capitalise on India’s renewable energy boom.

5. Tata Power Co.

Tata Power is an integrated utility with generation (coal, hydro, solar), transmission, distribution, and EV charging. It plans ₹20–22,000 cr capex for FY 25, with over 50% earmarked for renewables and grid modernisation, including pumped hydro storage . Additionally, it intends to expand coal‑based capacity at Prayagraj via environmental approval for a 1,600 MW addition.  These balanced investments signal a dual approach—immediate demand-driven coal capacity and long-term renewable resilience.

6. Adani Energy Solutions

As Adani Green’s dedicated infrastructure arm, Adani Energy Solutions develops and operates solar and wind projects. While distinct capex figures aren’t disclosed separately, its expansion is integrated under Adani Green’s ₹31,000 cr FY 26 programme . The subsidiary primarily constructs utility-scale renewable parks, connecting assets like Gujarat’s hybrid park and SECI bids. Its role is pivotal in achieving Adani’s capacity targets by managing new projects and its grid integration responsibilities.

7. NTPC Green Energy

NTPC Green Energy is the renewables subsidiary of NTPC. It led the execution of Ramagundam’s 100 MW floating solar project (fully commissioned in July 2022), the largest in southern India, and contributes to a cumulative 217 MW operational floating capacity. NTPC Green is now accelerating ground-mounted solar and hybrid PV installations to meet a 60 GW RE ambition by 2032. These achievements signal a transition from thermal dependence to scalable renewables within NTPC's operational matrix.

8. JSW Energy

JSW Energy operates a diversified generation portfolio, including thermal, hydro, and solar assets, with ~7.8 GW under construction. The firm earmarked ₹10,000 cr capex for FY 25, raised to ₹13–14,000 cr to fund the 2.4 GW O2 Power renewables project. These investments underpin its strategy to pivot towards clean energy while sustaining hydropower and thermal operations, anchoring future growth on greener foundations.

9. NHPC Ltd

NHPC is India’s premier hydroelectric utility, operating dams and run-of-river plants. It is constructing the 200 MW Khavda Solar Power Plant in Kutch's hybrid park, bidding ₹1,007 cr under the GUJ‐RE constitutional tender. By diversifying into solar, NHPC enhances its renewables footprint while leveraging its hydro infrastructure. However, there are no new hydropower capex announcements; its focus remains on hybrid RE integration.

10. Torrent Power

Torrent Power is a private multi‐utility company managing generation, transmission, distribution, and special cables in Ahmedabad, Surat, Mumbai, and Agra. While no recent capex claims are noted, the company delivered a strong Q1 FY 25 profit uplift of 35% . Investments likely focus on grid upgrades and distribution network improvements, consistent with its performance momentum and regulatory priorities.
 

Factors to Consider Before Investing in Utilities Stocks

Investing in top utilities stocks in India requires careful evaluation of key factors to ensure long-term profitability. A few of them are mentioned below,

• Dividend History: Look for companies with consistent and attractive dividend payouts, as these signify financial stability.
• Debt Levels: Utilities companies often carry high debt. Choose those with manageable debt-to-equity ratios.
• Growth Prospects: Focus on companies investing in renewable energy, digital infrastructure, and capacity expansion.
• Valuation Metrics: Analyse price-to-earnings (P/E) and price-to-book (P/B) ratios to avoid overpaying for stocks.

Conclusion

Investing in the best utility stocks in India offers a powerful combination of stability, steady income, and long-term growth. With the nation’s rapid shift towards renewable energy, smart grids, and EV infrastructure, utility companies are well-positioned for significant expansion.