India’s Rs 33,000 crore battery bet: 3 companies winning big in the energy storage race – Stock Insights News

According to the Ministry of New and Renewable Energy, India has reached 100 gigawatts (GW) of total capacity of solar photovoltaic (PV) module manufacturing. However, renewable energy like solar or wind power generates electricity only when sunlight or wind is blowing. This creates challenges in maintaining grid stability and meeting power demand around the clock.

This is where the need for battery energy storage systems (BESS) comes in. BESS stores excess electricity and releases it when needed, making it a critical component. The demand for BESS is expected to increase as India aims to reach its 500 GW of renewable energy by 2030.

To support this, it aims to achieve 74 GW of BESS capacity by 2031-32, up from the current 205 MW installation. This creates a big market potential for companies in the sector. The government has also recently provided viability gap funding (VGA) of ₹54 billion to build BESS systems with a capacity of 30 GW. This will result in an estimated investment of ₹330 billion.

Three solar companies have already received orders, with more expected to come in.

#1 Tata Power: The Integrated Giant’s First-Mover Advantage

Tata Power, a part of the Tata Group, is India’s largest vertically integrated power company. It operates in the areas of new-age energy solutions, power generation, renewable energy, and transmission and distribution.

Tata Power Leads with India’s First Standalone BESS Agreement

The company has a total generation capacity of 26.03 GW, a transmission capacity of 4,659 circuit kilometres, and an integrated cell and module manufacturing capacity of 4.9 GW. Tata Power, through its subsidiary Tata Power Renewable Energy, has signed the first agreement in the standalone BESS segment.

It has signed an agreement with (National Hydroelectric Power Corporation) NHPC for a Battery Energy Storage Purchase Agreement for the Kerala State Electricity Board. The project involves setting up a battery storage system of 120 megawatt-hour (MWh) capacity, and is targeted to be completed in 15 months.

This is part of NHPC’s broader initiative to develop a standalone battery storage capacity of 500 MWh in Kerala, supported by viability gap funding. This initiative supports the government of India’s goal of achieving 500 GW of non-fossil fuel capacity by 2030.

Strengthening Mumbai’s Power Resilience

Apart from this, the company is also looking to aggressively expand its BESS capacity. The company plans to install 100 MW BESS with load centers at 10 locations in Mumbai in the next two years. It will be installed in metros, hospitals, and data centers to ensure uninterrupted power supply.

Tata Power also plans to develop 2.8 GW of pumped storage capacity, which is expected to be commissioned by August 2028. An additional 1.8 GW of capacity is expected to be commissioned by 2030. It is also upgrading the electronic charging platform, Easy Charge, to support 10-fold growth over the next five years.

Stable Financial Performance, But Valuation at a Premium

Now talking about the performance of Q1 FY26, revenue grew 4.3% year-on-year (YoY) to ₹180.3 billion. The growth was driven by better execution in renewable energy and engineering, procurement, and construction projects. Profit after tax (PAT) grew 6.1% to ₹12.6 billion, as margin expanded 260 basis points (bps) to 17.3%.

From a valuation perspective, Tata Power is trading at a price-to-earnings (P/E) multiple of 30x, which is a premium to the 10-year median of 23x. The current industry median P/E is 21.5x, implying Tata Power is trading at a premium to its peers.

Tata Power Share Price

#2 Acme Solar: The Private Player with Aggressive Ambition

Acme Solar is one of the largest renewable energy independent power producers. It has a portfolio of 6.9 GW spanning solar, wind, storage, and hybrid projects. In addition, the company also has 550 MWh of standalone BESS capacity. Of this, 2.8 GW is operational, and 4.0 GW and 550 MWh of storage are under construction.

It has a diversified portfolio with over 85% of the portfolio contracted with central offtakers spanning across new age technologies like Fully Dispatchable Renewable Energy (FDRE) and hybrid. The majority of Acme’s operating portfolio is located in states with high resource potential.

BESS Gains Momentum with Large-Scale NHPC Tie-Up

Acme Solar has also signed a purchase agreement with NHPC for two standalone BESS projects of 550 MW capacity in Andhra Pradesh. The project will generate revenue at the rate of ₹2,10,000/MW per month for a 50MW/100 MWh capacity project and ₹2,22,000/MW per month for a 225MW/450 MWh capacity project. The project is also expected to be completed within 18 months.

The project is estimated to generate annual revenue of around ₹700 million at its peak, with an internal rate of return of around mid-teens. The management stated that the risk in BESS projects is considered to be quite low due to the absence of land acquisition or transmission lines.

Acme Reported a Standout Quarter

Acme reported a stellar performance in Q1FY26. Total income grew 72% YoY to ₹5.8 billion due to capacity additions and increased capacity utilisation. EBITDA grew 76% YoY to ₹5.3 billion due to operating leverage. As a result, PAT also grew sharply, rising from ₹10 million to ₹1,310 million.

EBITDA stands for earnings before interest, tax, depreciation, and amortization.

Aggressive Capex Guidance

Looking ahead, Acme is targeting a capacity of 10 GW of generation capacity and 15 GWh of BESS capacity by 2030. For its FDRE project, it has also placed orders for over 3.1 GWh of battery energy storage systems. FDRE earns revenue at the rate of ₹9 per unit for supplying power for a long duration.

The quantum of FDRE battery commissioning (2500 MWh) is also five times larger than the NHPC project (550 MWh). This opens up huge revenue potential that Acme is betting big on. It also plans to invest about ₹120-140 billion in capital expenditure in FY26.

From a valuation perspective, Acme is trading at a P/E of 41x, which is higher than Tata Power (30x). Being a recent listing, the stock lacks sufficient trading history for meaningful historical comparisons.

Acme Solar Share Price

#3 Bondada Engineering: The EPC Expert’s Bold Entry into BESS

Bondada undertakes design and EPC work for the telecom, railways, and renewable energy sectors. It also provides operations and maintenance services to telecom service providers.

The company clients include Vodafone Idea, Airtel, Tata, Ericsson, Reliance Jio, National Thermal Power Corporation, NHPC, and Coal India. The company has also ventured into battery storage divisions under the build-own-operate model.

New BESS Order Paves Entry into Utility-Scale Storage

Bondada has received a contract from Tamil Nadu Green Energy Corporation for a 400 MWh BESS project worth ₹8.3 billion. This order is to be executed within 18 months, with revenue realisation in 12 years. This project aims to increase grid stability and integrate renewable energy to support peak power demand management.

Order Book Strengthens Core EPC and Clean Energy Focus

Besides, Bondada also has a diversified order book totalling ₹50.4 billion. Of this, ₹35.8 billion comes from renewable energy, ₹10.9 billion from telecom, Indian Railways (₹2.2 billion), and ₹1.3 billion from product manufacturing. The order book provides revenue visibility of about 3 years, as per FY25 revenue of ₹15.7 billion.

Now coming to its financial performance, revenue almost doubled, from ₹8 billion in FY24 to ₹15.7 billion in FY25. In the revenue mix, about 58% came from solar energy, followed by telecom (28%), and products (14%).

EBITDA increased by 156% to ₹1.8 billion, driven by operating leverage, while margin rose 280 bps to 11.7%. PAT, on the other hand, rose by 149% to ₹1.1 billion in FY25. It has not yet released its Q1FY26 numbers.

Bold FY30 Target Anchored in Solar and Storage Expansion

Looking ahead, the order book pipeline is also strong. It has submitted tenders worth ₹16.7 billion, and tenders worth ₹46.7 billion are earmarked for participation. The company has an ambitious target of achieving ₹100 billion in revenue by FY30.

By then, it plans to have a portfolio of solar EPC (6 GW), BESS (2 GW), and solar independent power producers (2 GW). Of this, 2 GW of solar EPC is currently under construction.

Bondada is trading at a P/E of 42x. It is only a 2-year-old listed company, and accordingly, it is trading below the 2-year median of 69x.

Bondada Share Price

Conclusion

With India accelerating its renewable energy transition, battery storage is emerging as a crucial piece of the puzzle. Government support and growing demand have opened up a strong growth runway for players like Tata Power, Acme Solar, and Bondada Engineering.

While Tata Power offers scale and stability, and Acme brings innovation in dispatchable energy. As the energy landscape shifts, these companies are well-positioned to benefit from the rising adoption of BESS solutions in the years ahead.

Disclaimer

Note: Throughout this article, we have relied on data from and the company’s investor presentation. 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 educational purposes only.

About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.

A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.

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