5 Nuclear Energy Stocks to Benefit from the Government’s ₹20,000 Cr Push for Small Modular Reactors

Synopsis: India’s Rs. 20,000-crore SMR-led nuclear push aims to scale clean, reliable power to 100 GW by 2047, creating long-term opportunities for equipment makers, EPC players, utilities, and specialised nuclear component suppliers.

India has emphasised nuclear energy as a source of clean and reliable energy in the Union Budget for 2025–26. The long-term target is to achieve a capacity of at least 100 GW of nuclear power by 2047, to reduce dependency on fossil fuels and provide a stable and reliable supply of electricity in India. 

Nuclear energy is a key element of the vision of “Viksit Bharat” (Developed India) and is expected to provide the energy required to meet India’s rapidly increasing energy requirements and reduce greenhouse gas emissions. Currently, India’s nuclear generation capacity is approximately 8,180 MW, with substantial plans for expansion to 22,480 MW by 2031-32.

In support of achieving this goal, the government has established the Nuclear Energy Mission for Viksit Bharat, with a particular emphasis on the development of Small Modular Reactors (SMRs). 

These are smaller, safer, and more adaptable reactors that can be constructed in a shorter time frame than conventional reactors. A budget allocation of Rs. 20,000 crore has been made for R&D, with the goal of constructing at least five indigenous SMRs by 2033. These SMRs will establish a vital source of clean energy, particularly in areas where it is not feasible to construct large centralised power plants. 

India is exploring Small Modular Reactors (SMRs) as part of its energy transition to achieve net-zero emissions and strengthen energy security. With capacities below 30 MWe to over 300 MWe, SMRs offer a flexible, scalable, and cost-effective alternative to large nuclear reactors.

Stocks likely to benefit

BHEL Ltd

BHEL is a core beneficiary of India’s nuclear revival, supplying critical equipment like steam generators and turbine-generator sets to NPCIL. The Rs. 20,000-crore Nuclear Energy Mission and push for indigenous SMRs strengthen its long-term order visibility as nuclear capacity scales toward 100 GW by 2047. While debt and cyclicality remain risks, sustained nuclear ordering could materially support growth. With a market capitalisation of Rs. 84,440 cr, the shares of Bharat Heavy Electricals Ltd closed at Rs. 242.50 per share, down from its previous close of Rs. 251.55 per share.

Larsen & Toubro Ltd

L&T plays a key EPC and heavy engineering role in nuclear projects, covering civil works, fabrication, and cooling systems. As private participation and SMR development gain policy backing, L&T’s execution capability positions it well for future nuclear contracts, though nuclear will remain a small part of overall revenues initially. With a market capitalisation of Rs. 5,15,161 cr, the shares of Larsen & Toubro Ltd closed at Rs. 3,745.05 per share, down from its previous close of Rs. 3,794.30 per share.

NTPC Ltd

NTPC is transitioning from coal to clean baseload power by entering nuclear generation through subsidiaries and joint ventures. The government’s SMR and nuclear push support its long-term strategy, but nuclear assets are capital-intensive with long gestation periods, meaning benefits will accrue gradually. With a market capitalisation of Rs. 3,26,583 cr, the shares of NTPC Ltd closed at Rs. 336.80 per share, down from its previous close of Rs. 342.50 per share.

MTAR Technologies Ltd

MTAR is a niche supplier of high-precision nuclear reactor components, making it well placed to benefit from SMR and reactor expansion. The indigenous manufacturing focus of the nuclear mission supports its order pipeline, though its smaller scale makes earnings more volatile. With a market capitalisation of Rs. 7,346 cr, the shares of MTAR Technologies Ltd closed at Rs. 2,388.40 per share, down from its previous close of Rs. 2,455.65 per share.

Walchandnagar Industries Ltd

Walchandnagar supplies critical Class-I nuclear components such as calandrias and heat exchangers to NPCIL and BARC. As new reactors and SMRs are ordered, demand for these specialised components should rise, but the stock remains cyclical and less liquid. With a market capitalisation of Rs. 1,033 cr, the shares of Walchandnagar Industries Ltd closed at Rs. 152.35 per share, down from its previous close of Rs. 157.15 per share.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post 5 Nuclear Energy Stocks to Benefit from the Government’s ₹20,000 Cr Push for Small Modular Reactors appeared first on Trade Brains.