Suzlon Energy, Inox Wind to NTPC Green Energy: Why are green stocks ascending ahead of Sitharaman's budget speech?

The Finance Minister of India Nirmala Sitharaman is all set to present Union Budget 2025 today, February 1. Ahead of the announcement, shares of renewable energy companies are soaring high as market analysts are closely monitoring potential announcements regarding higher capital expenditures in the renewable energy sector, along with updates on Production-Linked Incentive (PLI) schemes to support its growth.

Suzlon Energy stock jumps 10 per cent on February 1, continues to gain for fourth session straight session following a robust Q3 performance reported on January 30.

The company's net sales for the December quarter reached ₹2,974.83 crore, marking a 90.64 per cent increase from ₹1,560.47 crore in the previous year. Quarterly net profit rose 90.56 per cent to ₹386.92 crore in Q3FY25 from ₹203.04 crore a year earlier, while EBITDA climbed 105.18 per cent year-on-year to ₹527.04 crore.

Inox Wind surged 10.45 per cent to ₹181 during morning trades on February 1 after the company posted a 96 per cent year-on-year rise in revenue for Q3FY25. For the quarter ending December 2024, revenue stood at ₹994 crore, while the renewable energy firm reported a consolidated profit after tax (PAT) of ₹239 crore.

NTPC Green Energy share price also rallied over 5 per cent to ₹119.62 on February 1, ahead of budget announcement.

Adani Green Energy stock is also trading 7.73 per cent higher on NSE at ₹1,047 on February 1.

Why are green stocks rising today?

“After the Economic Survey unveiled the Government of India's focus on the infrastructure sector, the market is expected to benefit green and renewable energy companies as demand for power is expected to grow due to the expansion of infrastructure. Hence, green energy stocks are rising ahead of Nirmala Sitharaman's budget 2025 speech,” said Avinash Gorakshkar, Head of Research at Profitmart.

Narinder Wadhwa, MD & CEO at SKI Capital Services, believes that the Union Budget 2025 is expected to be an infrastructure-focused budget. So, renewable energy, startups, agriculture, and fintech could also feature prominently on the FM’s radar.