There is a huge shift towards clean energy sources worldwide. The Indian government has also set a target of reaching net zero carbon emissions by 2070. India currently ranks as the world’s third-largest producer of solar and wind energy.
The demand for clean energy is set to rise with the adoption of an environmentally friendly approach coupled with rising economic activity and increasing population in India. India aims to generate 500 GW of electricity from renewable sources by 2030, as targeted by the Ministry of New and Renewable Energy.
These developments are beneficial for companies involved in the energy sector in India, especially small companies since they have significant growth potential in the future. In this blog, we will explore the best renewable energy penny stocks in India.
An interesting read: Adani Green vs Tata Power: Who leads the charge in India’s evolving power sector?
Top renewable penny stocks in India
Here are the top renewable energy penny stocks on the basis of their market capitalisation, from lowest to highest, as on June 12, 2025.
| Particulars(as of June 12, 2025) | Karma Energy | EDCL | Indowind Energy | Zodiac Energy | Orient Green Power |
| Market capitalisation (₹ crores) | 96.6 | 133 | 284 | 739 | 1,754 |
| P/E ratio | 68.1 | N/A | 225 | 37 | 59.3 |
| ROE % | 3.62% | -75.6% | 0.49% | 27.7% | 3.17% |
| ROCE % | 3.59% | 3.89% | 1.88% | 20.2% | 6.67% |
| Debt to equity ratio | 0.05 | 36.92 | 0.02 | 1.81 | 0.51 |
| Interest coverage ratio | 9.73 | 0.79 | 2.80 | 4.16 | 1.46 |
Also read: Are Penny Stocks Worth the Risk in 2025?
Karma Energy Limited
Karma Energy Limited was incorporated in 2007 and is in the business of generating renewable energy. The company generates wind, solar and hydroelectricity. The company operates a 38 MW wind energy plant in Maharashtra, Andhra Pradesh, and Tamil Nadu.
Here is the breakdown of Karma Energy Limited’s revenues for FY24 –
- Sale of power – ₹11.63 crores
- Sale of entitlement from wind powers – 7.10 lakhs
- Sale of goods – ₹20.26 lakhs
- Sale of Services – ₹44.75 lakhs
As of June 12, 2025, the market capitalisation of the company stands at ₹96.6 crores.
| Particulars(₹ crores) | FY21 | FY22 | FY23 | FY24 | FY25 |
| Sales | 23.07 | 27.53 | 12.81 | 12.35 | 8.70 |
| Operating profit | -1.82 | 5.29 | 3.19 | 3.21 | 0.61 |
| Profit before tax | -11.69 | -2.26 | 7.20 | -0.03 | 1.57 |
| Profit after tax | -10.69 | -2.13 | 5.89 | 0,12 | 1.56 |
Energy Development Company Limited
Energy Development Company Limited (EDCL) is a renewable energy company incorporated in 1995. The company is involved in generating electricity through its own power plants and developing power plants for others.
As of the 2024 fiscal year, the company owns the following power plants in Karnataka:
- Harangi Hydro Electric Power Plant – 9 MW
- Harangi Hydro Electric Power Plant – 6 MW
- 2 wind farms of 1.5 MW capacity
The company, through its subsidiaries, owns 2 more hydro power plants of 15 and 7 MW capacity. In FY24, the company generated 94.14% of its revenue from hydropower plants.
As of June 12, 2025, the company has a ₹133 crore market capitalisation.
| Particulars(₹ crores) | FY21 | FY22 | FY23 | FY24 | FY25 |
| Sales | 31 | 43 | 37 | 30 | 33 |
| Operating profit | 17 | 31 | 25 | 16 | 16 |
| Profit before tax | -10 | 8 | 5 | -2 | -78 |
| Profit after tax | -6 | 10 | 4 | -2 | -97 |
Indowind Energy Limited
Indowind Energy Limited generates wind energy. The company owns a total of 20.095 MW capacity wind farms in Karnataka and 29.55 MW capacity wind farms in Tamil Nadu. The company owns 123 windmills.
On a standalone basis, the company in FY24, earned revenue from operations of:
- ₹17.37 crores from Tamil Nadu
- ₹11.59 crores from Karnataka
Indowind boasts substantial expertise in project management, robust financial and managerial strengths, and significant experience in operating wind farms.
| Particulars(₹ crores) | FY21 | FY22 | FY23 | FY24 | FY25 |
| Sales | 17.96 | 24.56 | 33.96 | 39.71 | 33.51 |
| Operating profit | 9.57 | 6.54 | 13.99 | 15.84 | 10.55 |
| Profit before tax | 0.26 | 0.15 | -1.16 | 5.56 | 3.51 |
| Profit after tax | 0.22 | 0.13 | -19.26 | 7.27 | 1.26 |
Zodiac Energy Limited
Zodiac Energy Limited is headquartered in Ahmedabad, Gujarat and was incorporated in 1992. The company is involved in various verticals of the electricity distribution process.
Zodiac Energy’s spectrum of services includes supply, design, testing, installation, and commissioning, and maintenance and operation in:
- Residential rooftop
- Commercial and industrial rooftop
- Ground-mounted captive projects
The company has provided its services to more than 15,000 customers and has completed projects of over 300 MW.
The company has served key customers like Gujarat Energy Development Agency, Adani Group, Directorate of Lighthouse and Lightships, Government of India (GOI), Torrent Power Limited, Indian Oil Corporation Limited, etc. As of FY25, the company has long-term borrowings of ₹93.14 crores.
| Particulars(₹ crores) | FY21 | FY22 | FY23 | FY24 | FY25 |
| Sales | 100 | 143 | 138 | 220 | 408 |
| Operating profit | 7 | 9 | 8 | 19 | 37 |
| Profit before tax | 6 | 8 | 4 | 15 | 28 |
| Profit after tax | 4 | 5 | 3 | 11 | 20 |
Orient Green Power Company Limited
Orient Green Power Company Limited owns and operates wind farms. The company has a total installed capacity of 402.3 MW in Tamil Nadu, Gujarat, Karnataka and Andhra Pradesh, and 10.5 MW installation in Croatia, Europe.
The company aims to reach 1GW energy generation capacity by expanding its current capacity and venturing into solar and hybrid renewable energy.
As of FY25, the company generated 96.62% of its revenue from the sale of power, and 6.7% of its total revenues came from abroad. The company has total borrowings of ₹101 crores.
| Particulars(₹ crores) | FY21 | FY22 | FY23 | FY24 | FY25 |
| Sales | 257 | 311 | 258 | 271 | 263 |
| Operating profit | 164 | 224 | 171 | 180 | 169 |
| Profit before tax | -57 | 36 | 33 | 39 | 43 |
| Profit after tax | -57 | 36 | 33 | 38 | 42 |
Also read: Top solar energy stocks to watch.
Conclusion
The renewable energy sector in India is booming rapidly. Huge investments are flowing into this sector with significant expansion plans. Penny stocks in renewable energy sectors can be a potential bet for high-risk investors who want to ride the long-term growth of this sector. But remember that penny stocks are inherently risky since they have low stability as compared to big corporations.
FAQs
Yes, penny stocks are small companies that can carry high risk. These companies have a small scale of operations with huge potential for growth. These companies can be significantly affected by market downturns and economic slowdowns. Penny stocks or penny companies also face very high competition from big players in the market. These stocks can also have liquidity risks.
Renewable energy is the future of electricity generation in India, as the Indian government plans to achieve net zero carbon emissions by 2070. The government is making significant investments in the renewable energy sector and trying to reduce dependency on fossil fuels and thermal energy. Hence, the renewable energy sector and companies are gaining popularity among investors.
Some renewable energy penny stocks are making losses, possibly due to high initial capital expenditure, low operating scale, and heavy debt burdens. Many companies might still be in the early stages of growth and lack consistent cash flows. Unfavourable weather, delayed government payments, or regulatory hurdles can also impact earnings. Additionally, interest costs and depreciation on renewable infrastructure often eat into profits.
Diversifying across solar, wind and hydro reduces risk for a renewable energy company. Any weather-related problem can be offset by another energy generation source, making the company less dependent on a single electricity source. Hence, diversifying can help in increasing the financial stability of a company.
The largest green energy company in India is Adani Green Energy Limited. As of June 12, 2025, the company has a market capitalisation of ₹1,63,852 crores. The company generates power from solar, wind and hybrid sources. As of FY25, the company earned a revenue of ₹11,212 crores and a profit after tax of ₹2,001 crores.
