Introduction
Green hydrogen is the fuel of the future. India is betting big on it.
The National Green Hydrogen Mission aims to produce 5 million tonnes of green hydrogen annually by 2030.The government allocated ₹600 crore to the mission in Budget 2025-26, double the previous year. The total mission outlay stands at ₹19,744 crore.
India has a natural advantage. Abundant solar resources mean low-cost renewable electricity. This positions India to produce the world’s cheapest green hydrogen.
Global investors are taking notice. The green hydrogen market was valued at nearly US$12 billion in 2025.
It is expected to reach US$231 billion by 2035, growing at 34% CAGR.
What is Green Hydrogen?
Green hydrogen comes from splitting water into hydrogen and oxygen.
The process uses electricity from renewable sources like solar or wind.
This produces zero carbon emissions.
Grey hydrogen comes from fossil fuels.
It produces significant carbon emissions.
Green hydrogen offers a clean alternative.
Industries that are hard to decarbonise need green hydrogen.
These include steel, fertilisers, shipping, and heavy transport.
Why Green Hydrogen Matters for India
India is the world’s third-largest energy consumer.
It depends heavily on fossil fuel imports.
Green hydrogen can replace fossil fuels in multiple sectors.
The benefits are clear:
· Energy security through domestic production
· De Carbonisation of heavy industry
· Energy storage for intermittent solar and wind power
· Export opportunities to Europe, Japan, and Southeast Asia
The National Green Hydrogen Mission could attract over ₹8 trillion in investments by 2030.
Top 5 Green Hydrogen Stocks in India
We selected these five stocks based on:
· Market presence in green hydrogen
· Financial strength
· Project pipeline
· Analyst coverage
NTPC Ltd – The Government Powerhouse
NTPC is India’s largest power utility.
It is leading the public sector push into green hydrogen.
Company Overview
NTPC runs multiple pilot projects:
· Hydrogen-blended natural gas at Kawas, Gujarat
· Green hydrogen filling station in Leh
· Hydrogen with carbon capture at Vindhyachal
NTPC Green Energy (NGEL) listed on November 27, 2024.
NGEL added 550 MW to its green portfolio, reaching 3,475 MW total.
In January 2025, NGEL formed a joint venture with Rajasthan Rajya Vidyut Utpadan Nigam.
The venture will develop up to 25 GW of renewable energy projects.
It also targets green hydrogen capacity up to 1 million tonnes.
Recent Developments
NTPC signed an MoU with V.O. Chidambaranar Port Authority.
The plan includes a green hydrogen fuelling station.
NTPC also deployed hydrogen fuel cell buses for Mahakumbh 2025.
Odisha government approved a green hydrogen mobility project.
NTPC will develop and operate the hydrogen infrastructure.
Financial Performance
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|
| FY2023 | 1,76,207 | ~16,000 |
| FY2024 | 1,78,525 | ~18,000 |
| FY2025 | 1,88,138 | ~21,000 |
Source: NTPC annual reports
NTPC’s revenue grew steadily over three years.
The company added 640 MW of commercial capacity in FY25 first nine months.
Standalone capacity reached 59,168 MW with group capacity at 76,598 MW.
Risks for NTPC
NTPC’s green hydrogen projects remain at early stages.
Commercial scale operations are still years away.
The company faces competition from private players.
Analyst View For NTPC
HSBC and Goldman Sachs maintain Buy ratings on NTPC Green Energy.
Price targets range from ₹1,380 to ₹1,440.
HDFC Securities initiated coverage with a Buy rating.
Target price is ₹121 per share.
Adani Green Energy Ltd – The Renewable Giant
Adani Green Energy is India’s largest renewable energy company.
Company Overview
AGEL operates 17.2 GW of renewable capacity.
All capacity is tied to long-term power purchase agreements.
These provide stable cash flow for hydrogen investments.
AGEL runs pilot projects blending green hydrogen with natural gas in Ahmedabad.
The company targets 3 GW of green hydrogen capacity by 2030.
Adani Enterprises, the parent, is building a fully integrated green hydrogen ecosystem at Mundra.
The hub includes:
· 10 GW solar module manufacturing
· 5.2 MW wind turbines
· 5 GW electrolyser capacity
The Mundra hub targets 1 MMTPA by FY27.
It aims to scale to 3 MMTPA by 2030.
Total investment: US$50 billion.
Recent Developments
Adani Energy Solutions won an ₹8,500 crore transmission project in Andhra Pradesh.
The project supports green hydrogen and green ammonia projects in Vizag.
Estimated power demand: 4,500 MW.
Financial Performance in Cr
| Year | Revenue | Net Profit |
|---|---|---|
| FY2023 | 7,629 | ~500 |
| FY2024 | 9,220 | ~500 |
| FY2025 | 11,212 | ~800 |
Source: Adani Green Energy annual reports
Revenue grew from ₹7,629 crore in FY23 to ₹11,212 crore in FY25.
The company shows consistent growth in both revenue and profit.
Risks for Adani Green
AGEL carries high debt levels.
The Adani Group faces regulatory and environmental scrutiny.
High capital expenditure requirements strain cash flows.
Analyst View For Adani Green
Brokerages remain cautious but acknowledge AGEL’s renewable energy leadership.
The company’s scale in renewables provides a strong foundation for hydrogen expansion.
Larsen & Toubro Ltd – The Engineering Powerhouse
L&T is India’s largest engineering and construction conglomerate.
Company Overview
L&T’s engineering expertise makes it the natural contractor for green hydrogen infrastructure.
The company develops electrolyser solutions.
It also builds hydrogen infrastructure projects.
L&T Energy GreenTech, a wholly-owned subsidiary, will set up India’s first largest green hydrogen plant.
The plant will be at Indian Oil Corporation’s Panipat Refinery in Haryana.
L&T wins EPC contracts for hydrogen plants.
This gives it direct revenue from the green hydrogen buildout.
Financial Performance
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|
| FY2023 | 1,26,235 | ~11,000 |
| FY2024 | 1,42,509 | ~14,000 |
| FY2025 | 1,53,680 | ~17,000 |
Source: L&T annual reports
Revenue increased from ₹1.26 lakh crore in FY23 to ₹1.53 lakh crore in FY25.
Net profit rose from approximately ₹11,000 crore to ₹17,000 crore.
Risks For L&T
Green hydrogen is a small part of L&T’s overall business.
Project execution risks exist for large-scale hydrogen plants.
Competition from other EPC players is intense.
Analyst View For L&T
L&T’s 5-year CAGR stands at 25.43%.
The company’s strong order book and execution capability support positive analyst outlook.
Diversified revenue streams reduce overall risk.
Reliance Industries Ltd – The Conglomerate Bet
Reliance Industries is India’s largest company by market capitalisation.
Company Overview
Reliance is working toward 3 million metric tonnes per annum of green hydrogen production capacity.
The target year is 2032.
Production will serve global markets.
The company is building a battery giga-factory.
This supports the broader clean energy ecosystem.
Reliance’s new energy business includes:
· Solar energy
· Battery storage
· Green hydrogen
· Fuel cells
Financial Performance
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|
| FY2023 | 8,89,569 | ~73,670 |
| FY2024 | 9,17,121 | ~79,020 |
| FY2025 | 9,82,671 | ~81,309 |
Source: Reliance Industries annual reports
Revenue crossed ₹9.82 lakh crore in FY25.
Net profit reached approximately ₹81,309 crore.
Risks
Green hydrogen is a small fraction of Reliance’s massive business.
The oil-to-chemicals business faces transition risks.
High capital expenditure for new energy ventures pressures returns.
Analyst View
Reliance has a 5-year CAGR of 11.64%.
The company’s financial strength and execution capability support long-term confidence.
However, the green hydrogen business remains in early stages.
GAIL (India) Ltd – The Gas Infrastructure Player
GAIL is India’s largest natural gas transmission and marketing company.
Company Overview
GAIL is building green hydrogen capabilities alongside its natural gas infrastructure.
The company’s pipeline network can transport hydrogen blends.
This gives GAIL a unique advantage in hydrogen distribution.
GAIL benefits from the natural gas transmission segment.
Revenue from this segment increased 7% to ₹11,068 crore in FY25.
Financial Performance
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|
| FY2023 | 1,45,875 | ~8,500 |
| FY2024 | 1,33,500 | ~9,000 |
| FY2025 | 1,41,598 | ~9,500 |
Source: GAIL annual reports
Revenue showed fluctuation but remained above ₹1.33 lakh crore.
The company maintains healthy profit margins.
Risks
GAIL’s core business remains natural gas.
Green hydrogen blending is still in pilot stages.
Regulatory changes could impact gas transmission revenue.
Analyst View
GAIL has a 5-year CAGR of 13.62%.
The stock offers a dividend yield of 4.3%.
Analysts view GAIL as a stable play on hydrogen infrastructure.
Comparison Table: Top 5 Green Hydrogen Stocks
| Stock | Market Cap (₹ Cr ) | P/E | 5 Year CAGR | Dividend Yield |
|---|---|---|---|---|
| NTPC | ~3,45,638 | 13.0 | 29.17% | 2.3% |
| Adani Green | ~2,56,334 | 96.7 | 57.02% | – |
| L&T | ~5,53,951 | – | 25.43% | – |
| Reliance | ~17,64,643 | 18.5 | 11.64% | 0.5% |
| GAIL | ~1,14,505 | 18.8 | 13.62% | 4.3% |
Data sources: Equitymaster, Angel One, INDmoney
Future Growth Potential
Cost Parity is Coming
Green hydrogen currently costs about US$3.5–4 per kg.
The National Green Hydrogen Mission aims to bring costs down to nearly US$1.6 per kg by 2030.
Cost reduction will come from:
· Cheaper renewable power
· Falling electrolyser costs
· Stronger government policy support
Massive Investment Pipeline
The mission expects to attract more than ₹8 trillion in investments by 2030.
This will create demand for 40-60 GW of electrolyser capacity.
Export Opportunities
India aims to export green hydrogen to Europe, Japan, and Southeast Asia.
Global demand for clean hydrogen is rising rapidly.
Sector-Wide Benefits
Companies across the value chain will benefit:
· Power generators (NTPC, Adani Green)
· EPC contractors (L&T)
· Industrial conglomerates (Reliance)
· Gas infrastructure (GAIL)
Analyst Opinions
Bullish View
Axis Capital warns investors against buying stocks solely for green hydrogen ambitions.
The business is still too small to drive valuations.
Broader clean energy companies offer better opportunities.
Grey hydrogen remains far cheaper at ₹150–200 per kg.
The price gap needs to close before wider adoption becomes viable.
Selective Optimism
HSBC and Goldman Sachs maintain Buy ratings on NTPC Green Energy.
Motilal Oswal recommends Buy on JSW Energy with a target of ₹657.
Brokerages prefer companies with:
· Existing profitable core businesses
· Strong balance sheets
· Clear hydrogen project pipelines
Long-Term Confidence
Most analysts agree on the long-term opportunity.
The question is timing.
Early-stage investors may face volatility.
Patient investors could see significant returns.
Bull Case Scenario
What Could Go Right
Government Support Accelerates
The government doubles the green hydrogen budget again.
Subsidies make green hydrogen cost-competitive by 2028.
Technology Costs Plummet
Electrolyser costs drop faster than expected.
Renewable power becomes even cheaper.
Green hydrogen reaches US$1.5/kg by 2029.
Global Demand Surges
Europe and Japan aggressively import green hydrogen.
India becomes the world’s largest exporter.
Stock Performance
NTPC leads public sector hydrogen development.
Adani Green scales its Mundra hub successfully.
L&T wins major hydrogen EPC contracts globally.
Reliance’s new energy business becomes a growth driver.
GAIL transforms its pipeline network for hydrogen transport.
Potential Returns
In a bull case, these stocks could deliver 20-30% annual returns over 5-7 years.
Early movers could see even higher gains.
Bear Case Scenario
What Could Go Wrong
Cost Parity Delays
Green hydrogen remains expensive.
Industries stick with grey hydrogen.
The price gap persists beyond 2030.
Policy Support Falters
Government changes priorities.
Subsidies get reduced or delayed.
Private investment dries up.
Technology Hurdles
Electrolyser costs don’t fall as expected.
Storage and transport remain challenging.
Hydrogen blending faces technical issues.
Competition Intensifies
Global players enter the Indian market.
Margins get compressed.
Smaller players get squeezed out.
Potential Risks
NTPC’s hydrogen projects may remain unprofitable for years.
Adani Green’s high debt could become unsustainable.
L&T’s hydrogen revenue may stay negligible.
Reliance’s massive capex may not generate adequate returns.
GAIL may struggle to transition from natural gas.
Worst-Case Scenario
In a bear case, stocks could decline 30-50% from current levels.
Green hydrogen remains a niche business.
Investors lose patience with slow progress.
Key Risks to Watch
- Cost Competitiveness
Grey hydrogen costs ₹150–200 per kg.
Green hydrogen must match this price.
The gap is significant and persistent.
- Policy Execution
Government announcements are one thing.
Actual implementation is another.
Delays in project approvals and subsidies are common.
- Technology Risk
Electrolyser technology is evolving.
Indian companies may lag global leaders.
Imported technology increases costs.
- Financial Risk
High capex requirements strain balance sheets.
Adani Green’s debt levels are concerning.
Smaller players may struggle to raise capital.
- Market Risk
Green hydrogen stocks are volatile.
Investor sentiment shifts quickly.
Sector rotation can hurt returns.
Investment Strategy
For Long-Term Investors
Focus on companies with strong core businesses.
NTPC, L&T, and Reliance have diversified revenue.
Their hydrogen businesses are upside, not the main story.
For Thematic Investors
Adani Green offers pure-play renewable exposure.
GAIL provides hydrogen infrastructure leverage.
These carry higher risk but higher potential reward.
Diversification is Key
Don’t put all your money in green hydrogen.
Spread investments across multiple stocks.
Include companies at different points in the value chain.
Patience Required
Green hydrogen is a long-term story.
Commercial-scale production is years away.
Expect volatility and be prepared to hold.
Conclusion
India’s green hydrogen story is compelling.
The National Green Hydrogen Mission provides strong policy support.
Abundant solar resources give India a cost advantage.
Global demand is rising rapidly.
The top 5 stocks offer different ways to play this theme:
· NTPC: Government-backed utility with pilot projects
· Adani Green: Largest renewable player with hydrogen ambitions
· L&T: Engineering expertise for hydrogen infrastructure
· Reliance: Financial muscle to build at scale
· GAIL: Gas network for hydrogen distribution
Each stock has unique strengths and risks.
Investors should research thoroughly before investing.
Consider your risk tolerance and time horizon.
The green hydrogen sector will transform India’s energy landscape.
The journey will have ups and downs.
Patient, informed investors could benefit significantly.
Disclaimer
This article is for informational purposes only.
It does not constitute financial advice.
Please consult a registered financial advisor before investing.
Stock markets carry risks.
Past performance does not guarantee future returns.
Frequently Asked Questions
Is green hydrogen a good investment in India right now?
It depends on your time horizon. The sector is still in an early execution phase. Long-term investors with a 5 to 10 year view may find value in large, diversified companies with real hydrogen capex already committed. Short-term traders may find the sector too policy-dependent and slow-moving for quick gains.
There is no fully pure-play, liquid, listed green hydrogen stock in India today. Every company on this list runs green hydrogen as one part of a much larger business.
Slow execution. Announced capacity and commissioned capacity in India differ by a wide margin as of 2026, and that gap needs to close for the sector’s growth story to show up in company earnings.
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