Green Stocks - Green Pack Shines On

On a day when the small and mid-cap space stocks struggled, the green pack was resilient, with most stocks continuing to make strong gains on yesterday's momentum. If it was manufacturers yesterday, it was developers and EPC firms that joined the party today with strong gains led by Adani Green and Acme Solar. Eyes will be out for results from Tata Power, as the firm's Q3 results will be a good pointer to the broader direction in the renewables space. With a strong footing in both manufacturing and the EPC side, TATA Power is well placed to leverage its renewable business to set off weakness due to the Mundhra plant closure, and any beat on analyst estimates of a profit drop will be a big positive. 

Another firm due to share results today is Saatvik Solar, as it makes only its second formal quarterly declaration. Another firm that is counting on both the domestic and US markets, so the commentary from the management will be awaited and analysed carefully as well.    

Over this year, as many firms finish up with their expansion cycles, before beginning anew, perhaps for wafer manufacturing later in 2027, we will get a chance to see just how far solar manufacturing can go to serve markets outside India, especially in markets where the Chinese do not dominate. For now, key markets like the Middle East are almost shut out due to the wide pricing power between Indian and Chinese manufacturers.

Expect some more optimism to return as key transmission projects get commissioned this quarter, besides the first of many BESS projects scheduled. Both are going to be margin-accretive events for the players involved.

List of Green Stocks