Green Stocks March 28: FY26 Beckons

As trading drew to a close on the last trading day of FY25, our green energy pack, and the sector in general, had much to think about. A year that began with immense promise, delivered strongly with unprecedented access to public and private capital for green energy firms. Early moves benefited as well, and now face the prospect of living up to their promises.

Missteps from here, as seen by the massive value erosion in Gensol will be punished severely, while strong performances will be rewarded handsomely. Importantly, with the segment no more a rare one for finding listed entities, expect quality firms to start commanding premium valuations vis a vis weaker peers, something that has not really been seen at scale so far. This will be especially apparent across manufacturers and EPC firms, while developers will face a common issue like a drop in PSAs, or other policy-linked challenges.

As April 2 marks the start of a new financial and trading year for stocks, all indications point to a year of promise, with some pitfalls that need to be skirted. The government's role will stay critical, as the issue of unresolved PSAs needs to be treated on priority we believe, based on discussions and feedback from multiple developers.