Introduction
The Indian battery market is on the path of impressive growth. It is rising from USD 7.2 billion in 2024 to over USD 15 billion in 2029, a strong CAGR of more than 16%. This is an ideal industry to invest in right now, aided by government programs, such as Production-Linked Incentive (PLI) programs, facilitating the construction of an Indian battery supply chain. This is a chance to uncover leading battery stocks related to the growth of EVs, applied toward deploying renewable energy solutions or some industrial use case.
Why the Battery Industry Matters
There is a general positive sentiment towards the battery industry in India on the back of urbanisation and climate change considerations, combined with incentives to transition to clean energy solutions. The government announced its intention for EVs to make up 30% of vehicle sales by 2030, and combined with the introduction of solar and wind energy into the grid, has created a surge in demand for advanced batteries, particularly lithium-ion.
There are challenges associated with the increase in raw material costs for batteries, as well as limited infrastructure for recycling end-of-life; however, there is legislation, such as the Production Linked Incentive Scheme, that is driving local manufacturing in this space. As an investor, your emphasis should be on investment firms that have strong representation in their sector, a pipeline of innovative projects in advanced batteries, and a strong balance sheet so as to position yourself to take advantage of growth in this area.
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Battery Stocks to Watch
Exide Industries
Exide Industries has remained the dominant player in the battery space. Based in Kolkata, it manufactures an extensive range of storage solutions, including automotive, solar, and submarine batteries. With a market cap of almost ₹34,000 crore, it operates in several countries and is investing heavily in lithium-ion technology to take advantage of the goal of increased EV sales. Exide maintains a return on equity of just under 6% and low debt levels can give peace of mind if you are looking for a stable investment as storage solutions ramp up in the future.
Amara Raja Energy & Mobility
Another player in this space is Amara Raja Energy & Mobility, which manufactures lead-acid batteries for automotive and industrial applications. They supply key OEM automotive manufacturers and are operating in over 50 countries with a market cap of nearly ₹180 billion.
HBL Power Systems
If you like specialised applications, you should also consider HBL Power Systems. The company designs batteries for defence, railways, aviation, telecommunications, and electric drivetrains for vehicles. The market cap is over ₹25,000 crore, and their 5-year CAGR has been above 120%, making it a high-growth option. HBL also has a return on equity above 20% with little debt, indicating strength and value to those with an interest in niche battery markets.
Eveready Industries India
Eveready Industries India is a household name in consumer batteries and lighting. With a distribution network of millions of outlets and nearly ₹2,900 crore in market cap, it is a reliable play. If you're looking for new opportunities in energy products with a consumer focus, it has recently increased revenues by roughly 7% year-over-year and is introducing more LED solutions and appliances in its business.
Indo National
Probably best known for its Nippo brand, Indo National produces batteries, torches, LED lights, and electrical devices, but, while its market cap is smaller, its distribution is a significant asset. As a hidden gem producer of portable power solutions, Indo National was founded in Chennai, India and has a well-distributed brand of alkaline and zinc-carbon batteries for everyday use in the Indian ecosystem.
Key Things to Evaluate
Before you put your hard-earned money at risk, weigh the electric vehicle (EV) boom that could be supported by several increasing incentives, including charging infrastructure. Some of the primary catalysts consist of changes to regulations on emissions and storage for renewable energy. Make sure to keep a close eye on supply chains because the availability of raw materials can affect the costs. Also, technological advances like faster charging batteries could put certain companies ahead in the market. As with any investment decision, you must also prepare to face various types of risk. Companies will continue to enter the market, market policy could impact the trajectory of battery technology advances, and rapid technological evolution could influence market returns. In addition, how long it takes to get widespread consumer acceptance will depend on the cost and recharging network.
Conclusion
As you think through your portfolio position for 2025, think about the battery stocks as a starting point into India's green revolution. Don't forget to do your homework, invest within your risk tolerance, and perhaps seek the assistance of an advisor to make completely informed financial decisions. While you should expect vast opportunities in the battery sector, proper investment decisions are what will unlock value in the battery economy.
Disclaimer: This list of stocks is for educational purposes and does not constitute a recommendation to invest in any or all of the stocks. You should do your own due diligence and consult with a licensed financial professional before investing in any of these securities. Past performance is not indicative of future returns.
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