India’s 175 GWh pumped storage race: 3 stocks chasing a Rs 1.3 lakh crore opportunity
India’s renewable energy capacity is expanding rapidly. The next challenge is not generating more clean power, but storing it for when demand peaks. That is bringing Pumped Storage Projects into focus.
The ₹1.3 Lakh Crore Mandate
The Government of India estimates that the country will need 411 GWh of energy storage by FY32. Of this, Pumped Storage Projects are expected to contribute around 175 GWh, or nearly 42% of the total requirement. Developing this capacity alone is expected to attract investments of about ₹1.3 lakh crore by FY32.
What is Pumped Storage?
Pumped Storage Projects, also known as pumped hydro storage, store electricity by converting it into gravitational potential energy. A pumped storage plant consists of two reservoirs located at different elevations: an upper reservoir and a lower reservoir. Water stored in these reservoirs acts like a large natural battery.
During periods of low electricity demand or excess renewable generation, surplus electricity is used to pump water from the lower reservoir to the upper reservoir. As the water is lifted to a higher elevation, it stores energy in the form of gravitational potential energy.
When electricity demand rises or renewable generation declines, the stored water is released through turbines to generate electricity before flowing back into the lower reservoir. As the water moves downward, it spins the turbines, which generate electricity for the grid. This allows pumped storage plants to supply reliable, dispatchable power whenever it is needed.
The sector is already gathering momentum. India currently has 7.4 GW of operational pumped storage capacity. Nearly 16 GW is under construction, while another 8.1 GW has received concurrence from the Central Electricity Authority. With policy support, faster approvals, and rising renewable capacity, Pumped Storage Projects are emerging as a critical part of India’s power infrastructure over the next decade.
Against this backdrop, this article examines three leading companies in the Pumped Storage Projects sector.
#1 Adani Green Energy: The 50 GW Masterplan
Adani Green Energy considers pumped-storage hydro projects combined with battery energy storage systems (BESS) a key strategic growth pillar. This enables renewable intermittency, supports grid stability, and provides reliable, dispatchable 24/7 clean energy.
Adani Green is on schedule to commission its maiden 500 MW hydro-pumped-storage project on the Chitravathi River in Andhra Pradesh within FY27. This capacity is expected to generate more than 1 billion units of electricity annually and 6.2 hours of electricity per cycle. The project is expected to be completed in one of the shortest execution timelines for pumped storage in India.
Mapping the 5 GW Pumped Storage Expansion
In total, Adani Green is targeting over 5 GW of total pumped storage project capacity by 2030. The development and site evaluations span six states, including Andhra Pradesh, Uttar Pradesh, Maharashtra, Telangana, Tamil Nadu, and Assam. Of these, projects and environmental clearances totalling 1.5 GW in Andhra Pradesh and 1.5 GW in Maharashtra have been received.
Additionally, it has already signed power purchase agreements (PPAs) for upcoming capacity, including a 1,250 MW contract with Uttar Pradesh Power Corporation and a 500 MW contract with Assam Power Distribution Company. These direct state PPA tie-ups will deliver directly to off-takers.
For remaining capacities, Adani Green will evaluate long-term PPAs versus merchant/arbitrage power sales as projects progress closer to execution. Overall, Adani Green expects to reach 50 GW of operational renewable energy capacity by 2030, contributing 10% of India’s national 500 GW non-fossil capacity target.
Revenue Visibility and ₹21,000 Crore EBITDA Trajectory
Hence, Adani Green expects operational portfolio run-rate EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) to increase to ₹21,000 crore by the end of FY27 from ₹17,000 crore in Q1FY27.
Financially, revenue grew by 16.6% year-on-year to ₹4,431 crore in Q1FY27. Operating profit rose 31% to ₹3,985 crore while margins expanded by 1,000 bps to 90%. As a result, net profit grew by 19.3% to ₹983 crore.
Adani Green Energy Share Price
#2 Tata Power: The 2,800 MW Hydro Strategy
Pumped Storage Projects represent a core pillar in Tata Power’s clean energy transition. The company is leveraging its historical footprint and hydrogeographical advantages in the Western Ghats of Maharashtra to build large-scale Pumped Storage Project capacity.
Tata Power’s strategy directly addresses the intermittent power problems of solar and wind assets through an integrated storage framework. Surplus renewable electricity generated during peak power generation is used to pump water into upstream reservoirs. During peak demand hours or non-solar/low wind periods, water is released to generate dispatchable power.
Securing the ₹13,000 Crore Maharashtra Pipeline
The company has signed a Memorandum of Understanding (MoU) with the Government of Maharashtra. Under this MoU, Tata Power is developing 2,800 MW of combined Pumped Storage Projects capacity across two projects, at an estimated investment of approximately ₹13,000 crore. The Pumped Storage Projects portfolio is integral to its goal of achieving net-zero carbon emissions by 2045.
In the project breakdown, Tata Power received environmental clearance and key regulatory approvals for the 1,000 MW Bhivpuri Pumped Storage Project in Maharashtra. This project is scheduled to be commissioned in 2029. Of this, 330 MW is monetised via a competitive bid through Solar Energy Corporation of India.
For the remaining 670 MW, it is in advanced bilateral negotiations with large commercial and industrial clients such as Tata Steel and major cement manufacturers. Additionally, construction for another 1,800 MW Shirawata pumped storage project is targeted to begin in FY27.
Tata Power is also developing a project pipeline in Bhutan in partnership with Druk Green Power Corporation. The project includes a detailed project report currently in progress for the 1,800 MW Jeri Pumped Storage Project. Financially, the company reported its 27th consecutive quarter of year-on-year growth in net profit and EBITDA in Q1FY27.
Q1FY27 Performance and the FY30 Revenue Masterplan
The company’s revenue rose 8.2% year-on-year to ₹18,898 crore. Growth was driven by strong demand across discoms, traditional generation, solar rooftop, and solar manufacturing. EBITDA grew 8.1% to ₹4,249 crore while margin stood at 22.5%. Net profit surged 11% to ₹1,401 crore.
The company plans to invest ₹25,000 crore in FY27. Of this, 40-50% will be spent on renewable energy projects, and the rest on pumped storage projects, flue gas desulfurization, and transmission and distribution expansion. Tata Power plans to reach ₹1,00,000 crore in revenue, EBITDA of ₹30,000 crore and net profit of ₹10,000 crore by FY30.
#3 JSW Energy: The 80 GWh Pipeline Masterplan
JSW Energy positions Pumped Storage Projects as a primary long-duration energy storage solution to support India’s renewable energy grid integration and peak load management. The company is targeting a total energy storage capacity of 40 GWh by 2030 across Pumped Storage Projects and BESS.
The company has already locked in 29.6 GWh of total energy storage capacity. Of this, 26.4 GWh is dedicated to Pumped Hydro Storage. Of this, two major 8-hour greenfield projects totalling 3,000 MW are currently under active execution. Both are backed by long-term Pumped Hydro Energy Storage Facility Agreements.
Executing the 3,000 MW Pumped Hydro Pipeline
This includes a 1,500 MW project in Bhawali, Maharashtra. This project is scheduled to be completed by FY30. Another 1,500 MW project in Kandhuara, Uttar Pradesh, is scheduled for completion by FY31. JSW Energy received environmental and forest clearance (stage-1) for the Bhawali project in June 2026. Electromechanical work is underway at Kandhuara.
In addition to its main under-construction assets, JSW Energy is expanding its storage footprint through targeted pipeline projects, group captive assets, and broad state-level agreements. JSW is advancing the 2.4 GWh Narihalla project in Karnataka, where local approvals are in advanced stages. The PPA is also expected to be completed soon.
Strategic Expansion and the 80 GWh MoU Pipeline
The broader strategy includes an aggregated MoU pipeline with various state governments for 80 GWh. Additionally, JSW recently decided not to participate in the Solar Energy Corporation of India’s Pumped Storage Projects tender, as it required Stage 1 forest clearance before bidding. However, it has prepared another site with approximately 9 GWh of capacity for the upcoming market tender.
Q1FY27 Financials: Margin Resilience Amid Profit Dip
From a financial perspective, revenue stayed flat at ₹5,437 crore in Q1FY27. EBITDA rose by just 2% to ₹3,103 crore while margin expanded by 60 bps to 57%. However, net profit fell by 36.3% to ₹533 crore. Profitability declined due to higher depreciation and finance costs as new projects transitioned from construction to commercial operations.
Capital Structure and Valuations: Comparing the Pumped Storage Projects Giants
All three companies’ businesses are capital intensive and thus boast lower return ratios, including return on capital employed (RoCE) and return on equity (RoE). From a valuation perspective, Tata Power is trading in line with its 3-year historical median and the industry median.
On the other hand, JSW Energy is trading at a discount to its historical three-year median, but at a premium to the industry median. Adani Green is also trading at a premium to the industry, but roughly in line with its historical level.
| Peer Comparison (X) | |||||
| EV/EBITDA Multiple | Return ratios | ||||
| Particulars | Company | 3Y Median | Industry Median | RoCE (%) | RoE (%) |
| Tata Power | 10.7 | 11.4 | 11.1 | 10.5 | 10.2 |
| JSW Energy | 15.7 | 19.2 | 9.3 | 8.2 | 7.5 |
| Adani Green | 26.2 | 25.9 | 9.3 | 7.4 | 11.4 |
To conclude, pumped storage is no longer just a balancing technology. It is becoming a core part of renewable energy projects. The numbers suggest that pumped storage is moving from planning to execution. With thousands of megawatts under construction and more projects receiving approvals, the sector is entering a multi-year growth phase.
While all three companies are expanding capacity, each is taking a different route. Adani Green is integrating storage with large renewable parks, Tata Power is leveraging its hydro assets, and JSW is building a diversified storage portfolio. Their progress will shape India’s energy storage landscape over the next decade.
It’s worth adding them to your watchlist to keep them on your radar.
Disclaimer
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data were not available have we used an alternate, widely used, and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The articles’ content and data interpretation are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources, and only after consulting such independent advisors as may be necessary.