Oil Spikes on Hormuz Crisis — 5 Renewable Energy Stocks That Actually Benefit

Oil Spikes on Hormuz Crisis — 5 Renewable Energy Stocks That Actually Benefit

The Sensex plunged nearly 1,700 points on March 30 as Iran’s Parliament cleared a plan to impose tolls on the Strait of Hormuz — the chokepoint through which roughly 20% of global oil passes. Crude oil prices surged, the rupee breached 88 against the dollar, and banking stocks fell up to 4% after the RBI tightened forex rules to curb speculative bets.

While most investors are focused on the damage — and rightly so — there’s a second-order effect worth watching. Every oil crisis in India’s history has accelerated the push toward energy independence. This time, the companies best positioned to benefit already have the order books, manufacturing capacity, and margins to prove it.

Why Oil Spikes Accelerate India’s Renewable Push

India imports over 85% of its crude oil. Per Mangalore Refinery’s (MRPL) FY25 annual report, India’s oil demand is projected to double to about 11 million barrels per day by 2045. At the same time, the government has expanded Renewable Consumption Obligations (RCO) through FY 2029-30, mandating that utilities and industrial consumers source increasing shares of electricity from non-fossil sources. Every rupee increase in oil prices makes the economics of solar and wind more compelling — and the policy push more urgent.

The Unexpected Winners

1. Premier Energies (PREMIERENE) — Solar Manufacturing

Premier Energies has emerged as one of India’s fastest-growing solar manufacturers. Per their FY25 annual report, revenue more than doubled to ₹66,521 million, while profit after tax tripled to ₹9,371 million. EBITDA rose to ₹19,142 million. The company commissioned a 1.4 GW TOPCon module line in Telangana and holds an order book of 5,303 MW (₹84,456 million) as of March 2025 — with 99% of orders from domestic customers. As India races to reduce fossil fuel dependence, Premier Energies is scaling across the entire solar value chain: cells, modules, wafers, and ingots.

2. Suzlon Energy (SUZLON) — Wind Energy

Suzlon controls 32% of India’s installed wind energy base at 14.8 GW. Per their Q2 FY25 quarterly results, the order book stands at 5.1 GW, including India’s largest-ever wind energy order — 1,166 MW from NTPC Green Energy for 370 wind turbine generators. For the first nine months of FY25, Suzlon reported revenue of ₹7,078 crore, EBITDA of ₹1,164 crore (16.4% margin), and net profit of ₹891 crore. The company has expanded annual manufacturing capacity to 4.5 GW. Suzlon’s turnaround is remarkable — it has gone from ₹6,391 crore in gross debt in FY22 to just ₹110 crore in FY24.

3. Adani Green Energy (ADANIGREEN) — Renewable Power Producer

Adani Green is India’s largest renewable energy producer. Per their FY24 results, revenue grew 33% year-on-year to ₹7,735 crore with an industry-leading EBITDA margin of 92%. Operational capacity increased 35% to 10.9 GW, with greenfield additions of 2.8 GW representing 15% of India’s total renewable capacity addition that year. The company has revised its 2030 target upward from 45 GW to 50 GW and is deploying 30 GW under construction at Khavda, Gujarat — the world’s largest renewable energy plant.

4. Sterling and Wilson Renewable Energy (SWSOLAR) — Solar EPC

Sterling and Wilson is a pure-play solar EPC (engineering, procurement, construction) company. Per their FY24 annual report, revenue from operations surged 50.6% to ₹3,035 crore from ₹2,015 crore the prior year, with EPC contributing 93.1% of total revenue. The unexecuted order book stood at ₹8,084 crore as of March 2024, with new order inflows of ₹6,023 crore (up from ₹4,387 crore). As solar project pipelines swell in response to energy security concerns, EPC players like Sterling and Wilson capture the construction spend.

5. Inox Wind (INOXWIND) — Wind Turbine Manufacturing

Inox Wind rounds out the wind energy theme. Per their FY23 annual report, the company operates manufacturing capacity of 1,900 MW for nacelles and hubs, 1,600 MW for blades, and 600 MW for towers designed for 2 MW WTGs. Their next-generation 3 MW wind turbine generator has secured type certification from TUV SUD, with serial production underway. As wind energy orders surge — evidenced by Suzlon’s record NTPC order — turbine manufacturers with certified higher-capacity products are in a strong position.

What About Pharma? The Other Side of This Trade

It’s worth noting who gets hurt. Pharmaceutical companies are heavily exposed to crude oil derivatives — solvents, packaging materials, and transport costs all rise with oil. Ajanta Pharma noted in their FY23 annual report that higher API prices "resulting from the conflict and uncertain world scenario" caused a gross margin contraction of 300 basis points. If the Hormuz situation persists, expect similar margin pressure across the pharma sector.

What Retail Investors Should Do

Don’t panic-sell into the oil shock. Instead, look at where the money flows next. India’s renewable energy sector isn’t just a feel-good story — it’s backed by government mandates (RCO obligations through FY30), record order books (Suzlon at 5.1 GW, Premier Energies at 5,303 MW), and companies generating real profits. If you’re rebalancing, consider whether your portfolio has enough exposure to companies that benefit from — rather than suffer under — high oil prices. The best time to buy energy transition stocks is often when oil is making headlines for the wrong reasons.

Data sourced from company filings on NSE via Xaro.