India goes big on energy storage

Defence stocks rally, Solar assets bought, and BYD beats Tesla

🗓️ Morning, folks! ☀️

Markets had a rough Monday, with both the Nifty and Sensex ending in the red.

The biggest drags on the Nifty were heavyweights like HDFC Bank & IT names including HCLTech, Infosys, along with ONGC.

On the brighter side, Nestle India, Bharat Electronics, Eicher Motors, Asian Paints, and Tata Steel managed to close higher.

💡 Spotlight: Global tensions send defence stocks flying 🚀

Defence stocks were back on the front foot, with Paras Defence, Bharat Electronics, and Hindustan Aeronautics climbing nearly 3% each.

The spark was a fresh geopolitical shock. The US launched military action in Venezuela and captured President Nicolás Maduro.

Markets treated it like a new global flashpoint, with the Nifty India Defence index that also rose nearly 2%, hitting its highest level in over a month.

Oil-linked stocks also caught a bid. When unrest flares up in an oil-producing region, fears of supply disruptions can push crude prices higher, which usually lifts energy-heavy stocks.

Reliance gained over 1% too in early trade, nudging its market value closer to ₹22 lakh crore.

Let’s hit it! 💪🏻

1. Waaree’s bet on battery giga plant 🔋

Waaree Energy Storage, a unit of Waaree Energies, has raised ₹1,003 crore to begin its 20 GWh lithium-ion battery and battery plant in India.

A 20 GWh battery plant will store clean power for millions of homes and EVs, reducing India’s reliance on imported batteries.

Breaking it down: this fundraise is part of ₹10,000 crore capex plan. The upcoming facility will make batteries for grid-scale energy storage, EVs, ranging from small units to large systems.

Why it matters: India currently imports almost all its lithium-ion batteries. Cell imports jumped to $3 billion in FY25, up from $1.8 billion in FY22. A homegrown 20 GWh plant is a big step toward fixing that gap.

Zoom out: India’s energy storage sector is entering a hyper-growth phase. Capacity is projected to rise nearly 5x between 2026 and 2032, supported by investments of almost ₹4.8 trillion.

On the ground, energy storage needs are expected to jump from just 490 MWh today to nearly 3,000 GWh by 2047.

While we are on battery energy,

Servotech Renewable Power is entering India’s electric three-wheeler space, expanding beyond solar and EV charging into battery solutions.

What’s going on: the company has launched SULTAN, a lithium-ion battery designed for electric three-wheelers, along with Zest, a dedicated charger aimed at faster charging and better vehicle uptime.

It also introduced Voltie, a 2 kW on-grid solar inverter for homes and small businesses.

Why it matters: electric three-wheelers are one of the fastest-growing EV segments, driven by urban transport needs, last-mile delivery, and policy support. For Servotech, this opens up a large, high-usage market within clean mobility.

3. Inox Clean goes solar shopping ☀️

Inox Clean Energy is acquiring a 300 MW solar power portfolio from SunSource Energy, owned by Dutch multinational SHV Energy, for around ₹1,000 crore.

Context: Inox Clean Energy is an IPO-bound renewable energy platform from the INOX Group, with ambitions to scale fast in solar and wind. SunSource Energy is a commercial and industrial-focused solar developer with projects spread across India.

The deets: the deal is being executed through Inox Neo Energies, with 250 MWp already acquired and another 50 MWp in process, taking the total to 300 MWp.

The projects come with long-term power purchase agreements averaging 24 years, serving sectors like manufacturing, FMCG, healthcare, and pharma.

Big theme: India’s solar manufacturing capacity is set to explode over the next five years, across modules, cells, wafers, and polysilicon. Solar modules will nearly double from 80 GW in 2025 to 160 GW by 2030, showing where most capacity is being built.

4. New year, new listing 🔥

India’s 2026 IPO season has officially kicked off. Bharat Coking Coal, a subsidiary of Coal India, will launch its ₹1,071 crore IPO on January 9.

Here’s the scoop: the three-day issue comes with a price band of ₹21-23 per share. And it’s a clean offer-for-sale (OFS), meaning no new funds are being raised.

Instead, parent company Coal India will sell 10% of its stake, giving public market investors a chance to buy into the business.

Bharat Coking Coal’s IPO is one of the key steps in Coal India’s longer-term plan to take all of its subsidiaries public by FY2030. In other words, this could be the first of many spin-offs heading your way.

5. Stocks that kept us interested 🚀

1. Bondada Engineering jumps on big energy storage order ⬆️

Bondada Engineering secured a ₹627 crore order from the Transmission Corporation of Andhra Pradesh (AP TRANSCO) AP TRANSCO to set up a battery energy storage project.

The firm operates in India’s telecom and renewable energy sector, building telecom infrastructure, solar power plants, and manufacturing related components and green materials.

What does it include: under the scope of work, the company will set up a 225MW/450 MWh standalone battery energy storage project for AP TRANSCO.

This project will follow the build-own-operate (BOO) model, where a private company builds, owns, and operates the asset in partnership with the government.

Zoom out: with this order, the company’s total battery storage portfolio is now close to 1 GWh, strengthening Bondada Engineering’s position in India’s energy storage market, which is growing at a robust 34.07%.

2. NIBE wins Indian Army rocket systems order worth ₹293 crore 🚀

NIBE secured a ₹292.7 crore order from the Indian Army for the supply of critical ground systems and ammunition. The stock gained more than 4% reacting to the update.

The deets: the order includes manufacturing and delivery of ground equipment, accessories, and ammunition for a universal rocket launcher system.

The platform is designed to fire multiple rocket types, including long-range variants with strike capabilities of up to 150 km and 300 km.

Zoom out: India’s defence budget is already around ₹6 lakh crore, one of the largest in the world. Out of this, nearly ₹1.7 lakh crore is set aside just for buying new weapons, equipment, and technology.

The nation is also pushing defence exports. Last year, defence exports crossed ₹21,000 crore, and the government wants this number to reach ₹50,000 crore by 2028-29.