Goldman Sachs Lists Five Indian Power Stocks as AI Drivers

Goldman Sachs has identified five Indian power generation companies as critical enablers for the global artificial intelligence buildout. The selection comes despite a 12% decline in the Nifty index in 2026, highlighting a divergence where AI-linked infrastructure sectors are outperforming the broader market. The brokerage argues that the soaring demand for data centers and semiconductors is creating a sustained tailwind for power utilities that can meet the resulting energy load.

The report, reported by The Economic Times, focuses on firms with significant capital expenditure plans aimed at expanding renewable capacity. These companies are positioned to benefit from the structural shift in energy consumption patterns driven by AI workloads. The analysis separates current financial performance from future growth trajectories, emphasizing the link between power availability and technological adoption.

Adani and NTPC lead expansion

Adani Green Energy stands out with a listed market capitalization exceeding $22 billion and a six-month average daily traded volume of $52 million. The company reports 70% earnings growth but faces heavy capital requirements, with capex intensity at 235% of sales. Free cash flow is negative at 109% of sales, and the stock trades at a 12-month forward P/E of 60x, reflecting high growth expectations.

NTPC Green Energy has a market cap of $8 billion and a six-month ADTV of $9 million. It posts the highest earnings growth among the group at 106%, though capex intensity is extreme at 613% of sales. Free cash flow is negative 250% of sales, and the forward P/E is 37x. This profile indicates a phase of aggressive investment to scale renewable assets to meet rising demand.

Tata Power offers balanced metrics

Tata Power presents a more conservative financial profile with a $12 billion market cap and $28 million six-month ADTV. Earnings growth is 12%, and capex intensity is 32% of sales, indicating a more moderate expansion pace. Free cash flow is slightly negative at 5% of sales, and the 12-month forward P/E stands at 23x, offering a lower valuation multiple compared to peers.

Smaller firms show rapid growth

ACME Solar Holdings and Clean Max Enviro Energy Solutions represent the smaller end of the selection. ACME has a $3 billion market cap and 86% earnings growth, with a 22x forward P/E. Clean Max, with a $2 billion market cap, reports 159% earnings growth and a 69x forward P/E. Both companies exhibit high capex intensity, at 487% and 242% of sales respectively, signaling heavy reinvestment in capacity.