L&T, BHEL, MTAR, Power Mech set to gain as Nuclear Energy Mission unlocks multi-year capex opportunity

India’s nuclear power programme is moving into a busier phase as policymakers step up efforts to add clean, reliable baseload capacity. As Zee Business Research notes, the government wants to lift the country’s nuclear output from the current 8.8 GW to 22 GW by 2032, and eventually take it all the way to 100 GW by 2047.

The push comes at a time when the grid is seeing rising pressure from industrial demand and a growing need for low-carbon energy that can run round the clock—something nuclear plants are well suited for.

Indigenous SMRs come into focus

Another important step in the roadmap is the emphasis on Small Modular Reactors (SMRs). These are compact nuclear units that can be built off-site and assembled faster than traditional reactors. According to Zee Business Research, a significant part of the current effort is going into R&D so that India can eventually field its own SMR designs.

Because SMRs can operate in areas with smaller grid connections or in industrial hubs, they open up possibilities that large reactors usually cannot.

The buildout is expected to create steady work for a cluster of domestic engineering companies. Market analysts told Zee Business Research that these firms could see healthier order books as tenders start rolling out.

L&T is seen as a front-runner for specialised nuclear equipment and heavy engineering work. BHEL, which already supplies Nuclear Steam Generators, may see more activity as new projects move from planning to procurement.

Pump-maker KSB, known for its reactor coolant pumps, is likely to remain part of upcoming reactor plans. MTAR Technologies may also be in focus, with the research desk flagging the possibility of about Rs 1,000 crore in orders from the Department of Atomic Energy in the next few months.

Walchandnagar Industries—involved in components such as heat exchangers, end shields and reactor headers—could also benefit as nuclear construction gathers momentum.

For investors, these developments introduce a longer-horizon theme. If orders materialise as expected, analysts believe the earnings visibility for these companies could improve, which often supports stock performance over time.

Zee Business Research points out that the combined push toward SMRs, domestic manufacturing and large-scale capacity addition could create a durable investment story for the engineering and capital-goods space.