5 Key Takeaways
- India aims to produce 5 million metric tonnes of green hydrogen annually by 2030, with ₹8 lakh crore investment and 125 GW of renewable energy capacity.
- Waaree Energies is building an integrated hydrogen ecosystem with a 1 GW electrolyser plant in Gujarat, supported by PLI incentives and order pipeline.
- Advait Energy Transitions focuses on localising electrolyser technology, expanding capacity from 30 MW to 300 MW, and developing a domestic supply chain.
- JSW Energy has commissioned a commercial green hydrogen plant with a seven-year offtake agreement, and plans for 85–90 KTPA capacity via group captive MoUs.
- Financial strength varies: Waaree and Advait show high ROCE/ROE, while JSW's returns are temporarily lower due to heavy investment; sector still depends on policy and industrial adoption.
India's Green Hydrogen Revolution Is Finally Leaving the Drawing Board
For years, green hydrogen has been the great white hope of the global energy transition—clean, storable, and capable of decarbonising industries that electricity alone cannot reach. India has long talked about leading this revolution. Now, for the first time, the talking is turning into steel, pipelines, and long-term supply contracts. With an investment vision surpassing ₹8 lakh crore, the country is moving decisively from policy papers to on-ground projects. Three companies—Waaree Energies, Advait Energy Transitions, and JSW Energy—illustrate how quickly plans can become real when manufacturing, offtake agreements, and government support converge.
The Big Picture: What India Wants to Achieve
India's green hydrogen mission is not a modest pilot programme. The government has set its sights on producing 5 million metric tonnes of green hydrogen every year by 2030. To power the electrolysers that split water into hydrogen and oxygen, the plan envisages building 125 gigawatts (GW) of dedicated renewable energy capacity. The total investment envelope is over ₹8 lakh crore.
The policy framework began taking shape in January 2023 with a financial outlay of ₹19,744 crore up to financial year 2030. Of this, ₹17,490 crore has been earmarked specifically to boost domestic manufacturing of electrolysers—the devices that use electricity to separate water into hydrogen and oxygen. When that electricity comes from solar, wind, or hydro sources, the resulting product is called green hydrogen.
This is not just about meeting domestic demand. India wants to become a global production hub for green hydrogen and its derivatives, reducing fossil fuel imports and building a complete homegrown value chain. A major step in that direction was the launch of the Green Hydrogen Certification Scheme, which sets standards for production and paves the way for exports and wider commercial adoption.
With the architecture in place, attention is shifting to execution. Companies that can manufacture electrolysers, engineer large-scale plants, and lock in customers for the long term are beginning to stand out.
Waaree Energies: Building an Integrated Hydrogen Ecosystem
Waaree Energies, already a prominent name in solar manufacturing, is placing a sizeable bet on green hydrogen as the next pillar of its new-energy portfolio. The company is not merely aiming to supply one component; it is constructing an entire value chain that links electrolysers, renewable energy assets, and battery energy storage systems.
The initial phase concentrates on manufacturing electrolysers. Once that base is established, Waaree intends to move into Build-Own-Operate (BOO) projects and eventually supply green derivatives such as green ammonia and green methanol. Its target markets are broad: refineries, chemicals, maritime shipping, aviation, and natural gas blending.
The centrepiece of this strategy is an electrolyser manufacturing plant being built in Dungri, Gujarat, with a planned annual capacity of 1 GW. The price tag for the facility is ₹657 crore, and commercial production is expected to begin in financial year 2027.
Waaree has already secured support under the government's Production Linked Incentive (PLI) scheme. It has been allocated ₹440–444 crore for manufacturing 0.3 GW of electrolysers and an additional ₹510 crore linked to 90,000 tonnes per annum (TPA) of green hydrogen production. The company has also entered into a technology agreement with a partner that brings more than 18 years of experience in pressurised alkaline electrolysers.
What makes Waaree's progress tangible is its order book. The company has already built a green hydrogen order pipeline worth ₹152 crore in India—including a multi-technology project combining PEM electrolysers, alkaline electrolysers, a hydrogen refuelling station, fuel cells, and EV charging infrastructure, backed by a five-year O&M contract. Waaree has also secured a 15-year BOO contract to produce and supply green hydrogen and oxygen using a 2.5 MW pressurised alkaline electrolyser, and is in active discussions with players in the chemical and steel sectors.
Advait Energy Transitions: Localising Technology and Expanding Capacity
Advait Energy Transitions is treating green hydrogen as a core long-term growth driver. The company has created a dedicated subsidiary, Advait Green Energy (AGPL), to house all its green hydrogen initiatives, electrolyser manufacturing, and solar EPC activities.
AGPL has already set up an assembly facility for alkaline electrolysers and the associated Balance-of-Plant (BoP). The facility has passed its Factory Acceptance Test for an assembly line with an annual capacity of 30 MW. Deliveries of green hydrogen products are expected to commence in the 2027 to 2028 window.
The line is flexible, capable of handling electrolysers ranging from 250 kW to 5 MW, and BoP modules up to 20 MW. AGPL has laid out a roadmap to expand capacity to 100 MW by Q4 FY2027, and eventually to 300 MW as demand materialises. The expansion serves two purposes: meeting PLI targets and capturing export opportunities.
A key part of Advait's approach is localisation. The company has tied up with Chinese technology partner Jiangsu Guofu to bring electrolyser technology to India, but is actively evaluating and qualifying Indian vendors for critical components—gaskets, membranes, sealing materials, fasteners, and structural parts—with the aim of nurturing a domestic electrolyser supply chain from scratch.
During India Energy Week 2026, AGPL signed several strategic MoUs: with P2H2 for AEM electrolyser-based projects, with VJ Industries for hydrogen storage systems, and with CENMAT for PEM and AEM electrolyser deployment. The green hydrogen EPC division posted revenue of ₹6.2 crore in FY2026—a 7% year-on-year increase—and management expects margins on electrolyser modules to expand from an initial 5–10% towards 20% by FY2028 as the localised supply chain matures.
Backing these ambitions is an order book of ₹1,304 crore, of which 36% comes from the New & Renewable Energy segment. The company is pursuing additional tender opportunities worth ₹2,000 crore and expects the total order book to reach ₹1,600 crore by the end of FY2027.
JSW Energy: Commissioned Capacity and Locked-In Offtake
JSW Energy, part of the diversified JSW Group, has set a target of reaching 30 GW of generation capacity and 40 GWh of energy storage by 2030. Green hydrogen is a growing piece of that puzzle.
Through its renewable energy subsidiary JSW Neo, the company has already commissioned a commercial-scale green hydrogen plant with a production capacity of 3,800 tonnes per annum (TPA). As a valuable co-product, the facility also produces 30,000 TPA of green oxygen.
Unlike projects that are still looking for customers, JSW's plant is backed by a firm seven-year offtake agreement covering both green hydrogen and green oxygen—providing clear visibility on how output will be absorbed from day one. JSW is also participating in the SIGHT programme (₹17,490 crore outlay) and has received a Notice of Award for an additional 6,500 TPA of green hydrogen capacity.
The longer-term pipeline is even more ambitious. JSW has entered into group captive MoUs outlining future capacities of 85,000–90,000 TPA for green hydrogen and 720,000 TPA for green oxygen—tied to JSW Group's own industrial ecosystem, providing a built-in demand base as capacity scales up.
Where the Numbers Stand: A Snapshot of Financial Strength
Scaling up green hydrogen requires heavy capital investment. How these companies perform on return ratios and how the market values them provides a useful lens on their positioning.
| Metric | Waaree Energies | Advait Energy | JSW Energy |
|---|---|---|---|
| ROCE | 38.8% | 30.5% | 24.2% |
| ROE | 32.8% | 27.9% | 8.2% |
| P/E Ratio | 20.8 (below industry median) | Premium (below 3-yr median) | Premium (below 3-yr median) |
Waaree Energies stands out with a Return on Capital Employed (ROCE) of 38.8% and a Return on Equity (ROE) of 32.8%, reflecting strong profitability and efficient use of capital. Advait Energy Transitions also posts healthy returns, with ROCE of 30.5% and ROE of 27.9%. JSW Energy, which is in the middle of significant capital deployment across its green energy portfolio, has more modest return ratios—ROCE of 24.2% and ROE of 8.2%—as heavy investment temporarily weighs on returns.
On valuation, Waaree's price-to-earnings (P/E) multiple of 20.8 sits at a discount to the industry median. Advait and JSW trade at a premium to the industry median P/E, but both are trading below their own three-year historical median multiples—suggesting that while the market acknowledges their growth potential, recent price levels reflect some caution about the pace of execution and earnings conversion.
What Comes Next
India's green hydrogen story is no longer just a collection of policy announcements and ambitious targets. Electrolysers are being assembled. Plants are being commissioned. Offtake agreements are being signed. The three companies profiled here represent distinct approaches—vertically integrated ecosystem building at Waaree, technology localisation and component-level manufacturing at Advait, and group-backed scale-up of commissioned capacity at JSW.
Yet, it is important to recognise that the sector remains in its infancy. A large share of the targeted capacity is still on paper. Margins are thin in the early stages, and supply chains are only beginning to take shape. The commercial viability of green hydrogen depends heavily on policy support, the pace at which blending mandates and green ammonia usage are enforced, and the willingness of heavy industries to sign long-term purchase agreements.
For now, the direction of travel is unmistakable. As electrolyser factories become operational, order books expand, and regulatory frameworks firm up, India's green hydrogen push is steadily moving from blueprint to balance sheet. The next two to three years will reveal which companies can successfully convert upfront investment into sustainable earnings—and which remain stuck in the planning phase.
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