EV Sector Vs Power Sector – Who Holds the Key to a Greener Future?

The EV sector accelerates clean transportation, reducing carbon emissions, while the power sector drives renewable energy adoption. A sustainable future depends on both EVs needing green electricity, and power grids must evolve to support growing clean energy demands efficiently.

EV Sector Overview

The electric vehicle (EV) sector is rapidly expanding, driven by sustainability goals and technological advancements. Governments worldwide offer incentives, while automakers invest in battery efficiency and charging infrastructure. Growing consumer demand and environmental concerns further accelerate the transition from fossil-fuel vehicles to EVs.

Challenges persist, including high initial costs, charging network limitations, and battery disposal concerns. However, innovations in solid-state batteries, fast-charging technology, and renewable energy integration promise a promising future. With increasing market adoption and policy support, the EV sector is set for sustained growth globally.

Power Sector Overview

The power sector is evolving with a shift towards renewable energy sources like solar, wind, and hydro. Governments and private players invest in grid modernisation, energy storage, and smart technologies to enhance efficiency, ensuring a reliable and sustainable electricity supply worldwide.

Despite growth, challenges like transmission losses, coal dependence, and infrastructure gaps remain. Innovations in battery storage, decentralized grids, and digitalization are improving reliability. With increasing demand and policy support, the sector is poised for a cleaner, more resilient energy future.

Best Stocks In The EV Sector

The table below shows the best stocks in the EV sector based on a 1Y return.

Name	Close Price (Rs)	1Y Return (%)
Kaynes Technology India Ltd	4,649.75	73.11
Eicher Motors Ltd	5,247.90	30.73
Mahindra and Mahindra Ltd	2,596.55	29.65
Vedanta Ltd	401.45	29.52
Solar Industries India Ltd	10,987.10	26.8
Ashok Leyland Ltd	205.14	18.58
UNO Minda Ltd	830.75	13.91
NLC India Ltd	236.27	2.24
Samvardhana Motherson International Ltd	118.93	-0.56
Polycab India Ltd	5,040.75	-3.53

Top Stocks In The Power Sector

The table below shows the top stocks in the power sector based on a 1Y return.

Name	Close Price (Rs)	1Y Return (%)
GMR Power and Urban Infra Ltd	113.83	155.51
Skipper Ltd	466.1	47.24
Fischer Medical Ventures Ltd	842.35	40.29
Reliance Power Ltd	38.21	38.44
Indian Energy Exchange Ltd	178.07	32.84
CESC Ltd	153.86	29.62
RattanIndia Power Ltd	10.38	20.7
JSW Energy Ltd	575.25	12.09
NTPC Ltd	366.95	11.5
Gujarat Industries Power Company Ltd	181.07	10.24

Fundamental Analysis Of the Electric Vehicle Sector

Kaynes Technology India Ltd

Kaynes Technology India Ltd, incorporated in 2008, is a leading integrated electronics manufacturing company specializing in end-to-end and IoT-enabled solutions. It offers conceptual design, process engineering, and lifecycle support across automotive, aerospace, defence, medical, railways, IT, IoT, industrial, nuclear, and outer-space sectors, ensuring advanced technology-driven manufacturing excellence.

Market Cap: ₹31,724.06 Crore

Close Price: ₹4,649.75

1Y Return: 73.11%

1M Return: 22.04%

6M Return: -7.9%

5Y average net Profit Margin: 5.79%

5Y CAGR: NA

Dividend Yield: NA

Sector: Electrical Components & Equipments

Eicher Motors Ltd

Established in 1948, Eicher Motors Ltd is a key player in India’s commercial vehicle segment. Through its joint venture, EV Commercial Vehicles, the company is developing electric trucks and buses to accelerate India’s EV transition. It focuses on efficient, eco-friendly mobility solutions for urban and intercity transportation.

Market Cap: ₹1,47,476.97 Crore

Close Price: ₹5,247.90

1Y Return: 30.73%

1M Return: 10.41%

6M Return: 11.5%

5Y average net Profit Margin: 18.02%

5Y CAGR: 32.85%

Dividend Yield: 0.95%

Sector: Trucks & Buses

Mahindra and Mahindra Ltd

Mahindra & Mahindra Ltd, founded in 1945, is a leading diversified automobile company in India. It operates across two-wheelers, passenger and commercial vehicles, tractors, and earthmovers, with business interests in finance, IT, defence, logistics, hospitality, energy, aerospace, and industrial equipment.

Market Cap: ₹3,13,159.68 Crore

Close Price: ₹2,596.55

1Y Return: 29.65%

1M Return: 1.97%

6M Return: -13.95%

5Y average net Profit Margin: 5.11%

5Y CAGR: 56.04%

Dividend Yield: 0.75%

Sector: Four Wheelers

Vedanta Ltd

Founded in 1976, Vedanta Ltd is a diversified natural resources company. It is investing in the EV value chain by targeting lithium and other battery minerals, crucial for electric vehicle manufacturing. Vedanta’s global mining operations position it as a vital supplier in the clean energy and EV ecosystem.

Market Cap: ₹1,71,669.38 Crore

Close Price: ₹401.45

1Y Return: 29.52%

1M Return: 9.66%

6M Return: -21.08%

5Y average net Profit Margin: 5.7%

5Y CAGR: 44.92%

Dividend Yield: 6.39%

Sector: Metals – Diversified

Solar Industries India Ltd

Incorporated in 1995, Solar Industries India Ltd is a leader in explosives and defence products. It plays an indirect but crucial role in the EV sector by supporting mineral exploration for lithium, graphite, and rare earths—essential for EV battery production—through safe, efficient mining support and technologies.

Market Cap: ₹1,02,195.85 Crore

Close Price: ₹10,987.10

1Y Return: 26.8%

1M Return: 27.53%

6M Return: 0.34%

5Y average net Profit Margin: 11.66%

5Y CAGR: 65.37%

Dividend Yield: 0.08%

Sector: Commodity Chemicals

Ashok Leyland Ltd

Established in 1948, Ashok Leyland Ltd is one of India’s largest commercial vehicle manufacturers. Its EV initiative, Switch Mobility, designs and manufactures electric buses and light commercial vehicles. The company is focused on zero-emission, sustainable mobility solutions tailored for public transport and last-mile delivery across global markets.

Market Cap: ₹61,649.45 Crore

Close Price: ₹205.14

1Y Return: 18.58%

1M Return: 1.91%

6M Return: -8.98%

5Y average net Profit Margin: 1.51%

5Y CAGR: 39.99%

Dividend Yield: 2.36%

Sector: Trucks & Buses

UNO Minda Ltd

Uno Minda Ltd, incorporated in 1958, is a leading manufacturer and supplier of automotive solutions. It produces 25+ components, including switches, lights, alloy wheels, and seats, catering to passenger cars, commercial vehicles, and electric/hybrid markets for Original Equipment Manufacturers (OEMs).

Market Cap: ₹49,590.53 Crore

Close Price: ₹830.75

1Y Return: 13.91%

1M Return: 6.37%

6M Return: -20.2%

5Y average net Profit Margin: 4.37%

5Y CAGR: 49.06%

Dividend Yield: 0.23%

Sector: Auto Parts

NLC India Ltd

NLC India Ltd, founded in 1956, is a government-owned mining and power generation company. While rooted in lignite mining, it is pivoting toward renewable energy. With investments in solar and wind power, NLC supports clean electricity supply for EV charging networks and sustainable infrastructure development.

Market Cap: ₹34,503.68 Crore

Close Price: ₹236.27

1Y Return: 2.24%

1M Return: 23.82%

6M Return: -14.5%

5Y average net Profit Margin: 10.1%

5Y CAGR: 40.21%

Dividend Yield: 1.21%

Sector: Metals – Diversified

Samvardhana Motherson International Ltd

Samvardhana Motherson International Ltd is a leading automotive components manufacturer, supplying to original equipment manufacturers worldwide. It is among the largest global producers of exterior rear-view mirrors and a key player in polymer-based interior and exterior modules and wiring harnesses.

Market Cap: ₹90,725.99 Crore

Close Price: ₹118.93

1Y Return: -0.56%

1M Return: 9.94%

6M Return: -40.81%

5Y average net Profit Margin: 1.94%

5Y CAGR: 26.68%

Dividend Yield: 0.6%

Sector: Auto Parts

Polycab India Ltd

Established in 1996, Polycab India Ltd is India’s largest manufacturer of wires and cables. It plays a critical role in EV infrastructure by supplying specialized cables for EV charging stations and grid systems. Polycab’s energy-efficient products ensure safe, scalable electrification essential to India’s growing EV ecosystem.

Market Cap: ₹78,277.88 Crore

Close Price: ₹5,040.75

1Y Return: -3.53%

1M Return: 7.74%

6M Return: -29.84%

5Y average net Profit Margin: 8.88%

5Y CAGR: 46.92%

Dividend Yield: 0.58%

Sector: Electrical Components & Equipments

Fundamental Analysis Of the Power Sector

GMR Power and Urban Infra Ltd

GMR Power and Urban Infra Limited (GPUIL) is a subsidiary of GMR Group, specializing in energy, urban infrastructure, and transportation. Headquartered in New Delhi, it operates under GMR Enterprises, founded in 1978 by G. M. Rao, contributing to India’s infrastructure growth.

Market Cap: ₹8,136.98 Crore

Close Price: ₹113.83

1Y Return: 155.51%

1M Return: 4.54%

6M Return: -27.05%

5Y Average Net Profit Margin: NA

5Y CAGR: NA

Dividend Yield: NA

Sector: Power Generation

Skipper Ltd

Skipper Ltd is a leading manufacturer of transmission and distribution structures, pipes, and fittings. It also executes EPC projects in infrastructure. Ranking among the top 10 globally in T&D structures, its engineering segment contributes significantly, with strong revenue growth and diverse product offerings across power, telecom, and railways.

Market Cap: ₹5,263.08 Crore

Close Price: ₹466.1

1Y Return: 47.24%

1M Return: 13.18%

6M Return: -1.43%

5Y Average Net Profit Margin: 2.01%

5Y CAGR: 42.67%

Dividend Yield: 0.02%

Sector: Power Infrastructure

Fischer Medical Ventures Ltd

Fischer Medical Ventures Ltd, incorporated in 1993, specializes in processing, manufacturing, and trading laboratory-grade chemicals. Originally known as Fischer Chemic Ltd, the company also deals in chemicals and machinery, catering to various industrial and research applications with a focus on quality and precision in chemical solutions.

Market Cap: ₹5,374.32 Crore

Close Price: ₹842.35

1Y Return: 40.29%

1M Return: -4.17%

6M Return: 34.01%

5Y Average Net Profit Margin: NA

5Y CAGR: 7.67%

Dividend Yield: NA

Sector: Power Trading

Reliance Power Ltd

Reliance Power Ltd develops, constructs, and operates power projects in India and internationally. With a total generation capacity of 5,945 MW, including 5,760 MW of thermal and 185 MW of renewable energy, the company focuses on expanding its power infrastructure through subsidiaries and ongoing developments.

Market Cap: ₹15,348.85 Crore

Close Price: ₹38.21

1Y Return: 38.44%

1M Return: 1.64%

6M Return: -4.59%

5Y Average Net Profit Margin: -16.97%

5Y CAGR: 40.38%

Dividend Yield: NA

Sector: Power Generation

Indian Energy Exchange Ltd

Indian Energy Exchange Ltd, incorporated in 2007, is India’s leading electricity exchange, holding an 85% market share as of 9M FY25. It provides an automated trading platform for electricity, renewable power, and energy certificates, enhancing price discovery, market accessibility, and efficiency in India’s power sector.

Market Cap: ₹15,834.69 Crore

Close Price: ₹178.07

1Y Return: 32.84%

1M Return: 3.58%

6M Return: -15.85%

5Y Average Net Profit Margin: 61.01%

5Y CAGR: 37.25%

Dividend Yield: 1.4%

Sector: Power Trading

CESC Ltd

CESC Ltd, incorporated in 1978, specializes in electricity generation and distribution. As the flagship of the RP-Sanjiv Goenka Group, it benefits from a strong parentage with diversified operations across power, infrastructure, retail, and more, with a significant presence in over 60 countries and 100 offices globally.

Market Cap: ₹20,395.23 Crore

Close Price: ₹153.86

1Y Return: 29.62%

1M Return: 12.55%

6M Return: -23.39%

5Y Average Net Profit Margin: 9.4%

5Y CAGR: 38.11%

Dividend Yield: 2.94%

Sector: Power Generation

RattanIndia Power Ltd

RattanIndia Power Ltd is one of India’s largest private power generation companies, operating 2,700 MW thermal power plants in Maharashtra. Incorporated in 2007, it was initially part of the Indiabulls Group before being rebranded in 2014 following a corporate restructuring.

Market Cap: ₹5,574.17 Crore

Close Price: ₹10.38

1Y Return: 20.7%

1M Return: 5.66%

6M Return: -32.16%

5Y Average Net Profit Margin: -15.62%

5Y CAGR: 103.28%

Dividend Yield: NA

Sector: Power Generation

JSW Energy Ltd

JSW Energy Ltd, the power arm of the JSW Group, is engaged in power generation across Karnataka, Maharashtra, Nandyal, and Salboni. With a total thermal capacity of 3,508 MW, the company also has ventures in mining and turbine manufacturing through joint ventures and associates.

Market Cap: ₹1,00,390.62 Crore

Close Price: ₹575.25

1Y Return: 12.09%

1M Return: 14.14%

6M Return: -27.12%

5Y Average Net Profit Margin: 14.12%

5Y CAGR: 39.92%

Dividend Yield: 0.33%

Sector: Power Generation

NTPC Ltd

NTPC Ltd, India’s largest power utility, specializes in power generation and bulk power sales to state utilities. It also operates in consultancy, project management, energy trading, oil & gas exploration, and coal mining, reinforcing its presence across the energy value chain.

Market Cap: ₹3,55,819.16 Crore

Close Price: ₹366.95

1Y Return: 11.5%

1M Return: 8.88%

6M Return: -14.28%

5Y Average Net Profit Margin: 11.03%

5Y CAGR: 22.21%

Dividend Yield: 2.11%

Sector: Power Generation

Gujarat Industries Power Company Ltd

Gujarat Industries Power Co Ltd, a Gujarat government-owned entity, specializes in electricity generation with a total installed capacity of 1,184.40 MW. Its diverse portfolio includes thermal (gas and lignite), wind, and solar power assets, contributing to the state’s energy infrastructure and sustainability initiatives.

Market Cap: ₹2,738.71 Crore

Close Price: ₹181.07

1Y Return: 10.24%

1M Return: 2.24%

6M Return: -21.58%

5Y Average Net Profit Margin: 14.47%

5Y CAGR: 49.06%

Dividend Yield: 2.18%

Sector: Power Generation

EV Sector Performance & Growth

The table below shows the EV sector performance & growth based on a 5-year net profit margin.

Name	Close Price (Rs)	5Y Avg Net Profit Margin (%)
Sona BLW Precision Forgings Ltd	501.95	17.9
Bajaj Auto Limited	8,125.55	16.52
Exide Industries Ltd	366	10.02
Hero MotoCorp Ltd	3,626.35	9.31
Sundram Fasteners Ltd	950.75	9.09
Polycab India Ltd	5,025.45	8.88
Bosch Ltd	28,276.80	8.76
Amara Raja Energy & Mobility Ltd	1,069.75	7.85
Havells India Ltd	1,483.20	7.79
Asahi India Glass Ltd	634.6	7.69

Power Sector Performance & Growth

The table below shows the power sector performance & growth based on a 5-year net profit margin.

Name	Close Price (Rs)	5Y Avg Net Profit Margin (%)
Indian Energy Exchange Ltd	178.07	61.01
Power Grid Corporation of India Ltd	291.85	31.67
IndiGrid Infrastructure Trust	141.49	20.55
Gujarat Industries Power Company Ltd	181.07	14.47
Adani Power Ltd	523.95	14.26
JSW Energy Ltd	575.25	14.12
NTPC Ltd	366.95	11.03
CESC Ltd	153.86	9.4
Adani Energy Solutions Ltd	820.25	8.42
Torrent Power Ltd	1,530.10	7.37

Government Policies & Incentives For The Electric Vehicle and Power Sector

Governments worldwide support the EV sector through subsidies, tax benefits, and infrastructure investment. Policies like India’s FAME scheme and the U.S. Inflation Reduction Act encourage EV adoption, battery manufacturing, and charging network expansion, accelerating the transition to sustainable transportation.

The power sector benefits from renewable energy incentives, grid modernization funding, and carbon reduction policies. Initiatives like feed-in tariffs, production-linked incentives, and green energy mandates drive investment in solar, wind, and storage solutions, ensuring a cleaner and more efficient energy landscape.

Challenges Faced By EV and Power Sector

The main challenges faced by the EV and power sectors include high costs, infrastructure limitations, and supply chain constraints. Integrating renewables into grids while ensuring reliability is complex. Advancements in battery technology, smart grids, and policy support are essential to overcoming these hurdles.

• High Costs – EV batteries and charging infrastructure require significant investment, making adoption slower. Similarly, power sector modernization and renewable integration demand substantial capital.
  
• Infrastructure Gaps – Limited EV charging stations and outdated power grids hinder efficiency, affecting seamless energy distribution and vehicle adoption.
  
• Supply Chain Issues – Dependence on scarce materials like lithium for batteries and global energy supply disruptions impact growth in both sectors.
  
• Grid Stability & Renewable Integration – Managing energy demand fluctuations while integrating renewable sources into existing grids poses technical and operational challenges.

Future Outlook Of EV and Power Sector

The EV sector is set for exponential growth with advancements in battery technology, autonomous driving, and charging infrastructure. Increased affordability, policy support, and sustainability goals will drive global adoption, making EVs a mainstream choice for personal and commercial transportation.

The power sector will continue shifting toward renewables, with innovations in energy storage, smart grids, and hydrogen technology enhancing efficiency. Decarbonization efforts, government incentives, and rising electricity demand will fuel investments, ensuring a cleaner, resilient, and sustainable energy future worldwide.

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• Use the search bar to find EV and Power Sector shares.
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Difference Between Power Sector And EV Sector – Conclusion

• The electric vehicle (EV) sector is growing rapidly, driven by technological advancements, government incentives, and sustainability goals. Expanding EV charging infrastructure and improved battery efficiency are accelerating global EV adoption, transforming transportation.
• The power sector is evolving with increasing renewable energy integration, smart grids, and energy storage advancements. Governments and private players invest in sustainable power solutions to enhance efficiency and reliability worldwide.
• Policies like subsidies, tax benefits, and infrastructure investment support EV sector adoption and power sector modernization. Renewable energy incentives, carbon reduction initiatives, and grid upgrades drive sustainable energy growth globally.
• The EV sector faces high costs, infrastructure limitations, and supply chain constraints. The power sector struggles with grid stability, fossil fuel dependence, and renewable integration challenges, requiring innovative solutions for sustainable progress.
• The EV sector will grow with battery advancements, autonomous driving, and charging network expansion. The power sector will shift toward renewable energy, smart grids, and energy storage, ensuring a cleaner, more efficient global energy future.
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Electric Vehicle Sector Vs Power Sector – FAQs

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.