Renewable Energy and Financial Performance: A Panel Data Analysis of Indian Maharatna Firms

The shift of renewable energy has become a top priority for utility companies around the globe. Renewable electricity generation represents one of the factors of BRSR reporting in India to assess the Firms. It strengthens policy and is listed as one of the qualifying activities under the Taxonomy Regulation. The scarce literature on the impact of renewable energy investments on corporate financial performance is divided into two main perspectives: one emphasizes stock returns, while the other explores the factors influencing financial performance, measured either by risk indicators or accounting metrics. A small number of studies have evaluated the impact of investments in renewable energy generation on the performance of utility companies. This article presents three linear regression analyses based on panel data consisting of firm-year observations for Indian Maharatna firms from 2020 to 2024. The analysis focuses on (i) profitability metrics such as return on assets ROA ,return on equity ROE ,return on capital employed ROCE & Market value . The findings to reveal whether the share of renewable generation is significantly and is positively associated with profitability indicators. This could pose a limitation to investments in renewable generation capacity, potentially hindering the achievement of the targets set by the Firm.