Power – Apr-Jun’26 Earnings Preview – A good quarter led by power demand uptick
Published on 08 Jul 2026
Power sector performance improved in Q1FY27, with underlying demand witnessing a healthy recovery. Peak power demand increased ~12% YoY to 271GW, while energy consumption grew ~8% YoY to 484BU. Short-term prices remained soft, with DAM prices declining ~5% YoY to INR3.9/kWh, supported by higher renewable generation and comfortable coal availability. Operational performance was mixed across players: NTPC reported ~6% YoY increase in generation (after many quarters of decline), aided by higher PLF, while TPWR’s Mundra plant witnessed a marginal decline. Torrent Power (gas plant), JSW and SJVN reported weaker generation due to lower PLFs from hydro. CESC maintained stable operational performance with ~4% YoY growth in generation. On the financial front, the coverage universe (ex-Coal India) is expected to report ~7.4% YoY PAT growth, with CESC likely to deliver double-digit earnings growth, while NTPC and PWGR are expected to post stable 6–7% YoY PAT growth. Top Picks PWGR, NTPC and CESC.
