Power – Jul-Sep’26 Earnings Preview – A good quarter led by power demand uptick
Published on 07 Oct 2026
Power sector performance improved in Q2FY27, with underlying demand witnessing a healthy recovery. Peak power demand increased ~11% YoY to 270GW, while energy consumption grew ~12% YoY to 501BU. Short-term prices showed recovery, with DAM prices higher +59% YoY to INR5.9/kWh, supported by strong power demand and lower coal availability. Operational performance was mixed across players: NTPC reported ~15% YoY increase in generation aided by higher PLF of 69%, while TPWR’s Mundra plant witnessed a jump in generation due to Supplementary PPA, Torrent Power’s generation declined ~38% YoY, while JSW Energy and CESC reported ~10% and ~6% growth, respectively. On the financial front, the coverage universe (ex-Coal India) is expected to report ~10% YoY PAT growth, with AESL & COAL likely to strong earnings growth, while NTPC and ADANI are expected to post stable 10% YoY PAT growth. Top Picks NTPC, PWGR ADANI, CESC.
