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PL Capital expects power companies to post stronger June-quarter earnings as a heatwave and delayed monsoon lifted electricity demand, with NTPC, Power Grid and Adani Energy Solutions among the likely beneficiaries.
India's power companies are expected to report a stronger first quarter of FY27 after electricity demand surged during the April-June period, aided by an intense summer and a delayed monsoon, according to a report by PL Capital.
The brokerage expects companies under its power sector coverage (excluding Coal India) to post profit growth of around 7.4% from a year ago, supported by higher power consumption and steady performance from large utilities such as NTPC and Power Grid.
The June quarter saw one of the strongest demand recoveries in recent years. Peak electricity demand touched 271 GW, up 12% from a year ago, while overall power consumption rose 8% to 484 billion units.
At the same time, electricity prices in the day-ahead market remained relatively subdued because of healthy renewable generation and comfortable coal availability, easing input cost pressures for the sector.
Winners and laggards
Among power generators, NTPC is expected to be one of the key beneficiaries. The brokerage estimates its electricity generation increased about 6% during the quarter as plant utilisation improved.
CESC is also expected to report steady growth, while renewable-focused NTPC Green Energy posted the sharpest increase in generation among the companies tracked by the brokerage.
Not every company benefited equally, however.
Hydro-dependent companies such as SJVN and Torrent Power are expected to report weaker generation because of lower plant load factors, while Tata Power's Mundra plant and JSW Energy also likely saw generation decline compared with last year.
Company-wise generation (MUs) trend
| NTPC | 92,732 | 87,849 | +6% |
| NHPC | 8,682 | 8,249 | +5% |
| NLC India | 7,389 | 6,063 | +22% |
| Tata Power Mundra | 6,252 | 6,314 | -1% |
| Torrent Power | 1,790 | 3,155 | -43% |
| CESC | 4,037 | 3,893 | +4% |
| Acme Solar Holdings | 1,889 | 1,772 | +7% |
| NTPC Green Energy | 4,674 | 2,979 | +57% |
| JSW Energy | 8,063 | 9,680 | -17% |
| SJVN | 1,904 | 3,241 | -41% |
(Source : PL Capital)Earnings outlook
PL Capital expects revenue to increase for Adani Energy Solutions, CESC, Coal India, Indian Energy Exchange, NTPC, Power Grid and Tata Power during the quarter. JSW Energy, however, is projected to report lower revenue than a year ago.
Among individual companies, CESC is expected to deliver double-digit profit growth, supported by its Chandrapur power purchase agreement.
NTPC and Power Grid are likely to post steady earnings growth of around 6-7%, while Coal India could see EBITDA rise about 11% on the back of higher e-auction sales.
Adani Energy Solutions is expected to be another standout performer. The brokerage estimates its EBITDA could grow 20% year-on-year, while profit may jump 57%, helped by rapid smart meter deployment and the commissioning of the Mumbai HVDC transmission project.
Q1FY27 result preview (Sales ₹ mn)
| Adani Energy Solutions | 81,776 | 68,193 |
| CESC | 60,336 | 54,300 |
| Coal India | 378,636 | 358,422 |
| Indian Energy Exchange | 1,521 | 1,400 |
| JSW Energy | 43,533 | 51,434 |
| NTPC | 467,493 | 444,911 |
| Power Grid Corporation of India | 120,561 | 111,962 |
| Tata Power Company | 185,761 | 180,351 |
Source : PL Capital
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(Edited by : Prashant)
First Published:
Jul 9, 2026 9:13 PM
IST
