India's power sector set for strong FY27 growth on rising demand, capacity additions
India's power sector is projected to see strong growth through FY27 driven by rising electricity demand and increased capacity. Thermal power remains the backbone of the energy mix, though renewable energy continues to expand rapidly.
Why it matters
Reliable power infrastructure is critical for India's industrial growth and economic stability as the country balances energy security with green transitions.
India's power sector is expected to stay charged through FY27 as surging electricity demand, record peak power consumption and continued capacity additions fuel growth, a report by 360 ONE Capital said.The brokerage said that electricity consumption is expected to remain resilient as industrial and commercial activity gathers pace, creating favourable conditions for power utilities. Companies with fuel-secure thermal assets alongside growing renewable portfolios are likely to be better placed to deliver sustained earnings growth.India consumed nearly 485 billion units of electricity during the April-June 2026 quarter, up around 8 per cent from a year earlier. Peak power demand climbed to 270.82 GW in May, with the report attributing the increase to extreme heatwave conditions, a delayed onset of the monsoon and higher cooling requirements. Short-term electricity trading also picked up during the quarter.
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