Indian Power Sector Profit Expected to Rise Up to 11% in Q2 FY27 on Strong Demand
India's power generation sector is projected to deliver profit growth of up to 11% year-over-year in the second quarter of FY27. Overall electricity demand surged 11.7% to 503 billion units during the quarter, boosted by an 11.8% demand increase in September 2026. Peak electricity demand jumped roughly 17.5% to 269 gigawatts during the month, driven by high humidity and below-average rainfall that forced heavier reliance on non-solar power generation.
The demand surge tightened supply and increased trading activity on Indian Energy Exchange Ltd. (NSE:IEX), where shares rose 1.95% to 106.4 INR. Non-solar evening prices on the exchange jumped from 3.2 rupees per unit in September 2025 to 9.5 rupees in September 2026, while solar-hour prices remained elevated at 5.6 rupees. Electricity trading volumes on the platform climbed 12.7% during the second quarter. Thermal power plants generated roughly 69% of total electricity in the quarter, with plant load factors improving to 68.3% compared to 61.9% in the prior-year period, supporting expected earnings growth of 8% to 9% for major thermal power producers.
Investors should monitor supply constraints and renewable capacity expansion in the coming quarters. Coal inventories at NTPC plants dropped 54% year-over-year to approximately 21 million metric tons in September 2026, leaving roughly seven days of stock. Meanwhile, renewable energy expansion reached about 16.4 gigawatts year-to-date through September 2026, with solar power making up 14.3 gigawatts of the additions.
Key points
- India's power sector profits are projected to rise up to 11% YoY in Q2 FY27 due to strong electricity demand.
- Quarterly power demand rose 11.7% YoY to 503 billion units, while September peak demand jumped 17.5% to 269 gigawatts.
- Non-solar electricity prices on Indian Energy Exchange Ltd. (NSE:IEX) spiked to 9.5 rupees per unit in September 2026 from 3.2 rupees in September 2025.
- Thermal generation supplied nearly 69% of power in Q2 FY27, with plant load factors rising to 68.3% from 61.9% a year earlier.
- NTPC plant coal inventories dropped 54% YoY to 21 million metric tons, representing about seven days of supply.
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How much is India's power sector profit expected to grow in Q2 FY27?
Power sector profits are projected to grow up to 11% year-over-year in Q2 FY27, while major thermal power producers are expected to post 8% to 9% profit growth.
What drove the increase in electricity prices on the Indian Energy Exchange?
Tight supply and a 17.5% jump in peak power demand to 269 gigawatts in September 2026 pushed non-solar prices up to 9.5 rupees per unit from 3.2 rupees a year earlier.
What is the current coal inventory level at major Indian power plants?
Coal stocks at NTPC plants dropped 54% year-over-year in September 2026 to around 21 million metric tons, leaving approximately seven days of supply.