Brokerage Forecasts Up to 57% Gains for Key Power and Utilities Stocks in Q4FY26 The domestic equity market’s utilities and power sector is poised for a mixed performance in the fourth quarter of fiscal year 2026, with brokerage firm JM Financial highlighting potential outperformers and underperformers amid shifting demand and operational dynamics. The analysis, released on April 2, 2026, outlines target prices and investment outlooks for major players, emphasizing the sector’s resilience in renewable energy and challenges for traditional thermal generators. JM Financial has issued a "Buy" rating for several stocks, including JSW Energy, Adani Green Energy, and CESC, with target prices of Rs 614, Rs 1,204, and Rs 196 respectively. The brokerage expects these companies to benefit from rising energy demand, particularly in renewable segments. For instance, JSW Energy is projected to see a 37% year-on-year (YoY) surge in power generation, driven by acquisitions, though higher finance costs and depreciation may temper profitability. Adani Green Energy’s revenue from power supply is anticipated to rise 15% YoY, supported by a 25% increase in generation. CESC is forecast to report an 11% YoY topline growth, attributed to higher demand in its distribution networks. The brokerage also highlighted Suzlon as a top performer, with a "Buy" call and a target price of Rs 64, representing a 56.8% upside from its current level of Rs 40.80. JM Financial cited expectations of a 51% YoY revenue jump for Suzlon, driven by increased dispatches and robust operating leverage. The firm projected dispatches to reach 874MW in Q4FY26 compared to 573MW in Q4FY25. State-run Bharat Heavy Electricals Ltd (BHEL) is another standout, with a "Buy" rating and a target price of Rs 345.#jm_financial #jsw_energy #adani_green_energy #cesc #suzlon
Power Sector Outlook: Mixed Performance Anticipated in Q4 FY26 Amid Muted Demand The power sector in India is expected to deliver a mixed performance in the fourth quarter of fiscal year 2026 (Q4 FY26), according to a report by PL Capital. The analysis highlights that underlying demand growth has remained limited, despite some increases in key metrics. Peak demand rose by approximately 2% year-over-year (YoY) to 245 gigawatts (GW), while energy consumption increased by 2% YoY to 425 billion units. However, the overall demand dynamics have not shown strong traction, leading to a subdued outlook for the sector. Power prices have continued to decline, with day-ahead market (DAM) prices falling by 12% YoY to Rs 3.9 per kilowatt-hour (kWh). This moderation is attributed to higher renewable energy generation and an ample supply of coal, which have kept supply conditions favorable. The report notes that the combination of renewable sources and coal availability has helped stabilize prices, even as demand growth remains constrained. Operational performance across power companies has been mixed. National Thermal Power Corporation (NTPC), one of the largest power generators in the country, reported a 4% YoY decline in generation. Its plant load factor (PLF) dropped to 65%, a 400 basis point (bps) decrease from the previous year. This decline is attributed to factors such as maintenance issues and lower-than-expected demand. In contrast, CESC (Central Electrical Supply Corporation) maintained stable performance, with a 3% YoY increase in generation. Tata Power, another major player, faced a sharp decline in generation due to disruptions at its Mundra plant. The company’s performance has been heavily impacted by operational challenges, which have affected its ability to meet demand.#tata_power #pl_capital #adani_energy_solutions #national_thermal_power_corporation #cesc
