Jefferies expects power stocks to rebound in 2026 on demand recovery

NTPC

02/01/2026 06:58

** Jefferies sees power producer stocks bouncing back in 2026 as demand recovers  after unseasonal rains last year dampened need for consumer durables

** Brokerage lists JSW Energy JSWE.NS ("buy", PT: 700 rupees) and state-owned NTPC NTPC.NS ("buy", PT: 440 rupees) as its top picks in the sector, as they invest in new projects and execute power purchase contracts

** NTPC up 3.5%, JSWE rises 2.2%

** Medium-term power demand CAGR to return to 5%-6% levels on the back of data centre expansion and rising EV sales - Jefferies

** Renewable energy purchase agreements, thermal power capacity additions to gather pace in 2026 - Jefferies

** In 2025, JSWE dropped 6% vs NTPC's 1% decline, both lagging Nifty 50's .NSEI 10.5% rise

(Reporting by Nandan Mandayam in Bengaluru)

((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))