CLSA sees spike in power demand, capacity addition boosting India's power stocks

Power Grid of India

21/03/2025 06:51

** Rising demand for power in India and likely capacity addition in the first half of fiscal year 2026 across thermal and hydro-power should benefit power-generating companies and regulated utilities, says CLSA

** Says capacity addition should help NTPC NTPC.NS and NHPC NHPC.NS, while Power Grid Corporation PGRD.NS is set to gain from large projects in the fiscal years 2026-2030

** Adds India's focus on ensuring energy security will drive large orders for thermal power, which may peak in FY 2026

** CLSA expects rising power demand (+3% in FY2025 year-to-date) to favour relatively inexpensive regulated companies such as NTPC, NHPC and CESC CESC.NS

** Terms PGRD, NTPC and NHPC as its top picks in the sector

** NTPC and NHPC up 2.2% and 4% respectively, while Power Grid and CESC rise about 1% each, on the day

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))