Axis Direct Identifies Five Stocks to Benefit from Rising Indian Power Demand

India Power Market Outlook: Strong Demand and Weather Risks to Drive Sector Growth

Key Highlights:

• India's peak power demand reached 245 GW in January 2026, with a projected increase to 270 GW this summer, a 8% step-up from the all-time high of 250 GW recorded in May 2024.
• Axis Direct maintains Buy ratings on five power-linked names: JSW Energy, NLC India, Coal India, Skipper, and NTPC.
• The brokerage expects strong demand, weather risks, and transmission expansion to drive the sector's growth.

Sector Overview:

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• India's electricity sector continues to demonstrate underlying structural demand strength, with peak power demand reaching 245 GW in January 2026.
• Weather and infrastructure are key factors shaping the case for power stocks, with global climate models pointing to a possible transition from La Niña to El Niño conditions as early as May 2026.
• Hotter summers could raise cooling demand, weaker monsoon conditions could hurt hydro generation, and the result could be stronger dispatch for thermal power producers and coal suppliers.

Stock Picks:

• JSW Energy: Target price of ₹630, with a Buy rating due to its mix of merchant capacity and long-term PPAs, which could benefit from tighter grid conditions and stronger power demand.
• NLC India: Target price of ₹300, with a Buy rating due to its state-owned lignite-based thermal generation and captive fuel security, making it a relatively balanced play on both conventional power demand and the gradual clean-energy transition.
• Coal India: Target price of ₹500, with a Buy recommendation due to higher international coal prices supporting e-auction premiums and stronger domestic power demand aiding volume growth.
• Skipper: Target price of ₹470, with a Buy rating due to its well-placed position to benefit from ongoing transmission infrastructure expansion and a strong order book of ₹9,009 crore.
• NTPC: A key thermal utility beneficiary of the improving demand trend, with a Buy rating due to its diversified portfolio and exposure to multiple parts of India's power growth story.