Power Sector Profits May Rise 11% In Q2FY27 On Strong Demand, Higher PLFs

New Delhi, Oct 13 (KNN) India’s power sector is expected to report up to 11 per cent year-on-year (YoY) profit growth in Q2FY27, supported by strong electricity demand, higher plant load factors and potential incentives for thermal power producers, according to Nuvama Institutional Equities.

Power Demand Rises Amid High Humidity, Lower Rainfall

India’s power demand rose 11.7 per cent YoY to 503 billion units (BU) in Q2FY27, while September demand increased nearly 12 per cent to 163 BU, driven by high humidity and lower rainfall, the brokerage said.

Peak power demand surged 17.5 per cent YoY to 269 GW in September, led by demand during non-solar hours, reported ANI.

Thermal Power Generation And Plant Load Factors Improve

Thermal power accounted for nearly 69 per cent of total electricity generation during the quarter, with plant load factors (PLFs) rising to 68.3 per cent from 61.9 per cent in Q2FY26.

Tighter supply conditions pushed electricity prices higher on the Indian Energy Exchange (IEX). Solar-hour prices averaged Rs 5.6 per unit in September, while non-solar-hour prices rose to Rs 9.5 per unit from Rs 3.2 per unit a year earlier.

Coal Shortages And Trading Volumes Shape Sector Outlook

IEX electricity trading volumes increased 10.4 per cent YoY in September and 12.7 per cent in Q2FY27. However, overall trading volumes, including Renewable Energy Certificates, grew around 9 per cent in September, while quarterly growth remained limited to about 4 per cent.

Coal availability also remained tight, with coal stocks at NTPC plants falling to around 21 million tonnes in September, down 54 per cent YoY and equivalent to about seven days of consumption, Nuvama said.

Renewable energy capacity additions reached around 16.4 GW year-to-date through September, including 14.3 GW of solar capacity additions in FY27.

Power Companies Expected To Report Profit Growth

Nuvama expects IEX to report moderate growth, with overall trading volumes rising around 4 per cent in Q2FY27. Major thermal power producers are projected to post 8–9 per cent YoY profit growth, supported by higher PLFs and potential incentives.

(KNN Bureau)