Suzlon, Tata, CESC, NTPC, Coal India To AGEL: Power Stocks May Rally On Q4 Buzz, Summer Demand Surge | List

Suzlon Energy, Tata Power, NTPC, Coal India to Adani Green: Muted power demand and an extended monsoon are likely to weigh on the growth prospects of power stocks such as Tata Power, NTPC, Suzlon Energy, and Coal India in the recently concluded financial year 2025-26. However, expectations of a demand revival, driven by a potential El Niño-led rise in temperatures, have lifted hopes of higher power consumption, improving the outlook for select stocks in the sector.

Nifty Energy was up close to 1.75% during Friday's intraday trading session with Suzlon Energy, Adani Energy Solutions, Adani Power, Inox Wind, emerging as top gainers. NTPC share price was also trading higher.

Q4 Result Preview

Power companies like NTPC, Power Grid, Tata Power, etc, may see modest profit growth in the fourth quarter of financial year 2025-26 (Q4FY26). Modest PAT growth during the quarter will be led by subdued thermal PLF and weak power demand, noted Nuvama for its 'power coverage universe'.

"We reckon Nuvama's power coverage universe shall post modest PAT growth in Q4FY26, driven by weak PLF across utilities (NTPC's Q4 PLF at ~76.7% versus ~82.7% YoY). TPWR may face continued higher losses from Mundra UMPP shutdown with the losses softening from Q1FY27 with the plant now operational)," noted Nuvama in its report.

"In wind, INXW and SUEL are likely to execute 400MW/875MW, respectively, with steady margins of ~20%/~18%. For TPWR, we expect the company to report flat PAT growth YoY owing to continued UMPP losses even as Odisha performance remains impressive," added the brokerage.

Q4 Result Review: NTPC To Report Moderate Growth, Tata Power May See Weak Q4

Power consumption surged nearly 2% on an annual basis during Q4FY26. The quarter saw a "V-shaped" recovery which also coincided with flat power prices, as per Mirae Asset Sharekhan report.

"In power PSUs, NTPC will have moderate generation and sales growth, and net profit to remain muted degrowing 1.5%. PowerGrid to see a decent PAT growth of around 10% due to higher capitalization," noted the brokerage while hinting at weak quarter performance by Tata Power.

"Tata Power is likely to report a weak quarter with the expiry of Section 11 benefit in the Mundra plant. CESC is expected to have a good quarter with rise in PAT by 5% y-o-y with the benefit of the higher rate of PPA flowing in. Our coverage universe is expected to report a revenue/EBITDA/PAT growth of 4.5%/6.9%/ 3% on a y-o-y basis," added the brokerage in its report.

Outlook: Summer Season Boosts Hopes For Power Stocks

While the power demand remained flat in the fourth quarter, rising temperature in the summer season can boost power consumption in the coming months. There is also high possibility that India may face power "deficit during evenings, more so in the wake of severe snow drought" in early 2026, as per JM Financial report. Snow drought refers to weak winter precipitation.

Power Stock To Buy For Long-Term

JM Financial recommends Adani Power, Adani Green, Tata Power, Torrent Power and JSW Energy as its top summer picks.

The brokerage gave Adani Power, Adani Green, Tata Power, Torrent Power and JSW Energy stocks, price target of Rs 177, Rs 1,204, Rs 429, Rs 1,410, and Rs 614 per share respectively.

Nuvama mentioned CESC and NTPC as top picks. Whereas, Mirae Asset Sharekhan sees sharp uptick in power tocks like Power Grid,NTPC and CESC.

The brokerage has given NTPC a buy rating with a target price of Rs 430 per share. It has fixed a target price of Rs 350 per share for Power Grid, and Rs 195 for CESC.