India's Power Sector Anticipates Profit Growth in Q2FY27

The power sector in India is expected to see profit growth of up to 11% year-on-year in Q2FY27. This growth is attributed to strong electricity demand, improved plant load factors, and potential incentives for thermal power producers. Electricity demand in India increased by nearly 12% year-on-year to 163 billion units in September 2026, and by 11.7% to 503 billion units in Q2FY27. Peak power demand also surged by approximately 17.5% year-on-year to 269 GW in September 2026.

Thermal power contributed nearly 69% of the total generation in Q2FY27, with plant load factors reaching 68.3% from 61.9% in Q2FY26. Tighter supply conditions led to higher electricity prices on the Indian Energy Exchange (IEX). Solar-hour prices remained elevated at INR5.6/unit, while non-solar prices increased to INR9.5/unit in September 2026 from INR3.2/unit in September 2025. Electricity trading volumes on IEX rose by 10.4% year-on-year in September 2026 and by 12.7% in Q2FY27.

Coal stock at NTPC's plants was reduced to about seven days in September 2026, with an inventory of approximately 21 million tonnes, indicating a tight coal supply situation. Total renewable energy additions reached about 16.4 GW year-to-date until September 2026, with solar additions contributing approximately 14.3 GW.

Kalpataru Projects International Secures New Power Transmission Orders

Kalpataru Projects International Ltd (KPIL) has announced new orders valued at approximately ₹2,225 crore for its power transmission and distribution (T&D) business. These contracts span both India and international markets.

The company's T&D business has received orders and letters of comfort amounting to approximately ₹2,031 crore. Additionally, its Swedish subsidiary, Linjemontage i Grästorp AB, secured a contract worth around ₹194 crore.

KPIL attributes the demand for its engineering, procurement, and construction (EPC) services to ongoing investments in transmission infrastructure, grid expansion, and renewable energy integration.

The contract awarded to Linjemontage involves the refurbishment and expansion of an existing 130-kV substation in Repbäcken, Borlänge, for the Swedish electricity distribution company Ellevio AB. This turnkey project includes the construction of a new substation, civil works, a control building, equipment installation, testing, and commissioning. The project is expected to conclude with a final inspection in October 2029, aiming to enhance capacity and redundancy within the electricity grid.

India's Electricity Generation Rises 11% in Q2 FY27, Non-Fossil Sources Contribute

Total electricity generation in India rose by 11% year-on-year to 536 billion units (BU) during July-September. This period also marked the first time renewable power output surpassed 100 BU in a single quarter, reaching 101 BU, excluding large hydropower.

Combined generation from non-fossil sources, which includes renewables, large hydro, and nuclear power, increased to a record 177 BU from 163 BU in the previous year. Non-fossil sources accounted for approximately 33% of the total electricity generation in the quarter. Solar generation saw a 39% increase year-on-year to 51 BU, while wind generation grew by 29% to 45 BU. Solar power contributed 10% of India's total electricity generation for the first time during this quarter.

Capacity and Utilization

India's installed power capacity reached 555 GW in August 2026, with non-fossil sources making up about 55% of the total. Renewable capacity, excluding large hydro, stood at 243 GW, including 168 GW of solar capacity. Renewable capacity additions outpaced thermal additions in Q2 FY27, with approximately 7 GW of renewable capacity added compared to 0.8 GW of thermal capacity.

Despite a record peak demand of 270 GW, coal power plant utilization was 68% in the second quarter, a decrease from 73% in the preceding quarter.