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Economic Times
2 days ago
- Business
- Economic Times
High Voltage Bets: Suzlon and JSW Energy Poised for Strong FY26 Performance
India's power utilities sector remains well-positioned for long-term growth, backed by robust renewable energy (RE) additions, resilient coal production, and policy-driven supply-side readiness. ADVERTISEMENT Despite a near-term moderation in electricity demand, structural tailwinds such as energy transition, rising electrification, and economic growth are expected to support sustained sectoral momentum. Peak power demand in India reached 250GW in FY25 and is projected to touch 270GW in FY26. Although demand growth moderated to ~5% in FY25 (vs. 7–9% in FY22–24) and further eased to ~2% YoY in April 2025 due to high base effects and milder weather, demand volatility in peak months suggests potential for a sharp rebound in the near term. Capacity additions in FY25 were a standout, with total generation capacity rising by 33.3GW—a 29% YoY increase. Renewable energy was the key driver, contributing 28.8GW, led by solar additions of energy contributed the remaining 5GW, demonstrating the sector's clear pivot toward cleaner sources. On the other hand, thermal capacity witnessed a net decline of 2.2GW, reflecting India's gradual shift away from conventional power Ministry of Power has taken proactive steps to ensure peak season preparedness. Under Section 11 of the Electricity Act, 2003, gas-based power plants have been directed to maximize generation during summer months. ADVERTISEMENT Meanwhile, Grid India will coordinate and notify operational schedules in advance. The move gains relevance as India decommissioned ~4.4GW of inoperable gas-fired capacity, leading to a sharp decline in operational gas capacity to 20.1GW in Apr'25 from 24.5GW in Mar'25. Coal availability—a key supply metric—remains solid. In Apr'25, domestic coal production rose 3.6% YoY to 81.6MT, with Coal India alone holding 105MT of stock (+22.1% YoY). ADVERTISEMENT Total coal inventory stood at 125.8MT, offering significant buffer for summer demand, complemented by government efforts to ease supply for imported coal-based the pricing front, average Day-Ahead Market (DAM) rates stayed stable at INR5.2/unit in April, while Real-Time Market (RTM) prices dipped 24% YoY in May (till 25th), helped by unseasonal rainfall and improved sell-side liquidity on IEX. ADVERTISEMENT With a strong pipeline of RE projects, policy thrust on thermal reliability, and rising energy needs, India's utilities sector is entering a structurally resilient in power demand, coupled with expanding clean energy capacity, positions the sector favorably for sustained investment and operational growth in FY26 and beyond. ADVERTISEMENT Suzlon Energy (SUEL) remains our high-conviction pick amid improving execution, a net cash balance sheet and strong earnings momentum ahead. Positive developments with respect to the implementation of local content in wind turbine manufacturing will boost market share and protect model FY26 delivery of 2.4GW, implying a quarterly run rate of 600MW, which we believe is reasonable (3QFY25 delivery: 447MW).For SUEL, we estimate a CAGR of 46%/51% in revenue/adj. PAT over FY25-27. As per our understanding, key orders slated for FY26 already have substantial land acquisitions completed and have high power evacuation reported consolidated revenue of INR 31.8b in 4QFY25, with adjusted PAT up 34% yoy, aided by higher other income and deferred tax benefits. Operational capacity reached 12.2GW, with a robust project pipeline of 6.7GW, reflecting strong growth of KSK Mahanadi and O2 Power acquisitions positions JSWE for EBITDA expansion in FY26. Net generation rose 24% yoy, supported by new capacities and high thermal PLF of 84%.With merchant exposure below 1GW and coal import dependence reduced to 9–10%, earnings volatility is expected to decline. We give a Buy rating, backed by clear growth visibility and strong capacity additions. (The author is Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd) (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
2 days ago
- Business
- Time of India
High Voltage Bets: Suzlon and JSW Energy Poised for Strong FY26 Performance
India's power utilities sector remains well-positioned for long-term growth, backed by robust renewable energy (RE) additions, resilient coal production, and policy-driven supply-side readiness. Despite a near-term moderation in electricity demand, structural tailwinds such as energy transition, rising electrification , and economic growth are expected to support sustained sectoral momentum. Peak power demand in India reached 250GW in FY25 and is projected to touch 270GW in FY26. Although demand growth moderated to ~5% in FY25 (vs. 7–9% in FY22–24) and further eased to ~2% YoY in April 2025 due to high base effects and milder weather, demand volatility in peak months suggests potential for a sharp rebound in the near term. Capacity additions in FY25 were a standout, with total generation capacity rising by 33.3GW—a 29% YoY increase. Renewable energy was the key driver, contributing 28.8GW, led by solar additions of 23.8GW. Wind energy contributed the remaining 5GW, demonstrating the sector's clear pivot toward cleaner sources. On the other hand, thermal capacity witnessed a net decline of 2.2GW, reflecting India's gradual shift away from conventional power generation. Live Events The Ministry of Power has taken proactive steps to ensure peak season preparedness. Under Section 11 of the Electricity Act, 2003, gas-based power plants have been directed to maximize generation during summer months. Meanwhile, Grid India will coordinate and notify operational schedules in advance. The move gains relevance as India decommissioned ~4.4GW of inoperable gas-fired capacity, leading to a sharp decline in operational gas capacity to 20.1GW in Apr'25 from 24.5GW in Mar'25. Coal availability—a key supply metric—remains solid. In Apr'25, domestic coal production rose 3.6% YoY to 81.6MT, with Coal India alone holding 105MT of stock (+22.1% YoY). Total coal inventory stood at 125.8MT, offering significant buffer for summer demand, complemented by government efforts to ease supply for imported coal-based plants. On the pricing front, average Day-Ahead Market (DAM) rates stayed stable at INR5.2/unit in April, while Real-Time Market (RTM) prices dipped 24% YoY in May (till 25th), helped by unseasonal rainfall and improved sell-side liquidity on IEX. With a strong pipeline of RE projects, policy thrust on thermal reliability, and rising energy needs, India's utilities sector is entering a structurally resilient phase. Growth in power demand, coupled with expanding clean energy capacity, positions the sector favorably for sustained investment and operational growth in FY26 and beyond. Suzlon: Buy| Target Rs 83 Suzlon Energy (SUEL) remains our high-conviction pick amid improving execution, a net cash balance sheet and strong earnings momentum ahead. Positive developments with respect to the implementation of local content in wind turbine manufacturing will boost market share and protect margins. We model FY26 delivery of 2.4GW, implying a quarterly run rate of 600MW, which we believe is reasonable (3QFY25 delivery: 447MW). For SUEL, we estimate a CAGR of 46%/51% in revenue/adj. PAT over FY25-27. As per our understanding, key orders slated for FY26 already have substantial land acquisitions completed and have high power evacuation visibility. JSW Energy: Buy| Target Rs 592 JSWE reported consolidated revenue of INR 31.8b in 4QFY25, with adjusted PAT up 34% yoy, aided by higher other income and deferred tax benefits. Operational capacity reached 12.2GW, with a robust project pipeline of 6.7GW, reflecting strong growth visibility. Completion of KSK Mahanadi and O2 Power acquisitions positions JSWE for EBITDA expansion in FY26. Net generation rose 24% yoy, supported by new capacities and high thermal PLF of 84%. With merchant exposure below 1GW and coal import dependence reduced to 9–10%, earnings volatility is expected to decline. We give a Buy rating, backed by clear growth visibility and strong capacity additions. (The author is Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd ) ( Disclaimer : Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times) ETMarkets WhatsApp channel )
News18
25-05-2025
- Business
- News18
Is India Missing The Spark? Transmission Sector Needs Private Surge
Authored by GP Upadhyaya, IAS (Retd.), DG – EPTA and Dr Manvendra Deswal, DDG – EPTA: India's power transmission sector is poised for significant growth with an estimated Rs 10 lakh crore ($120 billion) investment envisaged by 2032 to achieve the stated NEP (National Electricity Plan) goals. Transmission capacity is expected to increase fivefold in the next eight years itself with over 90% of projects expected to be awarded through TBCB (Tariff Based Competitive Bidding) instead of RTM (Regulated Tariff Mechanism) highlighting the importance of private sector. This ambitious expansion is fuelled by rising electricity demand, renewable energy integration and infrastructure modernization. News18 Private sector participation in India is not a recent phenomenon – in fact, Electricity Act, 2003 and Tariff Policy, 2006 (amended in 2016) laid down the legal framework to encourage private sector participation in the transmission sector. Besides, the Ministry of Power (MoP) issues periodic guidelines and amendments to Standard Bidding Documents (SBDs) to facilitate competition and attract private investment. An Empowered Committee oversees the identification and bidding process for interstate transmission (ISTS) projects, with several of them already awarded and under implementation via private Transmission Service Providers (TSPs).
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Business Standard
24-05-2025
- Business
- Business Standard
NTPC Q4 results: Profit rises nearly 22% to Rs 7,897 cr, declares dividend
State-owned power producer NTPC Ltd has posted a significant rise in its consolidated net profit for the March quarter of FY25, supported by improved operational performance. For the quarter ending March 2025, NTPC reported a consolidated net profit of ₹7,897.14 crore, marking an increase of almost 22 per cent compared to ₹6,490.05 crore in the corresponding quarter of the previous financial year. The company's operational income for the March quarter also rose, reaching ₹49,833.70 crore, up from ₹47,628.19 crore reported during the same period last year. Annual performance: Profit and revenue growth NTPC, operating under the Ministry of Power, holds the distinction of being India's largest power generation utility. The company's performance for the full financial year 2024-25 reflected continued growth. The net profit rose to ₹23,953.15 crore, improving from ₹21,332.45 crore in FY24. Meanwhile, the company's total operational income climbed to ₹1,88,138.06 crore from ₹1,78,524.80 crore year-on-year. The company's Board of Directors has proposed a final dividend of 33.50% (₹3.35 per share) for FY25, subject to shareholder approval at the upcoming annual general meeting. This is in addition to two interim dividends of ₹2.50 per share each, which were disbursed in November and February. NTPC Green Energy records 3X rise in profit Earlier this week, NTPC Green Energy Limited (NGEL), the renewable energy arm of NTPC, also posted around three-fold rise in consolidated net profit at Rs 233.21 crore in the March 2025 quarter, driven by higher income. It had posted a net profit of Rs 80.95 crore in January-March period of preceding 2023-24 financial year, the company said in a filing. Expenses stood at Rs 444.63 crore as against Rs 425.84 crore in the same period a year ago. During FY25, the company also completed its initial public offering (IPO) comprising a fresh issuance of 92,63.29,669 equity shares with a face value of Rs 10 each. The IPO raised a total of Rs 10,000 crore and the company's equity shares were subsequently listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Time of India
23-05-2025
- Business
- Time of India
Paradox of India's energy transition - Coal phase out or renewables phase in!
India's energy transition presents a stark paradox. India crossed 220 GW of renewable energy (RE) capacity in March 2025. Simultaneously, coal output crossed the milestone of 1 billion tonnes for FY2024-25, with 88% usage by the power sector. The Ministry of Power also announced last year to add almost 90 GW of new coal-fired capacity through 2032, increasing an earlier target by more than 60%. This dual trajectory, accelerating RE capacity alongside growing coal output, highlights a deeper structural challenge. Despite record RE addition of 28 GW last year, coal accounts for 70% of India's electricity generation. While India ranks among the largest consumers of electricity in absolute terms, its per capita consumption remains low at around 1,330 kWh per year, roughly one-third of the global average. This underscores a dual challenge: a vast growing population, and significant inequalities in reliable electricity access and consumption. Ensuring universal, affordable, and stable electricity supply to meet the increasing demand remains a central priority, complicating the pace and nature of coal phase-down. Three critical dimensions explain why an immediate coal exit is not viable for India. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like OMEA Award for Indian Manufacturers ansoim Learn More Undo Economics of Substitution: Beyond Price Tags First, while the RE generation cost is falling, price alone cannot drive a large-scale shift from coal. Solar and wind are cheaper when the sun shines or the wind blows. However, recent tenders for round-the-clock (RTC) renewable power or studies undertaken for flat block solar and storage, designed to mimic coal's 24/7 stable supply, have revealed tariffs of approximately ?4.5 - ?5 per kWh, comparable to coal-based electricity. Furthermore, there are incentives like the waiver of interstate transmission system charges. This waiver expires in June 2025, and its removal could erode renewable's cost edge. Coal prices, in contrast, are distorted by subsidies and levies. Moreover, railway freight charges on coal indirectly subsidise passenger fares. Technical Limits and Infrastructure Gaps Second, technical and infrastructural limitations continue to constrain the integration of RE into India's power system. Despite the installed RE capacity crossing 220 GW, the actual generation paints a more sobering picture: the share of renewables has hovered around Live Events 22%–24% in recent years. This mismatch underscores a critical systemic challenge: while capacity is expanding, the actual generation and dispatch of variable RE remains limited. Furthermore, the International Energy Agency observes that as the share of variable renewables increases, electricity prices often rise due to added costs for grid balancing, backup storage, and transmission infrastructure. RE's variability inherently needs other sources to act as balancing supply increasing the prices. India already bears one of the highest electricity tariffs when measured in purchasing power parity terms and additional costs could strain customers. The Socio-Economic Role of Coal Third, India's coal transition must be gradual, inclusive, and just. It is not merely a climate policy imperative but a socio-economic necessity. India's state-owned enterprises, along with private players, collectively employ around 5 lakh workers across the sector particularly in some of India's economically vulnerable states. A hasty coal phase-out could disrupt these regional economies and deepen existing inequalities leading to a social crisis. Strategic Steps for a Balanced Transition The Central Electricity Authority estimates that coal's share in India's installed capacity will decline from the current around 47% to 33% by 2029-30. However, it will still contribute approximately 54% of total generation, largely due to its critical role in meeting baseload demand. India is a fast-growing economy, which needs to be fuelled. Even with aggressive RE deployment, this scale may not be achievable without coal in the interim. This raises a fundamental question: Are we ready to fully shift from coal, or is a phased transition the more responsible path? Rather than a coal phase-out, India should pursue a strategy that includes meeting the growing demand using the best available option as well as phase in renewables. The strategy can include retiring aging coal plants, focussing on high-efficiency low-emission coal technologies for new builds, and allowing plants to operate through their technical life spans. Simultaneously, scaling up RTC and hybrid renewables, investing in grid modernisation, energy storage, and advancing clean, firm power sources such as nuclear are crucial. Deployment of technologies like carbon dioxide removal, and emission control systems, can help reduce the environmental burden. The Need for Balance, Not Binary Choices India's electricity demand will continue to rise. The question is how best to meet the demand. At present, coal remains an unavoidable part of the solution. The world must recognize that India's energy transition is not about abrupt shifts but a balanced, strategic evolution. As cleaner technologies become cost-effective, coal's role will decline, not due to ideology, but due to economics and stability. To realize the vision of Viksit Bharat by 2047, India must manage this transition with deliberate, inclusive, and evidence-based planning. (Dr. Debajit Palit is Centre Head and Dr. Tanvi Khurana is Research Associate at Centre for Climate Change & Energy Transition, Chintan Research Foundation. Views are personal)
