During the April-June 2026 quarter, India has consumed nearly 485 billion units of electricity , up around 8 per cent from a year earlier with the peak power demand climbed to 270.82 GW in May, according to a report by 360 ONE Capital.
The report attributed the increase to extreme heatwave conditions, a delayed onset of the monsoon and higher cooling requirements.
Total power generation increased 8 per cent year-on-year, while renewable generation expanded by 21 per cent. Thermal generation grew 7 per cent over the same period.
Electricity consumption is expected to remain resilient as industrial and commercial activity gathers pace, creating favourable conditions for power utilities, it said. Companies with fuel-secure thermal assets alongside growing renewable portfolios are likely to be better placed to deliver sustained earnings growth.
Renewable energy continues to expand rapidly, and thermal power is expected to remain central to India’s electricity mix.
India’s energy strategy will continue to rely on both sources, with coal-fired plants providing dependable base-load power, it said.
Further, the short-term electricity trading also picked up during the quarter. Volumes traded on the Indian Energy Exchange rose nearly 16 per cent year-on-year in the first quarter of FY27, indicating greater dependence on exchange-based markets during periods of supply tightness.
It highlighted that coal remains the backbone of India’s electricity system, contributing ~70% of total power generation and providing dependable base-load power. This dependence is unlikely to change materially over the coming decade given strong demand growth and the need for round-the-clock power.
It further said that the improved generation and new capacity to support earnings for several utilities, although it cautioned that higher interest and depreciation costs could affect some renewable-focused companies in the near term.
The coal inventory levels and the pace of project execution will remain key factors to watch, while rising electricity demand, renewable expansion, thermal additions and storage development are expected to underpin the sector’s long-term growth.
India Electricity Consumption Spikes 8% During April-June Quarter
