The power sector is once again in focus after a new report from a global brokerage highlighted the changing opportunities and risks facing major companies. Some stocks are expected to perform well in the coming years, while others may face pressure despite recent price gains.
In its latest report, Jefferies shared a selective outlook on Indian power companies. The firm maintained an “underperform” rating on Tata Power Company Limited, even as it raised its target price from ₹335 to ₹355. This suggests that despite some improvement in business conditions, it has limited upside potential.
The brokerage also remained positive on several other companies, including Adani Green Energy Limited, Adani Power Limited, JSW Energy Limited, and Adani Energy Solutions Limited. All of these stocks saw target price increases, reflecting strong growth expectations.
In the updated estimates, Adani Green Energy received a target of ₹1,730, while Adani Power received a target of ₹270. Adani Energy Solutions received a higher target of ₹1,905, reflecting confidence in its long-term earnings visibility. Meanwhile, JSW Energy’s target price was raised from ₹675 to ₹745, supported by improved financial strength and a recent capital raise through a qualified institutional placement.
The brokerage also revised its valuation approach for JSW Energy, adjusting the multiple used to calculate its future value for FY28 to 15 times EV/EBITDA. This adjustment reflects expectations of steady capacity growth and improved financial performance over time.
According to the report, companies like JSW Energy, Adani Energy Solutions, and NTPC Limited stand out due to their strong project pipelines. These firms are currently pursuing several expansion plans, which are expected to boost earnings in the medium term.
The outlook for the overall sector also appears positive due to rising power demand. Electricity consumption grew by approximately 7% year-on-year between April and May 2026, slightly higher than the earlier estimate of 6% annual growth for FY27. This consistent increase in demand provides a strong base for future expansion.
Furthermore, the transmission sector is experiencing significant growth, with bidding opportunities rapidly increasing to approximately ₹1.5 lakh crore, compared to ₹54,000 crore at the end of FY25. This creates significant opportunities for companies involved in infrastructure development.
Operational constraints impacted the March quarter performance of some companies. For example, evacuation issues delayed the expansion of renewable capacity for JSW Energy and Adani Green Energy. However, these constraints are expected to ease in the coming months, leading to improved workflows.
Jefferies believes that companies with strong execution capabilities and a visible project pipeline can deliver double-digit earnings growth without a significant change in valuation levels. In particular, Adani Energy Solutions is expected to deliver EBITDA growth of over 20% annually over the medium term.
In addition to the big names, the brokerage also shared its views on other power stocks. Torrent Power Limited received a “buy” rating with a target price of ₹1,700. Power Grid Corporation of India Limited was also given a “buy” rating with a target price of ₹340.
On the other hand, Indian Energy Exchange Limited was given an “underperform” rating with a target price of ₹100, reflecting weaker growth expectations compared to its peers.
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