Power sector companies are in focus heading into trade on Thursday after Macquarie initiated coverage on the space, highlighting a broad-based regulatory and operational reset across generation, transmission, and distribution.
The brokerage firm has also listed out its top picks in the power sector, which includes the likes of NTPC, JSW Energy and Power Grid, among others.
Macquarie has picked NTPC as the top pick in the sector, with an outperform rating and a target price of Rs 480, implying a 35% upside from current levels.
JSW Energy has also been assigned an outperform rating with a target price of Rs 720, implying a 26% upside from current levels, while Power Grid has a revised target of Rs 400, up from Rs 390 earlier. This implies a 40% upside from current levels.
Capacity And Demand Outlook
Macquarie sees India's power sector undergoing a dual-track evolution, with coal continuing to anchor baseload stability while renewables drive incremental capacity growth.
Installed capacity is expected to expand from approximately 538 GW currently to around 900 GW by FY32. Peak power demand has already touched record highs of approximately 271 GW in May 2026, with the CEA anticipating a 6% power demand CAGR through 2030.
On transmission infrastructure, the brokerage flagged significant investment ahead, estimating US $51 billion will be required by 2035-36 to resolve the geographic mismatch between renewable energy-rich states and major demand centres.
Macquarie also pointed to the Draft National Electricity Policy 2026 and the Electricity Amendment Bill 2026 as key regulatory catalysts, with both aimed at improving discom financial health and enabling market-based electricity trading.
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