Power Stocks in Focus: Brokerages Bet on Adani, JSW, Tata for 2026

Power Sector Heats Up Amidst Rising Demand

The Indian power sector is gaining significant attention from investors and analysts as the country grapples with an early summer and surging electricity demand. Brokerage firms have turned bullish on several power generation and utility companies, anticipating a period of strong performance driven by fundamental supply and demand dynamics. On March 25, 2026, several power stocks were in focus after global and domestic brokerages initiated or updated their coverage, signaling confidence in the sector's growth trajectory. The core of this optimism stems from a notable spike in power consumption, which is straining the national grid and creating favorable conditions for thermal power producers.

Record Demand and Supply Constraints

According to a report from JM Financial, India's power grids are already feeling the pressure. Evening electricity demand surged to a record 224.6 gigawatts (GW) on March 10, 2026, a 7% year-on-year increase and the highest peak ever recorded for March. This surge forced coal-fired power plants to operate at a massive 95% capacity utilization during non-solar hours. The situation is compounded by supply-side challenges. A dry winter and reduced snow cover are expected to limit hydroelectric output, while shortages in LNG supplies impact gas-fired generation. This confluence of factors has led to price spikes, with electricity prices hitting the upper limit of ₹10 per unit multiple times on March 12, highlighting the growing gap between supply and demand.

JM Financial's Top Utility Picks

In light of these conditions, JM Financial has revised its pecking order for top utility stocks, placing Adani Power at the forefront, followed by Tata Power, NTPC, Adani Green, Coal India, and JSW Energy. The brokerage has issued 'Buy' ratings on a wide array of companies. Adani Power received a target price of ₹177, while Tata Power was assigned a target of ₹429. State-run NTPC also features prominently with a 'Buy' rating and a ₹420 target price. Among renewable players, Adani Green has a target of ₹1,204. JSW Energy is also recommended with a 'Buy' rating and a target of ₹614. One of the most notable calls was for Suzlon Energy, which received a 'Buy' rating and a ₹64 target, suggesting a potential upside of around 54% from its current market price.

Bernstein Initiates Coverage with a Mixed Outlook

Global brokerage Bernstein also initiated coverage on key power stocks, presenting a largely positive but mixed view. The firm assigned an 'Outperform' rating to Adani Power, JSW Energy, and Tata Power. Bernstein's price target for Adani Power is ₹177 and ₹575 for JSW Energy, both implying an 18% upside from their closing prices on March 24. Tata Power's target was set at ₹443, indicating a 15% potential upside. However, Bernstein took a contrasting stance on NTPC Green Energy, initiating coverage with an 'Underperform' rating and a price target of ₹80, which suggests a potential downside of 16%.

Jefferies Champions NTPC and JSW Energy

Jefferies has identified NTPC and JSW Energy as its top picks within the utility sector, citing greater potential for upside and earnings predictability. The firm maintained a 'Buy' rating on NTPC with a target price of ₹440, suggesting a 14% upside. Analysts expect NTPC's earnings to grow steadily, driven by capacity additions and stable operations. JSW Energy also received a 'Buy' rating with a higher target of ₹660, offering an estimated 29% upside. Jefferies anticipates that JSW's growth will be fueled by the completion of new projects, leading to substantial gains in EBITDA and profits. While Jefferies also holds 'Buy' ratings for Adani Power and Power Grid, it views NTPC and JSW Energy as the most compelling opportunities.

A Comparative Look at Brokerage Targets

Different brokerage houses have offered varying price targets, reflecting their unique valuation models and sector outlooks. A consolidated view provides investors with a broader perspective on market expectations.

Cautious Calls and Contrarian Views

While the overall sentiment is positive, not all stocks in the sector received favorable ratings. JM Financial advised caution on a few names, assigning a 'Reduce' rating to Coal India (TP ₹420) and Torrent Power (TP ₹1,410). Furthermore, it gave a 'Sell' rating to SJVN with a target price of ₹67. Similarly, CLSA expressed a more subdued outlook, downgrading SJVN to 'Hold' and rating JSW Energy as 'Underperform', even while raising its price target to ₹486. These cautious calls highlight the risks associated with project delays, valuations, and company-specific challenges within the broader sector.

Sector Outlook and Conclusion

The consensus among analysts is that the Indian power sector is poised for a strong summer. The combination of intense heat, rising industrial activity, and constrained alternative power sources places thermal power generators in a favorable position. The expectation of higher plant load factors (PLFs) is a primary driver behind the bullish calls on companies like Adani Power and NTPC. As India's energy needs continue to grow, companies with strong operational efficiency and expanding capacity are likely to benefit. Investors will be closely watching how these companies navigate the high-demand season and whether the projected earnings growth materializes.