Why Is CLSA Turning Positive on India’s Power Utilities?
India’s power sector is the third-largest in the world and serves as the backbone of the nation’s infrastructure and industrial growth. Companies like NTPC, NHPC, and CESC have played critical roles in ensuring reliable energy supply, while also expanding into renewables and clean energy. The sector has recently seen weakness due to climate-related demand softness on a high base, but research by CLSA suggests that regulated utilities could be entering a favorable phase as demand revives in the second half of FY26.
CLSA on Power Market Trends
Spotlight on Nuclear Power
Shift Toward Regulated Utilities
Key Beneficiaries
- NTPC: India’s largest power producer, expanding aggressively into renewables and nuclear energy.
- NHPC: Focused on hydropower, benefiting from clean energy transition policies.
- CESC: Kolkata-based utility with integrated power generation and distribution strengths.
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Medium to Long-Term Outlook
Investor Takeaway
CLSA believes the correction in power utility stocks provides an attractive entry opportunity. With NTPC’s nuclear power foray, NHPC’s hydropower expansion, and CESC’s steady distribution business, regulated utilities are likely to emerge as beneficiaries of the sector’s revival. The focus on affordable, reliable, and clean power underpins long-term growth potential, making the sector one to watch closely in H2FY26.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.











