India’s power demand hit a record 250 gigawatts (GW) in FY25, rising from 148 GW in 2014, a 68% increase in just over a decade. This growth is driven by rising industrial expansion, agricultural development, increasing access to electricity, and greater use of air conditioners.

The Macro Shift: India’s Path to 2,960 TWh Demand

According to the World Energy Outlook 2025, India is projected to be the largest contributor to global energy demand growth, with total energy demand expected to increase by more than 15 exajoules (EJ) by 2035. Notably, India’s electricity demand reached 1,644 terawatt-hours (TWh) in 2024 and is projected to rise by 80% by 2035, reaching 2,960 TWh.

This represents the fastest growth rate among all major regions, outpacing China and Southeast Asia. Air-conditioning and cooling trends will be the primary drivers of electricity consumption in India, significantly affecting peak demand. India is expected to add more than 25 crore air conditioners in homes over the next decade.

In line with this, India’s National Electricity Plan (2024) targets 500 gigawatts (GW) of non-fossil-fuel capacity by 2030. The remainder is expected to be met by renewable energy. Solar PV is projected to meet over half of the additional electricity demand in India by 2035.

While coal remains a mainstay for flexibility, the share of non-fossil sources in installed capacity is projected to rise to 60% in 2030 and 70% in 2035 in the Stated Policies Scenario. To manage the variability of renewable energy and cooling demand, India is projected to add more than 230 gigawatt-hours (GWh) of battery storage capacity by 2030.

#1 Transmission Giants: Analyzing the Power Grid Q3 Performance

Power Grid, a public sector undertaking, is India’s leading power transmission utility. The company operates the world’s largest 765 kV transmission network. Its extensive infrastructure comprises 181,000 km of transmission lines and 287 substations. The company maintains high operational efficiency, with system availability of 99.83% for the reporting period.

Power Grid’s revenue in Q3FY26 grew 7% year-on-year to ₹12,599 crore, driven by 9% growth in its core transmission business. EBITDA increased 6% to ₹10,738 crore, and margins stood at 85.2%. Profit after Tax (PAT) rose by 8% to ₹4,185 crore. More than the result, the market appreciated Power Grid’s capital expenditure guidance.

Power Grid’s ₹32,000 Crore Gambit

Power Grid has revised its guidance upwards for FY26. The company now plans to invest ₹32,000 crore, up from the earlier target of ₹28,000 crore. The target for assets capitalized (commissioned) has been increased to ₹22,000 crore, up from the earlier estimate of ₹20,000 crore.

This indicates greater visibility into execution, a faster project pipeline, and management’s confidence in sustaining transmission-led capital expenditure momentum into FY26. Management has identified several structural tailwinds that will drive future growth, aligning with India’s vision of a $10 trillion economy.

How Power Grid Plans to Monetize India’s 600 GW Green Goal

This includes the clean energy transition, which aims to support the national target of 600 gigawatts of non-fossil fuel capacity by 2032. The company views storage as a key enabler for Round-the-Clock renewable supply, targeting opportunities in the projected 47 GW of Battery Energy Storage Systems (BESS) and 27 GW of Pumped Storage Projects (PSP) required by 2032.

Strategic Pivot into Battery Storage and Hydrogen

Power Grid is also anticipating about 71 GW of additional electricity demand coming from green hydrogen production by 2032. Power Grid is actively expanding beyond its core transmission business. The company secured its first BESS win under the Build-Own-Operate model, a project valued at approximately ₹250 crore.

#2 The Renewable Pivot: Tata Power’s Clean Energy Roadmap

Tata Power is India’s leading vertically integrated power company with a total capacity (operational plus under construction) of approximately 26.3 GW. The company operates across the entire power value chain, including generation, transmission, distribution, renewable and new energy solutions.

As of the third quarter of FY26, Tata Power’s generation portfolio is undergoing a significant transition from thermal to renewable energy. Operational capacity stood at 16.3 GW. The portfolio is divided into thermal (8.8 GW) and clean and green (7.45 GW).

The Road to 70% Clean Energy by 2030

A 10 GW clean and green energy capacity is also under development. Of this, in FY27, the company plans to commission around 2.5 GW of its renewable capacity, with the potential to reach 3 GW. Upon completion of these projects, the company expects its clean and green portfolio to account for approximately 66-70% of its total capacity by 2030.

The company also serves 13 million customers across Mumbai, New Delhi, and Odisha. It also manages a distribution franchise in Ajmer. Its total transmission network stood at 4,738 circuit kilometers (Ckm) operational, with another 2,573 Ckm under construction. It actively bids on inter- and intra-state projects, recently securing projects such as the Jejuri-Hinjewadi line.

Tata Power sees significant regulatory tailwinds, opening up new markets in distribution and transmission. The company is awaiting amendments to the Electricity Act, which are expected to be tabled during the ongoing budget session. If passed, this would create opportunities for nationwide distribution licensing.

Tata Power is a market leader in rooftop solar, having executed over 1 GW of capacity in 9MFY26 alone. The company serves residential, commercial, and industrial customers through a network of over 680 channel partners. Under the brand “EZ Charge,” Tata Power has energized 5,743 public and captive electric vehicle charging points across 667 cities and towns.

Decoding Tata Power’s ‘Iceberg’ Growth Strategy

Management describes the current growth in rooftop solar as merely the “tip of the iceberg”. They anticipate a significant increase in installation pace, projecting a 50-60% increase in capacity additions in FY26 compared with FY25, driven by government schemes such as PM Surya Ghar and the “Utility-Led Asset” models in states such as Odisha.

The Mundra Rebound

In the immediate future, Tata Power is positioning itself to meet surging power demand. The company anticipates a rebound in power demand due to a warmer summer, with peak demand expected to reach the 270-280 GW range in the coming months. To meet this demand, Tata Power aims to restart the Mundra plant shortly.

The company is diversifying into complex energy solutions. In the pumped storage projects, construction has started on the 1,000 MW Bhivpuri PSP (targeting completion by 2028), and development is underway on the 1,800 MW Shirwata PSP (targeting completion by 2029). In total, it plans to sustain an annual capex run rate of ₹15,000-25,000 crore to support growth.

3 The Efficiency Play: Hitachi’s Data Center and AI Edge

Hitachi Energy provides products, systems, software, and service solutions across the power value chain. The portfolio encompasses a diverse range of high-voltage products, transformers, grid automation solutions, power quality products, and systems.

The company’s revenue increased by 29.6% year-on-year to ₹2,168 crore in Q3FY26, driven by disciplined order execution and sustained operational efficiency. EBITDA grew 100.4% to ₹338 crore, while margins expanded by 550 bps to 15.6%. Higher-margin orders, a favorable product mix, and a higher export share contributed to higher margins. PAT rose by 90% to 261 crore.

A 4-Year Revenue Runway in Sight

The order backlog stood at ₹29,870 crore, providing revenue visibility for over four years. The company also expects revenue booking to improve substantially over FY26-28, supported by this record-high order backlog and a promising pipeline. Hitachi sees strong traction in High-Voltage Direct Current (HVDC), high-speed rail, data centers, industrial, and utility markets.

The company aims to maintain 25-30% of its total revenue from exports. To achieve this, it has adopted a three-pronged strategy. This includes utilizing global feeder factories, establishing designated export markets with local sales organizations, and using feeder factories to manufacture components for larger products.

Management also expects the EU-FTA trade deal and reduced US tariffs to further enhance export capabilities. To drive growth, the company has earmarked INR 7 billion in capital expenditure for each of FY26 and FY27 to expand capacity and meet rising domestic demand. While initial capex was below budget, an uptick is expected in the coming quarters.