Improving power demand, a robust transmission pipeline and stronger execution visibility across major projects have reinforced Jefferies‘ positive stance on India’s utilities sector. The brokerage raised its price targets on Adani Green Energy, Adani Energy Solutions, Adani Power and JSW Energy while reiterating ‘Buy’ ratings on all four stocks.
Jefferies said the March quarter was affected by evacuation challenges, while JSW Energy and Adani Green Energy saw delays in renewable capacity additions. However, the brokerage expects those issues to ease going forward and believes the sector remains well-positioned to benefit from improving demand trends and infrastructure investments.
Power demand recovery and stronger discom finances improve sector outlook
Jefferies said electricity demand is expected to recover after a muted FY26, which was affected by above-average and extended monsoon conditions.
The brokerage noted that FY26 power demand increased only 1% year-on-year. It expects demand growth to improve to 6% in FY27 under normal weather conditions, with the possibility of further upside if below-average monsoon conditions emerge.
“Power demand in April-May 2026 has been strong at 7% YoY rise vs our 6% growth estimate for FY27,” Jefferies said.
The brokerage also highlighted improving financial health among power distribution companies. According to Jefferies, discoms turned profitable in FY25 after more than a decade of losses, supported by a sharp rise in private discom profits and a significant reduction in losses among state-owned utilities.
Jefferies on JSW Energy: ‘Buy’
Jefferies retained its ‘Buy’ rating on JSW Energy and raised its target price to Rs 745 from Rs 675, implying an upside of 30%.
The brokerage said the company’s recent qualified institutional placement has further strengthened its balance sheet and reduced leverage expectations. JSW Energy raised Rs 4,000 crore through a qualified institutional placement in May 2026.
According to the brokerage, its FY27 and FY28 net debt-to-EBITDA estimates have declined following the capital raise and the company’s recent stake sale in JSW Steel.
Jefferies said it prefers JSW Energy at current levels because execution ramp-up is expected to support double-digit medium-term earnings growth.
Jefferies on Adani Green Energy: ‘Buy’
Jefferies retained its ‘Buy’ rating on Adani Green Energy and raised its target price to Rs 1,730 from Rs 1,435, implying an upside of 16%.
“AGEL’s management reiterated confidence in its journey to raise capacity 2.6x, from 19.3 GW in FY26 to 50 GW by 2030, including 5 GW Pumped Storage Projects,” Jefferies said.
The brokerage said management reiterated confidence in its expansion strategy and continues to target a significant increase in renewable generation capacity by the end of the decade.
The brokerage added that improving execution visibility across projects prompted it to increase valuation multiples for Adani Group utility companies.
Jefferies on Adani Energy Solutions: ‘Buy’
Jefferies maintained its ‘Buy’ rating on Adani Energy Solutions and increased its target price to Rs 1,905 from Rs 1,665, implying an upside of 22%.
The brokerage said India’s transmission opportunity remains strong and continues to provide a favourable backdrop for the company.
“Adani Energy Solutions’smart meters are also ramping up well and are a key growth driver going forward,” Jefferies said.
According to the brokerage, Adani Energy Solutions is positioned to deliver more than 20% medium-term earnings before interest, tax, depreciation and amortisation growth, supported by transmission projects and the expanding smart metering business.
Jefferies said Adani Energy Solutions remains among its preferred ideas because of its visible earnings growth profile.
Jefferies on Adani Power: ‘Buy’
Jefferies retained its ‘Buy’ rating on Adani Power and raised its target price to Rs 270 from Rs 255, implying an upside of 20%.
The brokerage said management reiterated its goal of expanding generation capacity 2.3 times to 42 gigawatts by FY32.
“Adani Power’s management reiterated its target of expanding capacity by 2.3x to 42 GW by FY32. APL should see 23% EBITDA CAGR over FY26-30E and turn FCF positive by FY30 from negative levels currently,” Jefferies said.
The brokerage believes improving project execution and capacity additions support stronger earnings visibility over the medium term.
Transmission pipeline expands sharply
Jefferies said the near-term transmission bidding opportunity has expanded significantly over the past year.
The brokerage noted that the transmission bid pipeline currently stands at Rs 1.5 lakh crore compared with Rs 54,000 crore at the end of FY25. According to Jefferies, the increase reflects growing investment requirements across the power sector as renewable capacity additions continue.
The brokerage expects companies with strong execution capabilities and established project pipelines to benefit from this opportunity.
Conclusion
Jefferies remains constructive on the utilities sector as power demand improves, transmission investments accelerate and execution visibility strengthens across major companies. According to Jefferies, stronger demand growth, improving discom finances, a Rs 1.5 lakh crore transmission pipeline and expanding project execution opportunities provide a favourable backdrop for utilities companies over the coming years.
Disclaimer: The specific stock ratings, target prices, and earnings projections discussed in this report are based on institutional equity research from Jefferies and do not constitute direct buy, sell, or hold recommendations for retail investors. Equity investments in the power infrastructure and utilities sectors are subject to distinct risks, including execution delays, regulatory shifts in power purchase agreements, and fuel availability. Because individual financial goals and risk thresholds vary significantly, readers are strongly advised to consult a SEBI-registered investment advisor or a qualified financial consultant before making specific capital allocations or investment decisions based on these projections.
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