Power Sector Q3 Mixed as Demand Softens, Utilities Stable

India’s power sector saw a mixed Q3FY26, with weather-led demand weakness impacting volumes and merchant tariffs. Power demand fell 1% YoY to 393 billion units, mainly due to an extended monsoon. However, demand witnessed a strong rebound in December and continued recovery in January. Regulated utilities reported stable earnings supported by capitalisation growth and capex expansion. Analysts believe improving demand trends may support power prices going forward. #PowerSector #Q3FY26 #EnergyDemand #Utilities #MarketUpdate