Jefferies Bullish on Power Sector Recovery by 2026; JSW Energy, NTPC Top Picks

• Jefferies forecasts a strong rebound for the power sector in 2026, citing normalization of electricity demand after unseasonal rains impacted consumption last year.
• JSW Energy and NTPC are highlighted as top investment picks, driven by their robust new project pipelines and consistent execution of power purchase agreements.
• Medium-term power demand is projected to grow at a 5-6% CAGR, fueled by the expansion of data centers and increasing adoption of electric vehicles.
• The brokerage anticipates an acceleration in renewable energy PPAs and additions to thermal power capacity, contributing to sector growth in 2026.
• JM Financial warns of weather sensitivity; potential El Niño conditions in 2026 could lead to a weaker monsoon, impacting power demand.

Why It Matters: Jefferies sees power sector recovery by 2026, favoring JSW Energy and NTPC despite weather risks.