According to a latest sector update from JM Financial, the peak power demand hit an unprecedented 270GW on May 21, 2026, blowing past earlier forecasts. The brokerage firm noted that the recent surge in power demand has important connotations beyond the headline number. 

"Demand continues to outstrip supply as seen in price movement on the exchange and multiple reports of localised outages," the brokerage said, highlighting a grid under serious pressure. 

“Solar contributed 70–75GW but vanished in the evenings. Managing the evening peak demand is proving to be difficult. Coal is being pushed to its limit. Expensive gas was used as a flexible source to support evening demand,” the brokerage said.

JM Financial pointed out that coal remains the backbone of the system, operating at maximum utilisation, suggesting shrinking spare capacity and supply stress beyond 250GW.

JM Financial expects the demand to soar up to 278-285GW in the coming months. If a super El Niño kicks in fully, that peak could easily touch 280-290GW. The brokerage said that there is a high probability of power shortages in the next few years given limited pipeline of incremental thermal additions.

“Within our coverage universe, our tactical pecking order is Tata Power > Emmvee > BHEL >Adani Green > Adani Power driven by expectations of a second surge in power demand, fuelled by the seasonally hottest month of June and the ensuing El Niño conditions from Jul through Sep’26,” the brokerage said.

Stock target prices

Starting with NTPC Ltd, which secured a ‘Buy’ rating from the brokerage with a target price of Rs 450, while Power Grid Corporation of India Ltd is also tagged as a ‘Buy’ with a target of Rs 342. 

State-run Coal India Ltd has an ‘Add’ rating with a target price of Rs 515, and JSW Energy Ltd also carries an ‘Add’ rating with a target of Rs 642. The Tata Group's major utility arm, Tata Power Ltd, shines bright with a ‘Buy’ rating and a target price of Rs 485.  

Adani Power Ltd has a ‘Reduce’ call from JM Financial with a target price of Rs 202. Adani Green Energy Ltd also commands an ‘Add’ rating with a target of Rs 1299, and Adani Energy Solutions Ltd also has an ‘Add’ rating with a target price of Rs 1513. 

Torrent Power Ltd and Vikram Solar Ltd are both given a ‘Reduce’ rating, with target prices of Rs 1359 and Rs 205, respectively. While SJVN Ltd is handed a ‘Sell’ rating with a target of Rs 68.  

Among other key utility and power equipment players, Bharat Heavy Electricals Ltd (BHEL) has a ‘Buy’ call from the brokerage, with a target price of Rs 435. Suzlon Energy Ltd also retained a ‘Buy’ rating with a target of Rs 65, while its peer Inox Wind Ltd received an ‘Add’ rating and a target price of Rs 101. 

Both CESC Ltd and ACME Solar Holdings Ltd has ‘Buy’ ratings with targets of Rs 214 and Rs 341 respectively, while the Indian Energy Exchange Ltd (IEX) gets an ‘Add’ rating with an Rs 138 target. 

NHPC has an ‘Add’ rating for an Rs 86 target, Waaree Energies Ltd commands an ‘Add’ rating and Rs 3509 target price, Premier Energies Ltd sits at a ‘Buy’ call for target of Rs 1220, and Emmvee Photovoltaic wraps it up with a ‘Buy’ rating and a target price set at Rs 377.