According to a latest thematic report by PL Capital, the booming AI infrastructure would act as a major driver for several companies of localised power demand. With data center capacity slated to triple by the end of the decade.  

By 2030, India's installed data center capacity is projected to scale up to 4.5 GW, a rise from just 1.3 GW in FY25, noting that the power consumed by data centers is expected to jump from 11 BU to roughly 39 BU by the end of the decade. 

“This creates a structural opportunity for battery energy storage system (BESS) across backup replacement, peak shaving, renewable integration, and grid services,” PL Capital said.

Key beneficiaries

PL Capital anticipates that transmission companies like Power Grid Corporation of India Ltd and Adani Energy Solutions Ltd would be key beneficiaries, driven by the sustained need to invest in high-voltage networks and dedicated grid connectivity.

For baseload generation, heavyweights like NTPC Ltd and Tata Power Company Ltd remain in the spotlight as RTC supply supports demand visibility, it said. On the storage and solar integration front, companies like Waaree Energies Ltd, Premier Energies Ltd, and Vikram Solar Ltd are positioned to benefit, according to the brokerage.

Share price targets

Among the key picks, PL Capital has assigned a ‘Buy’ rating to Waaree Energies with a target price of Rs 3,713. Power giants also feature on the buy list, with NTPC given a target of Rs 423 and Power Grid with a target of Rs 348. On the other hand, 'Hold' ratings have been assigned for Adani Energy with a target of Rs 1,452 and for Tata Power with a target of Rs 359.

Indian Energy Exchange Ltd (IEX) and Premier Energies also share ‘Hold’ ratings, with targets set at Rs135 and Rs 905. Finally, PL Capital recommends an "Accumulate" stance on Coal India Ltd, targeting at Rs 515 per share, and on Vikram Solar, with a target of Rs 226.