Adani Power Ltd and Acme Solar Holdings Ltd are Antique Stock Broking's top two power stock picks. The brokerage has maintain a constructive view on the power, citing record-breaking start to FY27, with May demand hitting all-time high of 271 GW. Antique finds power stocks interesting as a multi-year demand and capacity upcycle takes hold. 

FY27, it said, should deliver 6-7 per cent demand growth on a soft FY26 base, with tight summer balances-and the emerging evening-peak deficit -firming merchant tariffs and underscoring the REplus-storage build-out. 

Antique's optimistic outlook on the sector came, days after Kotak Institutional Equities warned that improved performance of utility stocks in anticipation of rising power demand has made valuations rich, even as near-term benefit to earnings is limited.

"The stable 4QFY26 confirmed the theme: private players (JSW Energy Ebitda up 87 per cent, Adani Power in line at 95 per cent PPA tie-up, ACME Solar up 10 per cent) outpaced steadier PSUs. We prefer Adani Power (BUY, target price Rs 242) and ACME Solar (BUY, target price Rs 363); we also like JSW Energy (Buy, target Rs 640) and NTPC (BUY, target Rs 423) and maintain Hold on Power Grid (TP Rs 317) & IEX (target Rs 141)," Antique said.

Antique said India's power demand has opened FY27 on a strong note, with peak demand reaching an all-time high of 271 GW in May, up 17 per cent YoY or 6 per cent month-on-month (MoM), surpassing the prior record of 250 GW (May 2024) and FY26's 245 GW winter peak. 

The evening or non-solar-hour peak also set a fresh record of 246 GW (up 10 per cent YoY), while the solar-hour peak was met at nil deficit in May, it said adding that the evening peak ran a 1-4 GW shortfall on peak days. 

"Energy demand and generation increased 12 per cent and 10 per cent YoY to 165BU and 175BU, respectively, in May. April was also healthy with peak demand of 256 GW, up 9 per cent YoY (demand up 3 per cent), taking the FY27 YTD generation to 341 BU (up 8 per cent YoY). The strong start marks a clear recovery from FY26, which closed at 1,707 BU (up 0.8 per cent YoY) as an extended monsoon and milder winter suppressed 1HFY26 demand," Antique said. 

Antique said Coal stocks stayed comfortable at 49 mt (16 days), and DAM tariffs reversed higher to Rs 4.9/kWh. "Following a largely stable Q4 earnings season, we remain constructive on the sector and prefer Adani Power and ACME Solar," Antique said.