India Electricity Demand Growth FY26: Icra Forecast

New Delhi, Oct 24 (PTI) The domestic electricity demand growth is expected to be in the range of 4-4.5 per cent in FY26, according to rating agency Icra.

As per Icra, the country's power demand was 1,695 billion units in FY25.


Ankit Jain, Vice President and Co-Group Head - Corporate Ratings at Icra, said that following a muted 1 per cent growth in H1 FY2026 due to an unfavourable base and an early monsoon, Icra foresee a recovery in the H2 period.

"As weather patterns normalise and underlying economic activity remains stable, we project full-year electricity demand growth to settle at a healthy 4-4.5 per cent," he added.

On the supply side, coal inventory levels at domestic power plants have moderated but remain comfortable. As of October 10, 2025, coal stocks were sufficient for 14.7 days of requirement, which is notably better than the stock levels witnessed in the corresponding period of the previous years. This reflects sustained improvements in coal supply and logistics management, Icra said.