Electricity demand likely to increase by 4-4.5 percent in FY 2026: ICRA

According to rating agency ICRA, growth in domestic power demand is expected to be between 4-4.5 percent in FY 2026.

According to ICRA, the country’s electricity demand in financial year 2025 was 1,695 billion units.

Ankit Jain, Vice President and Co-Group Head – Corporate Ratings, ICRA, said that after a slow growth of 1 per cent in the first half of FY26 due to unfavorable base and early monsoon, ICRA expects a recovery in the second half.

“As weather patterns normalize and underlying economic activity remains stable, we project a healthy growth of 4-4.5 per cent in full-year power demand,” he said.

On the supply side, coal inventory levels at domestic power plants have declined but remain comfortable. As of October 10, 2025, the coal stock was sufficient to meet the requirement for 14.7 days, which is much better than the stock levels seen in the same period in previous years. ICRA said, this reflects the continuous improvement in coal supply and logistics management.