India`s electricity demand likely to grow in range of 4%-4.5% in FY26: ICRA
Rating agency ICRA in its latest report has said that India’s electricity demand is likely to grow at a rate between 4 per cent and 4.5 per cent in the current financial year (2025-26). It said the country's power demand was 1,695 billion units in FY25. On the supply side, ICRA said 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.
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. He added that 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'.
