Electricity demand increased by 5.5% YoY during the first 10 days of December 2025, as per POSOCO data. Demand growth recovered after remaining negative for the past two consecutive months. Full-year demand is expected to remain in line with ICRA’s growth projections of 1.5-2.0% for FY2026.

The states leading electricity demand growth in 8M FY2025 are Gujarat, Karnataka, and Bihar. Additionally, demand growth remained low in Maharashtra, Andhra Pradesh, Tamil Nadu and West Bengal. Moreover, it was negative for Haryana, Punjab, Rajasthan, Uttar Pradesh, Madhya Pradesh and Telangana during this period owing to the impact of a high base and adverse effects of heavy rains.

Exhibit 3: Regional variation in power demand growth influenced by weather conditions