Electricity demand growth witnessed muted YoY growth in the first 22 days of March 2026, as per POSOCO data, reversing the recovery witnessed over the last three months. In line with this trend, the full-year demand increase for FY2026 is expected to only remain around 1%. However, growth is projected to rebound to around 5% in FY2027, trailing expected real GDP growth of 6.0–7.0%.

• Demand growth witnessed marginal year-over-year (YoY) growth in March 2026 as per provisional data from the Power System Operation Corporation (POSOCO): India’s electricity demand growth has been weak in FY2026 YTD, impacted by early and prolonged monsoon conditions and a high base effect. Demand grew marginally by 0.8% on a YoY basis in the first 22 days of March 2026, as per data from POSOCO, due to a slow recovery during the winter season owing to weather disruptions seen over last few days.
• Spot power tariffs on the Indian Energy Exchange (IEX) averaged Rs. 3.9 per unit as of March 12, 2026, higher than Rs. 3.6 per unit in February 2026. Prices were much lower compared to the March 2025 level of Rs. 4.5 per unit due to subdued demand growth in March 2026. Also, spot tariffs have been declining during most of the months in FY2026 due to an improved supply position and low demand growth.