Electricity demand witnessed a strong recovery in Q1FY2027, supported by the delayed onset of the southwest monsoon across several regions, which prolonged elevated temperatures and increased cooling-related power consumption. As per GCIL data, electricity demand registered a healthy YoY growth of 10.7% during the first 16 days of July 2026, following an 11.6% growth in June. Demand growth is expected to rebound to around 5% in FY2027. Spot power tariffs on the Indian Energy Exchange (IEX) averaged Rs. 7.0 per unit as on July 16, 2026, significantly higher than Rs. 5.2 per unit in June 2026 and Rs. 4.2 per unit in July 2025, reflecting a tighter supply-demand balance amid strong demand growth. Meanwhile, coal stock levels stood at around 13 days as on July 18, 2026, slightly lower than 14.3 days at the end of June 2026. While stock levels remain below the normative requirement of 20 days, they are materially higher than the stressed levels seen in the past, providing comfort for meeting demand requirements. While coal stocks remain sufficient to support ongoing demand, maintaining inventory levels will be important to meet any sharp increase in power consumption.

Exhibit: Electricity demand increased YoY in first 16 days of July 2026

Source: ICRA Research, Central Electricity Authority (CEA), GCIL