Nuvama Institutional Equities has released its Q1 FY2027 preview for power sector companies under its coverage, forecasting a robust 9–11 percent growth in profit after tax (PAT). This growth aligns with increasing demand and healthy utility plant load factors (PLF) across the industry.
Overall Sector Outlook and Top Picks
The brokerage highlighted NTPC’s strong Q1 PLF at 76.4 percent, an increase from 74 percent year-on-year. Power Grid is also expected to report significant commissioning activity in the quarter. Nuvama has identified CESC Ltd, NTPC Ltd, and ACME Solar Holdings Ltd as its top power sector picks for the period.
Company-Specific Analysis and Price Targets
Suzlon Energy Ltd
- Rating: Hold
- Target Price: Rs 56
Nuvama projects Suzlon to achieve 550MW in execution during Q1 FY2027, working towards an annual target of 3GW. Margins for the quarter are expected to be around 18 percent, driven by increased EPC-related work prior to the monsoon season. The brokerage notes that further execution ramp-up and margin fluctuations due to EPC mix are key monitorables.
Tata Power Company Ltd
- Rating: Reduce
- Target Price: Rs 390
Tata Power is anticipated to see a 7-7.5 percent growth in adjusted profit for Q1 FY2027. However, losses from the Mundra Ultra Mega Power Project (UMPP) are expected to persist, estimated at Rs 200 crore per quarter, despite the plant’s operational status under the Gujarat SPPA. Strong performance in Odisha and the ramp-up of solar manufacturing are positive aspects.
Indian Energy Exchange Ltd (IEX)
- Rating: Reduce
- Target Price: Rs 118
IEX experienced a weak total volume growth of 2.2 percent year-on-year in Q1 FY2027, primarily due to a decline in REC growth, even as electricity volumes remained strong at 15.8 percent year-on-year. Nuvama forecasts a muted PAT growth of 7-8 percent year-on-year.
ACME Solar Holdings Ltd
- Rating: Buy
- Target Price: Rs 345
ACME Solar is poised for a strong 47 percent year-on-year top-line growth in Q1 FY2027, despite a slow capacity ramp-up. Battery Energy Storage System (BESS) realisations are expected to significantly contribute to impressive overall growth. EBITDA is projected to grow by 39 percent, with operating margins around 85 percent, although BESS margins are typically lower.
Inox Wind Ltd
- Rating: Buy
- Target Price: Rs 123
Execution-related challenges identified in Q4 FY2026 are expected to continue into Q1 FY2027 for Inox Wind. The company is projected to achieve a Q1 EBITDA margin of 21 percent, driven by a higher product supply mix, with revenue anticipated to be close to Rs 1,000 crore. Order inflow growth remains a crucial trigger for the stock.
CESC Ltd
- Rating: Buy
- Target Price: Rs 212
CESC is expected to post a 9-10 percent year-on-year PAT growth in Q1 FY2027, building on a strong Q1 FY2026 base. Strong PLF is anticipated from the Haldia plant, and losses in the Malegaon distribution segment are projected to continue softening as the company focuses on reducing T&D losses. The generation business is expected to remain largely flat, with Dhariwal potentially seeing lower profits due to weak PLF.
NTPC Ltd
- Rating: Buy
- Target Price: Rs 445
NTPC’s PAT is expected to grow by 7 percent year-on-year, supported by potentially higher incentives. The standalone business PLF is seen at 76 percent year-on-year in Q1 FY2027, reflecting strong power demand. Profitability in the standalone business is largely insulated due to the regulatory mechanism, ensuring assured returns.
Power Grid Corporation of India Ltd
- Rating: Hold
- Target Price: Rs 283
Nuvama forecasts an 11 percent year-on-year consolidated PAT growth for Power Grid, driven by strong commissioning expectations in Q1 FY2027. The company's capex trajectory and on-ground commissioning will be key monitorables, especially following impressive growth in the base year (FY26).