Suzlon, IEX, Tata Power, NTPC, Power Grid, CESC, ACME: What to watch in Q2

Nuvama Institutional Equities expects power companies to report 8-11 per cent growth in profit after tax (PAT) in Q2FY27, driven by strong power demand and higher thermal plant load factors (PLFs), even as renewable energy (RE) capacity additions remained subdued ahead of an expected ramp-up in the second half of FY27.

The sustained demand environment pushed peak power demand to 269 GW in September 2026, up 17.5 per cent year-on-year (YoY), translating into higher thermal-led utilisation. PLFs rose 640 basis points (bps) to 68.3 per cent in September, against 61.9 per cent in the year-ago period. Most utilities reported healthy PLFs in Q2FY27, the domestic brokerage said, naming ACME Solar, NTPC and Power Grid among its top picks in the power sector.

Here are Nuvama's key Q2FY27 expectations for power companies.

Suzlon Energy Ltd

Nuvama expects Suzlon Energy to execute 690 MW in Q2FY27, with annual execution targeted at 3 GW. The company's Q2 margins are expected to hover at 16.6 per cent, as a higher share of EPC-related work dilutes margins, even as increased execution supports operating leverage gains.

"Further execution ramp up and margin (due to fluctuations in EPC mix) remain key monitorables going forward with any deferred tax angle and the quantum thereby in Q2 is a key variable to watch out for," it said.

Tata Power Company Ltd

Nuvama expects Tata Power to report 27 per cent YoY growth in adjusted profit in Q2FY27, driven by higher associate profits from coal mines and a reduction in Mundra UMPP losses to Rs 150 crore per quarter from Rs 400 crore a year ago.

"Sequential growth is likely to remain flattish on a high Q1 base. Solar manufacturing ramp-up remains encouraging, while Tata Projects, Mundra UMPP performance and consolidation of EPC/module sales remain key monitorables. Odisha DISCOM performance is expected to recover after a lull in the previous quarter," Nuvama said.

NTPC Ltd

Nuvama expects NTPC's Q2 PAT to grow 8 per cent YoY, supported by potentially higher incentives. It expects standalone PLF to be around 75 per cent in Q2FY27, given strong power demand during the quarter.

"That said, profitability is relatively insulated in the standalone business due to regulatory mechanism as returns under the regulated model by and large remain assured," it said.

Inox Wind Ltd

Nuvama expects execution-related challenges at Inox Wind to persist in Q2FY27, albeit at a lower level than in Q1FY27. It projects an Ebitda margin of 17 per cent and revenue of close to Rs 1,300 crore for the quarter. Order inflows and execution will remain key drivers of the stock's performance, it said.

ACME Solar Holdings Ltd

Nuvama expects ACME Solar to report 96 per cent YoY revenue growth despite a slow capacity ramp-up. Higher realisations from battery energy storage systems (BESS) are expected to support strong overall growth in Q2FY27. Ebitda is projected to rise 95 per cent, while the operating margin is expected to come in at 85 per cent.

"We expect PAT (Including other income) to be Rs 237.70 crore with bulk of the additions from BESS ramp up during the quarter," Nuvama said.

Indian Energy Exchange Ltd

Nuvama expects total volume growth to remain weak at 4-5 per cent YoY in Q2FY27, largely due to a decline in renewable energy certificate (REC) volumes. Electricity volumes, however, remained resilient, rising 12.7 per cent YoY.

The brokerage anticipates PAT growth of 10-11 per cent YoY in Q2FY27, supported by a higher share of electricity volumes in the overall volume mix.

Power Grid Corporation of India Ltd

Nuvama expects Power Grid to report a consolidated PAT growth at 9  cent YoY owing to healthy expected commissioning in Q2FY27. he brokerage estimated teh figure at Rs 6,000 crore. Capex trajectory and commissioning on ground remains a key monitorable for the company going ahead as the base year (FY26) showed impressive growth, Nuvama said.

CESC Ltd

Nuvama expects CESC to report 8 per cent YoY PAT growth in Q2FY27, against a reasonable base in Q2FY26. Strong PLFs are expected at both Haldia and Dhariwal.

In the distribution segment, Malegaon losses are expected to continue to moderate in Q2FY27 as the company focuses on reducing T&D losses, while the generation business is expected to remain largely flat YoY.