Suzlon, BHEL, Tata Power, Inox Wind, SJVN: Check Q2 previews & target for these stocks

JM Financial’s Q2FY26 sector preview indicates Indian power utilities are likely to see a moderate quarter, with topline growth expected to remain subdued. Early monsoons and an economic slowdown have contributed to this outlook. According to the brokerage, "We anticipate utilities to report a moderate quarter with flat topline."

NTPC is projected to deliver a moderate performance, with revenue expected to decline by 4% year-on-year to INR 465 billion and EBITDA falling by 2% to INR 114 billion. Generation is set to fall by about 6% compared to last year. Power Grid is forecast to record net sales of INR 116 billion with an EBITDA margin of 83%. Coal India is expected to report flat revenue at INR 308 billion due to lower dispatches, with EBITDA at INR 86 billion and a margin of 28.1%.

Tata Power’s net sales for the quarter are anticipated at INR 160 billion, up 2% year-on-year, while the Mundra Plant remained non-operational. EBITDA margin is expected around 23.6%, slightly down from last year. JSW Energy is likely to see a significant 66% year-on-year revenue increase, driven by higher generation and contributions from KSK Mahanadi and O2 Power. Profit after tax may grow moderately by 4% due to higher depreciation and finance costs.

Hydro-focused utilities show mixed trends. NHPC is expected to report revenue of INR 36 billion, a 19% increase year-on-year, due to an 11% rise in generation. SJVN is projected to see revenue at INR 9.8 billion, down 5% year-on-year as a result of subdued generation.

Torrent Power is expected to deliver 4% revenue growth at INR 74 billion, driven by a 3% increase in gas generation. CESC may record revenue of INR 52 billion, up 10% year-on-year, with EBITDA margin at 21.4%. ACME Solar is forecast to report revenue of INR 4.6 billion, a 77% increase year-on-year but a 10% decline quarter-on-quarter due to seasonally weak solar output, with EBITDA margin at 89.2%.

Among equipment manufacturers and trading companies, IEX’s revenue is estimated at INR 1.6 billion, a 14% year-on-year growth, supported by a 15% rise in traded volumes and an EBITDA margin of 82.3%. BHEL’s net revenue could rise by 10% year-on-year, driven by execution of its power order book. Suzlon may achieve at least a 40% increase in net revenue due to higher dispatches, while Inox Wind could see revenue expand by 59% year-on-year to INR 12 billion, with execution rising to 210MW from 140MW last year.

Overall, JM Financial’s outlook suggests a mixed bag as early monsoon and economic trends influence demand, while renewable and hydro generation improve. Trading volumes and merchant tariffs have moderated, with tariffs averaging INR 3.9/kWh, down 13% year-on-year. "JSW Energy’s revenue is likely to increase 66% YoY due to higher generation in 2QFY26 led by incremental contribution from acquisitions of KSK Mahanadi and O2 Power. PAT to grow moderately by 4% YoY due to increase in depreciation (2.0x YoY) and finance cost (2.6x YoY)."

Key industry competitors include NTPC, Tata Power, JSW Energy, Coal India, Power Grid, BHEL, Suzlon, Inox Wind, NHPC, SJVN, CESC, Torrent Power, ACME Solar, and IEX. These companies face varying operational environments, with some benefiting from capacity expansions and others challenged by subdued demand or operational constraints.

According to JM Financial, the next quarter’s performance will depend on trends in renewable output, new capacity, and macroeconomic factors such as energy demand and tariff levels. The sector’s response to changing demand and weather-driven generation will be closely watched by market participants and investors.

JM Financial has a 'buy' rating on NTPC (Target Price: Rs 391), Power Grid (Target Price: Rs 337), (Target Price: Rs 436), JSW Energy (Target Price: Rs 726), NHPC (Target Price: Rs 103), CESC (Target Price: Rs 201), BHEL (Target Price: Rs 278), Suzlon Energy (Target Price: Rs 66) and Inox Wind (Target Price: Rs 158).

It has given a 'hold' rating on Coal India (Target Price: Rs 372), Torrent Power (Target Price: Rs 1,349), ACME Solar Holding (Target Price: Rs 330) and IEX (Target Price: Rs 149). SJVN, which has a target price of Rs 75, is the only stock from this space to get a 'sell' rating for JM Financial.