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Cumulative all-India electricity demand over April 2025-June 2025 stood at 446 BU as compared to 452 BU for the same period last year, said the brokerage firm. "The peak demand was 243 GW for Q1FY26 in Jun2025, a 3 per cent YoY decline. The weakness in electricity demand is led by the early onset of the monsoon and less intense summer. The IEX DAM prices in Q1FY26 stood at Rs 4.4/KW, stable relative to Q4FY25 but a 16 per cent decline against the Q1FY25 prices of Rs 5.3/KW," Axis said in its report. The Central Electricity Authority (CEA) forecasts a peak demand requirement of 366 GW by FY32, necessitating capacity enhancements across both thermal and renewable energy sources (RES). India aims to increase its installed capacity to 610 GW by FY27 and 900 GW by FY32. The installed capacity was 490 GW as of July 2025. Axis Securities sites expected consistent increase in the power demand; government's focus on increasing the installed capacity as per the NEP - both RE and thermal; and focus on transmission capacity as the key tailwinds for the sector. However, it has cited early onset of monsoon affecting the power demand; curtailments on RE power output due to lower demand; and on-ground execution challenges as headwinds. Axis Securities has cited NTPC, JSW Energy and Skipper as its top picks from the power and utility space. It has 'buy' ratings on all three stocks. It has picked NPTC with a target price of Rs 400 citing its strong capacity addition including renewable energy capacity, thermal capacity, under construction and pipeline capacity. It prefers JSW Energy on the back of improved power generation, capacity additions, strategic investments in equipment manufacturing and reduced reliance on merchant markets. It has a target price of Rs 705 on the stock. Skipper, with a target price of Rs 570, is picked due to export opportunities, strong order book and capacity expansion to capitalise on the strong tailwinds. Axis Securities is expecting Adani Green Energy and NTPC Green Energy to report a return on equities (RoE) at 17.42 per cent and 8.5 per cent in FY27, while EV/Ebitda at for FY26/FY27 is seen at 18.79 times/15.38 times and 28.66 times and 10.82 times, respectively. It is penciling RoEs for Waaree Energies and Premier Energies at 27.10 per cent and 34.56 per cent for FY27E. It pegs their FY26/FY27 EV/Ebitda at 16.34 times/12.6 times and 19.33 times/14.23 times, respectively. For Suzlon, FY27E RoE is seen at 30.01 per cent and EV/Ebitda for FY26 and FY27 at 25.68 times and 19.45 times, respectively.