New Delhi, Jan. 3 -- India's power sector faces a critical juncture as demand is set to recover in 2026 to reverse a period of underperformance driven by weak consumption trends.

According to a recent report by Jefferies, the sector saw subdued activity throughout 2025, with power demand remaining flat year-on-year between April and November 2025 due to extended monsoons and sluggish industrial output.

The report notes that excessive rainfall during the monsoon months impacted residential cooling requirements and reduced the need for irrigation and pumping in the agricultural sector. Jefferies analysts observed that "power demand in India is weak in years of above-average rainfall," citing fiscal years 2008 and 2014 as historical preced...