Equirus initiates coverage on India's power utilities, forecasts aggressive capex cycle
India's power utilities are entering a "different current" of aggressive capacity buildout, according to a research report by Equirus that initiated coverage on the sector. The brokerage expects a multi-year capex cycle led by renewables, storage, and thermal additions, with balance sheet leverage across private players rising sharply through fiscal 2030 before easing as new assets stabilise.
Torrent Power's leverage to peak at 4.9x net debt/EBITDA by FY30
Equirus noted on Torrent Power: "Going forward, the capex cycle spanning renewables, Nabha, Raigad PSP and the MP thermal project is expected to materially increase leverage." The brokerage forecasts net debt to rise from Rs 129 billion in FY26 to Rs 637 billion by FY30, while gross block expands to Rs 954 billion. Consequently, net debt/EBITDA is expected to peak at 4.9x in FY30. Return ratios are likely to stay subdued during execution before recovering.
Torrent Power targets 10GW renewable capacity by FY30
The growth ambition is broad-based. Equirus highlights Torrent Power's plan to target 10GW of renewable capacity by FY30 alongside an 8.4GW pumped storage pipeline, which "would more than double TORNT's operational platform over the next 5-7 years". Today, the utility has 6.5GW installed and serves over 4.2 million customers across 12 cities.
JSW Energy's Strategy 3.0 targets 30GW generation and 40GWh storage by FY30
Private players are mirroring this push. JSW Energy, with 14.5GW operational and 32.1GW locked in, is "entering the next phase of growth under its Strategy 3.0 roadmap, which seeks to transform the company from a conventional power generator into an integrated energy products and services provider". The roadmap targets 30GW of generation capacity and 40GWh of energy storage by FY30.
That expansion comes with higher gearing. "We forecast net debt/EBITDA to remain in the 6-7x range through FY30, peaking around FY29," Equirus says on JSWEL, as it funds thermal, pumped storage, and hybrid projects. Gross block per MW is projected to rise to Rs 63 million per MW by FY30, reflecting more capital-intensive assets.
NTPC's regulated equity to reach Rs 1,107 billion by FY30
For state-owned NTPC, the driver remains regulated equity. "Looking ahead, we expect standalone regulated equity to reach Rs 1,107 billion by FY30, driving PAT to Rs 240 billion alongside capacity expansion to 67 GW," the report said. Leverage should stay comfortable at 3.5-4.0x net debt/EBITDA, with RoE and RoCE broadly stable.
Structural shift in India's power sector: from 1973 oil shock to renewables and storage
Equirus framed the cycle as structural. From the 1973 oil shock that led to the creation of NTPC and NHPC to today's renewables plus storage push, India's utilities are again pivoting. The key watchpoint through 2026-2030 will be the timing of commissioning. As Equirus puts it, "timely commissioning and capitalisation of under-construction projects remain the single biggest earnings catalyst through FY30".
