Kuldeep

Delhi. power sector. love a good CERC order, a worse hydro reservoir reading, and a really juicy thermal capacity number. mostly writing for energylineindia.com these days; this is where the leftovers and the marginalia go. petrochem cross-reads via indianpetrochem.com when LPG and LNG start making noise.

[niranjankuldeep]

Gujarat Alkalies sets a Rs 10,000 crore revenue target

Gujarat Alkalies and Chemicals' investor presentation for the year ended March 2026 is built around Project Ahvaan, a transformation programme run with A.T. Kearney as strategic partner since April 2025, targeting revenue of Rs 10,000 crore-plus and an EBITDA margin above 20 per cent by FY31 — a two-to-three-fold aspiration over five years. FY26 delivered revenue of Rs 4,474 crore (up from Rs 4,165 crore), EBITDA of Rs 522 crore with margin up 0.8 percentage points to 11.7 per cent, and overall sales volume up 7 per cent, including roughly 10 per cent growth in caustic sales on exports and alumina-sector demand.

The number the free layer does not tell you is the bottom line: PAT was just Rs 21 crore on that Rs 4,474 crore top line — barely above break-even and a fraction of EBITDA, though a recovery from the FY24 loss.

Why it matters

That gap between operating and net performance is the real case for Ahvaan. The pipeline is concrete: a Rs 600-650 crore board-approved near-term capex programme, nine projects underway with chlorotoluenes (30,000 TPA, Dahej) already commissioned and three more due between October 2026 and January 2027.

The details

Plus three newly board-approved projects — caustic soda lye revamp and caustic potash expansion at Vadodara (November 2028), food-grade phosphoric acid (December 2028) and electronic-grade hydrogen peroxide (January 2028). Rs 30 crore of FY27 digital spending is budgeted against a claimed Rs 50 crore of value — a ratio worth watching.

Who is affected

Gujarat Alkalies faces the challenge of converting its operating improvements into net profit growth, given PAT remains barely above break-even despite EBITDA gains.

Downstream buyers of caustic soda, chlorotoluenes and the company's new specialty products stand to benefit from the expanding project pipeline through FY31.

What's next

Watch the commissioning of the three additional chlorotoluenes-related projects due between October 2026 and January 2027, alongside the newly approved Vadodara, phosphoric acid and hydrogen peroxide projects through 2028.

Continued monitoring of the PAT-to-EBITDA gap will indicate whether Project Ahvaan is successfully bridging operating performance into bottom-line results.

For more such stories, go to https://indianpetrochem.com

[niranjankuldeep]

The national despatcher told coal plants that generate at Rs 1.16 a unit to stand down through the sunlight hours

The security-constrained scheduling table published on 8 July for delivery on 9 July directs India's cheapest thermal stations to reduce or withdraw output through the solar window. NTPC's Darlipali in Odisha, with an energy cost of 115.9 paise per unit, is listed for 233.58 MW across time blocks 37 to 66 — approximately 09:00 to 16:30.

Talcher Stage-2 follows with 715.93 MW at 129.2 paise, Talcher with 308.98 MW at 130.4 paise, both Sipat stages with over 515 MW combined at 130.8 paise, and Korba's three listings with nearly 775 MW between 136.6 and 137.7 paise.

Why it matters

Further up the cost curve, Singrauli appears for 541.04 MW at 198.7 paise and North Karanpura for 735.04 MW at 212.7 paise. The economic logic is visible on the exchange the same afternoon: with day-ahead power clearing at 25 to 30 paise a unit through hours 13 to 15, even fuel costs of Rs 1.16 cannot compete, and the optimiser saves money for buyers by parking coal and letting solar through.

The details

It is our reading that this table is the clearest daily record of India's mid-day coal backdown becoming systematic: the stations listed are the backbone plants of the eastern and central coalfields, not marginal units.

Rihand's three units, nearly 1,064 MW at 166 to 170 paise, and Vindhyachal Stage-4 at 214.7 paise fill out the list, so the stand-down spans Odisha, Chhattisgarh, Madhya Pradesh and Uttar Pradesh pit-heads together — a coordinated national trough response, not a local congestion fix.

Who is affected

Major pit-head coal stations across Odisha, Chhattisgarh, Madhya Pradesh and Uttar Pradesh face systematic midday backdown, affecting their plant load factors and revenue during solar hours.

Buyers benefit from the optimiser's cost-saving decision to park even the cheapest coal capacity in favour of solar power during the sunniest hours of the day.

What's next

Watch whether this systematic midday backdown of backbone coal stations becomes a permanent feature of grid despatch as solar capacity continues to grow.

Continued monitoring of how far up the cost curve the backdown extends will indicate the true scale of the midday surplus problem.

For more such stories, go to www.energylineindia.com

[niranjankuldeep]

CareEdge upgrades Garware Hi-Tech Films to AA

CARE Ratings has upgraded Garware Hi-Tech Films' long-term rating from CARE AA-; Stable to CARE AA; Stable on Rs 80 crore of facilities, reaffirming CARE A1+ on Rs 120 crore of short-term lines. The upgrade rests on a net-debt-free balance sheet and margins that barely moved through a year of US tariff-related uncertainty and supply chain disruption.

FY26 operating income was flat at Rs 2,139.44 crore, with PBILDT margin at 21.39 per cent against 21.62 per cent a year earlier and profit after tax of Rs 338.23 crore. Sun control film volumes rose to 3,031 lakh square feet from 2,865. Exports still account for about 74 per cent of consolidated revenue across more than 90 countries.

The transformation metric CareEdge highlights is the value-added share: 87 per cent of revenue in FY26 against 48 per cent in FY17. Total debt is just Rs 28.29 crore, gearing 0.01x, and cash and liquid investments stand at Rs 744.72 crore.

Growth capital is already committed from internal accruals: a new 1,200 lakh square feet sun control film line targeted for June 2028 and a 360 lakh square feet TPU extrusion project that integrates backwards into paint protection films, softening exposure to crude-linked PTA, MEG and TPU inputs.

For more such stories, go to https://indianpetrochem.com

[niranjankuldeep]

The dams are running 11 per cent behind plan, and the south's reservoirs are metres below last year's line

The Central Electricity Authority's daily generation report for 6 July puts the cumulative hydro deviation at minus 11.33 per cent for the financial year so far. The east is worst at minus 30.6 per cent, the north at minus 11.9 per cent, the south at minus 6.5 per cent.

Why it matters

The reservoir table reads one-sided: Srisailam stood at 250.5 metres against 267.7 metres last year; Koyna is 12.8 metres down, Idukki 12 metres. Odisha's Rengali is at 110.67 metres against 121.1 last year, generating zero.

The details

The one big exception is Gujarat: Sardar Sarovar is 9.4 metres above its year-ago level, worth 685 million units in energy content.

Who is affected

The one external cushion is Bhutan, whose imports are running 83 per cent above programme, plugging a seventh of the domestic hydro hole.

What's next

The PM's advisers' paper says the grid leans on hydro to absorb the steepest evening ramps; a hydro fleet 11 per cent short of plan is a thinner cushion under a steeper ramp.

For more such stories, go to www.energylineindia.com

[niranjankuldeep]

Methanol craters in Hazira as the war premium drains out of the C1 chain

Methanol prices in Hazira are currently at Rs 39.50/kg, down Rs 2.50/kg on the week, Rs 16.00/kg over the fortnight and Rs 22.50/kg below the Rs 62.00/kg level of a month ago — the sharpest monthly percentage fall on this edition's board.

The three-month comparison shows a Rs 13.00/kg decline from Rs 52.50/kg, while the six-month view still holds a Rs 7.50/kg gain over the Rs 32.00/kg of early January, bracketing the entire war episode: spike, crest, and now the slide.

The one-year extremes are Rs 80.00/kg and Rs 22.75/kg, and the current print sits close to the lower end of recent trading.

The mechanics

Methanol was among the most import-exposed molecules during the Gulf disruption — Iran and the wider Middle East are structural swing suppliers to India's west coast — so freight and risk premia inflated landed costs fastest on the way up and are deflating fastest on the way down as shipping normalises.

Downstream formaldehyde, acetic acid and fuel-blending buyers who covered forward at Rs 55-60/kg are now the market's reluctant sellers.

Key levels

Support sits near Rs 32.00/kg — the pre-conflict January base — with the market watching whether Rs 39.50/kg holds as interim support; resistance is at Rs 39.50/kg on the bulletin's key-level read.

Watch Iranian and Gulf export offers as sanctions-era logistics normalise.

For more such stories, go to www.indianpetrochem.com

[niranjankuldeep]

Methanol craters in Hazira as the war premium drains out of the C1 chain

Methanol prices in Hazira are currently at Rs 39.50/kg, down Rs 2.50/kg on the week, Rs 16.00/kg over the fortnight and Rs 22.50/kg below the Rs 62.00/kg level of a month ago — the sharpest monthly percentage fall on this edition's board.

The three-month comparison shows a Rs 13.00/kg decline from Rs 52.50/kg, while the six-month view still holds a Rs 7.50/kg gain over the Rs 32.00/kg of early January, bracketing the entire war episode: spike, crest, and now the slide.

The one-year extremes are Rs 80.00/kg and Rs 22.75/kg, and the current print sits close to the lower end of recent trading.

The mechanics

Methanol was among the most import-exposed molecules during the Gulf disruption — Iran and the wider Middle East are structural swing suppliers to India's west coast — so freight and risk premia inflated landed costs fastest on the way up and are deflating fastest on the way down as shipping normalises.

Downstream formaldehyde, acetic acid and fuel-blending buyers who covered forward at Rs 55-60/kg are now the market's reluctant sellers.

Key levels

Support sits near Rs 32.00/kg — the pre-conflict January base — with the market watching whether Rs 39.50/kg holds as interim support; resistance is at Rs 39.50/kg on the bulletin's key-level read.

Watch Iranian and Gulf export offers as sanctions-era logistics normalise.

For more such stories, go to www.indianpetrochem.com

[niranjankuldeep]

HERC prices JSW's Kutehr hydro at exactly the ceiling — and cuts Rs 304 crore out of the capital cost

The Haryana commission's 3 July order on JSW Energy (Kutehr) settles the first full tariff for the 240 MW (3x80 MW) Ravi-basin plant, landing precisely on the PPA ceiling: a levellised Rs 4.50/kWh. Against an actual project cost of Rs 3,071.32 crore, HERC admitted Rs 2,767.48 crore — disallowing the Rs 137.16 crore upfront premium, Rs 70.18 crore of penal interest, and Rs 96.50 crore of interest during construction beyond the amount recognised at financial closure.

That is Rs 11.53 crore/MW, which the commission calls "significantly lower" than comparable hydro — low enough that no fresh CEA concurrence was needed. The order also records that Kutehr declared commercial operation on 31 May 2025, about fourteen months ahead of the PPA's 5 August 2026 deadline.

HPPC had argued JSW's claimed fixed charges implied Rs 4.93/kWh over 35 years against the Rs 4.50 ceiling; the commission's arithmetic closes that gap by cutting cost, not by relaxing the cap. For hydro developers watching Haryana as a buyer, the message is blunt: the ceiling is the tariff, and the prudence check is how you are made to fit under it.

For more such stories, go to www.energylineindia.com

[niranjankuldeep]

Acrylic Acid holds Rs 234 after a staggering Rs 134 three-month surge

Acrylic Acid slipped a marginal Rs 1/kg this week to Rs 234/kg.

The small pullback sits on top of one of the bulletin's most striking three-month moves.

The product has surged Rs 134/kg from Rs 100/kg over three months.

The weekly dip follows a sharper Rs 8/kg fortnightly drop from Rs 242/kg.

Even so, Acrylic Acid remains up Rs 4/kg on the month.

The three-month range has been wide, with a high of Rs 260/kg and a low of Rs 94/kg.

That underscores both the scale of the rally and its volatility.

Downstream importance

Acrylic Acid is a key petrochemical intermediate.

It is used to produce acrylate esters for paints, coatings, adhesives and sealants.

It is also used in superabsorbent polymers for hygiene products and in water-treatment chemicals.

That links the product to a broad range of downstream demand.

Market reset

The Rs 134/kg three-month surge reflects a market that repriced sharply higher.

The move was likely driven by tight supply, firm downstream pull or both.

Recent stabilisation suggests the market is now digesting those gains.

For acrylate, coatings and superabsorbent-polymer manufacturers, the elevated cost base remains a significant margin consideration.

However, the recent stabilisation offers some planning certainty after a volatile quarter.

Buyer watch

Technical levels are tight.

Resistance is placed at Rs 235/kg.

Support sits at Rs 230/kg.

Holding above Rs 230/kg could sustain trading activity.

A break below that level may signal a shift in sentiment.

The key question for buyers is whether Acrylic Acid consolidates at current levels or begins to unwind its quarterly gains.

With the price still Rs 134/kg above its three-month base, the structural repricing remains firmly intact.

For more such stories, go to www.indianpetrochem.com

[niranjankuldeep]

CERC clears Rs. 2,028 crore security charge for Adani's Navinal (Mundra) transmission project

CERC has granted in-principle approval to Navinal Transmission Limited, a wholly owned subsidiary of Adani Energy Solutions, to create a security interest over project assets in favour of Catalyst Trusteeship for lender Power Finance Corporation.

Why it matters

The Navinal project forms part of the Network Expansion Scheme in the Navinal (Mundra) area of Gujarat and serves a key power-evacuation corridor.

Regulatory approval is required because the project is a licensed inter-state transmission asset.

Financing structure

The project's adopted levelised tariff is Rs. 2,987.14 million per annum.

CERC approved the security interest while prohibiting transfer of the transmission licence without prior approval.

Stakeholder impact

The approval reduces lender risk, supports project financing and strengthens a critical transmission corridor serving the Mundra region.

Outlook

The decision reinforces confidence in tariff-backed financing structures that are increasingly supporting India's transmission expansion.

“For more such stories, go to www.energylineindia.com”

[niranjankuldeep]

Evonik opens its first Asian AEM hydrogen-membrane centre, with read-through for India's hydrogen mission

Evonik's Innovation Factory has opened an Anion Exchange Membrane application technology center in Shanghai.

It is Evonik's first AEM application technology center in Asia.

The center will test high-performance DURAION membranes under real-world conditions.

The development has relevance for India's green-hydrogen ambitions.

The center will optimise integration of the membranes for customers across the green-hydrogen value chain.

The membranes are made at commercial scale in Germany.

Why AEM matters

AEM technology is a next-generation approach to water electrolysis.

It is positioned as a potentially lower-cost alternative to PEM and alkaline methods.

The cost advantage comes from the ability to avoid expensive precious-metal catalysts.

By locating the center in Shanghai, Evonik is targeting Asia's fast-growing hydrogen-applications market.

India read-through

For India, the signal is important.

The country has launched an ambitious National Green Hydrogen Mission with large production and electrolyser-manufacturing targets.

Advanced membranes are a critical enabler of cost-competitive green hydrogen.

The global build-out indicates where the electrolyser supply chain is heading.

Indian developers and electrolyser makers will need access to such technologies to meet cost targets.

Global hydrogen-materials race

A parallel development saw Germany's Fraunhofer IKTS win a major prize for a high-temperature electrolysis stack.

The stack is designed for gigawatt-scale production with thyssenkrupp nucera.

This underscores the global race in hydrogen materials and electrolyser technologies.

For India, the key monitorable is whether its hydrogen ecosystem can secure or localise access to next-generation membrane and stack technologies.

For more such stories, go to www.indianpetrochem.com

[niranjankuldeep]

Waaree Renewable wins scope enhancement for 980 MWp/700 MWac solar EPC contract

Waaree Renewable Technologies Limited disclosed on 17 June 2026 that it has received an enhancement in the scope of work under an existing engineering, procurement and construction contract for a solar power plant of 980 MWp/700 MWac.

The company, a subsidiary of Waaree Energies Limited, said the terms and conditions of the contract otherwise remain unchanged, with the enhancement detailed in an annexure to its exchange filing.

Contract context

The disclosure extends a project first reported in February 2024 and updated in November 2025, showing how developers are expanding the scope of awarded utility-scale solar contracts rather than always seeking fresh orders.

For India's solar EPC market, scope enhancements on large plants signal that capacity additions are being layered onto existing sites, reflecting both grid-connectivity availability and developer appetite to maximise output at secured locations.

The 980 MWp/700 MWac configuration places the project firmly in the gigawatt-scale tier of the domestic pipeline.

Project details

While the filing did not assign a fresh contract value, the enhancement adds to the order book of one of India's larger listed renewable EPC players.

The project's 980 MWp DC and 700 MWac AC rating points to a meaningful DC-overloading ratio, a design choice increasingly common as developers optimise generation against transmission capacity.

The disclosure was made under SEBI Listing Obligations and Disclosure Requirements norms, in continuation of the company's earlier intimations on the same contract dated 20 February 2024 and 10 November 2025.

Implications

For shareholders of Waaree Renewable, the enhancement reinforces order-book visibility at a time when execution depth is a key differentiator among listed renewable EPC firms.

For parent Waaree Energies, the win adds to the group's integrated solar value chain spanning module manufacturing and project execution.

For the broader sector, the move illustrates how large EPC contracts are evolving in scope post-award, giving offtakers and lenders confidence that secured projects can scale at existing substations without restarting the connectivity process.

Equipment suppliers and balance-of-system vendors linked to the project also stand to benefit as the enhanced scope is built out.

Outlook

Looking ahead, attention turns to execution timelines and the pace at which the enhanced scope translates into commissioned megawatts, which will determine revenue recognition for the company.

With India targeting aggressive annual solar additions, EPC players with proven large-project delivery are positioned to capture incremental scope on existing mandates.

Investors will watch whether further enhancements or fresh awards follow as the group converts its manufacturing strength into a steady stream of execution contracts.

The pace of module supply from the parent group's manufacturing base could influence how quickly the enhanced scope translates into commissioned megawatts.

Wider significance

In its filing, Waaree Renewable acknowledged receipt of the award letter and confirmed continuity with its prior disclosures on the contract, signalling that the project remains an active and expanding part of its utility-scale solar execution portfolio.

The update reinforces the group's standing as one of the larger integrated solar players in the listed space, spanning manufacturing and execution.

“For more such stories, go to www.energylineindia.com”

[niranjankuldeep]

Cotton import-duty suspension eases Gujarat's textile-chain costs

The Centre has suspended the 11% import duty on cotton until October 30.

The move is expected to ease cost pressures across Gujarat's textile value chain amid weak demand.

Cotton prices had climbed to around Rs 68,500, or about $719, per candy in recent months, squeezing spinning mills, fabric makers and garment exporters.

Rahul Shah of the Gujarat Chamber of Commerce and Industry said raw cotton corrected by nearly Rs 4,000 per candy after the waiver announcement.

Lower cotton and yarn costs are expected to support operating margins, especially for export-oriented manufacturers competing with Bangladesh, Vietnam and China.

Jayesh Patel of the Spinners' Association Gujarat said cotton yarn has eased from a high of Rs 315/kg to around Rs 290/kg after the duty removal.

For India's wider fibre complex, the duty suspension is a meaningful near-term lever because cotton economics influence man-made fibre substitution.

The October 30 expiry, however, leaves uncertainty over whether the relief will be extended or allowed to lapse.

For more such stories, go to www.indianpetrochem.com

[niranjankuldeep]

CERC seeks fresh data from NTPC on emission-control and switchyard spend for 1,000 MW Vindhyachal Stage-III 2024-29 tariff

The Central Electricity Regulatory Commission, through Petition No. 1017/GT/2025 dated 8 June 2026, directed NTPC Limited to file additional information on affidavit by 15 June 2026 in connection with the determination of tariff for the 1,000 MW Vindhyachal Super Thermal Power Station Stage-III for the 2024-29 tariff period.

The Commission raised specific concerns about the procedural and financial basis of capital expenditure claims that have a direct bearing on the tariff payable by beneficiary states drawing power from this station.

Regulatory context

The Vindhyachal STPS in Madhya Pradesh is one of India's largest coal-based generating complexes, with power allocated to multiple northern and central Indian states.

Tariff determinations for Inter-State Generating Stations under CERC jurisdiction directly affect the bulk power cost of state DISCOMs and, ultimately, end consumers.

CERC's 2024 Tariff Regulations introduced revised frameworks for emission-control capital costs, making compliance with new norms such as Flue Gas Desulphurisation and NOx controls a contested area in tariff petitions filed by NTPC for its older stations.

Key issues raised by CERC

CERC's key query is why NTPC did not file a separate supplementary-tariff application for the Emission Control System under the 2024 Tariff Regulations, as is required for such capital additions.

The Commission also demanded justification for additional capital expenditure claims including 400 kV switchyard control systems, protection equipment and SCADA replacement — items whose eligibility for tariff inclusion must be supported by detailed technical and cost data.

Respondents — the beneficiary states — must file their replies by 19 June 2026, after which NTPC may file a rejoinder by 23 June 2026.

Implications

For the beneficiary states, the outcome of this petition determines how much emission-control and switchyard capital expenditure is allowed in NTPC's Vindhyachal tariff for 2024-29, directly affecting their bulk power costs.

If CERC allows the full claimed capex, average tariffs for Vindhyachal power will rise; disallowances will reduce costs.

For NTPC as a listed PSU, the tariff order will crystallise the revenue base for five years of Stage-III generation and affect the station's financial performance relative to internal benchmarks.

Wider regulatory significance

This petition sits alongside Petition No. 982/GT/2025 — also heard on 8 June — which addresses the 2019-24 truing-up for the same station and involves a reported Rs. 8,487.62 lakh un-discharged liability discrepancy.

Taken together, the two proceedings represent a comprehensive regulatory review of Vindhyachal Stage-III's capital and financial accounts.

CERC's close scrutiny of emission-control claims is a wider signal to thermal generators that the 2024 Tariff Regulations will be applied strictly, with procedural non-compliance — such as omitting a supplementary application — likely to delay or reduce allowable costs.

CERC's order makes clear that any capital expenditure claim for emission-control upgrades must be supported by the prescribed regulatory process, and that the Commission will not accept bundling of such costs into the general tariff petition without the requisite supplementary filing.

“For more such stories, go to www.energylineindia.com”

[niranjankuldeep]

HUL's premium capex and LAB correction are two different stories

Hindustan Unilever is planning investment of up to Rs 2,000 crore over two years.

The capex is aimed at expanding capacity in fast-growing premium categories.

The focus is on premium Beauty and Wellbeing and Home Care.

The investment will include advanced automation, digital technologies and sustainable manufacturing infrastructure.

For the chemicals chain, this is a long-term demand signal.

Premium beauty and home-care products rely on specialty surfactants, formulation chemicals and performance inputs.

HUL’s continuing business reported consolidated revenues of Rs 64,468 crore in FY26.

This was higher than Rs 61,328 crore in FY25.

EBITDA stood at Rs 15,054 crore.

EBITDA margin was 23.6%.

PAT from continuing operations stood at Rs 10,652 crore.

The portfolio is also becoming more premium.

HUL completed the full acquisition of OZiva and acquired a 90.5% stake in Minimalist during the year.

Separately, LAB at Kandla has seen a sharp monthly correction.

This comes after a three-to-six-month rally driven by benzene feedstock tightness.

That tightness was linked to Middle East naphtha disruption.

Improving benzene availability in Asia is now likely pushing the correction.

The Sohar naphtha route and Japan’s supply recovery are helping ease supply conditions.

The key point is simple.

HUL’s Rs 2,000 crore capex is a long-term structural demand signal.

The LAB price correction is a short-term trade and feedstock cycle.

For more such stories, go to www.indianpetrochem.com

[niranjankuldeep]

CEA’s LGBR 2026-27 projects 18,50,211 MU energy need and 2,69,277 MW peak, with national surpluses of 2.5% and 4.1%

The Central Electricity Authority has released its Load Generation Balance Report for 2026-27.

The report projects all-India energy requirement of 18,50,211 MU.

This is a 7.7% increase over 2025-26.

Peak demand is projected at 2,69,277 MW.

This is up 8.9% year-on-year.

Demand growth

The projected rise reflects India’s continuing electricity demand expansion.

Industrial activity is increasing.

Urbanisation is adding new demand.

Air-conditioning penetration is rising.

Electrification of transport and industry is also expected to lift consumption.

Capacity addition plan

The LGBR factors in planned capacity addition of 17,515 MW during 2026-27.

This includes 8,945 MW of thermal capacity.

It also includes 6,370 MW of hydro capacity.

These additions are expected to support demand growth.

They also help maintain the national supply buffer.

Surplus projection

CEA projects an all-India energy surplus of 2.5%.

It also projects a peak surplus of 4.1%.

This means supply is expected to exceed demand on both annual energy and peak-demand measures.

The projection suggests that India is not expected to face a structural national power deficit in 2026-27.

But this depends on timely commissioning and fuel availability.

Why this matters

The LGBR is a key planning document.

It guides generation planning, fuel logistics and grid operations.

DISCOMs use it to plan power procurement.

Generators use it to assess likely demand and dispatch conditions.

Transmission planners use it to evaluate regional flow requirements.

Thermal importance

The planned 8,945 MW of thermal addition is significant.

It shows that coal-based and conventional capacity will remain important.

Renewables are expanding quickly.

But dispatchable thermal power remains necessary for peak support and grid reliability.

The LGBR therefore supports a balanced capacity-addition approach.

Hydro role

The planned 6,370 MW hydro addition is also important.

Hydro supports peaking power and grid balancing.

It can respond faster than many thermal units.

As renewable penetration rises, flexible hydro capacity becomes more valuable.

Hydro performance will be especially important during high-demand months.

Fuel-stock caveat

The report’s surplus projection comes with risks.

Coal stock position on June 1, 2026 stood at only 64% of normative requirement.

This was equivalent to 24 days of cover.

There were 23 plants classified as critical.

Fuel constraints can reduce the effective availability of thermal capacity.

Hydro underperformance risk

Hydro generation is another risk area.

On June 1, 2026, actual generation stood at 4,631.62 MU against a programme of 4,778.20 MU.

This was 3.1% below programme.

Hydro underperformance was one reason for the shortfall.

If monsoon hydrology is weak, the surplus margin can narrow.

Strategic message

CEA’s LGBR 2026-27 projects a growing but manageable national power balance.

Energy requirement is projected at 18,50,211 MU.

Peak demand is projected at 2,69,277 MW.

The report projects 2.5% energy surplus and 4.1% peak surplus.

The key watchpoints are thermal commissioning, hydro performance, coal stock recovery, monsoon impact, regional deficits and whether the projected surplus holds during summer peaks.

For more such stories, go to www.energylineindia.com

[niranjankuldeep]

OPaL’s FY26 turnaround comes with important operational questions

OPaL reported a major EBITDA improvement in FY26, moving from a loss of Rs 203 crore in FY25 to a profit of Rs 1,207 crore.

The company also reported average utilisation of 84% at its Dahej cracker complex during the year.

However, comments made during ONGC’s Q4 earnings call highlighted operating challenges that emerged toward the end of FY26.

Chairman Arun Kumar Singh stated that OPaL operated at less than 60% capacity in March after feedstock allocation was diverted toward LPG production. Management also said this situation would continue during Q1 FY27 until allocation conditions normalize.

The key point is that annual averages do not fully capture the weaker operating trend disclosed for the final month of the financial year.

Management linked the EBITDA improvement to restructuring actions including the SEZ exit, debt renegotiation and financial strengthening measures.

Revenue declined to Rs 14,214 crore from Rs 14,804 crore in FY25, while PAT was not disclosed.

The discussion also highlighted OPaL’s dependence on feedstock allocation decisions and the importance of initiatives such as the MOL ethane shipping JV and the MRPL-OPaL marketing JV.

For FY27, capacity utilisation, feedstock availability and profitability trends will remain closely watched.

For more such stories, go to www.indianpetrochem.com

[niranjankuldeep]

Genus Power posts 94% revenue growth to Rs. 4,738 crore in FY26 on smart-metering momentum with 24 AMISP projects

Genus Power Infrastructures Limited has reported strong FY26 growth.

Standalone revenue rose to Rs. 4,738 crore.

This was up 94% year-on-year.

The performance was driven by execution across 24 AMISP smart-metering projects.

The details were disclosed in the transcript of the company’s May 19, 2026 earnings call.

Q4 performance

Q4 FY26 standalone revenue stood at Rs. 1,524 crore.

EBITDA for the quarter was Rs. 284 crore.

This was up 36% year-on-year.

Profit after tax stood at Rs. 181 crore.

PAT rose 41% year-on-year.

Smart metering momentum

Genus Power is benefiting from India’s smart metering rollout.

The company is executing 24 Advanced Metering Infrastructure Service Provider projects.

These projects are linked to the Revamped Distribution Sector Scheme.

Smart metering is one of the largest technology-infrastructure deployments in India’s power distribution sector.

Why this matters

India is targeting installation of more than 250 million smart meters.

This creates a large multi-year opportunity for AMISP players.

Genus Power is positioned as one of the major participants in this transition.

Its FY26 revenue growth shows that project execution is now translating into reported financial performance.

Business model shift

Genus Power’s risk profile is changing.

It is no longer only an equipment manufacturer.

The company now operates a hybrid model.

This includes equipment supply, installation and long-term managed services.

That gives it more defensible revenue visibility over the project life.

AMISP revenue curve

AMISP contracts typically run for several years.

They involve upfront spending on meters, installation and communication systems.

Revenue and cash flow mature over the contract period.

This means the current reported revenue may still represent the early phase of a longer earnings cycle.

Margin picture

Q4 EBITDA rose 36% while Q4 revenue rose strongly.

PAT increased 41%.

This shows healthy profitability growth.

However, the margin expansion is more moderate than revenue growth.

That is typical in AMISP projects because upfront deployment costs are high.

DISCOM relevance

For DISCOMs, smart meters are central to distribution reform.

They can improve billing accuracy.

They can reduce losses.

They can support prepaid metering and better demand data.

Genus Power’s execution experience is therefore important for state-level RDSS implementation.

Investor relevance

For investors, the 24 AMISP project portfolio is the key asset.

It provides multi-year revenue visibility.

It also shifts the company toward a long-duration service-linked earnings model.

Investors will track collections, project commissioning pace and new AMISP wins.

Key risks

The main risks are execution delays and DISCOM coordination issues.

Smart metering projects require consumer access, installation logistics and IT integration.

Financing and annuity payment discipline are also important.

Any delay in RDSS-linked funding or DISCOM payments could affect cash flows.

Strategic message

Genus Power’s FY26 performance confirms strong momentum in India’s smart metering rollout.

Standalone revenue rose 94% to Rs. 4,738 crore.

Q4 PAT rose 41% to Rs. 181 crore.

The company is executing 24 AMISP projects.

The key watchpoints are project rollout pace, collections, RDSS funding flows, new smart-metering awards, technology performance and margin stability.

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