ICRA has revised its electricity demand growth projection for FY26 downward, estimating an increase of just 1.5–2% for the year. The rating agency said the adjustment follows a noticeable slump in power consumption at the start of November.
According to the latest official data cited by ICRA, India’s electricity demand declined by 3% year-on-year during the first ten days of November 2025. The agency noted that milder weather conditions, improved hydropower availability, and moderation in industrial load may have contributed to the slowdown.
Despite the weaker-than-expected early-November trend, ICRA highlighted that overall demand fundamentals remain supported by ongoing activity in infrastructure, manufacturing, and the services sector. The agency will continue monitoring weather patterns, renewable energy generation, and industrial output key factors influencing short-term electricity consumption.
