India is undergoing an energy transition from fossil-based to clean energy. Our quarterly Market Handbook helps identify and analyse trends, present data-backed evidence and connect the dots to present a short-term market outlook.
Key Findings
  • The total power generation increased slightly by 0.8% in FY26 vs FY25.
    • Q1: Down by 1.8%
    • Q2: Up by 2.8%
    • Q3: Down by 0.3%
    • Q4: Up by 2.5%
  • In FY26, RE generation increased by 20% versus FY25. Large hydro generation increased by 11.9%; however, coal/lignite-based generation decreased by 4.3% for the same period.
  • From an average daily generation perspective, the share of RE and Large hydro increased while that of coal/lignite decreased, in FY26 compared to FY25.
    • RE: Share up from 12.6% to 15.1%
    • Large Hydro: Share up from 8.8% to 9.8%
    • RE + Large Hydro: Share up from 21.3% to 24.9%
    • Coal/lignite: Share down from 73.9% to 70.7%
Figure 1: Source-wise daily generation
Source: Grid Controller of India Limited. Note: RE includes solar, wind, biomass, and small hydro, and excludes large hydro capacity (>25 MW) unless specified.
  • In FY26, most RE stocks recorded broad-based value erosion, underperforming the Sensex, over a one-year period, from March 2025 to March 2026.
  • Among RE developers, Adani Green (-15%) and Sterling and Wilson (-40%) delivered negative returns, underlining significant dispersion within the segment.
  • Wind-focused companies witnessed sharper drawdowns, with Inox Wind (-54%) and Suzlon Energy (-30%), positioning among the weakest performers on a year-on-year basis.
  • Borosil Renewables contracted by 21% during the same period, reflecting a correction in solar-linked equities, in consonance with overall sector performance.
  • NYSE - listed Azure Power Global corrected by 29%, in line with broader negative trend across listed RE developers over the period.
Figure 2: Change in key renewable energy stock prices (indexed to 100)
Source: BSE Money Control
Note: Share prices are the last treded value in each month.
  • In FY26, the monetary policy turned moderately accommodative as the RBI reduced the repo rate by 100 basis points, from 6.25% in March 2025 to 5.25% in March 2026. SBI MCLR (1 year) rate decreased 0.4%, from 9% in March 2025 to 8.60% in March 2026.
  • At the same time, sovereign-led green financing gained scale with sovereign green bonds (SGrBs) worth INR 20,000 issued by RBI in FY26. The issuances were structured in four equal 30-year tranches of INR 5,000 crore each, at a coupon rate of ~6.98% each.
Figure 3: Bond yields* and key financial rates
Source: Reserve Bank of India, State Bank of India, Trading Economics, Bombay Stock Exchange, Money Control, and BondbloX.
Note: Bond prices are the last traded value in each month; *Current yield.

Key Indicators
Share of RE in FY26
15.1%
Up from 12.6% in FY25
Capacity auctioned
14.25 GW
in FY26
Legacy dues overdue to power producers as of February 2026
INR 4,109 crore
Down from INR 49,451 crore as of January 2024
Market concentration for RE auctioned capacity
35%
in FY26
Least RE tariff discovered
INR 2.09/kWh
in FY26
Author's Name
Akshra Dutt Pandey
Research Analyst
Dishant Rathee
Research Analyst
For queries reach out to author
[email protected]
Tags
Clean Energy Investments
Discoms
Energy Storage
Energy Transition
EV
Green Bonds
Power Markets
RE Auctions
RE Developers