Jefferies forecasts a recovery in India's power sector by 2026, driven by anticipated demand growth. The sector experienced subdued activity in 2025 due to weak consumption, influenced by extended monsoons and sluggish industrial output, leading to a lowered demand growth estimate for FY26. However, a medium-term rebound to 5-6% is expected, supported by normalized weather, increased industrial activity, and rising consumer durables, alongside long-term drivers like data centers and EVs.