Archive · 8 Oct 2026
Jefferies Names Three Power Stocks Top Picks After RBI Rate Hike
India’s central bank raised the rate it charges banks, which can make borrowing more expensive.
That could reduce the profits of companies that produce or deliver electricity.
Jefferies studied how much these companies borrow and whether their loans have fixed or changing interest rates.
It said some companies are better protected because they have fixed-rate loans or regulated earnings.
Jefferies named Adani Energy Solutions, JSW Energy and NTPC as its favorite power stocks.
It also warned that Adani Green could be more affected by higher rates because it has substantial debt.
The report said higher electricity prices in the market could help offset some of the effect for JSW Energy.
Jefferies views recent share-price declines as potential buying opportunities, while emphasizing that the impact differs by company.
The Reserve Bank of India raised its repo rate by 25 basis points to 5.50%, its first increase in three and a half years.
Jefferies said rate rises could weigh on power-company profits, but regulated returns and fixed-rate borrowing offer some protection.
Its report named Adani Energy Solutions, JSW Energy and NTPC as its top power-sector picks.
Jefferies estimated a 2–4% FY28–FY30 earnings-per-share impact for NTPC, Power Grid and Adani Energy Solutions from a 100-basis-point rate increase.
The report said Adani Green could face an EPS impact above 15%, while stronger merchant power prices could offset rate pressure for JSW Energy.
- Who
- The Reserve Bank of India and Jefferies India; the report discusses Indian power companies.
- What
- The RBI raised the repo rate by 25 basis points to 5.50%; Jefferies assessed the effect on power companies and named Adani Energy Solutions, JSW Energy and NTPC as top picks.
- When
- The Jefferies report is dated 7 October 2026; the article says the rate increase followed a gap of three and a half years.
- Where
- India.
- Why
- The article attributes the rate increase to renewed inflation concerns amid soaring crude oil prices; Jefferies assessed how higher rates could affect power-company profitability.
Rate-related risks
Factors cushioning the impact
Higher borrowing costs and earnings
Rate-related risks
Jefferies said monetary tightening could reduce power-company profitability. It estimated a 10–11% EPS impact for JSW Energy from a 100-basis-point rate increase and an impact above 15% for Adani Green.
Factors cushioning the impact
Jefferies said fixed-rate borrowing, regulated returns and interest-cost pass-through limit exposure for some companies; it also said higher merchant power prices could offset the rate impact for JSW Energy.
Power-sector investment outlook
Rate-related risks
The report noted inflation concerns and said higher interest rates can affect company earnings.
Factors cushioning the impact
Jefferies remained constructive on the sector, citing strong power demand and describing recent stock corrections as stock-specific buying opportunities.
- Repo rate after increase
- 5.50%
- Rate increase
- 25 basis points
- Jefferies report date
- 7 October 2026
- Jefferies top picks
- Adani Energy Solutions, JSW Energy and NTPC
- Estimated EPS impact
- A 100-basis-point rate increase could affect FY28–FY30 EPS at NTPC, Power Grid and Adani Energy Solutions by 2–4%, according to Jefferies.
- Adani Energy Solutions fixed-rate loans
- More than 65% of its loans are fixed-rate, according to the report.
- Adani Green leverage
- Net debt-to-equity of 6.5–6.6x, as stated in the report.