India's Coal Power Surge: 150 GW New Capacity Planned

India is considering a substantial increase in its thermal power generation capacity, with projections now indicating a need for an additional 105-150 GW of coal-based power by 2035. This marks a significant rise from earlier estimates and is attributed to growing electricity demand and the necessity for reliable, round-the-clock power supply.

Several companies are well-positioned to capitalize on this expansion. Bharat Heavy Electricals (BHEL) secured over Rs 13,500 crore in orders for a thermal project and Rs 40,000 crore in coal-based thermal orders during FY26. Larsen & Toubro (L&T) has also received mandates for major projects, including a Rs 10,000-15,000 crore order for NTPC's Lara project.

Other key players include Thermax, which received a Rs 1,600 crore boiler order; Power Mech Projects, with a Rs 1,008.9 crore contract for civil and structural works; and Kirloskar Brothers, securing Rs 214 crore in thermal pump orders. While these orders signal growth, success hinges on efficient project execution, cost management, and timely delivery.

The overall financial performance of these companies shows mixed trends. BHEL reported strong revenue and profit growth in FY26 and Q2 FY27, while L&T saw revenue increase but profit growth moderate in FY26. Thermax, Power Mech Projects, and Kirloskar Brothers also reported revenue increases in FY26, with varying profit outcomes.

Despite the promising order books, challenges such as pending environmental clearances, potential project delays, and rising material costs remain risks for companies involved in India's thermal power expansion. These factors will ultimately determine how effectively new capacity additions translate into sustained earnings.