New Delhi, April 9 -- India's power sector is witnessing a rise in demand and a strong shift towards renewable energy, led by solar installations, even as solar manufacturing companies may face near-term margin pressure due to rising costs and competition, according to a report by YES Securities.

The report noted that India's energy mix is gradually transitioning towards renewables, with solar emerging as the key driver of capacity additions.

"India's power sector continues to transition toward a renewable-led capacity mix, with solar driving additions supported by strong policy push... and rising C&I adoption under Green Open Access, while coal remains critical for baseload stability," the report said.

At the same time, the brokerage ...