This PSU power stock is involved in producing and supplying electricity, focusing on thermal, hydro, and nuclear power sources, in focus after signing a 300 MW power purchase agreement (PPA) with Evren to Advance Solar-Backed Renewable Development.
Stock Price Movement
With a market capitalization of Rs. 351,213.25 crores, the share of NTPC Limited has reached an intraday high of Rs. 368.45 per equity share, rising nearly around 1.11 percent from its previous day’s close price of Rs. 364.40. Since then, the stock has retreated and is currently trading at Rs. 362.20 per equity share.
What Happened
NTPC has signed a 300 MW power purchase agreement (PPA) with Evren, a Brookfield-backed platform, to supply firm and dispatchable renewable energy. The agreement involves developing nearly 1 GW of renewable capacity, integrating solar, wind, and battery storage, as per the source.
The project aims to provide efficient peak-hour power dispatch, supporting power distribution companies in meeting renewable energy and storage obligations while aiding India’s energy transition.
Future Outlook
NTPC Group increased its capital expenditure (CAPEX) to Rs. 31,133 crore in the first nine months of FY25, up from Rs. 21,642 crore last year. Its standalone CAPEX also rose to Rs. 16,305 crore from Rs. 11,963 crore.
The company has approved a Rs. 1 lakh crore investment to add 8 GW of thermal power capacity. Currently, it is building 30 GW of new capacity, including 17.56 GW of thermal, 2.2 GW of hydro, and 10.3 GW of renewable energy. NTPC also plans to boost its coal production from 40 MMT in FY25 to 67 MMT by FY29.
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Company Guidance
NTPC plans to add significant renewable energy capacity, with 3.08 GW for FY25, 5 GW for FY26, and 8 GW for FY27. The company will also expand its thermal capacity through brownfield projects and upgrades to existing plants to meet growing energy demand.
Business Highlights of 9M FY25
In the first nine months of FY25, NTPC added 640 MW of renewable energy, bringing its total to 59,168 MW for standalone operations and 76,598 MW for the group by December 31, 2024. NTPC will soon declare 135 MW of renewable energy and 660 MW of coal capacity from THDC India Limited as commercial.
NTPC also supplied 185.15 million metric tons (MMT) of coal, including 2.26 MMT from imports, and reached its highest-ever coal production of 30.88 MMT, a 23 percent increase from last year.
Recent quarter results
In Q3 FY25, NTPC Limited’s revenue increased by 5.21 percent, reaching Rs. 45,053 crore, up from Rs. 42,820 crore in Q3 FY24. However, its net profit dropped by 0.75 percent, from Rs. 5,209 crore in Q3 FY24 to Rs. 5,170 crore in Q3 FY25.
Written By – Nikhil Naik
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