This PSU power stock is involved in generating and distributing electricity, with a focus on thermal, hydro, and nuclear power, in focus after entering into a 50:50 joint venture with EDF for renewable energy and hydro projects.
Stock Price Movement:
With a market capitalization of Rs. 3,12,911.42 crore, the shares of NTPC Limited were currently trading at Rs. 322.70 per equity share, down nearly around 1 percent from its previous day’s close price of Rs. 325.95.
What Happened:
NTPC Limited and EDF India Private Limited have signed a non-binding term sheet to collaborate on pumped storage, hydropower, and renewable energy projects. The agreement, signed on 23 February 2025, lays the foundation for both companies to develop, own, operate, and maintain these projects. They plan to form a joint venture on a 50:50 basis after receiving the necessary government approvals.
The partnership aims to combine NTPC’s vast experience in power generation with EDF’s international expertise, helping boost India’s renewable energy capacity and drive innovation in clean power.
CAPEX and expansion plans:
NTPC Group has increased its capital expenditure (CAPEX) to Rs. 31,133 crore in the first nine months of FY25, compared to Rs. 21,642 crore in the same period 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, which includes 17.56 GW of thermal, 2.2 GW of hydro, and 10.3 GW of renewable energy. NTPC also plans to increase its coal production from 40 MMT in FY25 to 67 MMT by FY29.
Management Guidance:
NTPC aims to add substantial renewable energy capacity, with 3.08 GW planned 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 the rising energy demand in the coming years.
Business Highlights of 9M FY25:
In the first nine months of FY25, NTPC added 640 MW of commercial renewable energy capacity, raising its total commercial capacity to 59,168 MW for standalone operations and 76,598 MW for the group as of December 31, 2024. Soon, 135 MW of renewable energy and 660 MW of coal capacity from THDC India Limited will also be declared commercial.
Additionally, NTPC supplied 185.15 MMT of coal, including 2.26 MMT of imports, and achieved its highest-ever coal production of 30.88 MMT, marking a 23 percent year-on-year increase.
Recent quarter results:
In Q3 FY25, NTPC Limited’s revenue rose by 5.21 percent to Rs. 45,053 crore, up from Rs. 42,820 crore in Q3 FY24. However, its net profit declined by 0.75 percent, falling from Rs. 5,209 crore in Q3 FY24 to Rs. 5,170 crore in Q3 FY25.
Written By – Nikhil Naik
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