Synopsis:
India’s power generation sector boasts a total installed capacity of 476 GW as of June 2025, with 49% coming from non-fossil sources, including 110.9 GW solar and 51.3 GW wind. Thermal power contributes 240 GW, remaining significant as electricity demand rises. Renewables are growing rapidly, driving policy and investment toward clean, sustainable energy.
With a market capitalization of Rs 3,22,220.22 crore, the shares of NTPC Ltd were trading at Rs 332.05 per share, increasing around 1.98 percent as compared to the previous closing price of Rs 325.60 apiece.
Brokerage Recommendations
HSBC, one of the well-known brokerages globally, has raised its rating from ‘Hold’ to ‘Buy’ on this power stock and also raised its target price to Rs 400 from 385 apiece, indicating a potential upside of 23 percent from the previous closing price of Rs 325 per share.
The brokerage highlighted NTPC’s leadership in India’s power generation, noting its strong position and growth potential. With emerging opportunities in battery storage and nuclear energy, the company is expanding its pipeline to drive the future energy transition.
HSBC attributed the company’s recent underperformance to weak power demand and project execution delays. However, it expects a turnaround as demand growth strengthens from a low FY25 base. Execution is also improving, with two thermal plants totaling 1.3 GW already commissioned, signaling recovery momentum and enhanced capacity utilization ahead.
HSBC highlighted that a large share of NTPC’s Rs 7 lakh crore capex plan through 2032 will fall under the regulated tariff mechanism, ensuring steady returns. The brokerage also emphasized NTPC’s strong positioning to spearhead India’s nuclear power expansion, reinforcing its role in driving the country’s long-term energy transition and growth.
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Financial & Operational Highlights
The company posted a mixed Q1FY26 performance with revenue dipping 3 percent to Rs 47,065 crore from Rs 48,529 crore in Q1FY25. However, net profit rose 11 percent to Rs 6,108 crore, supported by improved margins and operational efficiency, highlighting resilience despite top-line pressure.
The company is on a strong growth trajectory with 31 GW capacity under construction and 7.2 GW of additional thermal projects planned. Renewable energy capacity is targeted to rise from 8 GW to 60 GW by 2032, alongside pumped storage projects and significant nuclear expansion, ensuring sustained value creation for investors.
The company operates nine coal blocks with a peak mining capacity of 91.6 MMT, contributing ~15% of total coal requirements in FY25. Coal production rose nearly sixfold in six years, reaching 45.8 MMT in FY25. Cumulative output stands at 161.6 MMT, with further capacity under development to strengthen self-reliance.
Written by Abhishek Singh
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