Data confidence: HIGH
Live metrics retrieved: 14 of 15 key sections | Sources: NSE India, Screener.in, Yahoo Finance, Moneycontrol, BSE India, ET Markets, Trendlyne, NTPC Annual Reports
CompanyNTPC Limited (National Thermal Power Corporation)
TickerNTPC (NSE: NTPC, BSE: 532555)
SectorUtilities
IndustryPower Generation & Distribution
What it doesIndia's largest power generator with 76,598 MW total installed capacity (~17% of national capacity). Generates and sells electricity to state discoms via long-term PPAs. Also expanding into solar, wind, hydro, and nuclear energy.
What makes it differentMaharatna PSU with Government of India owning 51.1%. Lowest-cost thermal power producer. 22% share of India's total power generation. Cheapest valuation among top power peers.
CMP
₹386.90
29 May 2026 · NSE
52W High
₹414.40
2 Jan 2026 · NSE
52W Low
₹315.55
11 Aug 2025 · NSE
Market Cap
₹3,75,164 Cr
NSE · Large Cap
Face Value
₹10
NSE
⚠ Capital-intensive business model
NTPC carries Debt/Equity of 1.10x with ₹2.71L Cr total debt. Interest coverage at 2.59x is below the 3x safety threshold. High capex requirements for capacity expansion mean debt levels stay elevated. Monitor D/E ratio trend — any rise above 1.5x warrants caution.
⚠ Thermal power transition risk
~83% of NTPC's capacity is coal-based. India targets 500 GW renewable by 2030 and is considering a coal phase-down. While NTPC is diversifying into renewables, thermal assets face stranded-asset risk in the long term (10+ year horizon).
Is this stock cheap, fair, or expensive right now?
Metric
Current
Sector avg
Stock 5Y avg
Signal
Plain English
P/E
12.45x
28.4x
11.1x
CHEAP vs sector · FAIR vs history
You pay ₹12.45 per ₹1 of profit vs ₹28 for peers
P/B
1.96x
2.34x
1.32x
FAIR vs sector · EXPENSIVE vs history
Price is 1.96x net assets; historically bought at 1.32x
EV/EBITDA
10.52x
15.1x
7.2x
CHEAP vs sector · FAIR vs history
Full business value (incl debt) is 10.5x EBITDA
Sources: Screener.in (live), Yahoo Finance, Trendlyne. Sector avg based on Nifty Energy/Utilities constituents.
Overall valuation: FAIRLY VALUED NTPC is significantly cheaper than its large-cap power peers on a P/E basis (12.5x vs 28x sector), but it has re-rated from its own historical average of ~11x P/E over the past 5 years. The P/B and EV/EBITDA also show it sitting between "cheap vs sector" and "fair vs own history." For a Maharatna PSU with government backing and dominant market position, current valuation offers a reasonable entry point — not bargain-bin cheap, but not expensive either.
FY26 standalone EPS: ₹23.89 vs FY25: ₹24.16 (flat). Q4 FY26 PAT surged 34% YoY (consolidated ₹10,615 Cr).
Growth classification: STEADY NTPC delivers consistent low-to-mid teens growth — typical for a regulated utility with long-term PPAs. Revenue has grown at ~13% CAGR over 5 years while margins stay stable. The steady-state EPS trend shows a slight deceleration in FY26 (₹23.89 vs ₹24.16) due to higher depreciation and interest costs from new capacity, but Q4 bounce (+21.5% YoY EPS) signals revival. This is a "slow and steady" compounder — not a high-growth story.
Is this company financially safe and stable?
Metric
Value
5Y trend
Signal
Plain English
Debt / Equity
1.10x
→ Stable
MODERATE
Below 1 = safe. At 1.1x, debt equals equity — manageable for a utility
Interest Coverage
2.59x
→ Stable
WATCH
Above 3x = healthy. At 2.59x, earnings cover interest 2.6 times — acceptable but watch
Current Ratio
1.07x
→ Stable
WATCH
Above 1.5 = comfortable. At 1.07x, short-term liquidity is tight
Growth accelerates to ~15%, renewable ramp-up boosts margins
₹2,86,200 Cr
₹35,800 Cr
₹36.90
Projections based on historical CAGR trends only — not guarantees or predictions. Base case implies ~33% EPS growth over 3 years.
Financial health: MODERATE RISK NTPC operates with manageable but elevated debt (D/E 1.1x), characteristic of capital-intensive utility businesses. The company generates strong operating cash flow (₹50,436 Cr) that comfortably covers its interest obligations, but the massive capex program leaves limited free cash flow. The current ratio of 1.07x is tight — a short-term liquidity concern if payment cycles from state discoms stretch. That said, government ownership provides implicit financial backstop, making a default scenario extremely unlikely.
Is this company creating real value for shareholders?
Metric
Current
3Y avg
5Y avg
Signal
ROE
12.6%
12.8%
12.2%
AVERAGE
ROCE
8.2%
7.9%
7.6%
WEAK
Dividend yield
2.33%
2.51%
3.10%
—
Dividend payout
34.9%
35.2%
37.8%
—
ROE above 15% = good · ROCE above 15% = efficient capital use. FY26 total dividend: ₹9/share (₹2.75 interim + ₹2.75 interim + ₹3.50 final).
Return quality: AVERAGE RETURNS — CAPITAL-INTENSIVE UTILITY NTPC's ROE of ~12.6% is decent but below the 15% threshold that signals high-quality compounding. ROCE at 8.2% reflects the capital-intensive nature of power generation — every ₹100 of capital employed generates just ₹8.20 of pre-tax profit. This is typical for regulated utilities where returns are capped by regulators. The dividend is consistent (34-38% payout) and growing (₹9/share in FY26 vs ₹7 in FY25). NTPC is a dependable income + modest growth story, not a high-ROE compounder. For a 3-year horizon, you're betting on valuation re-rating + dividend yield + steady EPS growth, not explosive business returns.
How does it compare to its 3 closest competitors?
Company
P/E
P/B
ROE
Rev growth
D/E
Edge
NTPC ◀ you
12.5x
1.96x
12.6%
12.3%
1.10x
Scale + safety
POWERGRID
17.1x
2.69x
15.1%
8.0%
1.41x
Transmission moat
TATAPOWER
27.3x
3.45x
9.5%
15.0%
1.93x
Renewables push
ADANIPOWER
37.2x
5.81x
25.6%
32.0%
0.68x
High-growth private
Source: Screener.in, NSE filings, Moneycontrol. Data as of 30 May 2026.
Latest news — top 5 long-term relevant items
Q4 FY26 PAT jumps 34% YoY — record consolidated profit of ₹10,615 Cr
Strong operational performance driven by higher generation and lower fuel costs. Revenue from operations rose to ₹51,694 Cr (+41% YoY). Indicates improving profitability trajectory.
23 May 2026 · NSE
Final dividend ₹3.50/share declared — total FY26 dividend ₹9/share
Total dividend payout of ~₹8,700 Cr. 34.9% payout ratio is sustainable and reflects management confidence in cash flows. Record date: likely July/Aug 2026.
23 May 2026 · BSE
Jefferies maintains 'Buy' with target ₹436 — top power sector pick for 2026
Jefferies cites NTPC's cheap valuation (P/E 12.5x), 30%+ EBITDA margins, and renewable capacity expansion as key catalysts. Target implies ~13% upside from current levels.
May 2026 · Moneycontrol
NTPC PLF at 72.04% vs Rest of India at 63.20% — operational efficiency edge
NTPC's plant load factor (capacity utilisation) is nearly 9 percentage points above the national average. This operational edge translates to better fixed-cost absorption and higher margins.
Q4 FY26 · Company Data
Maharashtra signs MoUs for nuclear power projects with NTPC participation
NTPC's nuclear foray with NPCIL collaboration opens a new long-term growth avenue. Nuclear provides stable, high-PLF baseload power — aligns with India's clean energy goals without intermittency issues of solar/wind.
27 May 2026 · ET Energy
Peer standing: LEADING ON VALUATION, MID-PACK ON GROWTH NTPC stands out as the cheapest large-cap power stock at 12.5x P/E — roughly half of POWERGRID (17x) and one-third of TATAPOWER (27x) and ADANIPOWER (37x). On ROE, it lags POWERGRID (15.1%) and ADANIPOWER (25.6%) but beats TATAPOWER (9.5%). NTPC's strength is its unmatched scale (76.6 GW) and government backing, which provides revenue stability that private peers lack. The trade-off: lower growth upside compared to ADANIPOWER (32% rev growth) but significantly less risk.
Who is backing this company — and are they buying or stepping away?
Holder
Latest %
8-quarter trend
Signal
What it means
Promoter
51.10%
→ Stable
STABLE
Government of India — won't sell. Provides stability
FII
16.23%
↑ Slight increase
INCREASING
Global funds adding — Jefferies, GS among bulls
DII
29.40%
↑ Slight increase
INCREASING
Indian MFs & insurers accumulating
Promoter pledging
0.00%
None
OK
Govt doesn't pledge shares — zero risk
Source: Screener.in, Kotak Neo. Promoter = President of India (through Ministry of Power). Total floating stock: ~48.9%.
Latest earnings call — Q4 FY26 key highlights
What management said
What it means for you
"Group CapEx for 9M FY26 stood at ₹33,466 Cr; on track for record ₹50,000 Cr for full year"
Aggressive capacity expansion continues — good for future earnings but keeps debt elevated in near term
"Weighted average interest rate reduced to 6.05% from 6.64% in previous year"
Lower borrowing costs directly improve net profit margins — positive for earnings trajectory
"Renewable capacity addition of 2,108 MW completed; target of 10 GW by 2030"
Gradual green transition underway — reduces long-term thermal stranding risk
"Coal stock at 15 million tons (~18 days of generation) — comfortable buffer"
No fuel shortage risk; consistent generation capability assured
"Dividend payout of 34.9% on standalone PAT — sustainable given cash flow generation"
Dividend likely to grow with earnings — income investors can expect increases
Management tone: CONFIDENT — focusing on execution of ambitious capex plan, cost optimization, and renewable diversification
Ownership signal: INSIDERS HOLDING STEADY, INSTITUTIONS INCREASING The Government of India at 51.1% is a stable, long-term anchor. FIIs and DIIs have both been modestly increasing their stakes — a vote of confidence. With zero promoter pledging and strong institutional interest (45.6% combined FII+DII), NTPC enjoys one of the strongest ownership structures among Indian PSUs. The only risk: the government could theoretically sell stake via OFS for fiscal needs (as it has done with other PSUs), but the Maharatna status makes this less likely in the near term.
STRONG FUNDAMENTALS
NTPC is India's most dominant power generator with steady ~12% earnings growth, the cheapest valuation among large-cap power peers (P/E 12.5x vs sector 28x), government backing, and consistent dividend payments. The capital-intensive business model constrains ROE/ROCE (12.6%/8.2%) and keeps debt moderate (D/E 1.1x), but for a 3-year investment horizon, the combination of cheap valuation, ~2.3% dividend yield, and steady EPS growth makes it a solid "sleep-well-at-night" power sector pick.
What works for this stock
✓Cheapest P/E in large-cap power — Trading at 12.5x vs 28x sector average and 37x for ADANIPOWER. You pay half the price for the same ₹1 of earnings.
✓Unmatched scale & moat — 76.6 GW capacity, 22% of India's power generation, Maharatna PSU with government backing. Revenue contracts (PPAs) are long-term and stable.
✓Consistent dividend grower — FY26 total dividend ₹9/share (yield 2.33%), up from ₹7/share in FY25 (+29%). 34.9% payout is sustainable with room to grow.
What to watch
⚠High leverage for a utility — D/E at 1.1x with ₹2.71L Cr debt. Interest coverage at 2.59x is below 3x threshold. Any rate hike cycle could compress margins. Watch D/E ratio — should stay below 1.3x.
⚠Thermal transition overhang — 83% of capacity is coal-fired. India's net-zero by 2070 target and renewable push creates long-term regulatory risk. Track NTPC's renewable capacity as % of total (currently ~17%).
Track this going forward
→Renewable capex deployment — NTPC targets 10 GW renewable by 2030. Speed of execution and return on renewable investments will determine if the stock re-rates. Also watch plant load factor (PLF) trends — currently 72% vs national 63% (operational edge).
This is a VIEW based on fundamentals only. Not a buy/sell recommendation. The decision is always yours.
Opportunities
+Valuation re-rating potential — As India's power demand grows and NTPC adds renewable capacity, the market may assign a higher P/E multiple closer to sector average (28x), unlocking significant upside from current 12.5x.
+Nuclear power expansion — MoUs with Maharashtra for nuclear projects open a new, clean baseload growth avenue with stable regulated returns, potentially improving long-term earnings quality.
+Operating efficiency edge — PLF at 72% vs national 63% gives NTPC a ~9pp utilization advantage, translating to lower per-unit fixed costs and better margin resilience even when power demand slows.
Risks
−Discom payment delays — State electricity distribution companies (discoms) are often financially stressed. Any material delay in receivables could stress NTPC's working capital and force additional borrowing.
−Coal price volatility — NTPC passes through fuel costs, but sharp coal price spikes (as seen in 2022) create working capital pressure. Higher imported coal prices also raise generation costs and strain discoms.
−Capex execution risk — ₹45,800 Cr annual capex is ambitious. Delays in project commissioning could stretch finances and delay earnings from new capacity. Previous track record shows some cost overruns.
Definitions — tap to expand
P/E ratio — What you pay per ₹1 of profit. Lower vs history and sector = cheaper.
P/B ratio — Price vs what the company actually owns. Below 1 = buying at a discount to assets.
EV/EBITDA — Full business value check including debt. Lower = better value.
ROE — For every ₹100 shareholders invested, how much profit did the company make. Above 15% = good.
ROCE — How efficiently the whole business uses capital including borrowed money. Above 15% = healthy.
Free Cash Flow — Cash left after all expenses and investments. Positive and growing = genuinely healthy business.
Promoter pledging — Founders using their own shares as loan collateral. Above 10% is a red flag.
CAGR — Compound Annual Growth Rate. The average yearly growth rate over a period.
PLF — Plant Load Factor. How much of a power plant's capacity is actually used. Higher = more efficient.
PPA — Power Purchase Agreement. Long-term contract to sell electricity at agreed rates.
This is a fundamental screening and education tool only. Data sourced from NSE, BSE, Annual Reports, Screener.in, Yahoo Finance, Moneycontrol, Trendlyne, and public financial databases. This is NOT investment advice, a buy/sell recommendation, or SEBI-registered financial research. AI can make errors — verify all numbers on NSE, BSE, or Screener.in before making any decision. Past performance does not guarantee future results. Investing carries risk. Consult a SEBI-registered financial advisor before investing.
Specific to NTPC: The company reported record Q4 profit but FY26 standalone EPS (₹23.89) was flat vs FY25 (₹24.16). The 34% YoY jump in Q4 PAT was partly due to a low base. Forward projections above are based on historical CAGR trends, not management guidance or price targets. The stock carries a stop-loss-relevant risk of ~3-4% from current levels in the short term.