NTPC Limited (NTPC) AI Stock Analysis

• Market Cap: ₹3.10T
• Dividend Yield: 2.69%
• Average Volume (3M): 478.43K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 1.12
• Revenue Growth: 1.68%
• EPS Growth: 7.60%
• Country: IN
• Employees: 20,074
• Sector: Energy
• Sector Strength: 52
• Industry: Independent Power Producers
• EPS (TTM): 5.20
• Shares Outstanding: 9,696,666,000
• 10 Day Avg. Volume: 419,056
• 30 Day Avg. Volume: 478,429
• PEG Ratio: 1.16
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 1.81
• P/FCF Ratio: 37.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹409.33
• Price Target Upside: 27.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹376.00 ▲(17.54% Upside)

NTPC Limited's strong financial performance, characterized by consistent revenue and profit growth, is the most significant factor driving its stock score. The valuation is reasonable, with a fair P/E ratio and a decent dividend yield. Technical analysis shows a neutral to slightly positive trend, supporting the overall score. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Profitability

Improved profit margins reflect efficient cost management and pricing power, contributing to sustainable profitability.

Cash Flow Management

Strong operating cash flow supports capital expenditures and indicates robust cash generation, crucial for funding growth initiatives.

Negative Factors

Debt Levels

High debt levels can increase financial risk and limit flexibility, potentially impacting long-term financial health.

Free Cash Flow Variability

Fluctuations in free cash flow growth rates suggest variability in cash management, which can affect investment capacity and operational stability.

Operating Cost Pressure

Operating cost pressures can erode margins and profitability, challenging the company's ability to maintain cost efficiency.

NTPC Limited Business Overview & Revenue Model

Company Description

NTPC Limited generates and sells bulk power to state power utilities in India. It operates in two segments, Generation of Energy and Others. The company generates power from coal, gas, liquid fuel, hydro, solar, nuclear, wind, thermal, and renewable energy sources. It also offers consultancy, project management, and supervision services. In addition, the company is involved in the energy trading, oil and gas exploration, and coal mining activities. Further, it sells electricity to private DISCOMs operating in various states. As of August 5, 2022, the company had an installed capacity of 54818 megawatt (MW) and commercial capacity of 69183 MW. NTPC Limited was incorporated in 1975 and is headquartered in New Delhi, India.

How the Company Makes Money

NTPC generates revenue primarily through the sale of electricity to state-owned and private utility companies under long-term power purchase agreements (PPAs). The company earns money by selling electricity generated from its thermal, hydro, and renewable energy plants. Key revenue streams include capacity charges, which are fixed payments made by utilities for the available capacity, and energy charges, which are based on the actual energy supplied. Additionally, NTPC engages in power trading, allowing it to sell surplus power in the open market. The company has formed significant partnerships with various state governments and private players to enhance its generation capacity and expand its renewable energy footprint, further diversifying its revenue sources. Factors contributing to NTPC's earnings include government policies favoring renewable energy, infrastructure investments, and rising electricity demand in India.

NTPC Limited Financial Statement Overview

Summary

NTPC Limited exhibits strong financial performance with consistent revenue and profit growth, bolstered by efficient cash flow management. The company's balance sheet remains solid, albeit with a moderate reliance on debt financing. While profitability and operational efficiency are commendable, attention to debt management and cash flow variability could enhance financial stability further.

Income Statement

NTPC Limited demonstrates robust revenue growth with a consistent upward trajectory from 2020 to 2025, marked by a 6% growth from 2024 to 2025. Gross profit margin improved significantly to 43.1% in 2025. Net profit margin also increased, reaching 12.45% in 2025, indicating strong profitability. EBITDA margin remained stable, showcasing efficient operational management. However, slight fluctuations in EBIT margin suggest potential pressure on operating costs.

Balance Sheet

The balance sheet indicates strong equity growth, with stockholders' equity increasing significantly over the years, leading to a healthier equity ratio of 35.1% in 2025. The debt-to-equity ratio is moderately high at 1.36, reflecting a reliance on debt financing. However, the company has managed its debt levels well, maintaining a stable return on equity of 12.73% in 2025, showcasing effective use of shareholders' capital.

Cash Flow

NTPC's operating cash flow showed a positive trend, with a substantial increase to ₹504 billion in 2025, supporting its capital expenditures. The free cash flow has been positive, although it decreased slightly in 2025. The operating cash flow to net income ratio remains strong, indicating efficient cash generation relative to net income. Nonetheless, fluctuations in free cash flow growth rates suggest variability in investment or operational cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.87T	1.88T	1.79T	1.76T	1.33T	1.12T
Gross Profit	825.24B	810.39B	744.95B	702.02B	573.14B	503.85B
EBITDA	526.20B	546.54B	501.24B	487.85B	397.02B	340.30B
Net Income	239.59B	234.22B	208.12B	169.13B	166.76B	146.35B
Balance Sheet
Total Assets	0.00	5.24T	4.80T	4.46T	4.17T	3.99T
Cash, Cash Equivalents and Short-Term Investments	115.07B	45.08B	39.17B	22.07B	25.50B	35.65B
Total Debt	0.00	2.50T	2.37T	2.23T	2.11T	2.10T
Total Liabilities	-1.91T	3.33T	3.15T	2.95T	2.77T	2.70T
Stockholders Equity	1.91T	1.84T	1.61T	1.47T	1.35T	1.26T
Cash Flow
Free Cash Flow	0.00	91.53B	99.69B	152.33B	173.44B	91.32B
Operating Cash Flow	0.00	504.36B	407.85B	400.52B	417.88B	324.44B
Investing Cash Flow	0.00	-458.00B	-321.41B	-261.07B	-228.38B	-210.34B
Financing Cash Flow	0.00	-40.73B	-82.46B	-141.54B	-191.72B	-110.49B

NTPC Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 319.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NTPC, the sentiment is Negative. The current price of 319.9 is below the 20-day moving average (MA) of 323.28, below the 50-day MA of 329.13, and below the 200-day MA of 332.84, indicating a bearish trend. The MACD of -2.31 indicates Positive momentum. The RSI at 39.96 is Neutral, neither overbought nor oversold. The STOCH value of 41.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NTPC.

NTPC Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COALINDIA	77 Outperform	₹2.38T	7.62	―	6.87%	-0.76%	-10.84%
NTPC	73 Outperform	₹3.10T	13.06	―	2.69%	1.68%	7.60%
NLCINDIA	69 Neutral	₹331.27B	12.68	―	1.25%	18.29%	42.31%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
JSWENERGY	63 Neutral	₹835.52B	41.24	―	0.42%	39.71%	1.33%
ADANIPOWER	62 Neutral	₹2.73T	22.71	―	―	-0.70%	-5.41%
RPOWER	58 Neutral	₹159.52B	52.32	―	―	-0.06%	-74.64%

NTPC Limited Corporate Events

NTPC Faces Compliance Fines Amidst Efforts to Resolve Governance Issues

NTPC Limited has received notices from the National Stock Exchange of India Limited and BSE Limited for non-compliance with SEBI regulations, resulting in fines of Rs.5,42,800 each. The company argues that as a government entity, the appointment of independent directors is under the purview of the Ministry of Power, and is actively seeking to resolve the issue to avoid the fines.

NTPC Consortium Secures NCLT Approval for Sinnar Thermal Power Resolution Plan

NTPC Limited, in collaboration with Maharashtra State Power Generation Company Limited (MAHAGENCO), has received approval from the National Company Law Tribunal (NCLT) for their resolution plan concerning Sinnar Thermal Power Limited, which is undergoing a Corporate Insolvency Resolution Process. This approval marks a significant step in NTPC’s strategic efforts to manage and expand its power generation capabilities, particularly with the acquisition of the 1350 MW coal-based thermal power plant in Nashik, Maharashtra.

NTPC Limited Discusses Financial Results in Analyst Call

NTPC Limited held a conference call with analysts and investors on October 30, 2025, to discuss the company’s financial results for the quarter and half-year ending September 30, 2025. The audio recording of this call is available for stakeholders, providing insights into NTPC’s operational performance and strategic direction.

NTPC Limited Announces Board Meeting and Trading Window Closure

NTPC Limited has announced the closure of its trading window in compliance with SEBI regulations, as the company prepares to hold a Board of Directors meeting on October 30, 2025. The meeting will address the approval of un-audited financial results for the quarter and half-year ending September 30, 2025, and the declaration of an interim dividend for the financial year 2025-26. The record date for determining shareholder eligibility for the interim dividend is set for November 7, 2025. This announcement signifies NTPC’s ongoing commitment to regulatory compliance and shareholder engagement.

NTPC Limited to Review Financial Results and Consider Interim Dividend

NTPC Limited has announced that its Board of Directors will meet on October 30, 2025, to review and approve the company’s unaudited financial results for the quarter and half-year ended September 30, 2025. Additionally, the board will consider declaring an interim dividend for the financial year 2025-26. The company has set November 7, 2025, as the record date to determine shareholder eligibility for the interim dividend. The trading window for NTPC’s securities will remain closed until November 1, 2025, to prevent insider trading during this period. This announcement is part of NTPC’s ongoing compliance with SEBI regulations and reflects its commitment to maintaining transparency and shareholder value.

NTPC Expands Renewable Capacity with Khavda Solar Project

NTPC Limited announced the commercial operation of an additional 37.95 MW capacity from its Khavda Solar Energy Project in Gujarat, bringing the total operational capacity of the project to 262.075 MW. This expansion is part of the company’s strategic push into renewable energy, enhancing its total installed capacity to 84,039 MW, and reflects NTPC’s commitment to increasing its renewable energy portfolio, which is significant for stakeholders and the company’s market positioning.