NTPC Limited (NTPC) AI Stock Analysis

• Market Cap: ₹3.18T
• Dividend Yield: 2.52%
• Average Volume (3M): 448.24K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.20
• Revenue Growth: 1.47%
• EPS Growth: 11.89%
• Country: IN
• Employees: 20,074
• Sector: Energy
• Sector Strength: 69
• Industry: Independent Power Producers
• EPS (TTM): 6.30
• Shares Outstanding: 9,696,666,000
• 10 Day Avg. Volume: 532,952
• 30 Day Avg. Volume: 448,240
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹386.50
• Price Target Upside: 18.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 76 Outperform
• Price Target: ₹381.00 ▲(16.32% Upside)

NTPC Limited's strong financial performance, characterized by consistent revenue and profit growth, is the most significant factor driving its stock score. The technical analysis indicates stable price trends with potential for upward movement, while the valuation suggests the stock is fairly valued with an attractive dividend yield. These factors collectively contribute to a solid overall stock score.

NTPC Limited Business Overview & Revenue Model

Company Description

NTPC Limited (NTPC) is India's largest energy conglomerate, primarily engaged in the generation and sale of electricity. Established in 1975, the company plays a pivotal role in India's power sector with operations encompassing thermal power plants, renewable energy projects, and hydroelectric plants. NTPC is committed to providing reliable and affordable power, with its core business revolving around the generation of electricity from coal, gas, hydro, solar, and wind power sources.

How the Company Makes Money

NTPC Limited generates revenue primarily through the sale of electricity. Its revenue model is centered around long-term power purchase agreements with state-owned distribution companies and other bulk consumers. The company operates a diversified portfolio of power plants, including coal-based, gas-based, and renewable energy projects, which contribute to its earnings. NTPC's income is significantly influenced by regulatory frameworks, tariffs, and fuel supply agreements that ensure cost recovery and profitability. Additionally, NTPC has been expanding its presence in the renewable energy sector, which aligns with its strategic goals and contributes to its revenue growth. Partnerships with government bodies and private entities for joint ventures and collaborations in power generation and infrastructure development also play a crucial role in its business model.

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 balance sheet remains solid, albeit with a moderate reliance on debt financing. Profitability and operational efficiency are commendable, though 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	1.88T	1.88T	1.79T	1.73T	1.30T	1.10T
Gross Profit	694.83B	811.06B	745.30B	357.87B	560.52B	459.89B
EBITDA	556.74B	541.28B	555.85B	489.27B	425.99B	366.74B
Net Income	234.22B	234.22B	208.12B	169.13B	166.76B	146.35B
Balance Sheet
Total Assets	5.24T	5.24T	4.80T	4.46T	4.17T	3.99T
Cash, Cash Equivalents and Short-Term Investments	115.07B	115.07B	40.65B	22.07B	26.50B	48.88B
Total Debt	2.50T	2.50T	2.37T	2.23T	2.11T	2.10T
Total Liabilities	3.33T	3.33T	3.15T	2.95T	2.77T	2.70T
Stockholders Equity	1.84T	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: 327.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 327.55 is below the 20-day moving average (MA) of 335.09, below the 50-day MA of 336.64, and below the 200-day MA of 339.08, indicating a bearish trend. The MACD of -1.15 indicates Positive momentum. The RSI at 37.64 is Neutral, neither overbought nor oversold. The STOCH value of 9.67 is Positive, 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	₹2.31T	6.96		7.08%	-1.88%	-6.67%
NTPC	76 Outperform	₹3.18T	13.26		2.52%	1.47%	11.89%
ADANIPOWER	71 Outperform	₹2.32T	18.67		―	-1.07%	-22.35%
Sector *	66 Neutral	$15.54B	7.32	3.17%	5.25%	4.26%	-62.31%
JSWENERGY	65 Neutral	₹852.82B	39.20		0.41%	22.49%	6.11%
RPOWER	62 Neutral	₹181.73B	5.71		―	-6.40%	―
NLCINDIA	60 Neutral	₹311.99B	10.96		1.33%	20.46%	41.69%