NTPC climbs 12% in three months on thermal additions, renewable growth bets

ET Intelligence Group: Shares of NTPC have risen around 12% over the past three months compared with the 2.9% gain in the ET Power index. Investors are betting on the company’s capacity addition and green energy initiatives amid potential future demand. India’s largest power generator has an installed capacity of nearly 86 gigawatt (GW) as of December 2025 and nearly 33 GW under construction. It plans to add 6.5 GW of new thermal capacity while accelerating renewable additions through its subsidiary NTPC Green Energy (NGEL). It is also ramping up investments in energy storage and nuclear technologies under the SHANTI Act.

Of the total 33 GW currently under construction, about 16.5 GW is coal-based, 1.9 GW is hydro, and roughly 15 GW comprises renewable projects. According to the company management, the company expects the 1,350 megawatt (MW) Sinnar Thermal Power Plant acquisition to close shortly following approval of the resolution plan submitted by NTPC and Maharashtra State Power Generation Company by the National Company Law Tribunal (NCLT). The acquisition will also bring nearly 1,600 acres of land for future growth.

The company’s green-energy arm NGEL has commissioned 2.6 GW so far in FY26 and is likely to complete another 2.5 GW, in line with the target of 5 GW for the year. The subsidiary has a capacity-addition target of 8 GW each in FY27 and FY28. NGEL’s Power Purchase Agreement tie-ups remain strong at 82% for FY26, 83% for FY27, and 60% for FY28, with an overall 74% PPA coverage across its around 20 GW pipeline.

The company is simultaneously ramping up its presence in energy storage. It is in the final stages of evaluating a 5 GWh of battery energy storage system (BESS) across 16 stations under Section 62 where BESS projects are awarded with regulated tariffs approved by regulators, rather than through competitive bidding. It has also finalised a 320 MWh BESS project in Kerala.

In hydropower storage, the third unit of the Tehri pumped-storage project has been commissioned, with the final 250 MW unit scheduled before FY26 ends. Preliminary studies are also underway for around 13 GW of pumped-storage projects allocated by various states.

Analysts have retained ‘buy’ rating with 10-15% higher target prices than the current market price of ₹367. “NTPC continues to make efforts to diversify its generation portfolio. Progress on execution of new thermal projects remains a key variable to monitor,” noted JM Financial Institutional Securities in a report. The broking firm has revised the target price to ₹420 from ₹397 earlier.