The share price of NTPC slipped over 2% in early trade today, reacting to the company’s September-quarter (Q2FY26) results announced post-market hours on October 30.
The state-run power major reported a 3.9% quarter-on-quarter (QoQ) fall in consolidated net profit to Rs 5,067 crore, compared to Rs 5,275 crore in the previous quarter.
NTPC Q2 earnings snapshot
According to the company’s exchange filing, standalone revenue for Q2FY26 stood at Rs 39,200 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) came in at Rs 10,000 crore.
However, profit after tax (PAT) stood at Rs 4,650 crore. Adjusted PAT was Rs 4,500 crore, up 8% YoY and 2% QoQ.
How are brokerages interpreting NTPC performance –
Motilal Oswal: ‘Neutral’ with a target price of Rs 372
Brokerage firm Motilal Oswal has maintained a ‘Neutral’ rating on NTPC with a target price of Rs 372. This implies an upside potential of around 8% from the current market price.
According to the brokerage report, “Adjusted PAT in Q2FY26 was 4% above our estimate, mainly supported by higher-than-estimated other income. EBITDA missed our estimate as weak power demand led to soft generation trends.”
The firm added that management remains focused on expanding capacity, stating its vision “to take group capacity to 244 GW by 2037.” For the medium term, the company guided for capacity additions of 9.8 GW in FY26, 9.6 GW in FY27, and 10.5 GW in FY28.
However, Motilal Oswal expressed caution over project execution, especially in NTPC Green Energy. “We maintain a cautious view on execution, especially at NTPC Green Energy. Further, we believe valuations for NTPC Green Energy (15% of our sum-of-the-parts valuation) have little room for re-rating and may continue to face pressure,” it noted.
Nuvama: ‘Buy’ with a target price of Rs 413
The brokerage house, Nuvama Institutional Equities has a more optimistic view, retaining its buy rating on NTPC with a target price of Rs 413, translating to an upside potential of around 20% from the current market price.
According to the brokerage report, “NTPC remains our top pick in Power Utilities given a likely 6% earnings per share (EPS) compound annual growth rate (CAGR) over FY25–FY27 coupled with 17% core return on equity (RoE) while still trading at an inexpensive 1.5x FY27E price-to-book value (P/BV).”
Nuvama also highlighted NTPC’s growing footprint in nuclear energy. The brokerage pointed out, “The company is executing 4×700 MW Mahi Banswara Atomic Nuclear project via Ashvini JV with Nuclear Power Corporation (NPCIL) – foundation stone laid on September 25, 2025; MoUs signed with states and sites identified.”
Additionally, NTPC is building a strong pumped storage portfolio of 21.2 GW. The brokerage also mentioned NTPC’s push into new areas like Battery Energy Storage Systems (BESS).