Target: ₹390
CMP: ₹333.70
FY26 will be a momentous year for NTPC, marked by three feats of leadership and support to the national priority of energy security; all-time high organic capacity addition, commissioning of its first pumpedhydro storage plant and foundation stone of its first nuclear power plant.
We expect the company to add 3,580MW of thermal (660MW Barh, 660MW North Karanpura, 2x800MW Patratu, 660MW Khurja) and 1,000MW of Tehri pumphydro power generation capacity during FY26, the highest ever organic capacity addition during the last 2 decades.
The indigenous 4x700 MWe pressurised heavy water reactor (PHWR) based Mahi Banswara Nuclear Power Plant, a project by Anushakti Vidyut Nigam (ASHVINI), a JV of NPCIL (51%) and NTPC (49%), has got the approval of the Atomic Energy Regulatory Board (AERB) and is aiming for commissioning by May’30. We expect the company to lay the foundation stone for the project during FY26, marking its entry into the nuclear power segment.
With the addition of 4,580MW of conventional capacity in FY26 and with the multiple growth drivers at work (thermal, hydro, nuclear), NTPC is poised for significant growth in future and will play an important role in India’s energy transition journey. We maintain our Buy rating on the stock with a target price of ₹390, valuing it at 2.3x Mar’27 regulated equity.