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NTPC Powers Ahead: Q1 Earnings Surge 13%
27 Jul
Summary
- Consolidated profit after tax rose 13% to Rs 6,896 crore in Q1 FY27.
- NTPC added 1.8 GW capacity, including renewables, in the June quarter.
- Brokerages maintain 'Outperform' and 'Accumulate' ratings on NTPC.
NTPC Ltd, India's largest integrated power utility, announced a strong performance for the June quarter (Q1 FY27), with consolidated profit after tax increasing by 13% year-on-year to Rs 6,896 crore. This financial growth was underpinned by substantial capacity additions and enhanced operational efficiencies.
During the quarter, NTPC successfully added 1.8 GW of new capacity, comprising 820 MW of thermal, 250 MW of hydro, and 730 MW of renewable energy. The company's standalone coal plant availability factor also saw an improvement, reaching 94%.
Following the results, several brokerage firms expressed optimism. Macquarie reiterated its 'Outperform' rating with a target price of Rs 480, while CLSA maintained an 'Accumulate' rating and raised its target price to Rs 459. Both highlighted NTPC's strong capacity expansion and operational improvements.
Motilal Oswal Financial Services, however, adopted a more cautious approach, retaining a 'Neutral' rating with a target price of Rs 362. This was primarily due to lower-than-expected other expenses and a more modest outlook on the stock's immediate upside.
