NTPC Rises 12% in Three Months: Thermal Additions and Renewable Growth
In recent months, NTPC Limited has shown impressive growth, with its shares climbing approximately 12% over the past three months. This performance stands in contrast to the ET Power index’s modest gain of only 2.9%. Investors are increasingly optimistic about NTPC’s capacity expansion and its commitment to green energy solutions, anticipating strong future demand.
Key Developments in NTPC’s Growth Strategy
– Installed Capacity: As of December 2025, NTPC’s installed capacity is close to 86 gigawatts (GW), with an additional 33 GW currently under construction.
– Thermal Capacity Additions: The company plans to increase its thermal capacity by 6.5 GW, reflecting its focus on both traditional and renewable energy expansion.
– Renewable Growth through NGEL: NTPC is ramping up investments in green energy initiatives via its subsidiary, NTPC Green Energy Ltd (NGEL). The subsidiary has successfully commissioned 2.6 GW in FY26 and aims to complete an additional 2.5 GW to reach its target of 5 GW for the year.
– Power Purchase Agreements (PPAs): NGEL has secured strong PPA coverage, with 82% for FY26, 83% for FY27, and 60% for FY28, ensuring stability and revenue generation as it develops its 20 GW pipeline.
Expanding Ventures in Energy Storage and Nuclear Technologies
– Battery Energy Storage Systems: NTPC is currently evaluating the deployment of 5 GWh of battery energy storage systems at 16 sites. This initiative aims to enhance the grid’s stability and is being guided by regulated tariffs approved by authorities.
– Nuclear Technologies: Investments are also being made in nuclear technologies under the SHANTI Act, further diversifying NTPC’s energy portfolio.
– Hydropower Developments: The third unit of the Tehri pumped-storage project has been commissioned, with plans for a final 250 MW unit by the end of FY26. Additionally, preliminary studies for 13 GW of pumped-storage projects are in progress.
Future Prospects and Analyst Outlook
Analysts remain positive on NTPC’s stock, maintaining “buy” ratings with target price projections that are 10-15% higher than the current market price of ₹367. JM Financial Institutional Securities has revised its target price for NTPC to ₹420 from ₹397, emphasizing the importance of the company’s expansion in thermal and renewable projects.
In conclusion, NTPC’s strategic focus on capacity expansion, commitment to green energy initiatives, and advancements in energy storage signal a bright future. With strong investor confidence and robust market strategies, NTPC is poised for continued growth in the energy sector.