At a Glance

NTPC, India’s state-owned electricity behemoth, posted a Q1 FY26 net profit of ₹6,108 Cr, up 10% YoY, on revenue of ₹47,065 Cr. Margins held at a comfortable 27% OPM, and the company’s installed capacity stood at a jaw-dropping 76,598 MW. At ₹335/share, the stock trades at a P/E of 13.5x with a dividend yield of 2.3%. It’s like a reliable old generator – not flashy, but always humming.

Introduction

NTPC is the power sector’s Big Daddy. When the nation sleeps, NTPC’s turbines don’t. When the nation wakes up, NTPC’s turbines still don’t. This PSU is the literal definition of “24×7 operations”. It generates nearly 22% of India’s electricity, and if you’ve ever turned on a fan, chances are NTPC powered it. Yet, investors remain split: is this a growth story or just a dividend ATM?

Business Model (WTF Do They Even Do?)

NTPC earns by selling electricity to state utilities under long-term PPAs, ensuring stable cash flows. It also dabbles in:

• Coal mining to secure fuel,
• Renewable energy (because ESG, duh),
• Consultancy & project management, and
• Energy trading.

It’s a utility – boring but rich in cash. The only thing riskier than NTPC defaulting is you forgetting to pay your electricity bill.

Financials Overview

• Revenue: ₹47,065 Cr (↓3% YoY – blame lower generation)
• Operating Profit: ₹12,580 Cr (OPM 27%)
• PAT: ₹6,108 Cr (↑9.8% YoY)
• EPS: ₹6.20

Commentary: Stable numbers, steady margins, and strong profitability. Investors got the PSU comfort blanket they crave.

Valuation

• CMP: ₹335
• P/E: 13.5x
• ROE: 13.6%
• Dividend Yield: 2.3%
• Book Value: ₹190

Fair Value Range: ₹300 – ₹360. The stock is fairly valued, with upside tied to renewables expansion.

What’s Cooking – News, Triggers, Drama

• Dividend: Final dividend of ₹3.35/share (record date 4 Sep 2025).
• Green Push: Expanding renewable capacity to meet the 60 GW target by 2032.
• Management: CMD Gurdeep Singh reappointed till July 2026.
• Trigger: Transition to green energy and stake in NTPC Green could unlock value.

Balance Sheet

Remarks: Heavy on debt but hey, it’s a PSU – lenders love them anyway.

Cash Flow – Sab Number Game Hai

Remarks: Massive capex spending, but operating cash flow remains robust.

Ratios – Sexy or Stressy?

Remarks: Leverage is high but manageable, and returns are healthy for a utility.

P&L Breakdown – Show Me the Money

Remarks: Consistent growth – like that one friend who always passes but never tops.

Peer Comparison

Remarks: NTPC offers scale and value, while private peers demand crazy valuations.

Miscellaneous – Shareholding, Promoters

• Promoter (GoI): 51.1%
• FIIs: 16%
• DIIs: 28.9%
• Public: 3.8%

Comment: Strong institutional interest – PSU with private investor love.

EduInvesting Verdict™

Past Performance

NTPC has consistently delivered stable earnings, healthy dividends, and modest growth. It’s the textbook “safe PSU” for long-term investors.

SWOT Analysis

• Strengths: Scale, regulated revenue, strong cash flows.
• Weaknesses: Coal dependency, debt-heavy balance sheet.
• Opportunities: Renewable expansion, NTPC Green listing.
• Threats: Regulatory pressures, rising capex costs.

Final Word

NTPC is the stock equivalent of your dad’s fixed deposit – boring but reliable. Q1 FY26 showed steady growth, and the dividend keeps investors happy. The real excitement lies in its green energy pivot – if executed well, NTPC could be more than just a “power PSU”.

Written by EduInvesting Team | 29 July 2025
SEO Tags: NTPC, Power Generation, PSU Stocks, Q1 FY26 Results