Jefferies has maintained its ‘Buy’ call on NTPC Ltd. with a target price of ₹490 after the company posted a 6% EBITDA beat in Q4FY25, largely driven by stellar performance in the renewable segment and improved fixed cost recovery.
NTPC’s renewables segment posted nearly 90% EBITDA margins, while fixed cost under-recovery reduced to ₹460 crore, down from ₹780 crore in FY24. Jefferies said these factors indicate strong operating leverage.
Management guided for a sharp capacity ramp-up: 4 GW in FY25, jumping to 11.8 GW in FY26E, followed by 9.9 GW in FY27E. Jefferies continues to expect a double-digit EPS CAGR over the medium term, driven by rising green energy contribution and efficient execution.
Disclaimer: This article is based on the brokerage report by Jefferies. It does not constitute investment advice.
