CLSA has maintained its outperform rating on NTPC with a target price of ₹459, highlighting the company’s improving earnings resilience, a robust pipeline of regulated equity (RegEq) additions, and an aggressive capex roadmap. NTPC closed at ₹417.20.
In Q1FY26, NTPC’s reported PAT rose 5% YoY despite a 4% decline in all-India power demand and a 7% fall in NTPC’s own generation. The resilience was attributed to accelerated RegEq growth, supported by 1.3GW of capacity coming online during the quarter. CLSA expects a major inflection point in FY26, as NTPC guides for 11.8GW of capacity addition—a nearly 3x jump over last year.
What stood out was NTPC’s surprise $31 billion capex plan over FY26–28, which CLSA believes could significantly boost earnings and regulated returns. The brokerage called it a “lofty” target, reinforcing confidence in NTPC’s long-term growth trajectory.
With regulated returns becoming a stronger contributor and new capacity additions lined up, CLSA expects NTPC’s earnings profile to become more stable and predictable, providing visibility for investors.
Disclaimer: The views and investment recommendations expressed in this article are those of CLSA and do not represent the views of this publication. Investors are advised to consult their financial advisors before making any investment decisions.
