Macquarie maintains its outperform ratings on NTPC and Power Grid with target prices of ₹475 and ₹380, respectively, implying upside potentials of 26% and 15% from current levels. Key insights include:

  1. Renewable-driven growth: India added ~20GW of total generation capacity in FYTD25 (Apr-Dec 2024), significantly up from ~12GW in FYTD24 (Apr-Dec 2023), with renewables driving the growth.
  2. Power demand focus: Seasonal demand trends during strong summers will play a critical role in shaping the utilities’ performance.
  3. DISCOM privatization: Uttar Pradesh is taking initial steps towards privatizing two state DISCOMs, indicating renewed momentum in reforms.

Disclaimer: This report is for informational purposes only and should not be considered as financial advice. Please consult your financial advisor before making any investment decisions.

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