NTPC Climbs 12% in Three Months on Thermal Additions, Renewable Growth Bets

Why It Matters

The diversified expansion reduces carbon risk while positioning NTPC as a key driver of India’s power‑demand growth, making it a focal point for investors seeking stable returns and green‑energy upside.

Key Takeaways

• NTPC shares rose ~12% vs 2.9% index
• 86 GW installed; 33 GW under construction
• 6.5 GW new thermal capacity planned
• NGEL targets 5 GW FY26, 8 GW FY27/28
• Energy storage projects include 5 GWh BESS, 320 MWh Kerala

Pulse Analysis

India’s power grid is under pressure to meet a projected 7 % annual demand growth through 2030, and NTPC, the nation’s largest generator, is positioning itself at the centre of that expansion. With an installed capacity of nearly 86 GW at the end of 2025 and another 33 GW under construction, the utility plans to commission an additional 6.5 GW of coal‑based thermal plants while simultaneously scaling up renewable projects. This balanced build‑out reflects a pragmatic response to both the country’s energy security needs and its climate commitments.

The renewable arm, NTPC Green Energy Limited (NGEL), has already commissioned 2.6 GW in FY26 and is on track to reach its 5 GW annual target, with an ambitious 8 GW pipeline for each of the next two fiscal years. Strong power‑purchase‑agreement coverage—averaging 74 % across a 20 GW pipeline—provides revenue certainty, while the company’s foray into battery energy storage systems (5 GWh across 16 stations) and a 320 MWh project in Kerala adds flexibility to the grid. In parallel, the Tehri pumped‑storage unit and studies for 13 GW of additional pumped‑storage capacity underline NTPC’s commitment to firming intermittent renewables.

The market has rewarded NTPC’s diversified strategy, with shares climbing roughly 12 % over the past quarter, far outpacing the 2.9 % rise in the ET Power index. Analysts have upgraded target prices to ₹420, citing the firm’s execution track record and the upside potential of its storage and nuclear initiatives under the SHANTI Act. For investors, NTPC offers a blend of stable cash flows from thermal assets and growth upside from green energy, making it a bellwether for India’s transition to a low‑carbon power mix.

NTPC climbs 12% in three months on thermal additions, renewable growth bets

By Sachin Kumar, ET Bureau · Published on Feb 12, 2026 at 07:42 AM IST

The company is accelerating renewable energy projects through its subsidiary NGEL and investing in energy storage and nuclear technologies.

Shares of NTPC have risen around 12 per cent over the past three months compared with the 2.9 per cent gain in the ET Power index. Investors are betting on the company's capacity addition and green‑energy initiatives amid potential future demand.

India's largest power generator has an installed capacity of nearly 86 GW as of December 2025 and nearly 33 GW under construction. It plans to add 6.5 GW of new thermal capacity while accelerating renewable additions through its subsidiary NTPC Green Energy (NGEL).

It is also ramping up investments in energy storage and nuclear technologies under the SHANTI Act. Of the total 33 GW currently under construction, about 16.5 GW is coal‑based, 1.9 GW is hydro, and roughly 15 GW comprises renewable projects. According to company management, the 1,350 MW Sinnar Thermal Power Plant acquisition is expected to close shortly after approval of the resolution plan submitted by NTPC and Maharashtra State Power Generation Company by the National Company Law Tribunal (NCLT). The acquisition will also bring nearly 1,600 acres of land for future growth.

The company's green‑energy arm NGEL has commissioned 2.6 GW so far in FY 26 and is likely to complete another 2.5 GW, in line with the target of 5 GW for the year. The subsidiary has a capacity‑addition target of 8 GW each in FY 27 and FY 28. NGEL's Power Purchase Agreement (PPA) tie‑ups remain strong at 82 % for FY 26, 83 % for FY 27, and 60 % for FY 28, with an overall 74 % PPA coverage across its around 20 GW pipeline.

The company is simultaneously ramping up its presence in energy storage. It is in the final stages of evaluating a 5 GWh battery energy storage system (BESS) across 16 stations under Section 62, where BESS projects are awarded with regulated tariffs approved by regulators, rather than through competitive bidding. It has also finalised a 320 MWh BESS project in Kerala.

In hydropower storage, the third unit of the Tehri pumped‑storage project has been commissioned, with the final 250 MW unit scheduled before FY 26 ends. Preliminary studies are also underway for around 13 GW of pumped‑storage projects allocated by various states.

Analysts have retained a ‘buy’ rating with 10‑15 per cent higher target prices than the current market price of ₹367. “NTPC continues to make efforts to diversify its generation portfolio. Progress on execution of new thermal projects remains a key variable to monitor,” noted JM Financial Institutional Securities in a report. The broking firm has revised the target price to ₹420 from ₹397 earlier.