NTPC shares rise 3% after Q2 results. Why Jefferies and Nuvama remain bullish

ETMarkets.com

NTPC shares rose after the state-owned power major reported a 14% YoY rise in standalone net profit.

The company’s revenue from operations meanwhile increased nearly 17% YoY to Rs 45,752 crore during the second quarter of FY27, from Rs 39,165 crore in the year-ago period. Its EBITDA rose around 9% YoY to Rs 10,891 crore during the quarter under review.

Along with the Q2 results, NTPC announced a first interim dividend of Rs 3 per share. The company has fixed November 6 as the record date to determine the eligibility of shareholders set to receive the dividend.

Also read | NTPC Q2 Results: Standalone profit rises 14% YoY to Rs 5,320 crore; revenue up 17%

The group's capital expenditure stood at Rs 23,932 crore in H1 FY27, compared with Rs 23,115 crore in the corresponding period of FY26. NTPC Group's gross fixed assets increased to Rs 4,85,444 crore as of September 30, 2026, from Rs 4,37,142 crore a year earlier.

Jefferies on NTPC share price

Jefferies maintained its ‘Buy’ call on the shares of NTPC with a target price of Rs 425 apiece, implying 34% upside potential. The international brokerage noted that the company’s September quarter profit was 16% above its estimates, aided by lower disincentives, prompting it to raise the company’s FY27 EPS estimate by 1%.

NTPC’s management reduced FY27E RE addition guidance to 5 GW from 7-8 GW due to transmission delays, Jefferies noted, adding that the company added 1.3 GW RE capacity in the first half of FY27 and another 3.5 GW is expected in the ongoing second half of the financial year. The international brokerage lowered FY27 overall addition estimate to 6 GW from 8.2 GW which is reflected in a 1% tweak to its FY28-29 earnings estimates.

Nuvama on NTPC share price

Nuvama Institutional Equities maintained its ‘Buy’ rating on the shares of NTPC with a target price of Rs 400 apiece. The brokerage noted that strong power demand resulted in healthy PLFs YoY, leading to 11% YoY rise in SA generation.

Movement in regulatory deferral accounts rose 23% YoY. Q2 core RoE is 19.5% (+515 bps YoY) as regulated equity was down 1.6% YoY, Nuvama said, adding that efficiency gains also drove Q1 core RoE to 19.9% (+325bp YoY).

NTPC share price

NTPC shares have jumped more than 5% in a week but overall recorded marginal gains in a month. The shares of the company are however down nearly 6% in 2026 so far and more than 6% in the past one year.

In the longer term, NTPC shares have delivered positive returns of more than 34% in three years and 131% in five years. The company has a market capitalisation of nearly Rs 1.5 lakh crore.

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