NTPC Share Price Target 2026: Brokerage firm Nuvama has largely maintained a constructive stance on power major NTPC’s stock following its Q4 FY26 results, citing new frontiers to improve efficiency and lower costs.
NTPC reported its Q4 FY26 earnings on Saturday, showing a strong rise in profitability even as revenue remained largely stable. The state-owned power giant delivered a mixed but steady performance, with margins showing improvement and earnings beating expectations on key fronts.
Brokerage firm Nuvama has maintained a Buy rating on NTPC’s stock with a target price of Rs 389.
“Despite near-term growth challenges, NTPC remains our top pick given steady-state 16–17% core RoE and a 9.4% adjusted consolidated EPS CAGR over FY26–28E (higher RE-led growth) while trading inexpensive at 1.7x FY28E P/BV,” Nuvama said.
“A 5GWh BESS has been allocated to NTPC under the VGF scheme to optimise
utilisation of existing thermal infrastructure and supply during non-solar hours. The
capacity is planned across 14 stations and shall improve efficiency and lower costs,” the brokerage added.
NTPC posted a net profit of Rs 10615 crore in Q4 FY26, marking a sharp 34.4 per cent year-on-year increase compared to Rs 7897 crore in the same quarter last year. This reflects strong operational efficiency and improved cost management during the period.
Revenue for the quarter stood at Rs 49688 crore, slightly lower by 0.3 per cent compared to Rs 49834 crore in Q4 FY25. Despite the marginal decline in topline, the company managed to maintain stability in its core operations amid fluctuating demand and pricing dynamics in the power sector.
EBITDA came in at Rs 15,321 crore, up 3.8 per cent from Rs 14754 crore in the year-ago period, indicating healthy operational performance. EBITDA margin also improved to 30.8 per cent, compared to 29.6 per cent in the corresponding quarter last year, highlighting better cost efficiency and improved realisation.
According to ET Now poll estimates, analysts had expected a net profit of ₹6,441 crore, revenue of Rs 52667 crore, and EBITDA of Rs 15707 crore. While revenue came in slightly below expectations, profit significantly outperformed estimates.
The company also announced a final dividend of Rs 3.50 per share, rewarding shareholders despite the mixed revenue performance.
Overall, NTPC’s Q4 results reflect strong bottom-line growth supported by improved margins, even as revenue growth remains subdued.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
