Update shared on 21 Dec 2025
Fair value Decreased 0.92%Analysts have slightly reduced their price target on NTPC to approximately ₹413 from about ₹417, reflecting marginally higher perceived risk and a modestly softer long term growth outlook, even as profitability expectations remain broadly unchanged.
What's in the News
- Board declares first interim dividend of INR 2.75 per share for FY 2025-26, reflecting confidence in earnings visibility (Board of Directors filing)
- Board meeting on 30 October 2025 to review unaudited Q2 and H1 FY 2025-26 financial results and to consider an interim dividend on equity share capital (company disclosure)
- NTPC signs MoU with Government of Gujarat to explore projects across conventional and renewable energy segments, strengthening its clean energy pipeline (Vibrant Gujarat Regional Conference announcement)
- Board to consider equity infusion of up to INR 2,444.39 crore into NEEPCO to fund three hydro and one solar project, supporting capacity expansion in the North East (board agenda)
- Proposal under review for two large municipal solid waste to torrefied charcoal projects in Faridabad and Gurugram, with a combined estimated investment of about INR 780 crore, advancing NTPC's waste-to-energy strategy (board agenda)
Valuation Changes
- Consensus Analyst Price Target, or fair value estimate, has eased slightly to about ₹413 per share from roughly ₹417.
- Discount Rate has risen slightly to approximately 15.6 percent from about 15.3 percent, implying a marginally higher perceived risk profile.
- Revenue Growth assumption has been trimmed modestly to around 2.5 percent from about 2.7 percent over the long term.
- Net Profit Margin forecast is largely unchanged, edging down marginally to roughly 11.6 percent from about 11.6 percent earlier.
- Future P/E multiple has increased meaningfully to about 32.2x from roughly 26.5x, indicating a higher implied valuation multiple despite softer growth assumptions.
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