NTPC Stock Powers Ahead on 24% Profit Surge in Q4

Shares of NTPC surged as much as 2% of the National Stock Exchange today after the company reported an over 24% on-year jump in its consolidated net profit for the March quarter. The stock touched its intraday high at Rs 351.20. Currently, the stock trades 20% higher from its 52-week low, while 22% below its 52-week high level.

Higher revenue for the quarter under review along with a rise in regulatory deferral account balance aided the firm’s earnings for the quarter. The company’s consolidated revenue rose 5% year-on-year during the period. NTPC also saw an increase of Rs 2,295.98 crore in its regulatory deferral account balance in Q4 of FY25, compared to a loss of Rs 211.41 crore in the same period a year ago.

Apart from this, lower fuel costs and a slight uptick in other income also pushed the net for the period. For the full FY25, NTPC’s consolidated net profit rose 12.5% over the figure reported in FY24. Its revenue for the full financial year grew over 5% on year.

Its operating profit margin expanded 270 basis points on year, while its net profit margin expanded 222 basis points. The company’s board of directors has also approved a final dividend of Rs 3.35 apiece for FY25, which is in addition to the first and second interim dividend of Rs 2.5 each.

Motilal Oswal has reiterated its 'neutral' rating on the stock with a target price of Rs 383, citing tempered growth expectations and valuation concerns. Capacity expansion is expected to be subdued from FY27 to FY27, around 5% at the standalone level and 9% at the consolidated level (excluding NTPC Green Energy), the brokerage firm said.

Despite modest earnings growth expectations, Nuvama continues to view NTPC as its top pick in the power utilities space. Nuvama has maintained its ‘buy’ rating on the stock ad has cut its target price to Rs 404 from Rs 412. "The stock remains attractively valued at just 1.5x FY27E price-to-book. This, coupled with a substantial ~22 GW capex pipeline across thermal, hydro, and renewable energy, as well as the potential upside from higher CERC incentives, underpins the positive view," the brokerage house said.