NTPC shares jump 4% after Q2 profit rises 14%, power generation grows 11%

Shares of NTPC gained nearly 4% on Monday, November 2, after the state-run power major reported a healthy performance for the September quarter, with standalone net profit rising 14.3% year-on-year (YoY), supported by higher power generation and an improvement in coal plant utilisation.



The company's power generation increased 11% YoY to 92.4 billion units (BU) during Q2FY27. Coal plant load factor (PLF), a measure of capacity utilisation, improved to 73.53% from 66.01% in the year-ago quarter.

Revenue for the quarter rose 16.8% to ₹45,752 crore from ₹39,165 crore a year ago. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 8.7% to ₹10,891 crore from ₹10,018 crore.

However, EBITDA margin contracted to 24% from 26% in Q2FY26.

Standalone net profit increased 14.3% to ₹5,320 crore, compared with ₹4,653 crore in the corresponding quarter last year.

NTPC's standalone net profit came in above the CNBC-TV18 poll estimate of ₹5,031 crore, while revenue also exceeded expectations of ₹43,192 crore. EBITDA, however, missed the poll estimate of ₹12,393 crore. The EBITDA margin of 24% was also below the expected 29%.

NTPC's board declared a first interim dividend of ₹3 per equity share, equivalent to 30% of the face value of ₹10, for FY27. The company has fixed November 6, 2026, as the record date to determine shareholders eligible for the dividend.

Capex and expansion plans

NTPC Group's gross fixed assets stood at ₹4,85,444 crore as of September 30, 2026, compared with ₹4,37,142 crore a year ago. Capital expenditure during the first half of FY27 stood at ₹23,932 crore, against ₹23,115 crore in the corresponding period last year.

The group has a pumped storage project (PSP) portfolio of 16 gigawatts (GW). Of this, the 1 GW Tehri PSP project of THDC is already under commercial operation, while detailed project reports for projects with a combined capacity of 15 GW are under preparation.

NTPC is also developing 5 gigawatt-hours (GWh) of battery energy storage system (BESS) capacity across 15 thermal power stations and one group company under the viability gap funding scheme. Commissioning is expected to begin in June 2027. Separately, the NGEL Group is executing 1,620 megawatt-hours (MWh) of BESS projects, with another 40 GWh under tendering and planning.

On nuclear energy, NTPC Parmanu Urja Nigam Limited, a wholly owned subsidiary, has identified 30 potential project sites across multiple states. Site selection studies have been completed at four locations and are at an advanced stage at six others.

Shares of the company jumped 3.7% intraday to ₹328 and were trading at ₹324.65 as of 10.22 am, still up 2.7%. The stock has declined about 3.5% so far this year.