NTPC

’s Ambitious Capacity Expansion and Diversification Strategy

, India's leading power generator, has outlined an ambitious expansion plan, with a revised group capacity target of 149 GW by 2032, requiring an estimated investment of ₹7 trillion. This plan spans various energy sources, including thermal, renewables, and nuclear, with a significant capital expenditure of ₹2.7 trillion projected for FY26-28. → Diversification and Fuel Security: While NTPC is expanding its renewable energy capacity through its subsidiary, NTPC Green Energy, it remains committed to coal-based power, which will still constitute a significant 70% of its capacity. To secure its fuel supply, the company aims to increase its captive coal mining contribution to 25% by FY30, up from the current 15%. The company has also officially entered the nuclear energy sector with its joint venture for the 4x700 MW reactors at Mahi Banswara, Rajasthan. → Q1 FY26 Performance and Challenges: NTPC’s Q1 FY26 was subdued, with standalone revenue falling 4% year-on-year to ₹42,572 crore, due to an early monsoon impacting demand. Standalone EBITDA also saw a decline of 17% to ₹10,300 crore. The company's execution remains a key challenge, as capacity addition in FY25 fell short of expectations. So far in FY26, it has only commissioned 2.8 GW against a target of 11.8 GW. → Focus on Energy Storage: NTPC is making strategic investments in energy storage systems to support grid stability. It recently commissioned the second unit of its pumped storage project at Tehri and plans to add 3-5 GW of capacity by FY32. The company is also developing a 1-tonne-per-day green hydrogen plant and a battery energy storage project, both expected to be commissioned in FY26. → Valuation and Outlook: Despite the challenges and recent stock underperformance, NTPC’s shares are trading at a reasonable FY26 EV/Ebitda of 9.4x. The company expects healthy demand growth in the second half of FY26 and is betting on its strategic diversification to drive future performance.