Axis Securities sees NTPC as a key beneficiary of India’s long-term power investment cycle.
The company’s 10-year capex plan is heavily focused on renewable energy, nuclear power and continued thermal expansion.
Highlights:
- NTPC has outlined a ₹16.9 lakh crore group capex plan through FY37.
- The company plans ₹1.1 lakh crore capex during FY25-FY27.
- Another ₹6 lakh crore is planned for FY27-FY32.
- Capex of ₹9.8 lakh crore is proposed for FY33-FY37.
NTPC Bets Big On India’s Power Expansion
State-run power major NTPC has laid out an ambitious ₹16.9 lakh crore capital expenditure plan extending through FY37, giving the company strong multi-year growth visibility, according to Axis Securities.
The brokerage believes NTPC’s evolving business mix places it in a strong position to benefit from India’s decade-long power infrastructure investment cycle.
The company is gradually shifting from being primarily a thermal power producer to becoming a diversified energy major with growing exposure to renewable energy and nuclear power.
At the same time, its existing regulated and cost-plus thermal power business continues to provide earnings stability and predictable cash flows.
₹16.9 Lakh Crore Investment Roadmap
NTPC’s capex programme is spread across three major phases.
The company plans to spend around ₹1.1 lakh crore during FY25-FY27. This will be followed by a much larger investment of nearly ₹6 lakh crore between FY27 and FY32.
In the final phase, covering FY33-FY37, NTPC plans another ₹9.8 lakh crore of expenditure.
Together, these investments take the group’s planned capital spending to approximately ₹16.9 lakh crore over the 10-year period.
Renewable And Nuclear Push
A significant portion of the future capex is expected to go toward renewable energy and nuclear power as NTPC works to diversify its generation portfolio.
India’s rising electricity demand, expansion in industrial activity and growing push for cleaner energy are expected to support continued investment across the power sector.
Axis Securities believes NTPC’s diversified expansion gives it exposure to several growth areas at the same time.
The company’s renewable energy arm, NTPC Green Energy, is also expected to play a significant role in the group’s clean-energy strategy.
Thermal Business Remains Important
Despite the shift toward cleaner energy, thermal power will continue to remain a key part of NTPC’s portfolio.
Around 18% of the planned capital expenditure is expected to be directed toward thermal capacity.
The company’s regulated thermal operations offer relatively stable returns because tariffs are based on a cost-plus framework.
According to the brokerage, this combination of a stable thermal base and aggressive investment in renewables and nuclear projects provides NTPC with an unusually clear long-term growth runway.
The large investment programme also makes the company a direct beneficiary of India’s broader power-sector expansion over the coming decade.
