NTPC Share Price Drops 2% to Rs. 337.80 as Q2 Profit Dips Marginally Despite Dividend Boost

Overview:

• NTPC share price fell 2.13% to Rs. 337.80 post-Q2 FY26 result. The profit declined marginally but revenue remains steady, while there is a strong interim dividend announcement. 

• The interim dividend declared is Rs. 2.75, and NTPC plans to expand power generation capacity to 244 GW by 2037 indicating long-term growth aspirations. 

• Views from analysts remain mixed; Motilal Oswal maintained a Neutral rating at a target price of Rs. 372, whereas Antique Brokerage issued a Buy call at Rs. 394.

NTPC share price were trading at Rs. 337.80, which was down 2.13% over the previous close of Rs. 345.15. The stock opened at Rs. 345.00 and the intraday low reached Rs. 335.60. The entire day’s trading volume stood at 8.9 million shares over a total turnover of Rs. 3,006.98 crore, reflecting active participation amidst quarterly earnings announcements. Let’s explore NTPC share price analysis in detail based on Moneycontrol data.

Performance of Stock and Technical Aspect

NTPC shares command a market capitalization of Rs. 3.27 lakh crore. The stock's 52-week range extends from Rs. 292.80 to Rs. 415.45, and it has an all-time high of Rs. 448.45. The pivot point of the session stood at Rs. 345.87, while immediate resistances stand at Rs. 348.28 and Rs. 351.42. The next supports are at Rs. 342.73 and Rs. 340.32.

NTPC share price chart on Moneycontrol shows a loss of 2.36%:

The 20-day average volume is 8.49 million shares, and the average delivery ratio is at 65.95%, showing the continuity of interest among the long-term investor fraternity. With a book value per share of Rs. 173.54 and a P/B ratio of 1.95, the stock trades at a reasonable valuation compared to the sector P/E of 29.50, making it relatively undervalued with its TTM P/E of 13.67 and TTM EPS of Rs. 24.71, up 8.56% year-on-year.

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NTPC Q2 Results  

NTPC posted a consolidated net profit of Rs. 5,066.78 crore for the quarter ended September 2025, down marginally from Rs. 5,274.59 crore in the year-earlier period. The total income of the company stood at Rs. 45,262.10 crore, down marginally from Rs. 45,197.77 crore in the year-ago period.

Despite the sequential decline, NTPC’s profit after tax was about 4% above the estimate made by Motilal Oswal, driven mainly by higher other income. However, the company’s EBITDA missed expectations due to subdued power demand, leading to weaker generation trends during the quarter.

It has set ambitious expansion plans, with a target of 244 GW total capacity by 2037. NTPC is planning to add 9.8 GW in FY26, 9.6 GW in FY27, and 10.5 GW in FY28 as its medium-term targets, accelerating its plans for renewable and thermal generation capacity addition.

NTPC Dividend Announcement

The company's board announced the payment of a first interim dividend at Rs. 2.75 per share (27.5%) for FY2025-26, on the face value of Rs. 10 per share. The date of the dividend payment was fixed at November 25, 2025, while the record date for eligibility of the dividend shall be declared. NTPC maintains an attractive dividend yield of 2.47% that lures income investors, reinstating its status as a stable dividend-paying PSU.

Analyst Ratings and Target Price

Broker opinions on the NTPC share price have been mixed. Motilal Oswal has taken a ‘Neutral’ stance on the stock with a target price of Rs. 372. Hence, stating that there was little re-rating upside for NGEL, the company’s green energy subsidiary, which accounts for roughly 15% of the total sum-of-the-parts valuation.

Antique Brokerage remains optimistic, however, continuing its ‘Buy’ rating with a target price of Rs. 394, which reflects its enthusiasm for long-term growth in NTPC's capacity and reliable dividend payments.

Aggregate analyst data reveals that 76% rate the stock as a Buy, while 12% suggest Outperform, 8% Hold, and only 4% advise Sell. This shows a strong confidence in NTPC stock’s long-term fundamentals despite near term concerns.

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Investor Outlook

Although NTPC is facing a mild profit drop and subdued sentiment to start, its stable dividend policies, reasonable valuation, and respectable growth plans provide good long-term assurance. Analysts expect a period of consolidation around current prices before renewed optimism, as investor sentiment pivots toward added capacity and positive progress in renewable energy-related execution in a few years' time.

Overall, NTPC stock remains longer-term a defensive play in the power sector, producing steady income and long-term growth. Although the potential upside may be limited given weak immediacy in power demand and uncertainties around execution issues.

FAQs

1. What were the reasons for NTPC's share price drop today? 

Today NTPC’s share price declined by 2.13% mainly on the back of the below par operating performance and weaker power demand in Q2 FY26. The profit and dividend declared was consistent with the previous year, but the subdued generation growth in Q2 FY26 spurred cautious investor sentiment.

2. What were NTPC's Q2 FY26 earnings? 

NTPC reported a consolidated profit of Rs. 5,066.78 crore this quarter, down slightly from Rs. 5,274.59 crore recorded last Q2 FY25. The total income for the company stood at Rs. 45,262.10 crore this quarter, with higher other income compensating for the lower generation.

3. What was the dividend declared by NTPC for FY2025-26? 

NTPC’s board of directors declared a first interim dividend of Rs. 2.75 per share (27.5%) for FY2025-26. The date of payment is set for November 25, 2025, and the record date will be provided shortly.

4. What’s the analyst consensus on NTPC’s outlook? 

Opinions among brokerages vary, Motilal Oswal re-iterated their Neutral rating with a Rs. 372 target price and said upside is limited, while Antique Brokerage upgraded to a Buy rating with a new target price of Rs. 394, given strong dividend prospects and growth upside.

5. What is NTPC’s growth outlook for the next several years? 

NTPC's ambition is to build its total generation capacity to 244 GW by 2037, or roughly 9-10 GW per year over the FY28 period. To help achieve this plan, NTPC is investing significantly into renewable and hybrid power projects to achieve sustainable growth.