Synopsis: Two power generation companies in focus as they advanced their long-term capacity expansion plans, with one signing a nuclear cooperation MoU and the other receiving approval for a 1720 MW hydro project, underscoring strong momentum in India’s power infrastructure growth.
India’s power generation sector is entering a strong capacity expansion phase, driven by rising electricity demand, energy security needs, and the transition toward cleaner sources. The sector is witnessing significant investments across thermal, nuclear, hydro, and renewable segments, with large public sector utilities such as NTPC and NHPC playing a pivotal role in strengthening baseload supply and long-term infrastructure development.
NTPC: Nuclear Expansion Gains Strategic Momentum
NTPC signed a non-binding Memorandum of Understanding with Électricité de France (EDF) to explore cooperation for developing new nuclear power projects in India. The agreement provides a framework for both companies to jointly assess project feasibility, evaluate EDF’s EPR technology for Indian requirements, and examine the scope for localization in large-scale deployment. The MoU also covers economic and tariff assessment, potential site evaluation, technical support, and workforce capability development through training programmes. This development aligns with NTPC’s broader long-term capacity roadmap of reaching 149 GW by 2032 and strengthens its clean, reliable energy expansion strategy.
Additionally, the CEA has approved the uprating of Dadri Thermal Power Station Units 5 and 6 from 490 MW each to 500 MW each, taking NTPC group’s total installed capacity to 89,128 MW and commercial capacity to 88,048 MW
With the market capitalization of Rs. 370,316 Crores, the shares of NTPC Ltd were trading at around Rs. 382 per share which is 3 percent discount from its 52 weeks high of Rs. 394 per share and is trading at a P/E of 15.3 where as industry P/E stands at 33.
Revenue from operations has increased on a quarterly basis from Rs. 44,786 Crores to Rs. 45,846 Crores, up 2.3 percent. Operating profit has increased from Rs. 12,816 Crores to Rs. 14,570 Crores, up 13.6 percent and net profit has increased from Rs. 5,225 Crores to Rs. 5,597 Crores, up 7 percent.
NHPC: Rs. 26,069 Crore Hydro Project Approved by CCEA
NHPC received a major boost after the Cabinet Committee on Economic Affairs approved an investment of Rs. 26,069.50 crore for the construction of the 1720 MW Kamala Hydro Electric Project in Arunachal Pradesh. The project, spread across Kamle, Kra Daadi, and Kurung Kumey districts, has an estimated completion timeline of 96 months and is expected to generate 6,870 million units annually. It will be implemented through a joint venture between NHPC and the Government of Arunachal Pradesh.
In addition, the Government of India will provide Rs. 4,743.98 crore as budgetary support for flood moderation, Rs. 1,340 crore for enabling infrastructure, and Rs. 750 crore as central financial assistance towards the state’s equity share, making this a significant long-term capacity and earnings visibility trigger for NHPC
With the market capitalization of Rs. 77,919 Crores, the shares of NHPC Ltd were trading at around Rs. 77 per share, which is 16.5 percent discount from its 52 weeks high of Rs. 92.3 per share and is trading at a P/E of 24.6 whereas industry P/E stands at 33
Revenue from operations has decreased on a quarterly basis from Rs. 3365 Crores to Rs. 2221 Crores, down 34 percent. Operating profit has decreased from Rs. 2027 Crores to Rs. 212 Crores, down 90 percent and net profit has decreased from Rs. 1219 Crores to Rs. 321 Crores, down 73.6 percent
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