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Recommendation Rationale

* Total Capacity Addition: NTPC group’s installed capacity grew by 1,247 MW QoQ to 83,893 MW in Q2FY26, led by 684 MW of Solar capacity additions, 250 MW of PSP, 220 MW of coal-based thermal capacity, and 93 MW of wind capacity. The 220 MW of thermal additions is net of discontinued plants and includes 660 MW of Khurja plant commissioned in and the discontinuation of 440 MW (110 MW x 4 units) of Tanda plant in Sep’25. The company’s under-construction capacity stands at 33 GW, consisting of 17 GW of thermal, 14 GW of RE capacity, and 2 GW of hydro capacity. It targets to add 9,844 MW, 9,600 MW, and 10,564 MW in FY26, FY27, and FY28, respectively, aiming to reach 149 GW by 2032 and 244 GW by 2037..

* Thermal and Hydro Targets: The company targets to commission 2,780 MW, 1,600 MW, and 2,120 MW of thermal capacities in FY26, FY27, and FY28, respectively. For Hydro, it plans to commission 1,000 MW in FY26 and 444 MW in FY28.

*  RE Targets: The company has a target to reach 60 GW of RE capacity by FY32 and is well on track to achieve the same. It plans to add 6 GW of RE capacity in FY26, 8 GW in FY27, and another 8 GW in FY28.

* Operational Update: Gross Generation stood at 83.2 BUs, down 6%/9% YoY/QoQ. In Q2FY26, the PLFs for coal-based plants stood at 66%, 6.8% for gas-based plants, 23% for solar plants, and 105% for Hydro plants. While Hydro plants saw a strong seasonal improvement (97% in Q2FY25 and 56% in Q1FY26), coal-based plants saw a decline in PLFs (72% in Q2FY25 and 75% in Q1FY26).

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