NTPC Shares in Focus as 3,300-MW Barh Project in Bihar Goes Commercial from July 1
NTPC Ltd, India's largest power generation company, is once again making headlines as its massive 3,300-MW Barh Super Thermal Power Project in Bihar is set to become fully operational from July 1, 2025. This development is expected to significantly boost NTPC’s installed capacity and could potentially drive investor sentiment positively in the coming months.
📌 Barh Project Overview
The Barh thermal project, a key addition to NTPC's portfolio, consists of five units of 660 MW each—three under Stage-I and two under Stage-II. With the commissioning of Unit-3 (660 MW), all five units will now be commercially operational.
- 🔹 Unit-1 (Stage-I): Commissioned in November 2021
- 🔹 Unit-2 (Stage-I): Commissioned in July 2023
- 🔹 Unit-4 (Stage-II): Operational since November 2014
- 🔹 Unit-5 (Stage-II): Operational since February 2016
With the addition of Unit-3, NTPC’s total commercial capacity will rise to 60,978 MW (standalone) and 82,080 MW (group basis), reinforcing its dominant position in the Indian power sector.
📊 NTPC Q4 FY24 Financial Highlights
NTPC also posted a strong set of financial results for the fourth quarter of FY24:
- ✔️ Consolidated Net Profit: ₹5,778 crore (up 22.6% QoQ)
- ✔️ Total Revenue: ₹43,903.7 crore (up 6% QoQ)
- ⚠️ EBITDA: ₹11,255 crore (down 6% QoQ)
- ⚠️ Operating Margins: Declined to 25.6% from 28.9%
Despite operational pressure, net profits reflect solid demand and pricing, maintaining bullish sentiments for long-term investors.
📈 NTPC Share Price Target 2025
According to market intelligence platform Trendlyne, NTPC shares have a target price of ₹418, implying a potential upside of nearly 24% from current levels. Out of 25 analysts tracking the stock, the consensus recommendation remains a strong ‘Buy’.
From a technical standpoint:
- 🔹 RSI: 51.7 (neutral zone)
- 🔹 MACD: -2.6 (mild bearishness)
🌱 NTPC Green Energy: India's Renewable Powerhouse
While NTPC’s thermal operations expand, its renewable subsidiary, NTPC Green Energy Ltd (NGEL), is making strong progress towards India's green energy goals.
🧾 Key Highlights of NTPC Green Energy Ltd:
- 🔋 Total Renewable Capacity: 26,071 MW
- 🔆 Operational: 3,320 MW (3,220 MW solar, 100 MW wind)
- 🔄 Pipeline: 9,175 MW (6,925 MW solar, 2,250 MW wind)
- 💼 Off-takers: 17 government/public entities with 25-year PPAs
- 🗺️ Primary State: Rajasthan (62.2% capacity)
NGEL's strategic JVs include:
- 🤝 IONGE: Joint venture with Indian Oil for green energy
- 🤝 GVRE: JV with Damodar Valley Corporation
💰 NTPC Green Energy IPO
NTPC Green Energy raised ₹10,000 crore in its IPO on November 22, 2024. A large portion of proceeds will go towards reducing borrowings and expanding green initiatives such as:
- 🔬 Green hydrogen production (e.g., Pudimadaka hub)
- 🔋 Battery Energy Storage Systems (BESS)
- ⚛️ Green chemical ventures
📉 Challenges & Risks
While NTPC continues to impress, some challenges remain:
- ⚠️ Decline in EBITDA and margin pressure
- ⚠️ High dependence on government off-takers (87% of revenue from top 5)
- ⚠️ Project-specific land transfer delays in wind energy division
🧠 Analyst Verdict: Should You Buy NTPC Shares?
With strong fundamentals, government backing, increasing renewable push via NGEL, and operational growth through the Barh project, NTPC remains a solid long-term investment. While short-term technical indicators are neutral, long-term prospects driven by India’s energy demand and renewable shift paint a bullish picture.
Conclusion: NTPC’s diversification into renewables via NTPC Green Energy and continued dominance in the thermal space makes it a dual engine of growth. Investors can consider accumulating on dips with a medium-to-long term horizon.
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