NHPC vs NTPC: Which PSU Power Stock Will Light Up Your Portfolio? Know From Analysts

NHPC vs NTPC: State-owned power generation companies, National Hydroelectric Power Corporation (NHPC) and National Thermal Power Corporation (NTPC), announced their company results for the March quarter this month.

The stock price value of NTPC and NHPC has remained subdued over the past few weeks, with the Navratna NTPC share price declining by over 5.5% in one month. Whereas, the Maharatna NHPC share price value has increased by over 1.72% in one month. NHPC shares were trading marginally lower at Rs 86.97 per share on BSE at 2:30 pm. NTPC share price was trading 1.2% lower at Rs 335.2 per share on BSE at 2:30 pm.

NTPC vs NHPC: Q4 Results Review

NHPC reported a 52% annual increase in its net profit to Rs 919.63 crore during the fourth quarter of the financial year 2024-25 from Rs 605 crore reported during the same quarter of the financial year 2023-24. The power generation company also reported a rise in its total income for the quarter to Rs 2672.11 crore, which was higher than Rs 2320 crore in the fourth quarter. The power sector had also announced a dividend of Rs 5.10 per share for its shareholders.

State-owned NTPC reported a 22% quarter-on-quarter (QoQ) increase in its consolidated net profit to Rs 7611.22 crore in the March quarter. Additionally, the company had also announced a 35% final dividend for FY25.

The power generation company's consolidated revenue from operations stood at Rs 49833.70 crore during Q4FY25, against Rs 47628.19 crore reported in Q4FY23. The company's total income stood at Rs 51085 crore against Rs 48816.55 crore reported in the corresponding quarter. NTPC's EBIDA fell by 6% sequentially to Rs 11255 crore, whereas its operating margin declined to 25.65% from 28.9% in the previous quarter. NTPC share price was trading 1.2% lower at Rs 335.2 per share on BSE at 2:40 pm.

NTPC vs NHPC: Which PSU Stock To Buy In The Long Term?

NTPC's Q4 profit was inline with the 4% increase in the regulated equity base. Additionally, its standalone revenue increased marginally, apparently because of weak power demand. The company's earnings are likely to grow in the long term with strong expansion in thermal and renewable capacities. Underlining NTPC's long-term valuation prospects, Sharekan noted, "Valuations at 1.7x/1.6x its FY26E/FY27E P/BV seem reasonable given potential long-term growth prospects and the stock offers a decent dividend yield as well."

The brokerage has maintained a 'Buy' target on NTPC with a target price of Rs 400 per share.

NHPC's growth was mainly due to the reversal of water charges in the base quarter. The company's plant availability for FY25 stood at 73.9% against 77.6% in FY24. NHPC's plant availability declined during the previous financial year due to damage to Teesta-V power station because of flash floods in the first half of FY25, noted ICICI Securities in its report.

"NHPC has commissioned all four units of Parbati - II (4x200MW) in Apr'25. We expect NHPC to add ~INR 65bn in regulated equity over the next 12-15 months, and thus, improve its profit from INR 31bn in FY25 to INR 54bn in FY27E. However, the TeestaV unit - impacted by floods last year - is still not operational and is expected to operationalise in Q4FY26, leading to generation loss from the plant," underlined ICICI Securities.

The brokerage has issued a 'Sell' rating for NHPC stock with a target price of Rs 72 per share on BSE.

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