NTPC shares fell close to 2% during Tuesday's intraday trading session, declining to ₹343 per share on BSE with a market capitalization of ₹3,33,032 crore. The stock had touched an intraday high of ₹350.60 and low of ₹342.40 per share. The decline came after the company announced Wednesday, September 2, 2026 as the record date for dividend eligibility. The board has approved a final dividend of ₹3.50 per equity share (face value ₹10 each) for FY2025-26, with payment scheduled on or after September 23, 2026.
Motilal Oswal has maintained a Neutral rating on NTPC with a target price of ₹381 per share. The brokerage stated that their target price is based on value of ₹216 for standalone, coal, and other businesses at FY28E P/B of 2x, ₹20 for other subsidiaries at FY28E P/B of 2x, and ₹49 for JV/associates at FY28E P/B of 1.5x, with the stake in NGEL valued at a 25% discount to the current market price. The rating reflects the company's operational efficiency and diversified business model despite recent share price volatility.
NTPC reported better-than-expected earnings for Q1FY27 with consolidated net profit jumping 11.8% year-on-year to ₹6,721 crore in the June quarter of FY2026-27. The company's consolidated revenue increased by 7.8% annually to ₹50,741 crore, compared to ₹47,064 crore reported in the corresponding quarter. As reported by Motilal Oswal, the strong performance demonstrates the company's operational efficiency and diversified business model, with the company's pace of NGEL commissioning and consolidated renewable addition of 595MW in Q1FY27 against the FY27 commissioning target of 8GW being key positives.
The final dividend of ₹3.50 per equity share for FY2025-26 will be approved by shareholders at the annual general meeting, with the record date fixed for September 2, 2026. Investors must own the stock before this date to become eligible for the payout. The dividend payment is scheduled on or after September 23, 2026, providing clarity for shareholders regarding the distribution timeline. This dividend announcement, while positive for shareholders, appears to have contributed to the recent share price decline as investors may be booking profits ahead of the record date.
Motilal Oswal's valuation methodology continues to support the ₹381 target price, with the brokerage highlighting key positives including the company's NGEL commissioning pace and improvement in coal PLF. The research firm's comprehensive approach values the company's diversified portfolio across standalone operations, coal business, and subsidiaries. Despite the recent share price movement, the Neutral rating reflects the company's strong fundamentals and growth prospects, with the target price remaining unchanged at ₹381 based on the established valuation framework.
