Strong earnings visibility for NTPC amid growing power demand in India

The share of electricity usage in energy has risen from 14 per cent in 2010 to 18 per cent in 2019

Given the steady increase in electricity demand, estimated to grow annually by 7 per cent over 2023-30, NTPC is a bellwether for the power sector. The state-owned electricity giant is by far India’s biggest power generator. It supplies power to every state and union territory and has a presence across thermal, hydro, pumped hydro, and renewables.

The financial health of NTPC depends on being paid in a timely fashion by downstream consumers such as state electricity boards, as well as having adequate access to coal from suppliers like Coal India (and via imports and through its own captive sources).

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