Stock Performance and Market Context
On 2 Feb 2026, NTPC Green Energy Ltd touched an intraday low of Rs 84.5, representing a 2.11% decline from the previous close and a day change of -1.52%. This new low also marks the stock’s all-time lowest price, underscoring persistent downward momentum. The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling sustained bearish sentiment.
In comparison, the broader market showed resilience with the Sensex recovering sharply after a negative start, closing 0.31% higher at 80,974.39. Despite this, NTPC Green Energy’s performance remains subdued, with a one-year return of -25.85%, significantly underperforming the Sensex’s 4.52% gain over the same period. The stock’s 52-week high was Rs 120.65, highlighting the extent of its decline.
Financial Metrics Highlighting Challenges
NTPC Green Energy’s financial profile reveals several areas of concern. The company’s Debt to EBITDA ratio stands at a high 10.18 times, indicating a considerable debt burden relative to earnings before interest, taxes, depreciation, and amortisation. This elevated leverage constrains financial flexibility and increases servicing costs.
Profitability metrics also reflect subdued returns. The average Return on Equity (ROE) is 3.24%, signalling limited profitability generated per unit of shareholders’ funds. Additionally, the Return on Capital Employed (ROCE) is 3.1%, which, when coupled with an Enterprise Value to Capital Employed ratio of 2.3, suggests the stock is valued expensively relative to its capital efficiency.
Recent Quarterly Results
The company reported flat results for the quarter ended December 2025. Profit After Tax (PAT) stood at Rs 17.48 crore, a sharp decline of 88.5% compared to the previous four-quarter average. Interest expenses reached a quarterly high of Rs 230.06 crore, further pressuring net profitability. Profit Before Tax excluding other income (PBT less OI) was at a low Rs 5.74 crore, underscoring the tight earnings environment.
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Long-Term and Sectoral Performance
Over the past three years, NTPC Green Energy has consistently underperformed the BSE500 index, reflecting challenges in sustaining growth and profitability. Despite this, the company has demonstrated robust top-line expansion, with net sales growing at an annualised rate of 245.20% and operating profit increasing by 219.27%. This growth, however, has not translated into commensurate returns for shareholders.
Within the power sector, NTPC Green Energy holds a market capitalisation of Rs 72,736 crore, making it the second-largest company in the segment after Waaree Energies. It accounts for 24.61% of the sector’s market cap and contributes 4.69% to the industry’s annual sales of Rs 2,568.06 crore.
Shareholding and Market Grade
The company’s majority ownership rests with promoters, maintaining a stable shareholding structure. However, its current Mojo Score is 30.0 with a Mojo Grade of Sell, downgraded from Hold on 3 Nov 2025. The market cap grade is rated at 2, reflecting mid-cap status with associated volatility and risk factors.
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Technical Indicators and Market Sentiment
Technically, the stock’s position below all major moving averages indicates a bearish trend. The 50-day moving average remains above the 200-day moving average for the Sensex, suggesting broader market strength, but NTPC Green Energy’s divergence from this trend highlights sector-specific pressures. The stock’s day-to-day performance has been largely in line with the power sector, which itself has faced mixed investor sentiment amid fluctuating energy demand and regulatory developments.
Summary of Key Financial Ratios
Key ratios underline the company’s current valuation and financial health:
- Debt to EBITDA ratio: 10.18 times
- Return on Equity (average): 3.24%
- Return on Capital Employed: 3.1%
- Enterprise Value to Capital Employed: 2.3
These figures reflect a capital-intensive business with limited profitability and high leverage, factors contributing to the stock’s subdued market performance.
Sectoral and Market Positioning
NTPC Green Energy remains a significant player in the power sector, with a sizeable market cap and sales contribution. However, its relative underperformance compared to sector peers and the broader market has been notable over the past year and beyond. The company’s financial metrics and recent quarterly results have not provided strong support for the stock price, culminating in the current 52-week low.
Conclusion
NTPC Green Energy Ltd’s fall to Rs 84.5 marks a critical point in its stock price trajectory, reflecting a combination of high leverage, modest profitability, and valuation concerns. While the broader market and sector have shown pockets of strength, the company’s financial and operational metrics have weighed on investor sentiment, resulting in sustained downward pressure on the share price.
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