NTPC Limited 'Crisil AAA/Stable' assigned to Non Convertible Debentures; Rated amount enhanced for Bank Debt and Commercial Paper
Rating Action
Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. 1 crore = 10 million Refer to annexure for Details of Instruments & Bank Facilities
Detailed Rationale Crisil Ratings has assigned its ‘Crisil AAA/Stable’ rating to Rs Rs 8000 crore non convertible debentures of NTPC Ltd (NTPC) while reaffirmed its 'Crisil AAA/Stable/Crisil A1+' ratings on the bank facilities, existing debt instruments and fixed deposits. Crisil Ratings has withdrawn its rating on bonds of Rs 5,612 crore as they have been redeemed as per independent confirmation (see ‘Annexure: Details of Rating Withdrawn’). The withdrawal is in line with the Crisil Ratings withdrawal policy.
The ratings factor in the strong operating performance of the company in fiscal 2025 and in the first nine months of fiscal 2026. Plant load factor (PLF) for coal-based capacity was healthy at 70.69% in the first nine months of fiscal 2026 and 77.44% in fiscal 2025 (77.25% in fiscal 2024) and is expected to remain healthy over the medium term, driven by continued increase in power demand and limited thermal capacity additions. Coal-based plants reported above-normative plant availability factor (PAF) of 89.53% and 89.95% in the first nine months of fiscal 2026 and in fiscal 2025, respectively (90.52% in fiscal 2024).
The company had thermal capacity of 16–17 gigawatt (GW) under construction as on December 31, 2025. Furthermore, the company had operational renewable capacity of ~10 GW as on December 31, 2025, with an additional 10 GW in various stages of construction. Annual capital expenditure (capex) is expected around Rs 70,000 crore in fiscals 2027 and 2028, to be funded in debt to equity mix of 70:30 for thermal capacities, in line with the Central Electricity Regulatory Commission (CERC) guidelines and 80:20 for renewable capacity additions. NTPC has an experienced management team, which has demonstrated a healthy track record of commissioning of greenfield/brownfield capacity expansion across thermal and renewable segments, which provides support. That said, any delays in implementation of the planned capacity expansion leading to cost overrun, impacting the financial risk profile, will remain monitorable over the medium term.
The ratings continue to reflect the company’s dominant position in the power generation sector in India, strong business and financial risk profiles and strategic importance to the Government of India. These strengths are partially offset by the weak credit risk profiles of customers. |
Analytical Approach Crisil Ratings has combined the business and financial risk profiles of NTPC and its subsidiaries, associate companies and joint ventures (JVs) as they have strong operational and financial linkages.
The ratings factor in the expected support from the government on account of its 51.1% stake in the entity as on December 31, 2025. Crisil Ratings believes NTPC will, during exigencies, receive distress support from the government for timely debt servicing, considering its strategic role in generating a quarter of India’s power requirement.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation |
Key Rating Drivers - Strengths Dominant position in the domestic power generation sector NTPC is the largest domestic power generation company, accounting for ~17% of the installed capacity (consolidated capacity stood at 85.64 GW, including 1.32 GW of international capacities) and nearly a quarter of the power generated in fiscal 2025. The company has been adding capacities through greenfield and brownfield capacity expansions as well as acquisitions, such as the recent acquisition of Sinnar thermal power plant through a JV of NTPC and MAHAGENCO. Moreover, the company has planned capacity addition of 25–30 GW in the next three fiscals, with a large portion of it being additions in renewable capacities through NTPC Green Energy Ltd (NGEL). NTPC targets ~149 GW, including ~60 GW of renewable capacity, by fiscal 2032. The company is expected to retain its dominant position in the power generation sector over the medium term.
Strong business risk profile NTPC’s thermal capacities are fully backed by long-term power purchase agreements (PPAs). The PPAs are based on the classic two-part tariff structure of CERC, which ensures complete recovery of fixed expenses, including debt servicing charges. It also provides fixed return on equity based on achievement of normative PAF mandated by the regulator, which NTPC maintains. In the first nine months of fiscal 2026, the coal and gas-based plants reported 89.53% and 92.38% PAF, respectively, well above their mandated normative levels.
The PLFs of coal-based power plants increased to 77.44% in fiscal 2025 from 77.25% in fiscal 2024, driven by healthy power demand. The PLF moderated to 70.69% in the nine months through December 2025 owing to moderation in power demand in the first quarter of fiscal 2026.
Healthy financial risk profile Consolidated gearing improved to 1.31 times as on March 31, 2025, from 1.45 times a year earlier despite large capex owing to timely repayment of long-term borrowing. Gearing is expected to be similar over the medium term, aided by the capex plan of 16–17 GW, with funding mix of 70:30 (as prescribed by CERC) for its thermal capacity addition and funding mix of 80:20 for its renewable capacity addition of 16–17 GW over the medium term. Liquidity is strong, driven by cash accrual of Rs 31,426 crore in the first nine months of fiscal 2026 and the ability to raise funds.
Strategic importance to the Government of India NTPC has been accorded the Maharatna status. As part of its divestment plan, the Government of India has pared its shareholding in NTPC over the past several years. However, the government remains the majority shareholder, with 51.1% as on December 31, 2025. It will continue to provide need-based financial support, through guarantees, for foreign currency borrowing. Also, it accounts for nearly a fourth of the power generated in the country. |
Key Rating Drivers - Weaknesses Weak credit risk profiles of customers The company is exposed to risks related to delay in payments from counterparties, which are mostly state power distribution companies (discoms) that have weak credit risk profiles. Thus, timely collection of receivables is monitorable. The company’s collection efficiency is strong and hence, receivables (excluding unbilled revenue and contract assets) were low at 40 days as on March 31, 2023. Receivables reduced to 36 days as on March 31, 2024, and 33 days as on December 31, 2025.
The receivables are expected to moderate further as the company has started receiving payments under the new Electricity (Late Payment Surcharge and Related Matters) Rules 2022. Moreover, the presence of a payment security mechanism such as letters of credit and tripartite agreement between NTPC, state governments and the central government to recover the dues from defaulting state power utilities through the Reserve Bank of India (RBI) devolution to state governments provides support. |
Liquidity Superior Liquidity will remain strong over the medium term, supported by cash accrual of over Rs 30,000 crore and ability to raise funds. The bank limit (Rs 65,000 crore) was moderately utilised as on March 31, 2026. Cash and equivalents, annual cash accrual and ability to raise funds should be adequate to cover yearly debt obligation, equity portion of capex and working capital requirement over the medium term. |
ESG Profile The environmental, social and governance (ESG) profile of NTPC supports its already strong credit risk profile.
The power sector has a significant impact on the environment owing to higher emissions, water consumption and waste generation. This is because generation of conventional power involves high dependence on natural resources, mainly coal. The sector has a social impact as its operations affect the local community and involve health hazards. NTPC is focused on mitigating its environmental and social risks.
Key ESG highlights:
|
Outlook Stable NTPC will maintain its dominant position in the domestic power generation sector, underscoring its strategic importance to the Government of India. The credit risk profile will remain healthy supported by efficient operations, regulated tariff structure and comfortable debt protection metrics. |
Rating Sensitivity Factors Downward Factors
|
About the Company NTPC was incorporated in 1975. As on December 31, 2025, the company had power generation capacity of 85,637 megawatt (MW), including capacity owned by subsidiaries and JVs. This includes 65,194 megawatt (MW) coal-based capacity, 6,511 MW gas-based and 3,757 MW hydropower, with the balance comprising other renewable energy. The company was conferred the Maharatna status by the government in 2010, which had 51.1% shareholding as on December 31, 2025. |
Key Financial Indicators*
*As per analytical adjustments made by Crisil Ratings |
Any other information: Not Applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
#Yet to be issued <JPY denominated at an exchange rate of 0.5978 as on March 31, 2026 *US dollar denominated at an exchange rate of 94.82 as on March 31, 2026 @Euro denominated at an exchange rate of 109.53 as on March 31, 2026
Annexure - Details of Rating Withdrawn
|
Annexure - List of Entities Consolidated
|
| Annexure - Rating History for last 3 Years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All amounts are in Rs.Cr. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
@Euro denominated at an exchange rate of 109.53 as on March 31, 2026
<JPY denominated at an exchange rate of 0.5978 as on March 31, 2026
^Disbursement of this debt is pending and the maturity date shall be 15 years after disbursement
Annexure: List of instruments and names of regulators of the instruments As required by SEBI CRA Circular dated Feb 10, 2026, a list of activities or instruments falling under the purview of various FSRs, along with the names of respective FSRs, is being disclosed below:
* Includes securitisation transactions involving assignee payout, acquirer's payout. ~ The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In PRs subsequent to issuance(s), Crisil Ratings Limited shall separately capture the rated quantum details along with names of respective regulators. ^ Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions. # There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. @ These ratings were assigned during regulatory regime prior to introduction of SEBI CRA Circular dated Feb 10, 2026 and the investor side regulators have accordingly been included.
Note: Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
Criteria Details
|