NTPC, JSW Energy, Skipper: Axis Direct shares top conviction ideas in power & utilities

Axis Direct has highlighted NTPC Ltd, JSW Energy Ltd and Skipper Ltd as its top conviction ideas in the power and utilities space, supported by strong capacity expansion plans, robust order books and improving operational visibility.

NTPC Ltd | BUY | Target price: Rs 400

NTPC continues to strengthen its position as India's largest power generator with consistent capacity additions. The NTPC group's installed capacity rose by 1,247 MW sequentially to 83,893 MW in Q2 FY26. The quarterly addition was driven by 684 MW of solar capacity, 250 MW of pumped storage (PSP), 220 MW of coal-based thermal capacity and 93 MW of wind energy.

The 220 MW increase in thermal capacity was recorded after adjusting for the decommissioning of 440 MW at the Tanda plant. NTPC also commissioned 660 MW at the Khurja plant during the quarter. Its under-construction portfolio stands at 33 GW, comprising 17 GW of thermal, 14 GW of renewable energy (RE) and 2 GW of hydro capacity. The company plans to add 9,844 MW in FY26, 9,600 MW in FY27 and 10,564 MW in FY28, with a long-term target of 149 GW by 2032 and 244 GW by 2037.

For thermal projects, NTPC aims to commission 2,780 MW in FY26, 1,600 MW in FY27, and 2,120 MW in FY28. Hydro commissioning targets include 1,000 MW in FY26 and 444 MW in FY28. In the renewables segment, the company plans to add 6 GW in FY26 and 8 GW each in FY27 and FY28, maintaining its trajectory toward 60 GW of RE capacity by FY32.

JSW Energy Ltd | BUY | Target price: Rs 705

JSW Energy reported a 3 per cent sequential rise in installed capacity, which reached 13.2 GW in Q2 FY26, driven by additions across hydro (240 MW at Kutehr), wind (148 MW) and solar (56 MW). Capacity is expected to exceed 15 GW by the end of FY26 and grow at a 20 per cent CAGR to 30.5 GW by 2030. Of the 12.5 GW under construction, about 10.9 GW comprises renewable energy projects, all backed by long-term PPAs.

Net generation increased 52 per cent YoY to 14.9 BUs. The company stated that ongoing grid curtailments due to rising solar installations have not impacted its operations, as its PPAs include general network access provisions that safeguard scheduling.

Thermal bidding activity across states has increased, with around 11.6 GW of bids placed in H1FY26 by states such as Bihar, Madhya Pradesh, West Bengal, Assam, Uttar Pradesh and Maharashtra.

Skipper Ltd | BUY | Target price: Rs 580

Skipper reported strong order inflows of Rs 1,243 crore in Q2 FY26, including major wins from PGCIL and international markets. The order book touched an all-time high of Rs 8,820 crore, comprising 76 per cent domestic T&D orders, 13 per cent non-T&D, and 11 per cent exports.

The company has a bid pipeline exceeding Rs 30,000 crore, with management expecting the order book to reach Rs 9,000–10,000 crore by FY26-end. Capacity expansion is progressing, with a new 75 ktpa facility operational and another 75 ktpa unit expected by FY26-end, taking total capacity to 450 ktpa. Skipper aims to scale up to 600 ktpa by FY29, positioning itself as the world’s largest transmission tower manufacturer.

Exports accounted for 11 per cent of the order book, with Skipper expanding its presence across the Middle East, Africa and Latin America.