The brokerage has also upgraded NTPC to ‘Buy’ from ‘Neutral’, increasing its target to ₹432 from ₹352. In addition, NHPC has been upgraded to ‘Buy’ from ‘Underperform’, with the target price raised to ₹88 from ₹70.
BofA Securities expects power demand to grow at a compound annual growth rate of 7.2% between FY25 and FY30, compared to 5.4% over FY15 to FY25, driven by segments such as data centres and consumer durables.
It also said that the government’s push to reduce dependence on imported fuels could further support demand.
On Power Grid, the brokerage mentioned that an upward revision in commissioning guidance for FY26 and FY27 improves execution visibility.
PowerGrid has increased its FY26 capex guidance to ₹35,000 crore. The company has raised its capitalisation target to ₹25,000 crore.
It has achieved 102% of its FY26 capex guidance as of March 22, 2026. It has achieved 91% of its FY26 capitalisation guidance as of March 22.
For NTPC, it said higher thermal capacity requirements could enhance long-term visibility on capital expenditure. In the case of NHPC, it said that execution-related overhangs at projects such as Parbati and Subansiri Lower are beginning to ease.
Shares of Power Grid Corporation are trading 0.55% higher at ₹299.25, while NTPC is down 2.36% at ₹371.95 and NHPC is lower by 1.95% at ₹75.29.
