Shares of Engineers India Ltd. (EIL) surged by 5.46 percent to Rs 227.75 apiece in Monday's trading, reacting positively to its March quarter results. In contrast, NTPC Ltd. and its subsidiary, NTPC Green Energy Ltd., saw their stock prices fall by up to 4 percent after their respective Q4 earnings announcements.
Engineers India (EIL) Performance and Outlook
Antique Stock Broking maintained a 'Buy' rating on Engineers India, raising its target price to Rs 256 from Rs 244. The brokerage highlighted EIL's strong order book, which provides excellent growth visibility. Although EIL's Q4 revenue declined by 9 percent year-over-year, falling short of estimates due to lower performance in both Consultancy and Turnkey segments, the company's EBITDA grew by a healthy 39 percent year-over-year, aligning with expectations and leading to a beat in EBITDA margin at 15.4 percent.
Management projects a 20 percent year-over-year growth for FY26 and a 15 percent topline growth for FY27. Segmental margin guidance stands at 22-25 percent for Consultancy and 5-7 percent for Turnkey projects, reinforcing the positive outlook.
NTPC Green Energy Ltd. Faces Profitability Challenges
NTPC Green Energy Ltd. shares dropped by 4.11 percent to Rs 100.10. Elara Securities revised its rating to 'Sell' with a target price of Rs 96. Despite strong operational growth in Q4FY26, with revenue up 47 percent year-over-year and EBITDA increasing by 38 percent driven by capacity additions, profitability was impacted. A 15 percent year-over-year fall in PAT was attributed to a 54 percent rise in depreciation, a 46 percent increase in finance costs, and a 77 percent decline in other income.
The company maintains an aggressive growth strategy, planning 8.2 GW, 8.1 GW, and 8.4 GW in capacity additions for FY27, FY28, and FY29 respectively, supported by a 14.4 GW under-construction pipeline. Power Purchase Agreements (PPAs) cover a significant portion of planned capacity for these years, and management clarified that a slight reduction in the project pipeline reflects portfolio rationalization rather than a slowdown.
NTPC Ltd. Shares and Analyst Targets
NTPC Ltd. shares initially fell by 0.5 percent to Rs 386.50 before stabilizing around Rs 388.40. Analysts offered mixed but generally positive views. JM Financial issued a 'Buy' rating with a revised target of Rs 450 (up from Rs 420). Nuvama Institutional Equities also maintained a 'Buy' rating, increasing its target to Rs 445 from Rs 409.
Nuvama noted a muted quarter due to weak demand but highlighted NTPC as a top pick, citing a steady-state 16–17 percent core Return on Equity (RoE) and a 9.4 percent adjusted consolidated EPS CAGR over FY26–28E, with the stock trading inexpensively at 1.7 times FY28E P/BV. Conversely, MOFSL suggested a 'Neutral' rating with a target of Rs 393.
Disclaimer: This article provides general market news for informational purposes only and should not be considered investment advice. Readers are advised to consult a qualified financial advisor before making any investment decisions.