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NTPC Stock in Focus as Delhi High Court Overturns ₹1,891 Crore Arbitration Award

Written by: Team Angel OneUpdated on: Feb 4, 2025, 3:43 PM IST
NTPC’s stock gained over 2% as of 1:15 PM on 4th February 2025, following a favourable Delhi High Court ruling overturning a ₹1,891 crore arbitration award.
NTPC Stock in Focus as Delhi High Court Overturns ₹1,891 Crore Arbitration Award
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Share Price of NTPC Limited was in focus on Tuesday, February 4, 2025, after the company secured a favourable ruling from the Delhi High Court in a long-standing contractual dispute with Jindal ITF Limited (JITF). The stock opened at ₹314.85, touched an intraday low of ₹310.30, and was trading over 2% higher at ₹1:15 PM.

The case pertained to an infrastructure project involving coal transportation through waterways for NTPC’s Farakka Super Thermal Power Project (STPP). In 2019, an arbitral tribunal ruled against NTPC, awarding ₹1,891 crore plus interest to JITF. However, NTPC challenged the decision in the Delhi High Court under Section 34 of the Arbitration & Conciliation Act, 1996.

High Court’s Ruling: Arbitration Award Declared ‘Perverse’

On January 30, 2025, the Delhi High Court delivered its judgment, which was uploaded on 1st February. The court ruled in favour of NTPC, setting aside the arbitral award entirely. The verdict deemed the original arbitration decision “perverse” and “patently illegal,” thereby relieving NTPC of the financial burden.

This ruling marks a significant development for NTPC, as a reversal of such a large financial liability could positively impact its balance sheet and investor sentiment.

Share Price Reaction

Following the news, NTPC’s share price experienced a positive uptick, gaining over 2% during the day’s trade. Share price of NTPC is down by 4.5% as of February 4, 2025, on a YTD basis. 

NTPC Financial Performance

For NTPC on a standalone basis, total income for Q3 FY25 is ₹42,303 crore as against ₹40,288 crore in the corresponding quarter of the previous year, registering a growth of 5%. For 9M FY25, the total income increased by 6% to ₹1,28,601 crore from ₹1,21,486 crore in the corresponding previous period. 

NTPC’s Profit after tax for Q3 FY25 is ₹4,711 crore, as against ₹4,572 crore in the corresponding quarter of the previous year, registering an increase of 3%. On a 9-month basis, PAT is ₹13,871 crore as against ₹12,523 crore in 9M FY24, registering an increase of 11%. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing

Published on: Feb 4, 2025, 3:43 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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