NTPC — earnings call
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Prepared remarks
Moderator · Conference Operator
Ladies and gentlemen, good day and welcome to NTPC Q2 FY26 Earnings Call.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone.
Please note that this conference is being recorded.
I now hand the conference over to Mr. Bharanidhar Vijayakumar from Avendus Spark.
Over to you, sir.
Bharanidhar V
Thank you.
Good evening, everyone.
On behalf of Avendus Spark, I welcome you all to the Q2 FY26
economic growth. · With GDP projected to grow between 6.5% to 7% in the coming years, electricity demand is expected
With GDP projected to grow between 6.5% to 7% in the coming years, electricity demand is expected to rise steadily, led by manufacturing and expanding digital infrastructure.
The government's focus on “Viksit Bharat 2047” coupled with the continued thrust on renewable energy and energy transition, is expected to create strong investment opportunities across the power value chain.
NTPC Limited October 30, 2025 In the current fiscal, demand growth has been somewhat moderate compared to previous year, largely due to the milder summer and extended monsoon.
However, the underlying economic momentum remains firm and demand drivers, especially from the industrial and commercial sectors, are expected to show upward growth.
This landscape presents significant opportunities and NTPC and NGEL are poised to capture the next phase of India's power sector growth by balancing conventional and non-conventional sources to ensure reliability, affordability and sustainability.
With a strong pipeline of projects under execution, a calibrated and a measured investment approach, both entities are prepared to play a pivotal role in meeting the country's energy needs.
Now turning to our capacity growth As of H1 FY26, NTPC Group capacity rose to 83893 MW, nearly 10% increase from the previous year's same period, which was 76443 MW, clearly indicating that we are expanding at a faster pace.
We have added 4403 MW till H1 FY26, by far the highest capacity added in any half year since our inception.
Of this, 1732 MW is on standalone basis, 1506 MW from NGEL & its JVs and balance 1165 from other JVs and subsidiaries.
Additionally, 956 MW has been added in the current month, i.e. October 2025, taking total fresh capacity addition to 5359 MW as on date.
It is worth mentioning that the highest ever capacity addition by the NTPC group in a single year stands at 6984 MW in 2019-20.
However, we have already achieved 5359 MW within the first seven months of the current financial year.
NGEL Group has added 1506 MW in H1 and further added 156 MW in October till date, taking total installed capacity to 7564 MW.
With this, NTPC Group installed capacity rose to 84849 MW.
Coming to the operational performance, during H1 FY26, due to the adoption of sustained maintenance practices, we maintained over 90% availability of our coal stations, demonstrating operational reliability.
The group's total generation stood at 214 BUs, which is around 6 billion units lower compared to H1 FY25, primarily due to subdued demand during the period.
This is consistent with the overall trend observed in the country's coal-based generation during the same period.
Our coal stations have maintained a PLF of 70.52% vis-à-vis rest of India average of 64.32%, which reflects our best-in-class operational practices.
The current coal stock at our station is 13.4 MMT, up by 2.1 MMT for the same period last year and is sufficient for 15 days' generation at 85% PLF for our stations.
NTPC Limited October 30, 2025 Coal receipt for NTPC group has been 129 MMT, of which 21.63 MMT is sourced from our captive mines, which is 16.76% of the total receipts.
Further, our captive mines registered a dispatch growth of 2.61% vis-à-vis the previous year.
NTPC group has 9 coal blocks with peak rated capacity of 91.6 MMTPA.
With the declaration of commercial operation of the Kerandari coal mine with effect from April 1, 2025, a total of 6 coal blocks are now under commercial operation.
NTPC has incurred cumulative capital expenditure of ₹13,300 crore in coal mining as on 30 September 2025.
I will now take you through some of our key financial numbers, giving comparison to the corresponding period.
For NTPC on a stand-alone basis, total income for Q2 FY26 is ₹40,689 crore as against ₹41,245 crore in the corresponding quarter of the previous year.
For H1 FY26, the total income is ₹84,022 crore as compared to ₹86,298 crore in the corresponding previous period.
NTPC's profit after tax for Q2 FY26 is ₹4,653 crore as against ₹4,649 crore in the corresponding quarter of the previous year.
On a half yearly basis, PAT is ₹9,428 crore as against ₹9,160 crore in H1 FY25. Total income of the group for H1 FY26 is ₹93,083 crore as against ₹94,179 crore in the corresponding previous period.
Profit after tax of the group for H1 FY26 is ₹11,334 crore as against the corresponding previous year PAT of ₹10,886 crore registering an increase of 4%.
During H1 FY26, our subsidiaries earned a profit of ₹1,805 crore as compared to ₹1,362 crore in the corresponding period of the previous year, registering an increase of 33%.
NTPC's share of profit in JVs was ₹1,059 crore in H1 FY26 as against ₹1,124 crore in H1 FY25. During H1 FY26, we have accounted for dividend income of ₹1,271 crore from our subsidiaries and joint venture companies as against ₹762 crore during H1 FY25. Standalone regulated equity as on 30 September 2025 was ₹94,454 crore as against ₹89,430 crore as on 30 September 2024, an increase of 6%.
Consolidated regulated equity as on 30 September 2025 was ₹1,16,022 crore as against ₹1,05,049 crore as on 30 September 2024, an increase of 10%.
Coming to adjusted PAT, on a standalone basis adjusted PAT for Q2 FY26 is ₹4,518 crore.
This is against ₹4,202 crore in the corresponding quarter of the previous year, an increase of 8%.
For H1 FY26 adjusted PAT is ₹8,932 crore as compared to ₹8,397 crore in the corresponding previous period registering an increase of 6%.
NTPC Limited October 30, 2025 On consolidated basis, adjusted PAT for Q2 FY26 is ₹5,069 crore as against ₹4,943 crore in the corresponding quarter of the previous year, an increase of 3%.
For H1 FY26 adjusted PAT is ₹10,808 crore as compared to ₹9,856 crore in the corresponding previous period on a consolidated basis registering an increase of 10%.
During Q2 FY26 a loan agreement amounting to JPY equivalent of US$100 million was executed on 16 July 2025 between NTPC and CTBC Bank Co.
Ltd., Tokyo.
Average cost of borrowing during H1 FY26 was 6.11% as compared to 6.63% in H1 FY25. This has been mainly achieved through refinancing and restructuring of loans.
As regards capital expenditure, in H1 FY26 we have incurred a group CAPEX of ₹23,115 crore as compared to ₹17,474 crore in the corresponding previous period, while on a standalone basis NTPC has incurred a CAPEX of ₹14,149 crore in H1 FY26 as compared to ₹14,040 crore in the corresponding previous period.
The Gross Property, Plant and equipment (PPE) as on 30 September 2025 on the group level has increased by ₹54,336 crore to ₹4,37,142 crore during last one year, an increase of 14%.
Turning to NTPC Green Energy Limited NGEL's revenue from operations for H1 FY26 on a consolidated basis increased 19% to ₹1,292 crore compared to ₹1,082 crore in H1 FY25. Operating EBITDA also rose significantly by 21% in H1 FY26 to ₹1,133 crore compared to ₹933 crore in H1 FY25. NGEL's operating EBITDA margin has improved to 88% in H1 FY26 as compared to 86% in H1 FY25. NGEL's revenue from operations for Q2 FY26 on a consolidated basis surged by 21% to ₹612 crore compared to ₹504 crore in Q2 FY25. Operating EBITDA also rose significantly by 26% in Q2 FY26 to ₹530 crore, compared to ₹420 crore in Q2 FY25. NGEL's operating EBITDA margin has improved to 86% in Q2 FY26 as compared to 83% in Q2 FY25, underscoring the robust profitability of our renewable business.
Capital investment remains a strategic priority for NGEL.
During the six months ended 30 September 2025, NGEL and its subsidiaries incurred a consolidated capex of ₹6,607 crore, substantially higher than ₹4,884 crore spent during the six months ended 30 September 2024.
Some of the other key points on financial results that I would like to share are
NTPC has declared first interim dividend of ₹2.75 per equity share for FY 2025-26.
Based on the questions raised by the investors during the earlier con calls, I would like to inform that the fixed costs under recoveries till September 2025 is ₹625 crore and we expect this number to be around ₹250 crore by the end of the year.
NTPC Limited October 30, 2025 Our operational gains from coal stations for H1 FY26 is ₹238 crore on account of SG incentive, primary frequency response etc., and ₹49 crore from hydro stations.
We are improving our operational practices continuously to reduce under-recoveries and maximize gains.
Coming to our efforts on the energy storage system, we are exploring different sources of energy storage systems including Battery, PSPs and CO2 based systems.
Out of the 21 GW of PSPs we are pursuing on different fronts, we have commissioned two units of 250 megawatt each at Tehri Pumped Storage Project in H1 FY26 and we expect to commission remaining two units in the current fiscal.
Further, based on our engagements with various states, we got firm allocation of 12670 MW of additional PSPs to be executed in NTPC group for which the preliminary studies are underway.
On BESS, we are developing 1990 MWh won through TBCB route, 1520 MWh at co-located solar projects of NTPC, 5280 MWh co-located near existing solar projects.
Additionally, 5000 MWh at existing thermal projects being developed by NTPC and viability gap funding of ₹18 lakh per MWh shall be receivable.
Further, the work on 160 MWh CO2 based energy storage system at Kudgi is currently under progress.
On the sustainability front, NTPC continues to strengthen its ESG performance through digital interventions, transparent disclosures and a continuous focus on measurable sustainable outcomes.
Our ESG ratings have shown notable improvement since last financial year.
MSCI ESG rating has progressed from 3.4 to 4.1, while Sustainalytics ESG risk rating improved from 35.7 to 31, very close to a band upgrade.
We have declared the commercial operation of Flue Gas Desulphurization systems for a cumulative capacity of 20270 MW and work is in progress for balance 39390 MW.
We are continuing our focus on environmental commitments by planting over 1 million trees each year.
Biomass co-firing at our plants has also increased significantly, reaching over 5 lakh metric tons in first half of FY26, nearly double the level achieved during the same period last year.
These positive movements reflect our robust governance practices, enhanced stakeholder engagement and accelerated execution of our environmental commitments.
On the international business development side, both units of Bangladesh India Friendship Power Company Limited (BIFPCL), are currently operating with over 90% availability and a PLF of around 85%.
Payments from the off taker are being received within 60 to 90 days of billing.
The groundbreaking of the first phase of Sampur Solar power plant was held on 5 April 2025 in the presence of Honorable Prime Minister of India and His Excellency President of Sri Lanka.
The project activities are in progress.
NTPC Limited October 30, 2025 Recently, a joint declaration was made by the Honorable Prime Minister of India and Honorable Prime Minister of Mauritius to advance the Government-to-Government proposal for establishing a 17.5 MW floating solar PV project with a 48 MWh Battery Energy Storage System (BESS) at Tamarind Falls, Mauritius.
Some of the other key developments include business transfer agreement for transfer of coal mines from NTPC to NTPC Mining Limited was signed for hiving off coal mining business at an estimated value of ₹10,503 crore and Chatti Bariatu and Badam mines have been transferred.
We expect to complete transfer of all the remaining mines to NML in the current fiscal.
Receivables from various DISCOMs improved to 28 days from 33 days last year’s same period.
Honorable Prime Minister of India has laid the foundation stone on 22 September 2025 for two hydropower projects of NEEPCO in Arunachal Pradesh.
The project includes Heo Hydroelectric project (240 MW) and Tato-1 Hydroelectric project (186 MW) having an estimated cost of over ₹3,700 crore.
NTPC Vidyut Vyapar Nigam Limited has registered a growth of 11.45% in power trading up from 22.3 BUs to 24.8 BUs.
Another important event has been the issuance of CERC Suo Motu order which provides a structured framework for scheduling of thermal stations and addresses the issue of supply obligation on generator in the event of infeasible schedule by the DISCOMs.
It also enables stable plant operations.
We would be happy to take any further questions on this topic during the Q&A session.
NGEL secured a contract for supply of 0.7 lakh tonnes of green ammonia in the recently concluded green chemical tender, marking its entry into the emerging segment.
This win provides opportunity to set the foothold in the new market of green hydrogen chemicals under the National Green Hydrogen Mission.
On the nuclear side, Honorable Prime Minister laid the foundation stone of Mahi Banswara Rajasthan Atomic Power Project (4 x 700 MW) in Banswara, Rajasthan on 25 September 2025.
The Government of India has approved the transfer of the project from NPCIL to ASHVINI at book value and excavation work is expected to commence shortly.
While we expand into new areas, we remain steadfast on our prudent practices and core strengths.
We are expediting new capacities in coal, renewable and nuclear.
Additionally, we are exploring opportunities in energy storage, green chemicals and other new technology areas including our international presence.
NTPC Limited October 30, 2025 As highlighted during annual investor meet, we have revised our capacity addition target from existing 130 GW to 149 GW by 2032 and 244 GW by 2037.
Accordingly, the estimated capital expenditure requirement is 7 lakh crore by 2032.
Our current capacity under construction stands at 33 GW consisting of 17 GW coal, 2 GW hydro and 14 GW renewable.
To achieve the targeted capacity addition Plan, we are well on track to place awards of contracts of new capacities in both coal and renewable.
In the current fiscal, pending some minor clearances, we have placed Limited Notice To Proceed order for 2400 MW Meja II expansion to be executed through Meja Urja Nigam (P) Limited (MUNPL), JV with Uttar Pradesh.
We have also placed fresh contracts for 3 GW of renewable capacity.
Additionally, contract for land and connectivity was placed for 1200 MW.
We are also systematically looking out for large parcels of land banks for our solar projects as connectivity becomes automatically available for large capacity projects with huge land banks.
Allotment of land parcels by various state governments with aggregate capacity of 16.5 GW is in advanced stage (4 GW Andhra Pradesh, 10 GW Rajasthan, 2.5 GW Gujarat, 6.5 GW through tenders).
With this, our total land pool has reached 22.8 GW.
We are exploring partnerships with various international players in the nuclear domain to prepare ourselves for setting up capacities in our nuclear subsidiary NTPC Parmanu Urja Nigam Limited once we get required permissions from the government.
Way Forward FY26 so far has been a strong year for both NTPC and NGEL with record capacity addition and healthy financial performance.
A major milestone has been the foundation stone laying of the Mahi Banswara project which marks formal beginning of NTPC's nuclear energy journey.
As we look ahead to the second half of FY26, we remain optimistic about both the economy and the power sector.
For NTPC, the focus remains on the timely completion of under construction projects, strengthening fuel security and continuously improving plant efficiency and availability.
India is once again adding substantial thermal capacity.
We are a key part of this national mission.
At the same time, NGEL is driving expeditious execution of renewable projects to ensure capacity ramp up, supporting our goal of achieving 60 GW of RE capacity by FY32. We are also exploring opportunities in battery storage and hybrid projects to deliver renewable power round the clock and strengthen our clean energy portfolio.
NTPC Limited October 30, 2025 The nation is progressing towards becoming a developed economy, in turn increasing the power demand.
As a key player in the power sector, we are ensuring that we meet this demand while staying ahead of the competition.
We are committed to enhancing shareholders' wealth and continue to strive for improving performance in every facet of our business.
Thank you for joining us.
Moderator · Conference Operator
Sir, we may proceed with the Q&A session.
The next question is from the line of Puneet Gulati from HSBC.
Puneet Gulati
Yes.
My question is on the battery side.
You talked about 5000 MW of battery with thermal projects and 5020 MW with solar.
Can you also elaborate on the timeline of execution for these projects?
Moderator · Conference Operator
The next question is from the line of Atul Tiwari from JP Morgan.
Atul Tiwari
Yes, sir.
Sir, could you shed some light on plans of ordering new coal-based generation capacity in the rest of FY26, FY27 and FY28?
Moderator · Conference Operator
The next question is from the line of Apoorva Bahadur from IIFL Capital.
Apoorva Bahadur
Hi, sir.
Thank you for the opportunity.
I hope I am audible.
Moderator · Conference Operator
Thank you.
The next question is from the line of Satyadeep Jain from Ambit Capital.
Please go ahead.
Satyadeep Jain
Hi.
Thank you.
Just a follow-up on BESS co-located at thermal.
Just wanted to check this 5 GW that you are adding, how do you decide where to co-locate it?
Is it based on the cost of the plant, pithead, non-pithead?
And the equity will be after VGF, I'm guessing, right?
So, after the VGF, whatever equity is, you look at regulated equity.
I just wanted to understand the model there.
Moderator · Conference Operator
Thank you.
The next question is from the line of Sumit Kishore from Axis Capital.
Please go ahead.
Sumit Kishore
On NGEL, could you give us the full year target for FY26, 27 and 28 for RE capacity addition?
And how much of that is going to be at the JV level?
That is my first question.
Moderator · Conference Operator
Thank you.
The next question is from the line of Rajesh Majumdar from B&K.
Please go ahead.
Rajesh Majumdar
Yes, good evening, sir.
You have a capacity under construction in thermal of 17 GW and hydro of 2 GW.
Can you give us the execution schedule for this over the next few years, how it will be planned?
Moderator · Conference Operator
Thank you.
The next question is from the line of Nidhi Shah from ICICI Securities.
Please go ahead.
Nidhi Shah
Thank you so much for taking my question.
Sir, in the opening comments, you mentioned that the tariff will go down due to curtailment.
My question is specifically on RE.
Have we seen curtailment at the RE level as well?
And is the lower CUF also a result of the extended monsoon?
Moderator · Conference Operator
Thank you.
The next question is from the line of Akash Mehta from Canara HSBC Life Insurance.
Please go ahead.
Akash Mehta
Hi, sir.
So, just continuing on the capacity addition front, on NGEL, we have added about 1.5 GW, as you said 900 MW in the first quarter and 600 MW in the second quarter.
So, how many of projects were to get commissioned during the first half in terms of the company's target or commissioning dates?
Moderator · Conference Operator
Thank you.
Ladies and gentlemen, we will take this as the last question.
That was the last question.
I now hand the conference over to Mr. Bharanidhar Vijayakumar from Avendus Spark for closing comments.
Over to you, sir.
Bharanidhar V
Yes, sure.
On behalf of Avendus Spark, I thank NTPC management for giving us this opportunity to host this call.
I will hand over the call now to NTPC management for closing remarks, if any.
Moderator · Conference Operator
Thank you, sir.
On behalf of Avendus Spark, that concludes this conference.
Thank you all for joining us and you may now disconnect your lines.
Note
This transcript has been edited for readability and does not purport to be a verbatim record of the proceedings.
Questions and answers
Moderator · Conference Operator
Okay, sir.
So, thank you very much.
Participants, we will now begin with the question-and-answer session.
The first question is from the line of Mohit Kumar from ICICI Securities.
Please go ahead.
Mohit Kumar
Yes.
Good evening, sir and thank you for the opportunity.
My first question is on the capacity addition target.
Are you on track to meet the capacity target of 11.8 GW in FY26 or do you think there could be some miss?