NTPC Limited — Q2 FY26 earnings call

Call held 30 Oct 2025

Management summary

NTPC delivered a solid H1 FY26 with record-breaking capacity additions of 4,403 MW and adjusted consolidated PAT growth of 10% YoY. The Mahi Banswara nuclear project formally began with the foundation stone ceremony. Management maintained FY26 COD guidance of ~9,844 MW and outlined 3-year visibility of ~30,000 MW. Subdued power demand due to milder weather was the only headwind, partially offsetting strong operational execution.

Highlights

  • Group capacity at 83,893 MW; added 4,403 MW in H1 FY26 — highest-ever H1 addition

  • 5,359 MW added as of Oct 2025, ahead of prior full-year record of 6,984 MW (FY20)

  • Standalone PAT ₹4,653 crore in Q2; H1 adjusted PAT ₹8,932 crore, up 6% YoY

  • Group PAT ₹11,334 crore in H1, up 4% YoY; adjusted consol PAT ₹10,808 crore, up 10%

  • Consolidated regulated equity ₹1,16,022 crore, up 10% YoY

  • Average borrowing cost reduced to 6.11% from 6.63% YoY

  • Mahi Banswara nuclear project foundation stone laid Sept 25, 2025; ₹50,000 crore capex

  • Capacity target revised to 149 GW by FY32 and 244 GW by FY37

Key financials

3 periods

Headline

  • PLF (Coal)
    70.5%
  • Regulated Equity (Consol)
    ₹1.16L Cr
    YoY +10%

Q2

  • PAT
    ₹4,653 Cr
    YoY +0.1%

H1

  • Revenue
    ₹84,022 Cr
    YoY -3%
  • Adjusted PAT
    ₹8,932 Cr
    YoY +6%
  • Group PAT
    ₹11,334 Cr
    YoY +4%

What they filed

Q1 FY27: revenue up 3.0%, net profit up 11.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue40,337 41,369 43,904 42,572 39,167 −3%40,644 −2%43,109 −2%43,832 +3%
EBITDA9,686 11,617 11,255 10,283 10,019 +3%11,992 +3%5,808 −48%12,629 +23%
Net profit4,649 4,711 5,778 4,775 4,653 +0%4,987 +6%8,747 +51%5,342 +12%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • NTPC Standalone
    ₹84,022 Cr Total Income (H1)₹9,428 Cr PAT (H1)₹14,149 Cr CAPEX (H1)
  • NGEL
    ₹1,292 Cr Revenue (H1)₹1,133 Cr EBITDA (H1)88% EBITDA Margin (H1)₹6,607 Cr CAPEX (H1)
  • Subsidiaries
    ₹1,805 Cr Profit (H1)33% Growth

Guidance & targets

Capacity

  • Group COD FY26 (Revised) Capacity · FY26 · High confidence 9,844 MW

    Previously 11,806 MW → 9,844 MW

    we have a target of 2019 MW on a standalone basis and 7825 MW for JVs and subsidiaries, both totaling to 9844 MW.

    — Management

  • RE COD FY26 (NGEL Group) Capacity · FY26 · High confidence 5,365 MW

    Previously 7,226 MW → 5,365 MW

    the renewable capacity would be 5365 MW.

    — Management

  • Group COD FY27 Capacity · FY27 · High confidence 9,600 MW

    Previously 9,904 MW → 9,600 MW

    For the next financial year, the figure is 9,600 MW

    — Management

  • Group COD FY28 Capacity · FY28 · High confidence 10,564 MW (thermal 2,120 MW + hydro 444 MW + RE 8,000 MW)
    The thermal would be 2120 MW, hydro would be 444 MW, and renewable would be 8000 MW totaling to 10564 MW.

    — Management

  • New Thermal Awarding FY26 Capacity · FY26 · High confidence 1.6 GW (Lara Stage 3)

    Previously 7.2 GW → 1.6 GW (Lara Stage 3)

    In this financial year, another 1.6 GW is expected to be awarded.

    — Management

  • BESS at Thermal (Regulated) Capacity · within 3 years · High confidence 5,000 MWh
    5 GW is fully regulated...co-located with our thermal plants will be part of the thermal business, Cost plus business.

    — Management

  • Mahi Banswara Nuclear Commissioning Capacity · FY32-33 · Medium confidence 2,800 MW at ₹50,000 crore; commissioning FY32-33
    The total capex is around INR50,000 crore...The date of completion will be six years from first pour of concrete. That will be from December 2026 to December 2032.

    — Management

  • Land Pool for RE Capacity · ongoing · High confidence 22.8 GW total; 16.5 GW additional from states in advanced stage
    our total land pool has reached 22.8 GW

    — Management

Capex

  • NGEL CAPEX FY26 Capex · FY26 · High confidence ₹30,000 crore
    we are going to incur a capex of around INR30,000 crore

    — Management

  • NGEL CAPEX FY27 Capex · FY27 · High confidence ₹45,000-46,000 crore
    next financial year will further increase to around INR45,000 crore to INR46,000 crore.

    — Management

Profitability

  • Under-recovery Target FY26 Profitability · FY26 · Medium confidence ~₹250 crore

    From ₹625 crore (as of Sept 2025) today

    the fixed costs under recoveries till September 2025 is INR625 crore and we expect this number to be around INR250 crore by the end of the year.

    — Management

Risks & concerns

  • FY26 COD guidance reduced from 11,806 MW to 9,844 MW

    medium

    RE target cut from 7,226 MW to 5,365 MW; some thermal slippages into FY27

    Both acknowledged

  • Subdued power demand due to weather reducing generation and PLF

    medium

    H1 FY26 generation down ~6 BUs YoY; standalone revenue declined 3%

    Management acknowledged

  • RE curtailment in Rajasthan due to extended monsoon

    medium

    Some curtailment in RE in Rajasthan confirmed; wind projects face ROW challenges

    Management acknowledged

  • EESL losses continuing through FY26

    low

    Promoters taking matter seriously; IntelliSmart stake sale being explored

    Analyst acknowledged

Areas of evasion (1)

  • Regulated equity target question deflected — 'can be worked out based on CODs'

Q&A highlights

2 direct
BESS business model — regulated vs unregulated returns Direct
5000 MW will be regulated. Located at NTPC coal plants...The one which is co-located with our thermal plants will be part of the thermal business, Cost plus business.

Clarifies that only 5,000 MWh BESS at thermal plants is regulated; solar co-located BESS will be merchant/negotiated basis

Asked by Puneet Gulati (HSBC)

EESL losses and IntelliSmart stake sale Partial
The losses will continue till FY26, yes...all the promoters are very serious about this matter.

EESL continues to drag P&L with ongoing losses; IntelliSmart divestment under consideration but no timeline

Asked by Mohit Kumar (ICICI Securities)

CERC Suo-Moto order on technical minimum scheduling Direct
the DISCOMs were not obliged to give a technical minimum schedule...now this Suo-Moto order has ameliorated that situation for us.

Positive regulatory development ensuring feasible scheduling for thermal plants, reducing under-recoveries

Asked by Sumit Kishore (Axis Capital)

2 min read 6 chapters

Detailed narrative

Record H1 Capacity Addition but Target Cut

NTPC added 4,403 MW in H1 FY26 (highest-ever H1), with 5,359 MW by October. However, the full-year COD target was quietly cut from 11,806 MW to 9,844 MW, primarily from RE reduction (7,226 to 5,365 MW). FY27 target also trimmed from 9,904 to 9,600 MW. Management provided new FY28 target of 10,564 MW.

BESS Strategy — 5 GW Regulated + Solar Co-location

NTPC unveiled a comprehensive BESS strategy: 5,000 MWh at 16 thermal stations under regulated returns (with VGF of ₹18 lakh/MWh), 5,280 MWh co-located near existing solar projects on merchant basis, 1,990 MWh won through TBCB, and 1,520 MWh at co-located solar. Additionally, 160 MWh CO2-based storage at Kudgi is under construction. Tenders for 2.3 GW already placed.

Mahi Banswara Nuclear Project Formalized

Foundation stone laid on September 25, 2025 for the 4x700 MW nuclear project at ₹20 crore/MW totaling ~₹50,000 crore. Excavation contract awarded for Units 1 and 2. Nuclear island and TG package expected to be awarded in FY26. Six-year execution timeline targets commissioning from December 2032. SHANTI Act passage provides further regulatory clarity.

Subdued Demand and Lower Generation

Group generation fell to 214 BUs in H1 FY26, ~6 BUs lower YoY, due to milder summer and extended monsoon. Standalone revenue declined 3% to ₹84,022 crore. However, coal PLF of 70.52% significantly exceeded rest-of-India average of 64.32%. Power demand growth recovered in October with underlying industrial/commercial demand remaining firm.

Financial Optimization and Borrowing Cost Reduction

Average borrowing cost fell sharply to 6.11% from 6.63% YoY through proactive refinancing. Receivable days improved to 28 from 33 days YoY. Consolidated regulated equity grew 10% to ₹1,16,022 crore. NGEL's EBITDA margin improved to 88% with revenue up 19% and capex up 35%. First interim dividend of ₹2.75/share declared.

NGEL Growth and Green Chemicals Entry

NGEL revenue grew 19% to ₹1,292 crore in H1 with EBITDA margin improving to 88%. NGEL secured a 70,000 MT green ammonia contract, marking entry into green chemicals. NGEL CAPEX is targeted at ₹30,000 crore for FY26 and ₹45,000-46,000 crore for FY27, a massive ramp-up from ₹12,914 crore in FY25.

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