NTPC Limited — Q3 FY26 earnings call

Call held 30 Jan 2026

Management summary

NTPC continued its strong execution in Q3 FY26, with 6,615 MW capacity addition in 10 months on track for an annual record. The standalone PAT grew 5.85% YoY to ₹4,987 crore despite muted demand. Key positives included the Sinnar plant acquisition, sharp borrowing cost reduction to 6.05%, and NGEL's improving profitability. RE curtailment at Khavda impacted NGEL's quarterly P&L but the issue is now resolved with the Narela K3 line commissioning.

Highlights

  • Group capacity at 86,565 MW; added 6,615 MW in FY26 (10 months) — record pace

  • Standalone PAT ₹4,987 crore in Q3, up 5.85% YoY

  • Group PAT ₹16,931 crore in 9M FY26, up 5.45% YoY

  • Weighted average borrowing cost reduced to 6.05% from 6.64% YoY

  • NGEL commercial capacity at 8,010 MW; 9M revenue up 23% YoY

  • Sinnar 1,350 MW thermal plant acquisition via NCLT approved

  • 5,000 MWh BESS at thermal stations in final stage of evaluation; 18-month commissioning

  • Receivables improved to 26 days from 34 days YoY; MSCI ESG upgraded from CCC to B

Key financials

3 periods

Headline

  • PLF (Coal)
    70.7%
  • Regulated Equity (Consol)
    ₹1.19L Cr
  • Avg Borrowing Cost
    6%

Q3

  • Revenue
    ₹41,673 Cr
    YoY -1%
  • PAT
    ₹4,987 Cr
    YoY +6%

9M

  • Group PAT
    ₹16,931 Cr
    YoY +5%

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
    ₹1.26L Cr Total Income (9M)₹14,415 Cr PAT (9M)₹19,439 Cr CAPEX (9M)
  • NGEL
    ₹1,946 Cr Revenue (9M)₹1,701 Cr EBITDA (9M)87% EBITDA Margin₹11,653 Cr CAPEX (9M)8,010 MW Commercial Capacity
  • Subsidiaries
    ₹2,441 Cr Profit (9M)28% Growth
  • JVs
    ₹1,670 Cr Share of Profit (9M)— Fertilizer JV

Guidance & targets

Capacity

  • NGEL RE Addition FY26 (Revised) Capacity · FY26 · High confidence ~5,000 MW (2,600 done + 2,400 remaining)

    Previously 5,365 MW → ~5,000 MW (2,600 done + 2,400 remaining)

    we have already done...around 2,600-odd MW...for the balance one also around 2,500 MW is on target. So that will take us to 5 gigawatts.

    — CEO NGEL Sarit Maheshwari

  • NGEL RE Addition FY27 Capacity · FY27 · High confidence 8 GW
    Our plan as of now for FY '27 is 8 GW.

    — CEO NGEL

  • NGEL RE Addition FY28 Capacity · FY28 · Medium confidence 8 GW
    for FY '28 also, we are targeting 8 GW of capacity addition.

    — CEO NGEL

  • Thermal COD over 3 Years Capacity · FY26-FY28 · High confidence 6,500 MW (FY26: 2,780 + FY27: 1,600 + FY28: 2,120)
    Over the next 3-year period, 6,500 MW would be added, 2,780 during the current year; next year, it is 2 units of 800, 1,600; and the year next, it would be 2,120 MW

    — Management

  • Thermal Awarding FY27 Capacity · FY27 · High confidence 4 GW (Lara-2 1.6 GW, Jhabua, BRBCL, Bhilai 800 MW each)
    Next year, we are looking at an award of 4 gigawatt that will be Lara-2 1,600 MW. Jhabua, BRBCL, Bhilai 800 MW each.

    — Management

  • Sinnar Acquisition Capacity · imminent · High confidence 1,350 MW + 1,600 acres vacant land
    The shareholders' agreement for Sinnar thermal power plant was signed on 9th January 2026...This would add 1,350 MW of capacity with approximately 1,600 acres of vacant land.

    — Management

Other

  • PPA Tie-up Ratio (NGEL) Other · FY26-FY28 · High confidence 74% consolidated; FY26: 82%, FY27: 83%, FY28: 60%
    In FY '26, the capacities that we will now be adding will be -- is almost 82% PPA tied. FY '27, it moves to 83% FY '28 capacity as on date is 60% is tied up.

    — CEO NGEL

Profitability

  • Under-recovery 9M FY26 Profitability · FY26 · Medium confidence ₹454 crore (working to reduce by year-end)
    the fixed cost under-recoveries till December 2025 is at the level of INR454 crores, and every effort is being made to reduce this under-recoveries by the end of the year.

    — Management

Risks & concerns

  • RE curtailment caused 632 MU generation loss (420 MU NGEL + 212 MU NREL)

    medium

    Narela K3 line now commissioned resolving NGEL curtailment; NREL Khavda curtailment to continue until full GNA by October FY27

    Both acknowledged

  • NGEL Q3 profitability dip due to Khavda stabilization losses

    medium

    Khavda capacity additions had initial stabilization issues impacting generation; now resolved and running at full load

    Analyst acknowledged

  • Thermal awarding delays — Meja and Lara pushed out

    medium

    Meja equity approval pending; Lara postponed as bidders requested extension

    Analyst acknowledged

  • Meja Phase 2 awarding delayed pending UP state government approval

    low

    Equity crossing threshold requires government approvals; expected in current quarter

    Analyst acknowledged

Areas of evasion (1)

  • IntelliSmart sale status — 'still under process, will tell you later'

Q&A highlights

2 direct
RE curtailment impact and resolution at Khavda Direct
we lost around 420 million units on account of curtailment in NGEL alone...now the curtailment will be zero because the line through which the curtailment was happening was Narela K3 line that is commissioned.

420 MU generation loss quantified; issue now resolved with K3 line commissioning — positive for future quarters

Asked by Mahesh Patil (ICICI Securities)

Section 62 vs Section 63 strategy for thermal expansion Direct
we are restricting ourselves for Section 62 as far as thermal plants are concerned, but that doesn't limit us from going in for acquisition of pre-existing assets.

Strategic choice to stay brownfield cost-plus while competitors bid aggressively on Section 63; limits growth optionality but preserves ROE certainty

Asked by Satyadeep Jain (Ambit Capital)

Green ammonia project IRR concerns Partial
the RE-RTC prices are quite competitive these days, and we would be maintaining the healthy IRR as we do for other projects

Market views green ammonia bids as aggressive; management defends IRR without giving specific numbers

Asked by Nikhil (Bernstein)

2 min read 6 chapters

Detailed narrative

Record Capacity Addition Pace Despite Target Cuts

NTPC added 6,615 MW in the first 10 months of FY26, surpassing the prior full-year record of 6,984 MW (FY20). Q3 additions included 800 MW from Patratu thermal, 694 MW RE, and 250 MW Tehri PSP. Total group capacity reached 86,565 MW. However, the NGEL RE target has been further pared to ~5 GW from the original 7.2 GW guidance.

NGEL Curtailment Impact Quantified and Resolved

NGEL lost 420 million units and NREL lost 212 million units to curtailment in 9M FY26. The primary cause was the Narela K3 transmission line delay, which has now been commissioned. CEO confirmed zero curtailment impact on NGEL going forward. NREL's Khavda curtailment will persist until full GNA is secured by October FY27. NGEL's 9M revenue grew 23% despite these headwinds.

SHANTI Nuclear Act and Nuclear Roadmap

The SHANTI Nuclear Act was legislated, providing a clear pathway for NTPC's nuclear expansion. Mahi Banswara excavation has begun with nuclear island and TG packages expected to be awarded in FY26. NTPC is engaging EDF France and Rosatom for PWR technology partnerships. A site in Andhra Pradesh is in advanced condition for future nuclear plants.

Sinnar Acquisition and Brownfield Thermal Strategy

NTPC acquired Sinnar thermal plant (1,350 MW) via NCLT process, adding 1,600 acres of vacant land for future expansion. Management reiterated Section 62 brownfield-only strategy for thermal, declining to participate in Section 63 competitive bids. FY27 thermal awarding plan includes 4 GW across Lara-2, Jhabua, BRBCL Bhilai.

Borrowing Cost Optimization and Financial Health

Weighted average borrowing cost fell sharply to 6.05% from 6.64% YoY through proactive refinancing and restructuring. NTPC executed ₹5,000 crore in new term loans linked to treasury bill and repo rates. Receivable days improved to 26 from 34 YoY. MSCI ESG rating upgraded from CCC to B after 10 years. Distribution companies turned profitable (₹2,700 crore profit in FY25 vs ₹25,553 crore loss in FY24).

Fertilizer JV Profit Surge

The HURL fertilizer JV saw significant profit increase driven by 22% sales volume growth (improving fixed cost recovery by ₹992 crore), gas under-recovery reduction of ₹224 crore from improved efficiency (5.04 vs 5.207 Gigacal/MT), and trading margin increase of ₹159 crore. Total incremental profit contribution was ~₹357 crore.

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