PTC India

PTC India reported a robust FY25 with standalone trading volumes growing 11% YoY to 82.8 billion units, outperforming the national power supply growth of 5.21%. The trading margin was maintained at Rs. 3.37 per unit for FY25. Q4 standalone volume increased 5% QoQ to 19 billion units, with margin per unit rising to Rs. 3.17. However, Q4 standalone total operational income decreased by 22% to Rs. 151 crore, primarily due to a reduction in surcharge income. Excluding the exceptional profit from PEL divestment, FY25 standalone PAT grew 8% to Rs. 397 crore, and consolidated PAT grew 38% to Rs. 735 crore.

The company successfully completed the divestment of its subsidiary, PTC Energy Limited (PEL), in Q4 FY25. PTC's stake in PEL was transferred to ONGC Green Limited for a total consideration of Rs. 1175 crore. This transaction resulted in an exceptional profit of Rs. 521 crore being booked in Q4 FY25, significantly boosting the reported PAT and EPS for the quarter and the full year. The management highlighted this divestment as a key strategic move.

PTC India is actively aligning with the national energy transition towards renewables, which grew 13% YoY and now constitutes nearly 14% of the total energy mix. The company has floated an Expression of Interest (EOI) for 500 megawatts of renewable capacity and is engaging with developers for purchase and sale arrangements. The government projects a need for 74 gigawatts of battery energy storage systems and pump storage projects to support renewables integration, indicating significant future opportunities for PTC India.

The company continues its operations across Bhutan, Nepal, and Bangladesh. Energy flows to Bangladesh remain stable with regular payments, and receivables from Bangladesh have reduced to Rs. 577 crore as of March 31, 2025, from Rs. 700 crore last year. A fresh agreement for the export of 2000 megawatts of power to Bhutan during winter was signed, and Nepal involves both import and export of electricity based on their demand profiles.

The divestment of PTC India Financial Services (PFS) remains a key strategic discussion point for the Board. Management indicated that this is a complex process involving multiple regulators, including RBI, and various stakeholders. While the company acknowledges investor interest, a straightforward timeline for any decision regarding PFS could not be provided at this time, emphasizing that all options are under consideration.

The consultancy division experienced a setback in its growth trajectory. This was attributed to two main issues: stuck payments from EESL for existing contracts and a reduction in funding from sources like US aid for many projects. Management acknowledged the need to explore new growth areas, such as smart metering and EV infrastructure, to revitalize this segment, which did not meet expectations this year.

For Q4 FY25, the margin per unit for short-term trades was 1.03 paise, for medium-term trades it was 2.06 paise, and for long-term trades it was 7.99 paise. Management noted that 52% of the trading volume came from exchange-traded products, indicating a market shift. However, they clarified that long-term contracts, comprising 85% of the overall power market, are typically bilateral and not routed through exchanges, which primarily handle short-term trades.