Summary
NTPC Limited - Q3 FY26 Earnings Call Summary Friday, January 30, 2026 5:30 PM
Event Participants
Executives 5 Anil Kumar Jadli (Director HR), Jaikumar Srinivasan (Director Finance), K. Shanmugha Sundaram (Director Projects), Ravindra Kumar (Director Operations), Shivam Srivastava (Director Fuel)
Analysts 6 Aniket Mittal (SBI Mutual Fund), Ketan Jain (Avendus Spark), Khushwant Pahwa (KPAC), Mahesh Patil (ICICI Securities), Nikhil (Bernstein), Satyadeep Jain (AMBIT Capital), Sumit Kishore (Axis Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income (Standalone) | ₹41,673 crores | -1.5% YoY; Reflects slightly lower generation volumes during the quarter. |
| PAT (Standalone) | ₹4,987 crores | +5.85% YoY; Driven by strong operational gains and improved subsidiary performance. |
| Regulated Equity (Consol) | ₹1,18,970 crores | Standalone portion at ₹94,415 crores; Provides solid base for cost-plus returns. |
| Group Capex (9M FY26) | ₹33,466 crores | +8.7% YoY; Standalone capex contributed ₹19,439 crores for capacity expansion. |
| Receivables | 26 days | Improved from 34 days YoY; Driven by DISCOM profitability and payment discipline. |
| Avg Cost of Borrowing | 6.05% | -59 bps YoY; Result of proactive refinancing and strategic loan restructuring. |
| Net Worth (Group) | ₹4,54,223 crores | +17.4% YoY; Reflects gross property, plant, and machinery additions. |
Geographic & Segment Commentary
- Thermal Power: NTPC maintained a PLF of 70.69% for 9M FY26 vs. national average of 60.79%. Added 800 MW at Patratu and signed SHA for 1,350 MW Sinnar plant. Under-recoveries were reduced to ₹454 crores as of December 2025.
- Renewable Energy (NGEL): Commercial capacity reached 8,010 MW, up 206% YoY in generation (9,959 MU). Growth was heavily bolstered by the acquisition of Ayana Renewable Power. EBITDA margins for the segment remain robust at 87%.
- Coal Mining: Captive mines recorded dispatch growth of 4.34% YoY. Received mine opening clearance for Badam mine (3 MMTPA) and started dispatch from Pakri Barwadih’s Northwest mine.
Company-Specific & Strategic Commentary
- Nuclear Strategy: Leveraging the new SHANTI Nuclear Act to scale nuclear capacity. Shortlisted EDF France and Rosatom as technology partners for PWR technology; site studies advanced in Andhra Pradesh and MP.
- Energy Storage: Completed India’s first 3-MWh vanadium redox flow battery pilot; planning 100-MWh system at Khavda. Finalizing tenders for 5,000 MWh BESS across 16 stations under the Section 62 cost-plus framework.
- Hydro & Pumped Storage: Commissioned 250 MW at Tehri; studying 13 GW of additional pumped storage projects. Started work on the 700 MW Tato-II hydroelectric project in the Northeast.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| RE Capacity Addition | 5 GW (FY26) / 8 GW (FY27) | Management targets 20 GW total RE additions over the next 3 years; 74% of portfolio already PPA-tied. |
| Thermal Capacity | 6.5 GW (by FY28) | Includes Patratu Phase 1 and Lara Stage 2; primarily focused on brownfield expansion under Section 62. |
| Thermal Awarding | 4 GW (FY27) | Expected awards include Lara-2 (1600 MW), Jhabua, BRBCL, and Bhilai (800 MW each). |
Risks & Constraints
| Risk | Context |
|---|---|
| Curtailment | NGEL lost 420 million units and NREL lost 212 million units in 9M FY26 due to grid constraints. Management expects zero curtailment for NGEL following the Narela K3 line commissioning. |
| Regulatory Approvals | Thermal projects like Meja (Phase 2) are pending due to equity threshold approval delays from state and central governments. |
| Stabilization Lag | New RE capacities (like Khavda) face temporary margin pressure as depreciation hits immediately while revenue stabilizes over the quarter. |
Q&A Highlights
Renewable Capacity Targets
- Question: What are the revised targets for NGEL and why have original plans faced delays? (Sumit Kishore)
- Answer: Target remains 5 GW for FY26; 2,600 MW completed to date with another 2,400 MW (Khavda, Bhadla, wind) on track for Feb-March. FY27/28 targets are 8 GW each (Sarit Maheshwari).
Thermal Bidding Strategy
- Question: Why is NTPC avoiding Section 63 (competitive) tenders and sticking to Section 62 (cost-plus)? (Satyadeep Jain)
- Answer: Strategy is to prioritize resource allocation and equity for brownfield/cost-plus projects first. Section 63 is not ruled out for the future, but current focus is on committed projects and nuclear (Jaikumar Srinivasan).
Nuclear Partnerships
- Question: Are you looking at domestic or international technology for nuclear expansion? (Nikhil)
- Answer: Using domestic PHWR technology at Mahi Banswara; pursuing PWR technology MOUs with international partners like EDF (France) and Rosatom (Ravindra Kumar).
Fertilizer JV Performance
- Question: What drove the sharp rise in profit for the fertilizer JV this quarter? (Aniket Mittal)
- Answer: 22% sales volume growth, ₹992cr fixed cost recovery, and improved gas efficiency (5.04 vs 5.207 gigacal/MT) contributed to a ₹357cr profit increase (Jaikumar Srinivasan).
Key Takeaway
NTPC delivered a steady Q3 FY26, characterized by a 5.85% growth in standalone PAT and a major expansion in its renewable footprint through both organic additions and the Ayana acquisition. The group has added 6,615 MW in the first 10 months of the fiscal, the highest in its history, and is pivoting toward becoming a diversified energy major with significant commitments to nuclear and long-duration energy storage. Strategically, the company remains disciplined, focusing on Section 62 brownfield thermal expansions to ensure stable returns while aggressively scaling its RE commercial capacity toward an 8 GW annual run-rate. Improved DISCOM health (₹2,700cr profit in FY25) has significantly de-risked the balance sheet, reducing receivable days to 26. Despite near-term curtailment issues in RE and shifting timelines for thermal awards like Lara and Meja, NTPC is well-positioned to leverage the SHANTI Nuclear Act and 33 GW of under-construction capacity to sustain long-term growth.
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