Earnings call transcript: NTPC Q2 2025 sees steady profits amid market challenges

NTPC Limited reported its Q2 2025 earnings on October 30, revealing a slight increase in profit after tax despite a minor dip in total income. The company’s stock showed a modest decline of 0.68% following the announcement, reflecting mixed investor sentiment. NTPC’s continued focus on renewable energy and strategic capacity growth remains a key highlight of its future outlook.

Key Takeaways

• NTPC’s profit after tax increased slightly to INR 4,653 crore.
• Total income saw a slight decrease to INR 40,689 crore.
• The company is expanding its renewable energy capacity, targeting 60 GW by 2032.
• NTPC’s stock declined by 0.68% post-earnings.

Company Performance

NTPC’s performance in Q2 2025 showed resilience, with a marginal increase in profit after tax to INR 4,653 crore from INR 4,649 crore in the same quarter last year. However, total income dipped slightly to INR 40,689 crore from INR 41,245 crore. The company continues to maintain a strong operational capacity, with a 10% increase in group capacity to 83,893 MW, and a focus on renewable energy and storage systems.

Financial Highlights

• Revenue: INR 40,689 crore, a slight decrease from INR 41,245 crore last year.
• Profit After Tax: INR 4,653 crore, marginally up from INR 4,649 crore.
• Consolidated PAT (H1 FY26): INR 11,334 crore, a 4% increase year-over-year.
• Average Borrowing Cost: Reduced from 6.63% to 6.11%.

Outlook & Guidance

NTPC has set ambitious targets for future growth, including a capacity addition target of 9,844 MW for FY26 and a long-term capital expenditure plan of INR 7 lakh crore by 2032. The company is also focusing on renewable capacity, aiming for 60 GW by 2032, and has planned a CapEx of INR 30,000 crore for NTPC Green in FY26.

Executive Commentary

Jaikumar Srinivasan, Director of Finance, highlighted NTPC’s role in India’s energy sector, stating, "India is once again adding substantial thermal capacity. We are a key part of this national mission." He also noted the company’s exploration of partnerships in the nuclear domain, emphasizing NTPC’s strategic expansion efforts.

Risks and Challenges

• Market Volatility: Fluctuations in energy prices and demand could impact revenue.
• Regulatory Changes: New policies or regulations in the energy sector might affect operations.
• Competition: Increasing competition in the renewable energy space could pressure margins.
• Supply Chain Disruptions: Potential disruptions could affect project timelines and costs.

NTPC’s Q2 2025 earnings reflect a stable financial performance with strategic plans for future growth, particularly in renewable energy. However, the slight dip in total income and the stock’s decline post-earnings indicate cautious investor sentiment amid market challenges.

Full transcript - NTPC Ltd (NTPC) Q2 2026:

Conference Operator/Moderator: Ladies and gentlemen, good day and welcome to NTPC Q2FY26 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Bharanidar Vijay Kumar from Avendus Spark. Over to you, sir. Thank you.

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: Good evening everyone. On behalf of Avendus Spark, I welcome you all to the Q2FY26 and H1FY26 earnings conference call of NTPC Limited. Representing the company, we have Mr. Jaikumar Srinivasan, Director, Finance, along with other functional directors. Without further ado, I pass over the call to Mr. Jaikumar Srinivasan. Over to you, sir.

Conference Operator/Moderator: Yes sir, you’re audible.

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: Good evening everyone. I am Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited. It’s my pleasure to welcome you all to our earnings conference call for the second quarter of FY26 and half year ended September 30, 2025. Today I am joined by my colleagues on the Board, Sri Shivam Srivastava, Director, Fuel, NTPC, Sri Shanmugha Sundaram, Director, Projects, NTPC and NGL, Sri Ravindra Kumar, Director, Operations, NTPC, Sri Anil Kumar Jadli, Director, Human Resources, NTPC, along with the key members of our senior management team of both the companies. We have announced our unaudited financial results for Q2 and H1 for FY26. Operational and financial snapshot indicating key performance indicators have also been shared with the stock exchanges and are available for investor reference.

I will now share some key perspective on the Indian power sector to begin with and NTPC and NGL’s performance, key developments, sustainable initiatives, and growth drivers for the future. Let me begin with a brief outlook on the Indian power sector. India’s growing economy, expanding industrial base under the Make in India, Made for the World vision, and rapid urbanization are expected to drive sustained growth in the power demand. We are also seeing new age demand accelerators emerging, particularly the GIGA scale data centers recently announced by several global technology majors. We expect that the recent geopolitical situation will also offer opportunity for the country to become a hub of global capacity centers. These developments will continue to reinforce the need for reliable, affordable, and sustainable power to support the country’s long-term economic growth.

With GDP projected to grow between 6.5% to 7% in the coming year, 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. In the current fiscal, demand growth has been somewhat moderate compared to the previous years, largely due to the milder summer and extended monsoon. However, the underlying economic momentum remains firm and demand drivers, especially from industrial and commercial sector, are expected to show upward growth. This landscape presents significant opportunities and NTPC and NTPC Green Energy Limited 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 and a calibrated and measured investment approach, both entities are prepared to play a pivotal role in meeting the country’s energy needs. Now turning specifically to our capacity growth, as of H1FY26, NTPC group capacity rose to 83,893 MW, nearly a 10% increase from the previous year’s same period, which was 76,443 MW, clearly indicating that we are expanding at a faster pace. We have added 4,403 MW till H1FY26, by far the highest capacity added in any half year since our inception. Of this, 1,732 MW is on a standalone basis, 1,506 MW from NTPC Green Energy Limited and its JVs, and the balance 1,165 MW from other JVs and subsidiaries. Additionally, 956 MW has been added in the current month, i.e., October, taking total fresh capacity addition to 5,359 MW as on date.

It is worth mentioning that the highest ever capacity addition by the NTPC group in a single year stands at 6,984 MW in 2019-2020. However, we have already achieved 5,359 MW within the first seven months of the current financial year. NTPC Green Energy Limited group has added 1,506 MW in H1 and further added 156 MW in October till date, taking total installed capacity to 7,564 MW. With this, NTPC group installed capacity rose to 84,849 MW. Coming to the operational performance during H1FY26, due to the adoption of sustained maintenance practices, we maintained over 90% availability of our coal-based stations, demonstrating operational reliability. The group’s total generation stood at 214 billion units, which is around 6 billion units lower compared to H1FY25, 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 practice. The current stock at our stations is 13.4 million metric tons, up by 2.1 million metric tons for the same period last year, and is sufficient for 15 days’ generation at 85% payload for our stations. Coal receipt for NTPC group has been 129 million metric tons, of which 21.63 million metric tons is sourced from our captive mines, which is 16.76% of the total receipts. Further, our captive mines registered a dispatch growth of 2.611% vis-à-vis the previous year. NTPC Group has nine coal blocks with peak rated capacity of 91.6 million TPA with a commercial operation declared of the Kerandari coal mine with effect from 04-01-2005. A total of six coal blocks are now under commercial operation.

NTPC has incurred capital expenditure of INR 13,300 crore in coal mining as on 30th September 2025. I will now take you through some of our key financial numbers giving comparison to the corresponding period for NTPC on a standalone basis. Total income for Q2FY26 is INR 40,689 crore as against INR 41,245 crore in the corresponding quarter of the previous year. For H1FY26 the total income is INR 84,022 crore as compared to INR 86,298 crore in the corresponding previous period. NTPC’s profit after tax for Q2FY26 is INR 4,653 crore as against INR 4,649 crore in the corresponding quarter of previous year. On a half yearly basis, PAT is INR 9,428 crore as against INR 9,160 crore in H1FY25. Total income of the group for H1FY26 is INR 93,083 crore as against INR 94,179 crore in corresponding previous period.

Profit after tax of the group for H1FY26 is INR 11,334 crore against the corresponding previous year PAT of INR 10,886 crore, registering an increase of 4%. During H1FY26 our subsidiaries earned a profit of INR 1,805 crore as compared to INR 1,362 crore in the corresponding period of the previous year, registering an increase of 33%. NTPC share of profit in JVs was INR 1,059 crore in H1FY26 as against INR 1,124 crore in H1FY25. During H1FY26 we have accounted for dividend income of INR 1,271 crore from our subsidiaries and joint venture companies as against INR 762 crore during H1FY25. Standalone regulated equity as on 30-09-2025 was INR 94,454 crore as against INR 89,430 crore as on 30-09-2024, an increase of 6%. Consolidated regulated equity as on 30-09-2025 was INR 1,16,022 crore as against INR 1,05,049 crore as on 30-09-2024, an increase of 10%.

Coming to adjusted PAT on a standalone basis, adjusted PAT for Q2FY26 is INR 4,518 crore. This is against INR 4,202 crore in the corresponding quarter of the previous year, an increase of 8%. For H1FY26, adjusted PAT is INR 8,932 crore as compared to INR 8,379 crore in the corresponding previous period, registering an increase of 6%. On consolidated basis, adjusted PAT for Q2FY26 is INR 5,069 crore as against INR 4,943 crore in the corresponding quarter of the previous year, an increase of 3% for H1FY26. Adjusted PAT is INR 10,808 crore as compared to INR 9,850 crore in the corresponding previous period. On a consolidated business registering an increase of 10% during Q2FY26, a loan agreement amounting to JPY equivalent of $100 million was executed on July 16, 2025, between NTPC Limited and CTBC Bank Co. Ltd. Tokyo.

Average cost of borrowing during H1FY26 was 6.11% as compared to 6.63% in H1FY26. This has been mainly achieved through refinancing and restructuring of loans. As regards capital expenditure in H1FY26, we have incurred a group level CapEx of INR 23,115 crore as compared to INR 17,474 crore in the corresponding previous period. While on a standalone basis, NTPC Limited has incurred a CapEx of INR 14,149 crore in H1FY26 as compared to INR 14,040 crore in the corresponding previous period. The gross property, plant and equipment as on September 30, 2025, on the group level has increased by INR 54,336 crore to INR 4,37,142 crore during last one year, an increase of 14%. Turning to NTPC Green Energy Limited.

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Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: Sam.

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Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: Sa. SAM.

Sa.

Conference Operator/Moderator: We request the participants to stay on the line. We are connecting the management back to the call shortly. Ladies and gentlemen, the management is reconnected back. Thank you for staying with us.

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: Hello. Am I audible?

Conference Operator/Moderator: Yes sir, you’re audible. Please go ahead.

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: Okay, I’ll begin where I’d left at the time of getting disconnected. Turning to NGL side, NGL’s revenue from operation for H1FY26 on consolidated basis increased 19% to INR 1,292 crore compared to INR 1,082 crore in H1FY25. Operating EBITDA also rose significantly by 21% in H1FY26 to INR 1,133 crore compared to INR 933 crore in H1FY25. NGL’s operating EBITDA margin has improved to 88% in H1FY26 as compared to 86% in H1FY25. NGL’s revenue from operation for Q2FY26 on consolidated basis surged by 21.5% to INR 612 crore compared to INR 504 crore in Q2FY25. Operating EBITDA also rose significantly by 26% in Q2FY26 to INR 530 crore compared to INR 420 crore in Q2FY25. NGL’s operating EBITDA margin has improved to 86% in Q2FY26 as compared to 83% in Q2FY25. Underscoring the robust profitability of our renewable business, capital investment remains a strategic priority for NGL.

During the six months ended 30 September 2025, NGL and its subsidiaries incurred a consolidated capex of INR 6,607 crore, substantially higher than INR 4,884 crore spent during the six months ended 30 September 2024. Some of the other key financial results that I’d like to share: NTPC has declared the first interim dividend of INR 2.75 per equity share for the financial year 2025-26. Based on the question raised by the investors during earlier con calls, I would like to inform that fixed costs under recovery till September 2025 is INR 625 crore and we expect this number to be around INR 250 crore by the end of the year. Our operational gains from coal station for H1FY20 is INR 238 crore on account of SG incentive, primary frequency response, etc., and INR 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 system including battery, PSPs, and CO₂-based system. Out of the 21 GW of PSP we are pursuing on different fronts, we have commissioned two units of 250 MW each at Tehri Pumped Storage Project in H1FY26 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 12,670 MW of additional PSPs to be executed in NTPC group for which the preliminary studies are underway. On BESS, we are developing 1,990 MWh, one through TBCB route, 1,520 MWh at co-located solar projects of NTPC, and 5,280 MWh co-located near existing solar projects.

Additionally, 5,000 megawatt hours at existing thermal projects being developed by NTPC and viability gap funding of INR 1.8 million per megawatt hour shall be receivable. Further, the work on 160 megawatt hours 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 improvements. In 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 bank upgrade, we have declared the commercial operation of flue gas desulfurization systems for a cumulative capacity of 20,270 megawatt, and work is in progress for balance 39,390 megawatts. 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 500,000 metric tons in first half of the FY26, nearly double the level achieved during the same period last year. These positive moments 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 offtakers are being received within 60 to 90 days of billing. The groundbreaking of the first phase of Sampur Solar Power Plant was held on April 5, 2025, in the presence of Honorable Prime Minister of India and His Excellency President of Sri Lanka. The project activities are in progress.

Recently, a joint declaration was made by the Honorable Prime Minister of India and the Honorable Prime Minister of Mauritius to advance the government-to-government proposal for establishing a 17.5 megawatt floating solar PV project with a 48 megawatt hour battery energy storage system at Tamarind Falls, Mauritius. Some of the other key developments include business transfer agreements for transfer of coal mines from NTPC to NTPC Mining Limited was signed for hiving off coal mining business at an estimated value of INR 10.503 billion, and Chatti Bariatu and Badam mines have been transferred. We expect to complete transfer of all the remaining mines to NTPC Mining Limited in the current fiscal. Receivables from various discoms improved to 28 days from 33 days last year same period.

Honorable Prime Minister of India has laid the foundation stone on 22 September 2025 for two hydropower projects of North Eastern Electric Power Corporation Limited in Arunachal Pradesh. The projects include Heo Hydroelectric Project 240 megawatts and Tato I Hydroelectric Project 186 megawatts, having an estimated cost of over INR 3,700 crore. NTPC Vidyut Vyapar Nigam Limited has registered a growth of 11% in the power trading, up from 22.3 billion units to 24.8 billion units. Another important event has been the issuance of CERC Suo Moto 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 and A session. NTPC Green Energy Limited secured a contract for supply of 0.7 lakh ton 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 has laid the foundation stone of Mahi Banswara Rajasthan Atomic Power Project 4 x 700 megawatts in Banswara, Rajasthan on 25 September 2025. The Government of India has approved the transfer of the project NPCIL to Ashwini at book value and excavation work is expected to commence shortly. While we expand into new areas, we remain steadfast on our prudent practice 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. As highlighted during annual investor meet, we have revised our capacity addition target from existing 130 gigawatts to 149 gigawatts by 2029 and 244 gigawatts by 2037. Accordingly, the estimated capital expenditure requirement is INR 7 lakh crore by 2032. Our current capacity under construction stands at 33 gigawatts, consisting of 17 gigawatts coal, 2 gigawatts hydro and 14 gigawatts renewables. To achieve the targeted capacity addition. 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 2,400 MW Meija 2 expansion to be executed through Meija Urja Nigam Limited JV with Uttar Pradesh.

We have also placed fresh contracts for 3 GW of renewable capacity. Additional contract for land and connectivity placed for total 100 MW. We are also systematically looking out for huge large parcels of land banks for our solar project so that connectivity available becomes automatically viable for large capacity projects. 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, 10 GW Rajasthan, 2.5 GW Gujarat, 6.5 GW through tenders. With this, our total land pool has reached to 22.8 GW.

We are exploring partnership with various international players in the nuclear domain to prepare ourselves for setting up of capacities in our nuclear subsidiary NTPC Parmanu Urja Nigam Limited once we get required permission from the government. FY 2026 so far has been a strong year for both NTPC and NGL with record capacity addition and healthy financial performance. A major milestone has been the foundations on laying of the Mahi Bansora project which marks our formal beginning of entity’s nuclear and energy journey. As we look ahead to the second half of FY 2026, 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, NGL is driving expeditious execution of renewable projects to ensure capacity ramp up, supporting our goal of achieving 60 GW of RE capacity by 2032. We are also exploring opportunities in battery storage and hybrid projects to deliver round the clock renewable power and strengthen our clean energy portfolio. 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.

Over to Bernie.

Conference Operator/Moderator: We may proceed with the Q&A session.

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: Yes, the audio quality may not be as good as the no issues, no issues. I advise everybody to be loud enough, loud and clear.

Conference Operator/Moderator: Okay, sir. Noted. Thank you very much. Participants, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on the Touchstone phone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mohit Kumar from ICICI Securities.

Please go ahead. Yeah.

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: Good evening, sir, and thank you for the opportunity.

My first question is on the capacity addition target.

Are we on track to meet the capacity target of 11.8 GW, 4.5 GW conventional and 7.2 GW in FY26 or do you think there could be some miss? Yeah, very much. We are quite geared up. In fact, for FY26 we have a target of 200 on a standalone basis and 7,825 MW for JVs and subsidiaries, both totaling to 9,844. For the next financial year, the figure is 9,600 MW and for financial year 2028 it would be 10,564. We have a clear visibility on the CODs over the next three years.

Is it possible to break the FY28?

Number between conventional and RE. FY25 or FY28? FY28.

FY28 number between 28. Yeah.

FY28, the thermal would be 2,120, hydro would be 444, and renewable would be 8,000 or 8 GW, all totaling to 10,564.

Understood. The second question is that what is.

The status of major phase two projects?

Is it expected to take off in near term, or is it delayed?

You said major Phase two, sir. Major Phase two. Major Phase two. Yeah, major Phase two, all approvals are in place. Only the state government of UP approval is required. It’s a matter of time. If it’s expected to take place, we can say two months. We’ll be starting the project work from first of Jan. Understood.

My last question is that on the ESL losses, how long the ESL losses will continue in your opinion and the.

Losses will be arrested and start will.

Stop impacting our P&L.

Can you repeat the question?

Energy Efficiency Services Limited. How long these losses will continue in your opinion, and the losses will be arrested?

Yeah, I’ll just pass it on to our.

Good evening everybody. I would just like to inform the members that we, the promoters, are taking this very, very seriously regarding this ESL, and all attempts are being made to get the receivables from the various urban local bodies. We are looking at various options, including what take sale in Intellismart.

Understood, sir. Understood, ma’am.

Am.

Does it mean the losses will.

Continue in FY26 for the entire fiscal.

The losses will continue till FY26? Yes.

Understood. Understood.

Thank you.

Yeah, I can emphasize that all the promoters are very serious about this matter, and they are taking various actions for the state.

Understood? Understood.

Thank you, ma’am.

Am.

Thank you.

Conference Operator/Moderator: Thank you. The next question is from the line of Punishment from HSBC AMC. Please go ahead.

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: Yeah, thank you so much. My question is on the battery side. You talked about 5,000 MW of battery with thermal projects and 5,020 with existing solar. Can you also elaborate on the timeline of execution for these projects? Expected completion is in three years from our data. When is the date of award likely to be? Already we have tendered 2.3 GW. Another 2.9 GW will come out in, say, December. We are expected to award in the financial year. This financial year. Within three years it should, and fair to assume it is all regulated return, right? Both, and the 5,020 with existing solar. That also. Okay. That is not regulated. That is not regulated.

Okay.

Yeah. The one which is co-located with our thermal plants will be part of the thermal business.

Conference Operator/Moderator: Okay.

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: You talked about four parts, right? One was through TBCB, 1,990 MW. That is TBCB. You talked about 1,520 MW of core location. That is also regulated. No, 5,000 will be the regulator located at NGBC Plan, 5,000.

Okay.

That’s the only one. Also, if you can just remind us what is the balance capacity commissioning for FY26. How much do you still have to do both on the thermal side and renewable side? The balance in thermal is 800 MW.

Conference Operator/Moderator: Okay.

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: In renewable it is 4.004 gigawatt. You can say 4 gigawatt in the second half. Okay, that’s optimized. Thank you so much. All the rest.

Thank you.

Conference Operator/Moderator: Thank you. The next question is along the line of Atul Devari from JP Morgan. Please go ahead.

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: Yes sir.

Thank you a lot. Sir, could you shed some light on plans of ordering a new coal-based generation capacity in rest of FY26, FY27, and FY28.

You want the new ordering.

Ordering of new coal-based generation plants. Okay.

In this financial year, another 1.6 GW is expected to be awarded. Coming to next financial year, we are running 2.4 GW. Beyond that, we have another. Earlier we had a plan of 800. Now we may go for 1.6 GW. Okay.

For the nuclear power project at Mahibaswara, you know what is the configuration and how much is the total capex.

The cost will be around INR 20 crore per megawatt. The date of completion will be six years from first port contract. That will be from December 2026 or December it will be in the 2032-33. The total capex is already around INR 40,000-50,000. Around INR 50,000 crore. Total capex INR 50,000 crore.

Okay, when will you start placing the orders?

This will be 4 units of 700 megawatt constituting 2,800 megawatt. The estimated cost in INR crores per megawatt will be 20, and so that takes it to the range estimated around INR 50,000 crores. Execution time is 6 years, and broadly the offtake will be through the states of Rajasthan, Gujarat, Chhattisgarh, and Andhra Pradesh.

Okay, answer. When will the award of contracts start for the project?

See, the excavation contract is already awarded for link one and two, and the free issue materials for this nuclear already.

Being done by NTPC Limited.

The balance package of nuclear island.

The TG package is expected to have.

For this financial year likely.

Does it depend on the passage of the civil nuclear reliability bill in the Parliament, or are you not impacted by that?

This project has no effect on that. That CLND Act will help us to move further in the other technology, PWR technology.

Okay. You have all other approvals, environmental clearance, and everything?

Yes, yes. Okay, good.

Conference Operator/Moderator: Thank you. Thank you. The next question is from the line of Apurva Bahadur from IIFL Capital. Please go ahead.

Thank you for the opportunity. I hope I am audible.

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: Yeah, please go ahead, sir.

I wanted to get some sense on NTPC Green capacity addition. I can see the capital expenditure which you have incurred in the first half is around INR 6,000 crore. Last year it was INR 12,000 crore. Can you let us know how much of capital expenditure for the projects we are about to commission this year and maybe next year hasn’t been incurred and how much we’ll have to incur in the second half? Financial year 2025-26 we are going to incur a CapEx of around INR 30,000 crore, which will be financed through debt and equity bank. That is going to be the level of CapEx that is going to come in this financial year, which will be in the next financial year. This would further increase to around INR 45,000 to 46,000 crore. This is at NTPC consolidated level, green level.

Yeah, this is at the NTPC Green level. Okay, we plan to spend INR 24,000 crore in the next six months at NTPC Green. Yeah, because our significant capacity addition is planned in the H2, so therefore this level of CapEx will come in the second half. Understood sir, very useful sir. Also, I’ll probably go back to the BESS investment that we have lined up. I understand that for the coal co-located base it’s cost plus. Can you help us understand how should we think about the BESS which will be co-located with the renewable projects? What sort of returns can we expect and what’s the tariff? The co-located BESS are primarily being done with an intent to use the solar capacity during the off-peak during the peak hours in the evening.

That is expected to give us a significant boost in our revenue, but the exact numbers would come up only once we are able to firm up the tie-ups because these are currently the tie-ups for the same. Unlike the 5 GW which is on coal, it is not yet being finalized. We are in the process of acquiring the land nearby, the connectivity where we are having, and the exact numbers in the return on equity would be known only after that. Okay, so we won’t be selling it on merchant basis. We’ll have some tie-up for it. We are going ahead with the project. However, the tie-up will keep on happening as and when the opportunity arises. The intent is to start the work and move ahead with the projects initially on the merchant basis. Last bookkeeping question.

If you can help me with the adjusted consolidated PAT for the quarter. I’m sorry, I think I missed that number.

Consolidated? Yeah. The adjusted consolidated PAT for Q2 FY26 is INR 5,069 million, which I mentioned in my opening statement also.

Yes sir.

Thank you so much.

All the best. Thank you.

Conference Operator/Moderator: Thank you. The next question is from the line of Satyadeep Jean from Ambit Capital. Please go ahead.

Hi, thank you. Just on follow up on this CO₂-based storage located at thermal. Just wanted to check this 5 gigawatt hour that you’re adding. How do you decide where to co-locate it? Is it based on the cost of the plant, pithead, non-pithead? The equity will be after VGF. I’m guessing it’s after the VGF. Whatever equities you look at, regulated equity. I just want to understand the model.

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: The choice of location would be decided based on what is the variable cost over there. Ultimately, the higher variable cost is more likely to have a backing down. These are all the plans, but at the same time, we will be judiciously choosing the plans where, after you have stored it, the peak hours tariff will be viable. There will be a balancing that would be done between this, and as far as your question about VGF is concerned, the VGF will be the net of VGF. We will go for a debt equivalent.

Okay, perfect. The curtailment, the PLF that was down you mentioned because of grid curtailment and all this, did it lead to higher O&M? Just trying to understand as we see this going forward, did it impact some O&M expenses, some other expense? I can see the PLF incentive is down, but anything on the operations part?

No, no, it doesn’t have a direct correlation like that. Of course, you know if there is a backing down, the overall tariff is likely to go up because your fixed cost will be distributed over a lesser number of units in that sense. Otherwise, the operational maintenance will not have that much sensitivity.

Okay, and on NTPC Green, just wanted to check on the pipeline. It’s been around 9 GW, the pipeline which is not signed BPA. How do you look at converting there? Is that green hydrogen, green Coke, Nanda project? There are some other projects also. What visibility are you getting on conversion, and how do you look at adding maybe to this pipeline? Also, these RE RTC projects that Ayana has, including some with Hindalco, any visibility on when can you look at commissioning some of these projects just on that NTPC Green.

Answering the last part of the question, that is of Ayana, Ayana is progressing steadily with its work for the RE RTC and those projects are going to be commissioned, mentioned almost by the end of this year. That is not a challenge at all. For the other, what was the first part you asked? Yeah, for the balance. For the balance TPA which we have not yet done, we are judiciously approaching all the TBCB tenders which are coming up, and because the capacity addition is going on in parallel, we are hopeful that we would be able to get into good PPAs through the TBCB routes and the CNI customers. Also, we have been approaching so that challenge would be addressed that way.

Okay, thank you so much.

Conference Operator/Moderator: Thank you. We request all our participants to please limit their questions to two questions per participant. The next question is from the line of Sumit Kishore from Access Capital. Please go ahead.

On NGL, 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’s my first question.

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: See, for the current financial year, as was already mentioned, the renewable capacity would be 5,365 and for the next year it is 8 GW. This is for the two years. What was the associated question you had?

How much of this capacity are you planning to add at the JV level? I mean how much will not get consolidated line by line in the P&L?

Do you have a breakup of goods? How much is standard? 1,500 MW would get consolidated from the would not get consolidated every year for.

The next three years.

No, no, this is for the current financial year.

Okay. Okay.

Second question is, you spoke.

About the CERC Suo Moto Order. Could you please explain the contours of it and how does it impact the business? It’s not very clear in your opening remarks.

Yeah, in fact there were some constraints that NTPC or for that matter the central generator has been facing that while we had an obligation to supply power, there was no obligation on the part of the power off-taker, the DISCOMS, to give us a feasible schedule. There is always a constraint of ramping up. Primarily, the generation units have to run on a feasible schedule with technical means. The earlier dispensation was that the DISCOM was not obliged to maintain that technical minimum or give a technical minimum schedule. At the same time, during the peak hours, the generator was obligated to keep its plant ready. There was a clear dichotomy which was detrimental to us.

Based on the policy advocacy and follow-up, now this CERC Suo Moto Order ameliorates that situation for us and we will be getting a feasible schedule so that a certain amount of technical minimum operation is assured to us. From there, we are able to ramp up to fulfill the peak hours requirement. Is that clear to you? Very clear.

You mentioned 244 GW of capacity target that was 2047.

2037.

2037.

Okay.

That’s a substantial amount of capacity you’re planning to add between 2030 to 2037. Broadly, how much of this are you planning on thermal, nuclear, and RE, if you can give a broad breakup, that would be.

Thermal would be 13 GW between 32 to 37, and I think hydro would be close to 0.3 GW only, and renewable, we are targeting a substantial amount, almost double of that, close to 13 to 14 GW, so that is a 6.5 to 6.0 GW incremental, and the nuclear would be around 2.1 GW. 2.1 GW. 2 point. So that would be the broad breakup. Yeah.

Thank you so much, and wish you.

Thank you.

Conference Operator/Moderator: Thank you. The next question is from the line of Rajesh Majumdar from 361BNK. Please go ahead.

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: Yeah, good evening. Sir, you have a capacity under construction and thermal of 17 gigawatt and hydro of 2 gigawatts. Can you give us the execution schedule for this over the next few years, how it will pan out? We have under construction capacity of around 33 gigawatts. Broadly, the breakup is 17.3 gigawatts from coal, hydro is 2.18, and renewables 13.9. Now, if you look at the, we can give you a COD guidance of this which we had already. At the cost of repetition, let me say that broadly 6 gigawatt during the current year and 8 gigawatt each in the next two years. That is for renewables, you said. I’m talking about thermal and hydro. Thermal and hydro. Thermal is 2,780 during the current year, 1,600 in the next year, and 2,120 during FY28.

As far as hydro is concerned, it is 1 GW during the current year. Next year there won’t be any COD achievement, but the year next it would be 444 megawatt or 0.44 gigawatt. Could you give us some color on any fresh thermal bidding that you’re doing because we’ve seen some CPAs getting signed between states with Adani and JSW respectively. Any endeavor on this front? No, we don’t intend participating in any tariff based competition at this. Sir, last question. Is our regulated equity as of 30th September 1 lakh 16,000 crores? What is our targeted regulated equity as of FY28? FY28. Yeah, we can give you this figure. I mean, that will be, we’ll have to work out on the CODs and the equity of that. We’ll share it with you separately. Yes, thank you.

Conference Operator/Moderator: Thank you. The next question is from the line of Nadisha from ICICI Securities. Please go ahead.

Thank you so much for taking my questions. You mentioned that the PLF will be down due to curtailment. My question is specifically on the RE. Have we seen curtailment at the RE level as well, and is the lower PLF also a result of the extended monsoon?

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: Yeah, generally that’s the result of an extended monsoon also, and some curtailment in Rajasthan is there because of that.

My second question is on the capacity addition for Ari. The Ari capacity addition has been slightly muted in the first half and we have also reduced our target for the year. What are some of the hindrances that we are facing in doing the installation of these projects and getting the commissioning done?

If you see in the first quarter we added around 900 MW and in the second quarter we added around 600 MW. The second quarter, typically being in the monsoon season, is a muted season as far as capacity addition is concerned. The bulk of our capacity is in the balance period, that is, in the second half, and is going to come from the regions of Bhoj and Kaba plus Rajasthan. There is no significant impediment as of now on the solar side. However, if you search, typically all wind projects, including ours, do face some ROW challenges in the movement of heavy vehicles. That could be one reason probably for a slight slippage of the wind capacity that we have been targeting.

My last question would be on the new project that you will be awarding. Would you be awarding them on the ECC basis or will you be breaking the packages down into BTG BOP? You also mentioned that there are these 1.6 GW of projects that are going to be awarded in FY26. Does this include major phase two or has that already been awarded?

We have already issued LNTP on EPC basis to Bhartiya Rail Bijlee Company Limited. There is no question of packaging in major. Coming to this 1.3 GW, we have sold for balances. That is for Lara Stage Three; that will be predominantly on packaging.

Okay, thank you.

Conference Operator/Moderator: Thank you. The next question is from the line of Akash Mehta from Canada HSBC Life Insurance. Please go ahead.

Yeah. Hi sir. Just continuing on the capacity addition front, if we on NGL, we have added about 1.5 GW as you said, 900 in the first.

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: Quarter and 600 in the second quarter. What was it?

If you, how much of projects were to get commissioned during.

The first half in terms of the.

Company’s target or commissioning dates? You want to know the projects that we have commissioned in the first half? No, no. I mean target, target. Like what was the company’s target in terms of the first half commissioning and versus what has been achieved. Just wanted to check on that.

Like.

Yeah, in the first half. In the first quarter we exceeded what we had targeted for around 850 MW. We did more than that at around 900 MW. However, in the second quarter there is a slippage, which is primarily because of the rain. We were targeting another 300 to 400 MW more in Kavra, which got slipped. We will make it up in the second half. Okay, sure. I mean, going ahead also, if you could just help us give, if possible, target quarterly commissioning at least for the next two or three quarters.

If that’s possible.

I can give you typical numbers, but again, on the Arif business, quarter on quarter there could be movement here and there slightly.

But in.

Traditionally, in the third quarter and the fourth quarter, because it is the fair weather season everywhere, we are targeting around 2 GW in the third quarter and another 1.7 GW in the fourth quarter. That is our target currently at hand. It is going to also come, as I told, from both. This will be both NGL standalone, that means NGL Group along with our JV point, which is ONGC NTPC Green Private Limited. Okay, sure, sure. That.

That’s quite helpful.

Yeah.

Thanks a lot. Thank you.

Conference Operator/Moderator: 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. Bharanendar Vijay Kumar from Avendus Spark for closing comments. Over to you, sir. Yeah, sure.

Jaikumar Srinivasan, Director, Finance, NTPC Limited and NTPC Green Energy Limited: 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 any closing remarks, if any. Thank you. On behalf of the management of both NTPC and NTPC Green Energy Limited, I thank each and every participant in this earnings call for their very relevant queries and fruitful interactions. Thank you so much.

Conference Operator/Moderator: 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.

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