NTPC Reports Strong FY26 Earnings, PAT Rises 18% as Renewable Generation Doubles, Highest-Ever Capacity Addition of 9,618 MW in FY26

NTPC Reports Strong FY26 Earnings, PAT Rises 18% as Renewable Generation Doubles, Highest-Ever Capacity Addition of 9,618 MW in FY26

PAT rises 18% to Rs. 23,162 crore; renewable capacity additions hit record levels, while Mahi Banswara nuclear project moves closer to construction with first unit targeted for synchronization in 2032

The Electrical Post 

State-owned power major NTPC Limited reported a strong financial and operational performance for the financial year 2025-26, while highlighting significant progress in renewable energy, thermal capacity expansion, captive mining and nuclear power development. Addressing the company's fourth quarter and FY26 earnings conference call, Mr. Jaikumar Srinivasan, Director Finance of NTPC Limited and NTPC Green Energy Limited (NGEL), said the company remains well positioned to support India's growing electricity demand through a diversified energy portfolio spanning coal, renewables, storage, hydro and nuclear power.

Mr. Srinivasan said the evolving situation in West Asia has once again demonstrated the close relationship between energy markets and geopolitics. According to him, recent developments reinforce the importance of energy security, supply chain diversification and resilient domestic energy systems. Countries across the world are increasingly viewing electricity infrastructure, domestic fuel availability and strategic energy assets not only as economic priorities but also as matters of self-reliance and national security.

From NTPC's perspective, he said the current geopolitical developments are not expected to have any material operational impact. The coal position across all NTPC power stations remains comfortable, with stock levels sufficient for nearly 18 days of operation, ensuring stable generation and reliable supply. He further noted that nearly 18% of the company's coal requirement is now being met through captive mines, strengthening fuel security for its generating stations. In addition, NTPC's relatively limited dependence on gas-based generation provides insulation from volatility in global gas markets.

Mr. Srinivasan emphasized that the ongoing global uncertainties continue to reinforce the importance of energy security and self-reliance. NTPC's long-term strategy remains focused on strengthening India's energy resilience through expansion across coal, renewable energy, energy storage, nuclear power and domestic energy value chains while continuing to provide reliable, affordable and sustainable electricity.

The company is witnessing a sharp increase in electricity demand. According to management, the trend started during the last quarter and has accelerated further during the current quarter. Citing estimates from the World Meteorological Organization, Mr. Srinivasan said the impact of El Niño in India is expected to keep heatwave conditions elevated through the summer and post-monsoon months of 2026. If these conditions continue, above-normal temperatures and stressed monsoon conditions could extend into early 2027, driving higher electricity demand, particularly for cooling requirements.

He also pointed out that the current global situation is expected to accelerate the transition from hydrocarbons towards electricity across sectors such as clean cooking, transportation and industrial applications. This trend is expected to provide additional long-term support for electricity demand growth.

Over the past year, the Indian power sector has undergone several significant developments that are reshaping the long-term outlook for utilities. Rising electricity demand driven by economic growth, increasing cooling requirements, urbanization and expanding digital infrastructure has become one of the most important trends.

India recently recorded a peak power demand of 271 GW and day generation of 6,268 million units on May 21, 2026. According to NTPC, these milestones underline the importance of reliable baseload generation alongside rapid renewable capacity additions. In this environment, energy security and supply reliability have become central priorities for both policymakers and power utilities.

At the same time, India has accelerated its clean energy transition through rapid renewable energy additions, transmission infrastructure expansion and policy support for energy storage solutions. Alongside renewable growth, the government has renewed its focus on thermal capacity additions to maintain grid stability and meet rising electricity demand.

As per the latest estimates of the Central Electricity Authority (CEA), additional coal-based capacity requirements until 2036 are projected at 86 GW, of which 68 GW is already in the pipeline. Out of this, NTPC is currently executing 16.5 GW of thermal capacity while another 4.6 GW is in various stages of development.

Mr. Srinivasan said policy initiatives aimed at improving domestic coal production and captive mining have strengthened fuel security across the sector. He also highlighted recent policy changes in the nuclear energy sector and the enactment of the SHANTI Act, which have opened new long-term opportunities for integrated power utilities. These developments, he said, validate NTPC's strategy of maintaining a balanced and diversified energy portfolio.

As of March 31, 2026, NTPC Group's installed capacity stood at 89,108 MW. During FY26, the group added 9,618 MW of capacity, making it the highest annual capacity addition in the company's history. NTPC contributed 1,823 MW, while joint ventures and subsidiaries added 7,795 MW.

The capacity addition during the year also included the acquisition of the 1,350 MW Sinnar Thermal Power Station in partnership with MAHAGENCO. Since the close of the financial year, NTPC Group has crossed the significant milestone of 90 GW installed capacity.

Renewable energy remained one of the strongest growth areas for the group. During FY26, NTPC Group added 4,738 MW of renewable energy capacity. Out of this, NTPC Green Energy Limited contributed 4,225 MW compared to 2,977 MW added during FY25. Additionally, another 490 MW of renewable capacity has already been added in FY27, taking the total renewable energy capacity of the NTPC Group to 12,068 MW.

On the operational front, NTPC Group generated 432.2 billion units of electricity during FY26 compared to 438.7 billion units in FY25. NTPC's coal-based stations achieved a plant load factor (PLF) of 72.04%, significantly higher than the national average of 63.20%.

The company also reported strong growth in power trading activities through NVVNL, with trading volumes increasing by 13% during the year. Renewable generation from NGEL more than doubled to 14.6 billion units in FY26 compared to 6.8 billion units in FY25, representing a growth of 114%.

NTPC also made significant progress in improving its financial efficiency. Outstanding receivable days improved to 15 days as of March 31, 2026, compared to 29 days a year earlier.

Coal production from the group's captive coal mines under commercial operation increased to 47.88 million metric tonnes, reflecting a growth of 8.5% over the previous year.

Production from the Pakri Barwadih Northwest Mine commenced in December 2025, and the mine achieved commercial operation status from April 1, 2026.

The company also completed the transfer of its mining business to NTPC Mining Limited, a wholly owned subsidiary. Following the transfer of the Pakri Barwadih coal mine on April 1, 2026, the restructuring process under the business transfer agreement has now been fully completed.

Government support for renewable energy expansion continues to strengthen NTPC's growth plans. The Government of India has enhanced the investment approval limit for renewable subsidiaries to Rs.20,000 crore, supporting NTPC's target of achieving 60 GW of renewable capacity by 2032.

In the energy storage segment, work on 5 GWh Battery Energy Storage System (BESS) capacity at NTPC's existing thermal power stations is currently being executed under the cost-plus model. The Central Electricity Regulatory Commission (CERC) has also issued regulations for co-located battery energy storage systems, a development considered crucial for renewable integration and peak demand management.

NGEL is currently executing 320 MWh of battery energy storage capacity, while additional projects are under various stages of development.

One of the key highlights of the conference call was NTPC's progress in nuclear energy. Mr. Srinivasan confirmed that the Atomic Energy Regulatory Board (AERB) has granted excavation consent for Units 1 and 2 of the Mahi Banswara Nuclear Power Project.

Providing further details, he said the Mahi Banswara project will consist of four units of 700 MW each, taking the total capacity to 2.8 GW. Customer consent has already been received for 2,770 MW of capacity from states including Rajasthan, Gujarat, Chhattisgarh and Andhra Pradesh.

The excavation package for Units 1 and 2 was awarded on September 13, 2025, while excavation consent from AERB was received on March 18, 2026. Forest clearance amendments were approved in June 2025, and environmental clearance had already been secured in May 2025.

The first concrete pour for the project is expected by August 2027, while synchronization of the first unit is targeted for November 2032. The remaining units are expected to follow at intervals of approximately six months.

The company has also awarded the design consultancy contract for the project and completed an equity infusion of Rs.800 crore into ASHVINI by joint venture partners during January 2026. Major procurement packages are also progressing, with the Nuclear Island Mega EPC tender expected shortly and the Turbine Generator Island EPC package planned for March 2027.

On the capital expenditure front, NTPC Group incurred a capex of Rs.49,068 crore during FY26, compared with Rs.44,636 crore in the previous year. On a standalone basis, NTPC's capital expenditure increased to Rs.28,462 crore from Rs.22,965 crore in FY25.

Financially, NTPC delivered a strong performance despite lower electricity demand during part of the year. Total income for Q4 FY26 stood at Rs.44,030 crore compared with Rs.45,813 crore in the corresponding quarter of FY25.

For the full year, total income stood at Rs.1,69,725 crore against Rs.1,74,414 crore in the previous year, reflecting a decline of 2.69%, mainly due to lower demand conditions experienced during the year.

However, profitability improved significantly. Profit after tax for Q4 FY26 rose to Rs.8,747 crore from Rs.5,778 crore in the corresponding quarter last year, registering a growth of 51.4%.

For the full financial year, PAT increased to Rs.23,162 crore compared with Rs.19,649 crore in FY25, representing a growth of 18%. Adjusted PAT stood at Rs.19,530 crore compared with Rs.18,016 crore in the previous year, reflecting a growth of 8%.

During FY26, NTPC accounted for dividend income of Rs.2,264 crore from subsidiaries and joint ventures, compared with Rs.2,092 crore during FY25. Regulatory equity for conventional power and mining businesses increased to Rs.94,631 crore as of March 31, 2026, from Rs.90,902 crore a year earlier.

Looking ahead, NTPC has outlined an ambitious capacity addition roadmap for FY27 and FY28. During FY27, the company plans to add 9,557 MW of capacity, comprising 1,070 MW of thermal power, 250 MW of hydro power and 8,237 MW of renewable energy capacity.

For FY28, the planned capacity addition stands at 10,039 MW, including 1,460 MW of thermal power, 444 MW of hydro power and 8,135 MW of renewable energy. Major thermal additions are expected from TTPS Stage-III Unit-1 and Patratu Unit-3, while the Vishnugad Pipalkoti project will contribute to hydro capacity growth.

Most renewable additions are expected to come through NGEL and other subsidiaries, reinforcing NTPC's strategy of maintaining a balanced portfolio of thermal, renewable, hydro, storage and nuclear assets.

With record capacity additions, improving profitability, strong renewable growth, enhanced fuel security and significant progress in nuclear power development, NTPC appears well positioned to play a leading role in India's evolving energy landscape. The company continues to align its long-term strategy with the country's growing electricity demand, energy security requirements and clean energy transition goals.
 

Published at : Aug 31, 2026 07:38 AM (IST)

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