New Delhi: NTPC Limited reported a standalone net profit of Rs 5,342.36 crore for the quarter ended June 30, up 11.89 percent from Rs 4,774.68 crore a year earlier, but down 38.93 percent from Rs 8,747.27 crore in the March quarter. Consolidated net profit was Rs 6,896.44 crore, up 12.90 percent year-on-year and down 35.03 percent sequentially.
Follow Energy Watch on X
Profit before tax and regulatory deferral account balances rose 58.62 percent year-on-year to Rs 6,878.80 crore standalone, and 50.05 percent to Rs 8,639.63 crore consolidated. On that measure the quarter was also marginally better sequentially, up 2.60 percent standalone and 3.27 percent consolidated.
The sharp sequential fall in net profit is not an operating deterioration. In the March quarter, NTPC booked a total tax credit of Rs 8,737.27 crore standalone, arising from the remeasurement of deferred tax liabilities. Deferred tax liability for the previous year was remeasured at 25.168 percent from 34.944 percent, in view of the company's expected transition to the new tax regime under the Finance Act 2026, producing a deferred tax liability net of MAT credit of minus Rs 7,561.43 crore for the year.
That credit was partly offset in the same quarter by a regulatory deferral debit of Rs 6,694.73 crore. Together the two lines added a net Rs 2,042.54 crore to March quarter profit. In the June quarter they subtracted Rs 1,536.44 crore. The swing between those two positions, combined with the Rs 174.07 crore rise in PBT, accounts precisely for the Rs 3,404.91 crore sequential decline.
The year-on-year rise of Rs 2,542.06 crore in standalone PBT reconciles across six lines. Other expenses fell Rs 1,329.18 crore, total income rose Rs 1,179.60 crore and finance costs fell Rs 479.08 crore. Against these, depreciation rose Rs 202.42 crore, fuel cost rose Rs 155.55 crore and electricity purchased for trading rose Rs 78.72 crore.
There was a 22.02 percent fall in other expenses, which is the single largest favourable movement in the quarter.
Below the pre-tax line, two items pulled the other way. The effective tax rate on standalone pre-tax profit was 26.14 percent against 34.14 percent a year earlier, reflecting the new tax regime as a beneficial. But the net movement in regulatory deferral account balances contributed only Rs 261.62 crore against Rs 1,918.50 crore a year earlier, a reduction of Rs 1,656.88 crore. Within that, exchange differences swung to a negative Rs 54.49 crore from a positive Rs 1,625.56 crore. This is why net profit grew 11.89 percent while PBT grew 58.62 percent.
Standalone revenue from operations rose Rs 1,260.25 crore year-on-year. A large part of that is not current-period business. Capacity charges for the quarter include Rs 191.79 crore pertaining to earlier years on account of the impact of CERC orders and other adjustments, against Rs 928.40 crore a year earlier. Energy and other charges include Rs 1,445.60 crore pertaining to earlier years on account of revision of energy charges due to grade slippages and other adjustments, against a negative Rs 109.09 crore a year earlier.
Taken together, prior-year items amounted to Rs 1,637.39 crore this quarter against Rs 819.31 crore a year earlier, an increase of Rs 818.08 crore, or about 65 percent of the total revenue increase.
Standalone generation segment revenue rose 2.71 percent year-on-year to Rs 42,912.01 crore and 1.40 percent sequentially. Reported segment profit before interest and tax fell 4.94 percent year-on-year to Rs 8,098.10 crore and 16.34 percent sequentially. The reported segment margin was 18.87 percent against 20.39 percent a year earlier and 22.87 percent in the March quarter.
At consolidated level, generation segment revenue rose 7.06 percent to Rs 49,143.35 crore and segment profit rose 5.05 percent to Rs 10,505.49 crore, with the margin easing to 21.38 percent from 21.79 percent.
The standalone 'Others' segment tells a structural story rather than a trading one. Its revenue fell 47.61 percent year-on-year to Rs 1,855.39 crore, while its segment assets collapsed 93.45 percent to Rs 1,027.89 crore from Rs 15,693.55 crore.
The filing explains the mechanism. NTPC has been transferring its coal mining business to wholly-owned subsidiary NTPC Mining Limited under a business transfer agreement dated August 17, 2023, amended September 17, 2025. Five of six coal mine businesses were transferred in the previous year for Rs 6,020.62 crore. The remaining coal mine business was transferred effective April 1, the first day of this quarter, for Rs 6,339.18 crore.
Of the total consideration, Rs 3,230.51 crore has been settled by payment or allotment of equity, with NTPC's equity in the subsidiary standing at Rs 3,427.61 crore as on June 30 against Rs 2,008.60 crore as on March 31. A balance of Rs 8,651.86 crore is payable by NTPC Mining by September 30, or a mutually agreed date, with interest.
Despite the smaller revenue base, standalone 'Others' segment profit rose 158.61 percent to Rs 756.63 crore, lifting its reported margin to 40.78 percent from 8.26 percent. At the consolidated level, where the mining business remains within the group, Others segment revenue rose 35.25 percent to Rs 6,618.64 crore and profit rose 57.09 percent to Rs 899.56 crore.
Revenue from the sale of energy from solar stations rose 91.11 percent year-on-year to Rs 239.48 crore standalone. At consolidated level, revenue from solar and wind stations rose 71.79 percent to Rs 1,317.80 crore from Rs 767.09 crore.
Energy trading also expanded. Standalone revenue from the sale of energy through trading rose 7.17 percent to Rs 1,088.81 crore. Consolidated trading revenue rose 23.51 percent to Rs 2,879.58 crore, of which export sales to Nepal and Bangladesh through subsidiary NVVN Ltd more than doubled to Rs 509.55 crore from Rs 226.34 crore.
Standalone net worth rose 9.09 percent year-on-year to Rs 1,79,972.86 crore and consolidated net worth rose 11.03 percent to Rs 2,09,681.57 crore. The standalone debt-equity ratio improved to 1.06 from 1.10, and the consolidated ratio to 1.30 from 1.31.
Paid-up debt capital rose 4.37 percent year-on-year to Rs 190,406.42 crore standalone and 9.55 percent to Rs 272,081.67 crore consolidated.
Operating margin improved to 21.20 percent standalone from 20.22 percent, and to 23.81 percent consolidated from 22.80 percent. Net profit margin rose to 12.19 percent and 13.59 percent respectively. Both margins were sharply lower than the March quarter, again reflecting that quarter's tax credit.
The clearest deterioration is in debt service coverage. The standalone ratio fell to 1.28 from 2.90 a year earlier, and the consolidated ratio to 1.43 from 2.68.
Debtors turnover slowed to 5.38 times from 6.17 times standalone and to 5.08 from 5.60 consolidated. The consolidated long-term debt to working capital ratio rose to 31.95 from 10.61. Inventory turnover improved at both levels, and the standalone current ratio rose to 1.04 from 0.99.
NTPC said it has maintained security cover of 100 percent or higher on its secured listed non-convertible debt securities and is in compliance with all covenants.
NTPC did not declare an interim dividend alongside these results. Neither the board outcome letter nor the financial results contains any dividend declaration or record date for the quarter.
In a separate disclosure from the same board meeting, NTPC said the board approved the issue of "secured/unsecured, redeemable, taxable/tax-free, cumulative/non-cumulative, non-convertible debentures ("NCDs Bonds") up to Rs12,000 Crore, in one or more tranches/series not exceeding 12 (twelve), through private placement in the domestic market," subject to shareholder approval.
The window runs from the passing of the special resolution until one year later or the date of the next annual general meeting in FY 2027-28, whichever is earlier. Size, tenor, listing, coupon and security will be decided at the time of each tranche.
Follow Energy Watch on LinkedIN
The approval follows a quarter in which NTPC raised nothing through non-convertible debentures.