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NTPC Green Energy posted strong Q1 FY26 results with 59% YoY profit growth. Explore revenue, margins, IPO impact, and what’s next for investors.
Slug: ntpc-green-energy-q1-fy26-results-analysis
Focus Keyword: NTPC Green Q1 FY26 Results
🌿 NTPC Green Energy: Accelerating India’s Clean Power Journey
NTPC Green Energy Limited (NGEL), a key arm of India’s largest power generator NTPC, has released its Q1 FY26 financial results, showing impressive year-on-year growth. As India aggressively pursues its renewable energy targets, NGEL is emerging as a frontrunner with robust numbers and a focused strategy.
📊 Financial Highlights – Q1 FY26 (Consolidated)
| Financial Metric | Q1 FY26 | Q4 FY25 | Q1 FY25 | YoY Growth | QoQ Growth |
|---|---|---|---|---|---|
| Revenue from Operations | ₹680.21 Cr | ₹622.27 Cr | ₹578.45 Cr | 🔼 +17.6% | 🔼 +9.3% |
| Total Income | ₹751.69 Cr | ₹751.50 Cr | ₹607.43 Cr | 🔼 +23.7% | ➖ Flat |
| Net Profit (PAT) | ₹220.48 Cr | ₹233.21 Cr | ₹138.61 Cr | 🔼 +59% | 🔽 -5.5% |
| Earnings Per Share (EPS) | ₹0.26 | ₹0.28 | ₹0.24 | 🔼 +8.3% | 🔽 -7.1% |
📌 Note: Revenue includes ₹8.21 Cr from consultancy & supervision vs ₹1.40 Cr YoY.
💼 Business Breakdown
NTPC Green Energy operates exclusively in renewable energy generation, so there are no separate segment disclosures. However:
- It earned ₹61.42 Cr from interest on IPO proceeds deposited in banks.
- Depreciation and finance costs have increased as new assets came online.
- The company is also progressing on its Green Hydrogen Hub project in Andhra Pradesh.
💸 IPO Impact: Capital Strength & Utilization
The company raised ₹10,000 Cr in its IPO in Nov 2024, making it one of India’s biggest renewable listings. Here’s how the funds were used:
| Purpose | Utilized (₹ Cr) | Remaining (₹ Cr) |
|---|---|---|
| Repayment of NTPC REL debt | 4,150.00 | 3,350.00 |
| General Corporate Use | 2,446.49 | 0.00 |
👉 Remaining ₹3,350 Cr is earning interest in scheduled commercial banks.
📉 Expense & Margin Snapshot
| Expense Head | Q1 FY26 | Q4 FY25 | Trend |
|---|---|---|---|
| Finance Cost | ₹192.56 Cr | ₹176.77 Cr | 🔼 Slight Rise |
| Depreciation | ₹223.33 Cr | ₹205.86 Cr | 🔼 Increasing |
| Other Operating Expenses | ₹64.27 Cr | ₹47.33 Cr | 🔼 Seasonal |
- EBITDA Margin estimated at ~38% (vs ~49% last quarter)
- Net Margin at ~32% (vs ~37% QoQ)
The drop in margins was mainly due to normalization of non-core income and increased operating costs.
📈 Valuation Perspective
Given an annualized EPS of ₹1.04 and assuming a market price of ₹120:
- Forward PE = ~115x, suggesting the stock is richly valued.
- The company needs strong earnings momentum and project execution to justify this.
✅ Strengths
- Solid revenue and PAT growth.
- Strong cash position post-IPO.
- Strategic importance in India’s clean energy roadmap.
- Clear visibility on green hydrogen ambitions.
⚠️ Risks & Red Flags
- Heavy reliance on interest income from IPO proceeds.
- Sequential decline in margins and profitability.
- Upcoming projects still under execution — time-to-cash flows must be monitored.
- High PE ratio may limit short-term upside.
🧭 What Investors Should Track
- Commissioning timelines of under-construction renewable projects.
- Update on Green Hydrogen Hub rollout.
- Asset utilization and return on capital employed (RoCE).
- Any change in promoter or FII/DII holdings post-listing.
🔮 Final Take: Should You Buy NTPC Green?
NTPC Green Energy is a high-potential green energy stock, especially with India’s massive shift toward renewables. While fundamentals remain strong, valuation appears stretched. Long-term investors can stay invested or accumulate on dips, while new entrants should wait for better risk-reward entry points.
📌 Quick Summary:
- ✅ Strong revenue and profit growth YoY
- ❌ Sequential margin pressure
- ⚠️ Rich valuations
- 🟢 Long-term story intact
🧠 Reader’s Corner
What’s your view on NTPC Green Energy?
⚡ Is it a long-term multibagger? Or is the stock already pricing in too much future optimism?
💬 Drop your thoughts in the comments below!
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