NTPC Q4 profit rises 51%; expands BESS and renewable pipeline

NTPC Limited reported higher standalone profit for the fourth quarter and full financial year ended March 31, 2026, while outlining an aggressive expansion strategy across battery energy storage systems (BESS), pumped storage projects (PSPs), and renewable energy capacity.

For Q4 FY26, standalone net profit rose 51.4% year-on-year (YoY) to Rs 8,747.27 crore from Rs 5,778.14 crore in the corresponding quarter last year, supported by a substantial deferred tax credit. Revenue from operations for the quarter declined 1.8% YoY to Rs 43,110.74 crore from Rs 43,903.65 crore.

Quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at Rs 12,504 crore, down 15.2% from Rs 14,754 crore in Q4 FY25. EBITDA margin narrowed to 29% from 30% a year earlier.

For the full financial year, standalone revenue from operations declined 2.7% YoY to Rs 1,65,493.74 crore from Rs 1,70,037.37 crore in FY25, mainly due to lower energy charges billed during the year. However, profit after tax (PAT) increased 17.9% to Rs 23,162.22 crore from Rs 19,649.41 crore in the previous fiscal year.

Dividend

The Board of Directors recommended a final dividend of Rs 3.50 per equity share of face value Rs 10 each for FY26. Including two interim dividends of Rs 2.75 each paid in November 2025 and February 2026, the total dividend for FY26 stands at Rs 9 per share, subject to shareholder approval.

NTPC’s net worth stood at Rs 1,74,688.19 crore as of March 31, 2026, compared to Rs 1,60,259.96 crore a year earlier. Paid-up debt capital was Rs 1,90,109.58 crore, with a debt-equity ratio of 1.09.

BESS pipeline

During the company’s Q4 FY26 earnings call, management highlighted that implementation of 5 GWh of battery storage capacity at existing thermal power stations is already underway under a regulated cost-plus framework. The company said these projects are intended to support renewable integration and manage peak power demand by storing excess daytime renewable generation for evening discharge.

NTPC stated that the Central Electricity Regulatory Commission (CERC) tariff framework for co-located BESS projects would provide assured returns under the regulated asset base model.

The company disclosed that it is currently working on 1,320 MW of battery storage projects, including 320 MW of standalone BESS projects under execution and 1,000 MW of co-located battery storage projects linked to solar assets under tendering. An additional 4 GW of battery storage capacity is under planning across locations including Kalvada, Bikaner, Sitapur, and Chhattisgarh.

PSP expansion

Alongside battery storage, NTPC is also expanding its pumped storage hydro portfolio. The company said the NTPC Group, together with THDC India Limited and North Eastern Electric Power Corporation Limited, is developing nearly 18 GW of PSP capacity.

Renewable growth

The company’s renewable energy portfolio continued to expand during FY26. NTPC Group’s installed renewable energy capacity reached 12,060 MW after adding 4,730 MW during the year. NTPC Green Energy Limited (NGL) contributed 4,225 MW of these additions, compared to 2,977 MW in FY25.

Renewable power generation from NGL increased 114% YoY to 14.6 billion units in FY26 from 6.8 billion units in FY25.

NTPC reiterated its target of achieving 60 GW of renewable energy capacity by 2032 and outlined plans for annual renewable additions of around 8 GW over the coming years. Renewable additions for FY27 are projected at 8,237 MW, while FY28 additions are expected at 8,135 MW, largely through subsidiaries and joint ventures led by NGL.

Management also indicated that the company may explore inorganic acquisitions to accelerate renewable expansion and potentially achieve its 60 GW target ahead of schedule.

Grid constraints

The company acknowledged challenges related to renewable integration and transmission infrastructure. NGL reported renewable energy curtailment of 314 million units during FY26 due to transmission and grid constraints, resulting in an estimated financial impact of around Rs 90 crore. NTPC stated that only 57% firm transmission connectivity has been secured for FY27 renewable projects, although connectivity is expected to improve in subsequent years.

Regulatory updates

During FY26, NTPC transferred five out of six coal mine businesses to its wholly owned subsidiary, NTPC Mining Limited, under a business transfer agreement. The remaining coal mine business was transferred effective April 1, 2026.

The company also said CERC notified the Tariff Regulations, 2024 for the 2024-29 control period. Pending issuance of final tariff orders, NTPC provisionally recognised capacity charges of Rs 65,399.92 crore and energy and other charges of Rs 89,623.16 crore during FY26.