NTPC Q1 FY27 Results (NSE: NTPC)
Signal: Margin expansion
The read
NTPC delivered strong operating performance with EBITDA margin surging 605bps YoY to 32.8%, the highest in at least five quarters, driven by higher generation and lower fuel cost as a percentage of revenue; PAT growth of 10% was tempered by lower other income and higher tax, but EPS rose 11.8% YoY to ₹6.93, tracking operating profit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹50,740.96 Cr | 7.8% | 2.1% |
| EBIT | ₹11,397.44 Cr | 30.3% | |
| Net profit | ₹6,721.05 Cr | 10.0% | |
| EPS | ₹6.93 | 11.8% | |
| EBIT margin | 32.8% |
P&L walk
EBITDA margin surged 605bps YoY to 32.8% as revenue grew 7.8% while fuel cost rose only 1.7% – input-cost tailwind and operating leverage from higher generation drove the step-change; EBIT up 30.3% YoY, PAT growth lagged at 10% due to lower other income and higher tax.
Segments
The Generation segment contributed 92% of consolidated PBIT at ₹10,505 Cr (+5.0% YoY), while Others segment PBIT jumped 57% YoY to ₹900 Cr, driven by solar capacity additions and improved coal-mining margins.
Key positives
- EBITDA margin expanded 605bps YoY to 32.8% on higher generation and stable fuel costs.
- EBIT grew 30.3% YoY, vastly outpacing revenue growth of 7.8%, confirming operating leverage.
- EPS grew 11.8% YoY to ₹6.93, aligned with PAT growth and steady equity base.
Key concerns
- PAT growth of 10% lagged operating profit growth due to lower other income (₹400 Cr vs ₹757 Cr) and higher tax.
- QoQ revenue growth was modest at 2.1%, indicating a possible sequential slowdown in generation.
- Fuel cost increased 1.7% YoY despite revenue growth of 7.8%; any reversal in coal prices could compress margin.
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