NTPC Green Ene. Q1 FY27 Results (NSE: NTPCGREEN)
Signal: Margin pressure
The read
Consolidated revenue surged 63% YoY on capacity expansion, but operating margin contracted 673bps YoY as employee costs and other expenses grew faster than revenue. Finance costs and depreciation rose 67% and 53% respectively, reflecting the capital-intensive growth model. PAT grew 38% YoY, aided by a 62% jump in JV profits; standalone remained flat. The trajectory points to aggressive capacity addition funded by higher debt (D/E 1.68x), which is typical for a renewable IPP in rapid build-out phase but squeezes near-term margins.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,106.86 Cr | 62.7% | 21.3% |
| EBIT | ₹689.79 Cr | 46.5% | |
| Net profit | ₹304.94 Cr | 38.3% | |
| EPS | ₹0.36 | 28.6% | |
| EBIT margin | 62.32% |
P&L walk
Revenue growth of 62.7% YoY was fueled by new renewable capacity; however, operating margin contracted 673bps YoY to 62.32% as operating expenses (ex-D&A) grew 86% YoY, with employee costs +87% and other expenses +48%. Finance costs surged 67% YoY and D&A rose 53.5% YoY reflecting the rapid asset base expansion. PAT growth of 38.3% YoY was aided by a 61.7% jump in JV profits, offsetting a 79.3% decline in other income. The standalone entity showed muted revenue growth (+1.8% YoY) and an operating margin fall from 68.9% to 63.29%, with PAT -7.5% YoY, confirming that growth was driven by subsidiaries.
Segments
The company operates as a single renewable energy segment at consolidated level; no segment table with asset split was disclosed. All material activity was driven by subsidiaries (NTPC Renewable Energy Ltd and others).
Key positives
- Consolidated revenue grew 62.7% YoY to ₹1,107 Cr, the highest quarterly revenue in the prior results series.
- Consolidated PAT grew 38.3% YoY to ₹305 Cr, helped by a 61.7% increase in share of JV profits.
- EBIT margin improved 702bps QoQ from 55.3% to 62.3%, recovering from Q4 seasonality.
Key concerns
- Operating margin compressed 673bps YoY (69.05% → 62.32%), driven by employee costs +87% YoY and other expenses +48% YoY.
- Finance costs surged 67% YoY to ₹322 Cr, outpacing revenue growth and reflecting aggressive debt-funded capex (debt-equity ratio at 1.68x).
- Depreciation jumped 53.5% YoY to ₹343 Cr, a cost burden that will persist as asset base matures.
- Standalone PAT fell -7.5% YoY, and consolidated EPS growth (28.6%) lagged PAT growth (38.3%), suggesting modest dilution or minority drag.
Research and educational content only. Not investment advice.