NTPC Green Energy shares falls 5% after announcing its Q3 results; Check details

Synopsis: NTPC Green Energy has a market capitalization of Rs 73,343 crore and reported a strong YoY profit growth in revenue in Q3FY26. The company operates as the renewable energy arm of NTPC Limited, focusing on expanding clean power generation across solar, wind, and hybrid projects.

On Friday, NTPC Green stock has been in the spotlight, as even after robust results the company stock has reacted negatively. The company operated its business in the renewables sector, and has witnessed a 34 percent profit growth in its 9MFY26 profits With a market cap of Rs 73,343Cr, NTPC Green Energy Ltd saw its stock hit an intraday low of Rs 87 which is 5 percent lower than the previous close of Rs 92. 

The Q3FY26 Result

In the latest quarterly result the company has seen its revenue from operations increase by 30 percent YoY, from Rs 505 Cr in Q3FY25 to Rs 653 Cr in Q3FY26, while the QoQ increased by 6.6 percent from Rs 612 Cr. The net profits fell by 74 percent going from Rs 66 Cr in Q3FY25 to Rs 17 Cr in Q3FY26, while the QoQ decreased by 80 percent from Q2FY26’s Rs 86 Cr.

In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 22 percent YoY, from Rs 1587 Cr in 9MFY25 to Rs 1945 Cr in 9MFY26. The net profits for the same period grew by 34 percent going from Rs 241 Cr to Rs 324 Cr.

Lack of Profit Growth

As mentioned above the company has witnessed a 74 percent YoY and 80 percent QoQ fall in the profit growth of the company, going through the profit and loss statements we could tell the company has witnessed it expenses increase specifically the finance costs have shot up by 11 percent on both YoY and QoQ basis, along with an increase even in the Depreciation and amortization expenses that have increased by 54 percent YoY.

Apart from the expenses the company has also seen its income coming from other sources also drop by 60 percent, as in Q3FY25 the other income item was 13 percent of the total income, but in the latest quarter of Q3FY26 this has reduced to less than 5 percent.

Moreover, Companies like NTPC Green even though primarily sell power through long-term contracts, they could still however find its short-term or merchant power sales to see lower tariffs or lower volumes during winter, as electricity demand in India typically declines in this season compared to high-consumption periods like summer.

Incorporated in April 2022, NTPC Green Energy Ltd is a renewable energy company and a wholly owned subsidiary of NTPC Ltd. Headquartered in New Delhi, the company focuses on developing large-scale renewable power projects, including solar, wind, hybrid and energy storage solutions. NTPC Green undertakes capacity expansion through both organic development and inorganic routes such as acquisitions and partnerships, aligning with India’s clean energy and net-zero targets.

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