Operator
Ladies and gentlemen, good day and welcome to the NTPC Ltd. Q2F527 Conference Call hosted by Novama Wealth Management Ltd. As a reminder, all participant lines will be in the lesson-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal and upgrade the by pressing star then zero on your touch-tone phone. I now hand the conference over to Mr. Subhidit Mitra from Novama Wealth Management Limited. Thank you, and over to you.
Thank you, Garakul friends. On behalf of Novama Wealth Management, welcoming you all to the 2QFY27 earnings call of NTPC Limited. We have with us today the Senior Management of NTPC led by Director of Finance, Mr. Jaikumar Srinivasan. I would now like to hand over the call. Please, Mr. Srinivasan.
Over to you, sir. of our senior leadership team. We have announced our financial results for Q2 FY27 and half-year index September 26, and I have shared the operational financial snapshot with the stock exchange. They are available for your reference. I will take you through the key developments covering the Indian PASEC outlook and NTPC and NGS operational and financial performance before opening the floor for our demand has seen a substantial growth during FY27. The country recorded year-on-year growth of about 11% in power generation and about 15% in power demand during the first half of the current fiscal. October month's figure reflects further increased pace with a growth of 21% compared with the corresponding month of the last year. Compared with the corresponding month of 25-26, peak demand increased by 8.9%, while non-peak demand increased by 6.1% to 15.4%. Based on average monthly data for H1, peak demand grew by about 14.5% and non-peak demand by about 9.5%. The maximum demand met during the period was 271 GB for peak demand and 253 GB for non-peak demand. The highest increase occurred in July month when peak demand increased by about 50 GB and non-peak demand by about 34 GB. The major contributors for this demand are digital services, urban transport, industries, changing weather pattern, and data centers. Rising demand during both peak and non-peak hours creates growth opportunities and reinforces the need for reliable base load power supply. NTPC's generation portfolio and NGL's renewable business complement each other in meeting this trend of demand. Accordingly, we are combining the strength of both organizations and developing new business models to meet the country's growing power needs and create long-term value for our shareholders through disciplined investment into value-accretive projects. At the same time, the grid is becoming more complex. Rapid renewable penetration is increasing backing down requirements during solar hours and creating steep evening ramps. To address this, we are already implementing 5 gigabyte hour of battery energy storage and pursuing other long duration storage opportunities. Operational performance during the second quarter, the growth in generation, captive coal dispatch and power trading volumes indicate robust growth in every business. However, due to transmission constraint, NGL is facing curtailment of power from RE projects, which is phenomenon faced by other RE projects in the country too. To address this issue, NGL has plans to implement 40 GWh of battery for which proposals are under process. In addition to the above, NGL has entered into contracts for 3 GWh of storage in service mode and additional 12 GWh are under tundering in service mode. To address transmission constraints and renewable energy curtailment, the Government of India approved the Green Energy Corridor Phase 3 schemes on 30th September 2026. The scheme will strengthen intrastate transmission systems to evacuate up to 135 gigawatt of renewable power and provide 50 gigawatt hour of battery energy storage. It has a total project outlay of 1,86,405 crores with central financial support of 54,082 crores and is targeted for completion by FY3233. Coal generation continued to provide reliable power and help balance the grid, particularly as hydro output was lowered during the quarter. According to the CEA report, the plant load factor of coal plants across the country rose to 70.37% in H1FY27, compared to 66.02% in HY last year. Higher PLF has increased coal consumption, which continued to exceed supply. Accordingly, several coal stations in the country have critical coal stock levels. Presently, we have 5.2 mmT of coal stock at our station, sufficient for 7 days of coal requirement. Despite supply constraints from CIL and Singreni Coaliery Company Limited, this was made possible with better We have also issued tenders to procure 13 mmT of coal for H2 FY27 from alternative sources including commercial mines, Orissa Power Generation Company, NLC, and West Bengal. We are also in the process of awarding 4 million metric ton of additional coal to be procured through domestic sources. We are closely monitoring coal stocks and coordinating with all stakeholders including Ministry of Coal, Ministry of Power and Ministry of Railways while working to increase the production from our captive mines. With commencement of land acquisition process as one of our projects, our nuclear program has picked up speed. We have also strengthened The government of India has published draft rules under the Shanti Act for setting up nuclear power plants in the country. These rules are currently under consultation and mark an important step towards wider participation in India's nuclear sector. Recently, we have also issued expression of interest for industrial and industrial consumers under group captive route, which will create an additional pillar of sustained growth and moving forward. We have also decided to establish a 100 megawatt data center of locations as part of our initial phase. We are also exploring further opportunities in this business. Now, I turn to NTPC Group's key highlights during H1 FY27. 91,398 MW of capacity, out of which NTPC is 196 MW, NGL Group is 1136 MW, and other Group Companies have added 1066 MW. Additionally, 162 MW have been added in October 2026. NTPC group generation stood at 236 billion units in H1 FY27 compared with 214 billion in H1 FY26, registering growth of 10.4%. NTPC reached the 200 billion unit generation milestone in 156 days, its fastest. NTPC coal station achieved a PLF of 75.11% against rest of India's average of 68.35%. Fy27 stood at 10.88 billion units as compared to 6.76 billion units in H1 Fy26, registering a growth of 60%. NVVN traded 31 billion units of power as compared to 24.8 BU in H1 FY26, registering a growth of 25%. BSS as part of BSS implementation, implementing agency notified by Ministry of Power. Active coal mines increased to 26.13 million metric tons in H1 FY26 as compared to 21.63 MMT last year, registering a growth of 21%. NTPC has awarded LARA Stage 3 1600 MW and issued limited notice to proceed, pending environmental clearance in Q2 FY27. The coal stations co-fired 0.83 million metric tons of biomass, which is 65% more than biomass co-fired during H1 FY26. NTPC participated in Ministry of Coal Incentive Scheme for coal gasification projects and submitted a proposal for producing 5 lakh ton per annum synthetic natural gas at Talaipalli. We are also planning to participate in Round 2 of the scheme for Methanol, Dimethyl, Ether, Urea plant, etc. As regards fund mobilization, during the H-1 FY27, a loan agreement amounting to US$ 750 million was executed on 6th May 26 between NTPC and a consortium of SBI, HDFC, and Bank of Baroda, IFSA, GIFT CITY. NTPCS availed RBA concessional USD-INR swap facility for the drawn amount of US$450 million. The weighted average interest rate on borrowings during H1 FY27 stood at 5.72% compared to 5.98% in FY26, reflecting the benefits of proactive refinancing and restructuring of company's loan portfolio. As regards capital expenditure progress, in H1 FY27, we have incurred a group capex of 23,932 ANR compared to Rs. 23,115 crores in H1 FY26. On a standalone basis, NTPTs incurred capex of 14,398 crores in H1 FY27 as compared to 14,149 crores in H1 FY26. The property plant and machinery as on 30th September 26 on group level has increased to 4,85,444 crores, 4,37,142 crores as on 30th September 2025 during the last one year and increased by 11%. We will now take you through some of the key financial numbers giving comparison for the corresponding period. Regarding the standalone financials, revenue from operation for Q2 FY27 is 45,752 crores. Us against 39,167 crores for Q2 FY26, registering a growth of 17%. For H1 FY27, revenue from operation has reached 89,584 crores, from 81,736 crores in H1 FY26, registering a growth of 10%. NTPC's profit after tax for Q2 FY27 is Rs 5,320 crores, as against Rs 4,653 crores in the corresponding quarter of previous year, registering a growth of 14%. NTPC's profit after tax for H1 FY27 is Rs 10,662 crores, as against Rs 9,428 crores in the previous year, registering a growth of 13%. For H1 FY27 is 10,469 crores against 8,932 crores in the previous year, registering a growth of 17%. During Q2 FY27, we have accounted for dividend income of 658 crores from our subsidiaries and joint ventures in addition to 238 crores earned during Q1 FY27. Let alone regulated equity for conventional power business as on 30th September 2026 is 92,926 crores, as against 94,544 crores as on September 2025. This is due to transfer of coal mining business from NTPC Limited to wholly owned subsidiary company NTPC Mining Limited. 5,857 crores as against 93,083 crores in H1FY26, an increase of 14%. For H1FY27 is 14,247 crores as against previous year 11,334 crores, an increase by 26%. By H1FI27, our subsidiaries earned a profit of 3,194 crores. NTBC's share of profit in JVs was 1,253 crores in H1FI27. Consolidated regulated equity for the group stood at 1,21786 crores as on 30th September 26, as compared to 1,16,022 crores as on September last year. Coming to the NTPC Green Energy Limited Highlights. Consolidated revenue from operation increased by 58% to 2045 crores. H1 F by 27 remain at 89. For NGL group has increased to 938.1 from 612 due to F by 26 showing an increase by 50 also increased to 829.69 crores increased by 5627. 3 Rupees per share in line with the company's commitment to delivering value to its shareholders, for NTPC and NGL. We will build on the renewable energy business to deliver reliable power while supporting the country's energy transition. We are actively looking at C&I opportunities to look beyond these forms. 37 GW of capacity and reconstruction, including 17 GW of coal-based renewables, Our immediate focus is on timely project execution and maintaining maximum availability of our station. Alongside this, we will strengthen fuel security by maximizing production from captive mines, diversified coal sourcing, and close coordination with suppliers and transport agencies. Energy storage will be a key priority as renewable capacity grows. We are progressing well on setting up storage at massive scale. We are also developing new opportunities in synthetic natural gas, methanol, dimethyl ether, and urea. Nuclear energy remains an important part of our long-term growth strategy. Our priorities are to progress the Mahi Banswara project, further identify suitable sites for future projects, and build the technical and quality capabilities needed for nuclear projects development. Across these initiatives, we will remain focused on disciplined capital allocation, cost control, and operational excellence. Our aim is to balance growth with financial strength, meet the country's evolving power needs, and create lasting value for our shareholders. Thank you for joining us. We will now be happy to take your questions. I now hand over to Nuwama for the question and answer session. Thank you so much.
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mohit Kumar from ICSA Securities. Please go ahead.
Good afternoon, sir, and congratulations on a very good quarter.
My first question is, demand has been
very high in the last several months, leading to peak shortages, right? Is there indication from the government to increase your travel pipeline? Are you looking to start work on a few more travel plans instead of scale? From the earlier 4 gigawatt additional pipeline, which you had indicated,
has been very high in the last 7 months, leading to peak shortages, right? My question is, are you looking to start to work with a few more thermal power plants in this fiscal or next fiscal? I think earlier you had indicated 4 gigawatt additional pipeline.
Tentering out quite further, largely from price of 800 megawatt at second stage of Jabua, there will be another 800 megawatt from Talcher. Talcher, Kania, stage 3 will have two units of 800, which would become 1600. We are planning a single unit of 800, and BRBCL stage 2 will be 800, so that adds to around 4800. So, 2400, that is half of that would come from a standalone, and 2400 will be through the JV subsidiary. Beyond this also, continuously exploring, working on 3 to 4 gigawatts on broad If you take a bifurcation of this into pit head and non-pit head, again there is a split is equal, 2,400 MW will be coming from pit head stations and non-pit head will be 2,400 again. And the estimated capex of all these things would be 67,000 crores.
And as you My second question is that it seems curtailment has impacted you negatively in this quarter in NDPC green. When we expect the intensity of curtailment to reduce significantly for our portfolio, and can you please quantify the revenue lost in the quarter because of curtailment?
Besides this also, the green energy corridor phase 3 and we suggest 135 gigawatt of intrastate transmission capacity. So, according more specific to NGL, our transmission constraint or connectivity issue which we are facing will all be surmounted by next year, June, July, mid-July. Beyond We will not have this continued thing. So pending this, we are trying to optimize this through wherever possible through temporary GNA. And the other significant thing which we would like to point out is wherever we are facing this problem, the PPA term get extended because you know, once you have this connectivity, the PPA term starts. We don't see this as The complete revenue loss, it gets shifted, and the kind of revenue which we are getting through the TGNA, squarely we are able to cover other operational expenses, co-endem and interest, and only the depreciation, which is the book cost, doesn't get covered in this phenomenon. So we are trying to get over this issue shortly.
My last question, would you like to revise your RE capacity edition target given the fact that we've added only merely 1.3 GigaWat, if I'm correct, in the first half H1.
The automation of close to 8 GigaWat, we would, the end of October, probably the delay in the transmission.
Operator
Thank you. The next question is from the line of Mohit Pandey from City Research. Please go ahead.
Yeah, good evening, sir. Thank you for the opportunity and congratulations on a strong quarter. Sir, first question would be, is it possible to share the adjusted pad for the consolidated entity for 2Q?
$13,970. Would you like for standalone as well?
No, the standalone is there in the PPT for the base quartet, 2QFI26 also, if you could share for the consolidated entity. Yes. Okay, sir. Thank you. And, sir, if you can share color on both for the standalone and consolidated, if you look at the standalone, regulated equity is down because of the transfer of mines, But Pat is up mid-teens, right, and other income is also down. So if you can share color on that, similarly for the regulated, for the consolidated act number, 40% growth, yeah.
Pretty close. The dividend from JV subsidiaries, which is reflective of a better collection efficiency, although, of course, has...
Yeah, no, sir, sir, my question was, despite the drop in other income, the profit growth is pretty strong. So, yeah, yeah, my question was around that, yeah.
Because of profitability has come out of better efficiency.
No, so it's much ahead of the regulated equity growth. Yeah, I was coming from that end. So we can expect this trend broadly to continue. So profit growth to significantly regulated equity growth in the coming quarters as well?
Because of the efficiency.
We can barely expect it. Yes, yes.
Yeah, that's great. Sir, and second question on Ratnagiri. Its profit is a function of availability or of generation? Yeah, just one clarification there. For the Ratnagiri gas, yeah, where we have seen a strong increase in profit by a while, the profit is linked to availability or to generation?
Yeah, just because of the increase.
Understood. And sir, are there any plans similar to Sinar Thermal for M&A with regards to any state plants? And for Sinar, what is the turnaround timeline that you may be looking at? Yes. The last question is, was there any fixed cost under recovery linked to coal in this quarter?
Gains, in fact. The disincentive of how we find it, it is 332 crores. This is half of what was there in the last year of 625 years. So the disincentives have dropped and the better seasons await us. So we will be able to improve it further.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, Please limit your questions to two per participant. Should you have a follow-up question, we will request you to rejoin the queue. The next question is on the line of Apoorwa Bahadur from IIFL Capital. Please go ahead.
Hi, sir. Thank you for the opportunity. Sir, in your opening remarks, you commented that NDPC is actively looking at C&I opportunity. Can you give some color on this? Is it only for the renewables business or is it for the thermal business as well? And secondly, you also commented on the best deployment by NDTC Green, so when should we expect the first batteries to commission?
Another 39,000 available to us. Here, we have the possibility of utilizing this as well as, so both these things generally take some kind of...
For the area of coal, power generation, and heat, the view will be closing in the end of November, then we'll be able to know in which area we'll be progressing.
Okay, sir, so we'll probably set up coal plants for these partners for CNI as well. That's quite interesting.
Great. So, secondly, on this Ratnagiri profit, as well as I see that the profitability of PHTC has also improved wire-wise significantly. So, can you give some update on this? Is it one-time? Is it a structural increase for THTC? I believe it's the Khurja project which has been commissioned. For Ratnagiri, what's the contours of the PPA? It's a take-or-pay arrangement, or how do we get paid?
We are available to trans requirements and markets. We are continuously engaging in, you know, exploring the market sales opportunities. So that is as far as Rasnagiri is concerned, we have seen in this year because we commissioned this last year, whereas this year it will have a full effect. But in any case, the H1, there is a substantial difference. So that is the reason we have announced 221 crores.
Last question on, if I can ask on this regulatory deferral number, there is an other item of 862 crores. I believe it refers to some sort of a depreciation expense, a one-time expense, which has been recorded. So, what is this regarding and is it recurring?
Operator
Thank you. A reminder to all the participants to limit your questions to two per participant. The next question is on the line of Samit Keshawar from Access Capital. Please go ahead.
Good evening. Thanks for the opportunity. My first question is around capacity addition now. For the first half, you have done about 2,398 MW for NTPC Group. What are your targets for FY27, FY28, FY29, and you can break them across thermal RE for NTPC Standalone, NTPC Group, and NGEL, please.
The year next, that is FY29, the target is 10,877 MW, which will have a broad backup of 3,070 MW of thermos. This will be largely contributed by JVs and substitutes. One unit of DTPS and remaining from...
Sir, for FY27, you have given details for NGEL, NG, for NTPC group as a whole, what is the total expectation? If I missed it, can you please repeat it? For NTPC Group?
Sorry to interrupt you sir, can you please mute your line?
No, this is not from my end, this is from someone else.
Operator
You may proceed.
Would be the revised estimate.
No more, sir, no. Just one clarification on the slide, in the NTPC deck, NGEL capacity edition in 9 months is 1136 MW, and in the NGEL deck, it is 983 MW, which is the more updated number for the 6 months period.
As on 30 KPS, delays up to 30th October have been given, so that is why the difference is there.
Okay. Okay. Got it. Got it. Thank you.
Operator
Thank you. The next question is from the line of Praveen Viseesh from PPFAS Mutual Fund. Please go ahead.
Hello. I just had a question on our under construction capacity under thermals and also our thermal capacity addition targets for FY32. So, if I see the quarterly PPT, the under construction capacity is around more than 17 gigawatts, but if I look at our year-end analyst's mid presentation, there the capacity addition target was for FY32 was about 10 gigawatts in thermal. So, I just wanted to understand this discrepancy because it is, yeah, yeah.
Operator
Thank you. The next question is from the line of Nikhil Nagania from Bonesden. Please go ahead.
Hi. Thank you, sir. So, my first question is on the renewable business. So, as you said, transmission has been a challenge for us and for others as well. Hence, our guidance has been cut. But what gives us confidence on, you know, again, achieving 8 gigawatts next year or the year after, because it's been a consistent trend and with no easy answers. So, just, I mean, how confident are we of achieving the numbers or is it some other issue on ground why we have been missing our renewable addition targets?
On the, largely surmounted in the next year, so we are fairly, add to that, I will request My name is
Maheshwari, CEO, NTPC Green Energy Ltd. Let me start by explaining a little bit on the capacity front. If you recall, we have been consistently saying that in FY27, FY28, and FY29, we would be doing as a ballpark figure around 8 gigawatt every year. See, if you look at, we have also been telling about the connectivity availability in each of these years. So, if you see in FY27, as Director Finance has just explained, we had a connectivity of only 44% of this capacity. So, what we did was that we back-ended the capacity addition generation. So, you would find that significant amount of capacities will be coming in the third and the fourth quarters. To give you a little bit more flavor of the total capacity, we had said that initially we would be doing around 8061 megawatts of capacity. And by the end of this financial year, the on-ground capacity that we would have erected would be around 6.35 gigawatt. So, there isn't much difference. The only difference that is arising out is because you are not seeing the COD happening. And this COD is primarily because of the bulk of the capacity being added in the Khabra region, wherein the transmission has got inadvertently delayed by almost more than a year. So, that is why you are seeing that consistently there is a rolling back of this. We were to get the connectivity in October 26, the full capacity, for our full capacity, which has now been moved to November 27. So, therefore, this delay is in the actual SCOD that you are seeing. But all the projects for FY27, FY28, and FY29, the work is in progress, and once these transmission constraints are over, you would see that these CODs would translate into the L Capacity.
Got it, sir. Thanks so much for the color. Then moving on to the storage side, good to see progress on BES. Wanted to understand, A, why is it taking us 12 to 18 months to set up a BES plant, any plant to do a merchant BES plant? And lastly, on pump storage, we have been highlighting that we have got 16 sites or something in that range. But we don't see any news of ordering or plans to order any PSP assets. So, wanted to update on those two funds.
Speaker 11
Regarding not working, we are terminating and giving contact to others. So, very well, we are on line, and we are pretty hopeful that by April, we will get all the units, all the battery commission.
like to add on the best capacities that we are putting up in NGEL. You see, your question was that why it takes around 12 to 18 months to this. See, basically, these are utility scale batteries. The largest container being almost of the order of only 5 megawatt hours. So when we are talking about such large quantities, both on the DC side as well as on the AC side, it does take this much of time. And you would see bulk of our capacities that NGL is putting as on the night connectivity will be showing its on-ground presence in FY29. A part of it will come in FY28 also. A shade of capacities will be next year, wherein the work is already going on, on around 1350 MW. That capacity will come by the mid of FY27.
Operator
Arian sir, can you hear me? Arian sir, can you hear me? Due to no response, we move on to the next participant. The next question is from the line of Mahesh Patil from ICSI Securities. Please go ahead.
Yeah, hi. Thanks for the opportunity. So my question is on the comment that we made on some new solutions with NGL that we're planning And we also mentioned C&I, where we are also interested in deploying thermal. So could you throw some light on this exactly what we are doing? Is it some kind of hybrid kind of solution with redables, thermal that we are planning for C&I? Which are the type of customers or industry we are targeting here? Any color on that?
I mean, all starts of your...
Operator
Maheshita, can you hear me?
Yes, sir. Okay, thank you.
Operator
Thank you. The next question is from the line of Atal Tiwari from JPM. Please go ahead.
Yes, sir. Thanks a lot. Sir, my question is on the gas supply situation for Ratna Giri. What is the fuel cost that you are operating at right now, and is it LNG or some domestic source of gas? Okay. And so, based on that average, what will be the fuel cost per kilowatt hour, roughly? 26 to 35. And, sir, on your best strategy, obviously, we have seen you cancelling contracts with some of the contractors who are not doing the work. But in the sector, at the same time, we are seeing some of your smaller competitors in the private sector directly tying up with Chinese suppliers and getting batteries much faster. So, rather than going to some of these smaller contractors who ultimately, you know, delay the project, you know, have you explored, you know, directly sourcing the batteries and installing and, you know, speeding up the process because, you know, we do need these batteries as quickly as possible, you know, to ride over the shortages.
GFR rule voted from China. We have been pursuing actively with the government and we have now been asked to procure directly and we would therefore be going ahead with a 40 gigawatt hour tender coming up soon, which would be an ICB tender. Procurement of it would be directly from all the Chinese or the other related, you know, the places from where we were not able to source directly. So what you said, we are already on the way on.
Operator
Thank you. The next question is from the line of Lajas Majumaddar from 361 Capital. Please go ahead.
Yeah, good evening, sir. Thanks for the opportunity. I have a couple of questions. One is that, is it possible to give us a breakdown of the regulated equity of THDC, NIPCO, MEJA, and PATRADU? These are the main ones, actually.
We don't have it right now.
Okay. Because a lot of the growth is coming in on the subs, so I was interested in knowing the regulated equity here of these ones.
Be fair enough, we'll share it.
Right. And my second question, sir, was how do we read into the increase in profitability of BRBCL? Because it's a regulated business. However, the PAT has gone by nearly more than 100 crores this first half, how do we see the profits of this subsidiary going forward?
And the other is the impact of billing and security.
So in terms of annualized pad, how should we look at BRBCL now with the change in the refinancing, etc?
You can see an improved, I mean, what you see, the differential in the first half. The extent of that, the impact will be there for a better margin.
And so, in NTPC mining, what is the regulated return? Is it 14% or is it 15.5? Thank you.
Operator
Thank you. Ladies and gentlemen, due to time constraints, we take that as the last question for the day. And now, I would like to hand the conference over to Mr. Badeep Mitra from Nuwama World Management for the closing comments. Please go ahead.
Thank you. On behalf of Nuwama World Management, I would like to thank the management of NDPC for giving us this opportunity to host the call. Sir, any closing comments from your side?
I take this opportunity to thank board members and also express our sincere appreciation to Nuwama Capital for organizing this earning conference call and facilitating the interaction. Queries are clarified at ntpc.co.in. And I'll end here with a warm greetings to all of you for the forthcoming Devali Festival.
Operator
On behalf of Nuwama Wealth Management Limited, that concludes this conference. Thank you for joining us and now you may disconnect your lines.
