NTPC Green Energy Limited, the company that focuses on renewable energy, has just provided an additional update regarding operations in Rajasthan, where a joint venture project has achieved another milestone. This new power block is included in a scheme aimed at ensuring continuous power supply and comes after a strong performance in the first quarter of FY27. While it does increase the total capacity a bit, the more relevant question is how fast the earnings will be able to keep up given that borrowing costs are having a negative impact on profits and the level of debt is continuing to rise.
Shares of NTPC Green Energy Ltd are trading at Rs. 91.85, down 1.61 percent on Thursday. The stock touched the intraday high of Rs. 93.40 after opening at Rs. 93.40 before slipping to a low of Rs. 91.03. The company commands a market capitalization of Rs. 77,395.84 crore.
Another 50 MW of Solar Starts Running in Rajasthan
NTPC Green Energy told the exchanges on September 30 that 50 MW of solar capacity in Rajasthan will be declared commercially operational from 00:00 hrs on October 2, 2026. It is the fourth tranche of a 300 MW solar component that forms part of a 200 MW round-the-clock renewable project. The plant is owned by Project Sixteen Renewable Power Private Limited, a step-down subsidiary of the company’s joint venture, ONGC NTPC Green Private Limited. Group commercial capacity was 11,212.51 MW before the announcement and moved to 11,262.51 MW after it. The filing was made under Regulation 30 of the SEBI listing rules.
Small Addition, but the Funding Cost Is Worth Watching
Fifty megawatts is about 0.4 percent of what the group already runs, so nobody should expect it to move the numbers much. The project type is what makes it interesting. Round-the-clock supply is easier to sell to buyers who want steady power, and that is where a good share of new demand is heading. Because the asset sits inside a joint venture, its earnings will probably show up in the share of joint venture profits, which stood at Rs. 29.04 crore in the June quarter, and not in consolidated revenue. The plant starts after that quarter closes, so April to June is unaffected. The first real contribution should appear in the October to December quarter.
Funding is the part to keep an eye on. Consolidated net profit rose to Rs. 304.84 crore in Q1 FY27, yet finance costs climbed to Rs. 321.51 crore from Rs. 192.56 crore a year ago, and paid-up debt now stands at Rs. 32,353.01 crore against Rs. 20,731.34 crore. Operating margin fell to 62.32 percent from 69.05 percent. Interest service coverage of 3.01 times still leaves some room, but every new megawatt has to earn more than the borrowing behind it. The next few quarters will show whether that is happening.
Financial Performance
Looking at the quarterly results of NTPC Green Energy Limited, the company’s consolidated revenue from operations increased by 62.72 percent YoY, from Rs. 680.21 crore in Q1 FY26 to Rs. 1,106.86 crore in Q1 FY27, and grew by 21.28 percent QoQ from Rs. 912.63 crore in Q4 FY26.
NTPC Green Energy Limited earns almost all of its revenue from renewable power generation, since it reports a single business segment. Consultancy, project management and supervision fees contributed about 0.92 percent (Rs. 10.17 crore) of revenue in Q1 FY27, and power generation made up the remaining 99.08 percent.
In Q1 FY27, NTPC Green Energy Limited’s consolidated net profit increased by 38.26 percent YoY, reaching Rs. 304.84 crore compared to Rs. 220.48 crore during the same period last year. As compared to Q4 FY26, the net profit has increased by 54.61 percent, from Rs. 197.1 crore.
The basic earnings per share increased by 38.46 percent and stood at Rs. 0.36 as against Rs. 0.26 recorded in the same quarter in the previous year, FY2026.
India’s Rising Power Demand Gives Clean Energy a Long Runway
The Indian economy is continuing to grow, and as a result the demand for electricity from houses, factories, data centres and the expanding cities is also increasing. The government has set a target of about 500 GW of non-fossil fuel capacity by 2030, which provides renewable energy developers with a long period of time in which to proceed. Although solar and wind power are cheap to set up, they only generate electricity when the sun is shining or the wind is blowing. Because of this gap, buyers are paying increasing attention to round-the-clock projects, such as the one in Rajasthan.
The main risk is cost; the speed at which a project begins to earn money depends on interest rates, the availability of land, the construction of transmission lines and the establishment of grid connections. Developers who have strong support from their parent companies and who have easy access to financing, such as NTPC Green, are in a better position to cope with this pressure.
Company Overview
NTPC Green Energy Limited is a subsidiary of NTPC Limited, listed on the NSE and BSE. It generates power from renewable sources and reports as a single business segment. The group holds six subsidiaries and four joint ventures, among them ONGC NTPC Green Private Limited. Before the latest addition, its commercial capacity was 11,212.51 MW, as per the latest filing.