NTPC Green margin rebounds to 58.36%; stock gains 6.48% after results
Revenue grew 62.72% YoY as costs grew more slowly, while higher interest and depreciation restrained pre-tax profit growth.
Filed 22 Jul 2026, 19:26 IST · after market close · NTPC Green Energy Ltd (NTPCGREEN)
Key takeaways
- Consolidated operating margin widened 8.30 percentage points QoQ to 58.36% as revenue grew 21.28% while expenses rose 1.12%.
- Net profit rose 38.26% YoY, but interest costs increased 66.97%, limiting the conversion of a 69.90% operating-profit increase into pre-tax profit growth of 30.93%.
- The stock rose 6.48% on the results day, an unusually positive reaction against five declines in its last six result-day moves.
Price around the results
Revenue growth lifts operating margin
NTPC Green Energy reported consolidated revenue growth of 62.72% YoY and 21.28% QoQ in Q1FY27. Expenses grew 53.63% YoY and only 1.12% QoQ, so operating margin expanded 2.46 percentage points YoY and 8.30 percentage points sequentially. The 58.36% margin was 22.34 percentage points above the 36.02% median for seven Utilities peers that had reported the quarter.
Higher finance costs cap profit conversion
Operating profit grew 69.90% YoY, but interest expense rose 66.97% and depreciation increased 53.45%, leaving pre-tax profit growth at 30.93%. The lower 18.71% tax rate, down 3.14 percentage points YoY, provided some support to net profit growth of 38.26%. Other income contributed 4.36% of pre-tax profit, so the quarter's earnings were mainly operating in nature rather than driven by non-operating income.
Margin direction turns up after a prolonged slide
Operating margin had declined from 56.95% in Q4FY25 to 40.98% in Q3FY26 before recovering to 50.06% in Q4FY26 and 58.36% in Q1FY27. This marks two consecutive quarters of margin expansion after three quarters of sequential decline. The recovery in operating performance has not yet removed the pressure from financing and depreciation costs.
The market reaction was outside its usual pattern
The stock gained 6.48% on the results day and was up 5.35% in the following session. That compares with declines in five of the last six result-day reactions and a median absolute move of 3.74%, making this response both unusually positive and larger than its typical move.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,107 cr | ₹913 cr | +21.28% | +62.72% |
| Other income | ₹15 cr | ₹30 cr | -50.47% | -79.31% |
| Expenses | ₹461 cr | ₹456 cr | +1.12% | +53.63% |
| Operating profit | ₹646 cr | ₹457 cr | +41.39% | +69.90% |
| Operating margin (%) | 58.36% | 50.06% | — | — |
| Interest | ₹322 cr | ₹257 cr | +24.88% | +66.97% |
| Depreciation | ₹343 cr | ₹318 cr | +7.90% | +53.45% |
| Profit before tax | ₹339 cr | ₹229 cr | +47.96% | +30.93% |
| Tax | ₹63 cr | ₹50 cr | +26.73% | +12.12% |
| Net profit | ₹305 cr | ₹197 cr | +54.61% | +38.26% |
| EPS (₹) | ₹0.36 | ₹0.23 | +56.52% | +38.46% |
Operating margin of 58.36% compares with a Utilities sector median of 36.02% across 7 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +6.48% | +7.01% |
| Next session | +5.35% | — |
Volume on the results session was 37.87× its 20-day average.
What to watch
- Whether operating margin holds above 58.36% after two consecutive quarters of expansion.
- Whether interest-cost growth moderates from 66.97% YoY.
- Whether pre-tax profit growth improves from 30.93% as depreciation and financing costs remain elevated.