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 net profit rose +38.26% year on year to Rs 304.84 cr, despite interest costs increasing +66.97%.
- Operating margin recovered 4.47 percentage points sequentially as revenue grew +21.28% while expenses fell -14.46%.
- The stock rose +6.48% on the first reaction, an unusually positive move against five declines in its last six result reactions.
Price around the results
Revenue growth lifted Q1FY27 operating profit
Consolidated revenue grew +62.72% year on year and +21.28% sequentially, while operating profit increased +63.82% year on year and +27.66% sequentially. The sequential improvement came with expenses falling -14.46%, despite the larger revenue base. Net profit grew more slowly year on year because interest and depreciation rose +66.97% and +53.45%, respectively.
Margin recovered, but financing costs remained high
Operating margin expanded 0.60 percentage points year on year and 4.47 percentage points sequentially because revenue growth outpaced expenses. Interest costs still increased +66.97% year on year and +24.88% sequentially, which constrained the conversion of operating profit into pre-tax profit. Other income contributed 11.90% of pre-tax profit, while its own value fell -51.00% year on year and -8.34% sequentially; the lower tax rate also supported net profit, declining 3.19 percentage points year on year and 3.02 percentage points sequentially.
Margin rebound breaks the recent decline
Operating margin had fallen from 90.04% in Q4FY25 to 84.86% in Q4FY26 before recovering to 89.33% in Q1FY27. Pre-tax profit grew +32.92% year on year and +48.96% sequentially, while the lower tax rate helped net profit grow faster.
Initial share reaction was unusual for NTPC Green
The stock gained +6.48% on the first trading-day reaction and was up +5.50% after one day, before moving to -0.76% after five days. That initial move was larger than the stock's median absolute reaction of 3.74% across its last six results, when it fell after five releases and rose after one.
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 | ₹44 cr | ₹48 cr | -8.34% | -51.00% |
| Expenses | ₹118 cr | ₹138 cr | -14.46% | +54.12% |
| Operating profit | ₹989 cr | ₹775 cr | +27.66% | +63.82% |
| Operating margin (%) | 89.33% | 84.86% | — | — |
| Interest | ₹322 cr | ₹257 cr | +24.88% | +66.97% |
| Depreciation | ₹343 cr | ₹318 cr | +7.90% | +53.45% |
| Profit before tax | ₹368 cr | ₹247 cr | +48.96% | +32.92% |
| 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 89.33% compares with a Utilities sector median of 31.59% across 22 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +6.48% | +7.01% |
| Next session | +5.50% | — |
| 5 sessions | -0.76% | -2.09% |
Volume on the results session was 37.87× its 20-day average.
What to watch
- Whether operating margin holds near 89.33% after the sequential rebound.
- Whether interest-cost growth moderates from +66.97% year on year.
- Whether other income remains near 11.90% of pre-tax profit.