NTPC Green’s profit drops sequentially as finance costs rise
Revenue grew 53.22% year on year, but higher interest and depreciation pulled pre-tax profit down 55.04% sequentially.
Filed 30 Oct 2026, 17:49 IST · after market close · NTPC Green Energy Ltd (NTPCGREEN)
Key takeaways
- Consolidated revenue grew 53.22% year on year, but 82.67% higher interest and 49.06% higher depreciation limited pre-tax profit growth to 36.15%.
- Sequential momentum weakened as revenue fell 15.24% while expenses declined only 8.19%, reducing operating margin by 0.89 percentage points.
- Other income contributed 62.48% of pre-tax profit, while a 12.01-percentage-point year-on-year fall in the tax rate supported net profit growth of 59.18%.
Price around the results
Revenue growth held up year on year, but momentum turned lower
NTPC Green reported consolidated revenue growth of 53.22% year on year, with operating profit rising 56.66%. The sequential picture was weaker: revenue declined 15.24% from Q1FY27, and operating profit fell 16.08%. The quarter was filed after market close.
Higher financing and depreciation costs diluted profit conversion
Year on year, interest expense rose 82.67% and depreciation increased 49.06%, both faster than the 36.15% growth in pre-tax profit. Sequentially, interest rose 17.57% and depreciation 13.67% even as revenue declined, increasing pressure below operating profit. The lower tax rate also flattered net profit: it fell 12.01 percentage points year on year and 0.27 percentage points sequentially.
Operating margin remains well above Utilities peers despite the sequential dip
Operating margin declined 0.89 percentage points sequentially as revenue fell faster than expenses, but rose 1.95 percentage points year on year. This was the first sequential decline after the margin recovery from 84.86% in Q4FY26 to 89.33% in Q1FY27. Among 11 Utilities companies that had reported, NTPC Green's 88.44% margin was 45.02 percentage points above the 43.42% sector median.
Other income made up a large share of pre-tax profit
Other income accounted for 62.48% of consolidated pre-tax profit, making reported earnings less dependent on operating profit alone. That contribution was especially relevant as higher interest and depreciation absorbed more of the operating profit uplift. Net profit still rose 59.18% year on year, compared with 36.15% growth in pre-tax profit.
No current market reaction; prior results usually drew declines
There is no current-session reaction to assess because the results were filed after market close. Across seven prior results, the stock rose twice and fell five times, with a median absolute move of 3.74%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹938 cr | ₹1,107 cr | -15.24% | +53.22% |
| Other income | ₹103 cr | ₹44 cr | +136.07% | +71.56% |
| Expenses | ₹108 cr | ₹118 cr | -8.19% | +31.18% |
| Operating profit | ₹830 cr | ₹989 cr | -16.08% | +56.66% |
| Operating margin (%) | 88.44% | 89.33% | — | — |
| Interest | ₹378 cr | ₹322 cr | +17.57% | +82.67% |
| Depreciation | ₹390 cr | ₹343 cr | +13.67% | +49.06% |
| Profit before tax | ₹166 cr | ₹368 cr | -55.04% | +36.15% |
| Tax | ₹28 cr | ₹63 cr | -55.73% | -20.28% |
| Net profit | ₹138 cr | ₹305 cr | -54.89% | +59.18% |
| EPS (₹) | ₹0.16 | ₹0.36 | -55.56% | +60.00% |
Operating margin of 88.44% compares with a Utilities sector median of 43.42% across 11 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 938.16 cr after the 15.24% sequential decline.
- Whether operating margin holds near 88.44% after the 0.89-percentage-point sequential decline.
- Whether interest expense moderates after rising 17.57% sequentially to Rs 377.99 cr.