NTPC Green profit falls 15.45% despite 46.66% revenue growth
Costs grew more than twice as fast as revenue, while lower other income and higher interest and depreciation pulled down pre-tax profit.
Filed 22 May 2026, 18:29 IST · after market close · NTPC Green Energy Ltd (NTPCGREEN)
Key takeaways
- Consolidated net profit fell 15.45% year on year despite revenue growth of 46.66%, as expenses grew 122.79% and finance costs rose 45.64%.
- Operating margin narrowed 5.18 percentage points year on year to 84.86%, extending the decline from 90.04% in Q4FY25 despite a small Q3 uptick.
- Other income contributed 19.34% of profit before tax, while the lower 20.26% tax rate partly cushioned the pressure on reported profit.
Price around the results
Revenue growth did not translate into higher profit
Consolidated revenue rose 46.66% year on year and 39.70% sequentially, but net profit declined 15.45% year on year. Operating profit grew 38.24% year on year, well below the pace of revenue growth, while interest rose 45.64% and depreciation increased 54.28%. The result was a 19.46% year-on-year decline in profit before tax.
Cost growth narrowed the operating margin
Expenses grew 122.79% year on year and 60.84% sequentially, faster than revenue in both comparisons, reducing operating margin by 5.18 percentage points year on year and 1.99 percentage points sequentially. The margin has fallen from 90.04% in Q4FY25 to 84.86% now, with Q3FY26 the only interruption to that broader decline. Even so, the margin was 49.67 percentage points above the 35.19% median for the 17 Utilities peers that had reported.
Other income and tax movements affected earnings quality
Other income accounted for 19.34% of profit before tax, making the reported earnings mix an important qualifier to the operating result. Other income was lower year on year, while the tax rate fell 3.78 percentage points to 20.26%, partly offsetting the pressure from higher interest and depreciation. Sequentially, the tax rate fell 32.51 percentage points from the unusually high Q3FY26 level, helping net profit rise 1,038.39% from a low base.
The initial market response was negative but not unusual
The stock fell 2.27% on the first trading day after the results and 2.92% over five sessions; the five-session move was within its median absolute result reaction of 3.74%. The longer response was weaker, with the stock down 5.99% after 15 sessions and 11.20% after 30 sessions. Across the last five result reactions, four were negative and one was positive.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹913 cr | ₹653 cr | +39.70% | +46.66% |
| Other income | ₹48 cr | ₹-1 cr | — | -63.04% |
| Expenses | ₹138 cr | ₹86 cr | +60.84% | +122.79% |
| Operating profit | ₹775 cr | ₹567 cr | +36.50% | +38.24% |
| Operating margin (%) | 84.86% | 86.85% | — | — |
| Interest | ₹257 cr | ₹230 cr | +11.91% | +45.64% |
| Depreciation | ₹318 cr | ₹300 cr | +5.99% | +54.28% |
| Profit before tax | ₹247 cr | ₹37 cr | +574.28% | -19.46% |
| Tax | ₹50 cr | ₹19 cr | +158.86% | -32.14% |
| Net profit | ₹197 cr | ₹17 cr | +1038.39% | -15.45% |
| EPS (₹) | ₹0.23 | ₹0.02 | +1050.00% | -17.86% |
Operating margin of 84.86% compares with a Utilities sector median of 35.19% across 17 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.27% | -3.59% |
| Next session | -1.29% | — |
| 5 sessions | -2.92% | -1.93% |
| 15 sessions | -5.99% | — |
| 30 sessions | -11.20% | — |
Volume on the results session was 1.51× its 20-day average.
What to watch
- Whether operating margin holds above 84.86% after the sequential decline of 1.99 percentage points.
- Whether expenses continue to grow faster than revenue after rising 122.79% year on year against revenue growth of 46.66%.
- Whether other income remains close to 19.34% of profit before tax.