Earnings call transcript: NTPC posts strong Q2 2026 growth as stock rises

NTPC Limited delivered robust financial results for Q2 and H1 FY27, with revenue and profit growth outpacing the broader market. The company reported a 17% year-over-year increase in standalone revenue from operations, reaching INR 45,752 crores, and a 14% increase in profit after tax, totaling INR 5,320 crores. Adjusted profit after tax for the first half of FY27 rose 17% to INR 10,469 crores, driven by efficiency gains, lower financing costs, and improved performance from subsidiaries.

The stock experienced a 1.85% increase, closing at $316.25, which is above the stock's 52-week range but still below its high of $414.4.

NTPC's coal stations operated at a 75.11% power utilization factor (PLF), surpassing the national average of 68.35%. The renewable arm, NGEL, demonstrated strong growth, with H1 revenue up 58% and operating EBITDA up 60%. Transmission constraints continue to hinder renewable capacity realization, and the company provided near-term guidance, highlighting the challenges.

Overall, NTPC's strong operating performance, improved profitability, and lower borrowing costs received positive market attention. However, the stock's reaction remained relatively modest, possibly reflecting caution over renewable execution risks and slower than anticipated capacity realization. NTPC has set capacity targets for FY27 and FY28, with a mix of thermal, hydro, and renewable projects.

The company also plans to deploy utility-scale batteries and undertake pump storage projects to support its renewable portfolio. NTPC's consistent dividend payments and financial health scores further support its appeal to investors.