NTPC Green Energy Q1 profit rises 38%; board approves steps to expand renewable business

NTPC Green Energy Ltd, an umbrella company for the green business initiatives of NTPC Ltd, on Wednesday (July 22) reported a 38.3% year-on-year rise in net profit for the June quarter, supported by strong growth in revenue.

The company's revenue from operations rose 62.7% year-on-year to ₹1,106.9 crore during the quarter from ₹680.2 crore a year earlier.

Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) increased 63.8% to ₹988.7 crore, while EBITDA margin remained largely stable at 89.3%, compared with 88.7% in the corresponding quarter last year.

Board approves new renewable energy SPV

Separately, the board approved the incorporation of a wholly owned subsidiary or special purpose vehicle (SPV) for the development of renewable energy projects.

The company said the SPV will facilitate subsequent stake dilution for captive or group captive structuring for commercial and industrial sector customers, subject to necessary approvals.

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The board also gave in-principle approval to invest up to ₹28.78 lakh in AP NGEL Harit Amrit Ltd, a 50:50 joint venture between NTPC Green Energy and the New & Renewable Energy Development Corporation of Andhra Pradesh Ltd.

The investment will increase NTPC Green Energy's holding in the joint venture to 51%, following which AP NGEL Harit Amrit will become a subsidiary of the company, subject to applicable statutory and regulatory requirements.

NTPC Green to raise ₹2,500 crore via NCDs

Earlier on July 7, in an exchange filing, NTPC Green Energy Ltd said it has decided to issue unsecured non-convertible debentures (NCDs) worth ₹2,500 crore on July 9, 2026, through a private placement, according to a regulatory filing.

The debentures will carry a coupon of 7.27% per annum and have a tenor of 10 years, maturing on July 9, 2036. The company said this is the first issue of debentures under the approval granted by its board of directors on May 22, 2026.

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The proceeds of the issue will be utilised, among other things, for financing capital expenditure, including refinancing and recoupment of capital expenditure already incurred by the company, extending such financing for capital expenditure to its subsidiaries and joint ventures through inter-corporate loans, and for other general corporate purposes.

The debentures are proposed to be listed on the NSE. The company added that the debenture trust deed will be executed within the period prescribed under the applicable regulations.

NTPC Green Energy shares ended 1.33% lower at ₹91.31 on the NSE on Wednesday, declining ₹1.23 ahead of the company's June quarter earnings announcement.