NTPC Posts Robust Q1 Profit Growth Amid Lower Fuel Costs and Strategic Diversification – EQ
In Short: NTPC reported an 11% year-on-year rise in consolidated net profit to ₹6,108.46 crore for April–June, despite a 3% drop in revenue to ₹47,065 crore. Lower fuel costs and higher other income supported profits. The board reappointed CMD Gurdeep Singh and recommended a ₹3.35/share final dividend, with September 4 as the record date and payout post-September 25.
In Detail : NTPC Ltd. reported an 11% year-on-year increase in its consolidated net profit, reaching ₹6,108.46 crore for the April–June quarter of FY2026. This growth comes despite a decline in revenue, reflecting the company’s focus on cost control and operational efficiency.
The company’s total revenue from operations fell by 3% to ₹47,065 crore, compared to ₹48,529 crore during the same quarter last year. The drop was largely due to a reduction in electricity tariffs and lower energy demand in certain regions.
A key factor contributing to the profit growth was a significant reduction in fuel costs, which declined from ₹27,844 crore to ₹24,973 crore year-on-year. The decrease in coal procurement costs and improved fuel supply logistics played a major role in this reduction.
NTPC also saw a notable increase in other income, which surged to ₹755.75 crore from ₹452.80 crore a year earlier. This additional income helped offset the impact of lower operational revenue and supported overall profitability.
The company’s total expenses rose slightly to ₹42,540 crore from ₹41,844 crore in the previous year’s first quarter. However, the lower fuel costs helped keep margins healthy and contributed to improved bottom-line results.
Energy trading through NTPC’s arm, NTPC Vidyut Vyapar Nigam (NVVN), brought in ₹2,331.44 crore. This included cross-border electricity exports to Bangladesh and Nepal, showcasing NTPC’s growing regional presence and diversification of income streams.
In a significant development, NTPC’s board approved the reappointment of Gurdeep Singh as Chairman and Managing Director for another year, starting August 1, 2025. The extension is subject to shareholder approval at the upcoming Annual General Meeting.
Additionally, the board recommended a final dividend of ₹3.35 per share for the financial year 2024–25. The record date for the dividend has been set as September 4, 2025, with payments scheduled after September 25, pending shareholder approval.
NTPC’s performance in the first quarter reflects its continued focus on financial discipline, diversification, and strategic leadership, laying a strong foundation for the rest of the fiscal year.
