NTPC Green Energy Ltd Q4 FY26 Results Analysis: PAT Falls 15.5%, Revenue Surges 46.6%

NTPC Green Energy Ltd's Q4 FY26 numbers came in mixed, with revenue of Rs. 912.63 Cr (+46.60% YoY) and PAT growth of -15.50% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

NTPCGREEN delivered 46.6% revenue growth driven by capacity expansion, but PAT fell 15.5% as cost growth outpaced revenue and other income declined. EBITDA margin of 87% met guidance, but the current ratio deterioration to 0.24x and leverage increase to 1.54x raise financing concerns. The 60 GW by 2032 target requires 8+ GW annual additions versus FY26's ~4.5 GW, making execution acceleration critical.

Key Investment Insights

Key Positives

• Revenue grew 46.6% YoY to Rs.912.63 Cr driven by capacity additions and Ayana acquisition
• EBITDA margin stabilized at 87.28% for FY26, meeting management's guidance
• Cash flow from operations was Rs.2,386 Cr, CFO/PAT ratio of 4.58x indicating high earnings quality
• Installed capacity accelerated to 10,516 MW, with ~2.4 GW added in Q4 alone
• Maintained AAA credit rating; NCD issue of Rs.1,500 Cr oversubscribed 8 times
• Subsidiaries and JVs contributed 45.3% of Q4 revenue and 52% of Q4 PAT

Risk Factors

• PAT declined 15.5% YoY as total expenses grew 60.4%, outpacing 46.6% revenue growth
• Operating margin compressed 2,245 bps YoY from 77.75% to 55.30%
• Current ratio deteriorated to 0.24x from 0.91x, indicating working capital stress
• Debt/Equity increased to 1.54x from 0.97x as debt grew 62.7% to fund capex
• FY26 capacity addition of ~4.5 GW was below the targeted 8 GW/year pace needed for FY27-FY28
• Standalone revenue declined 9.0% YoY, with growth entirely dependent on subsidiaries