Business Overview & Market Context

The meeting was moderated by Rajiv Malhotra. Management present included MD & CEO Dr. Manoj Kumar Jhawar, ED & CFO Pankaj Goel, and ED Marketing Bikram Singh.

  • The context emphasized the increasing relevance of power trading and electricity market development amidst India's energy transition, citing record peak power demand of 260 GW and high volatility in power tariffs.
  • The company's mission is power trading across platforms and cross-border countries. The Government of India, through NTPC, NHPC, PGCIL, and PFC, remains the largest single shareholder.
  • Key industry trends highlighted include: Renewable installed capacity surpassing 50% (223 GW), though its energy contribution is 26%; A national target of 29% renewable energy and 500 GW of renewable capacity; An expected ~5% year-on-year growth in electricity demand.
  • Business developments for FY26 included: Trading 92.8 Billion Units (BU), a 12% YoY increase; A PAT of ₹397 Crores; Short-term trades now constitute 56% of volume, up from a historical 50/50 split with long-term trades; The sale of 68 Lakh Renewable Energy Certificates (RECs); Consultancy work on projects like the PM Kusum scheme and an ADB-funded project connecting the power markets of Laos, Thailand, and Cambodia.
  • New strategic initiatives include a Joint Venture with NLC India Renewables to develop a portfolio of up to 2000 MW, initially focused on hydro projects, awaiting DIPAM approval.

Financial Highlights (Standalone)

CFO Pankaj Goel presented the financial results, providing figures both including and excluding the profit from the sale of PTC Energy Limited (PEL) to ONGC Green, which was completed on 4th March 2025.

For Q4 FY26 (YoY Comparison):

  • Volume: Increased by 24% to 23.6 Billion Units (from 19.0 BU), driven by growth in short-term, medium-term, and cross-border trades.
  • Operational Income: Increased by 19% to ₹115 Crore (from ₹97 Crore).
  • Profit Before Tax (Ex-PEL): Increased by 18% to ₹102.38 Crore (from ₹86.38 Crore).
  • Profit Before Tax (Incl. PEL): Decreased by 83% to ₹102.38 Crore (from ₹607.75 Crore, which included a ₹521.37 Cr profit from PEL sale).
  • Profit After Tax (Ex-PEL): Increased by 18% to ₹75.74 Crore (from ₹63.99 Crore).
  • Profit After Tax (Incl. PEL): Decreased by 85% to ₹75.74 Crore (from ₹521.37 Crore).
  • EPS (Incl. PEL): Decreased to ₹2.56 (from ₹17.60).

For Full Year FY26 (YoY Comparison):

  • Volume: Increased by 12% to 92.8 Billion Units (from 82.8 BU).
  • Operational Income: Remained largely flat at ~₹450 Crore. Core trading margin increased, but this was offset by a decrease in rebate income (from ₹121 Cr to ₹97 Cr) and surcharge income due to improved Discom payment timelines.
  • Profit Before Tax (Ex-PEL): Remained stable at ~₹534 Crore.
  • Profit After Tax (Ex-PEL): Remained stable at ₹397 Crore.
  • Profit After Tax (Incl. PEL): Decreased by 54% to ₹397 Crore (from ₹857 Crore, which included a ₹460 Cr PAT from PEL).
  • EPS (Incl. PEL): Decreased to ₹13.41 (from ₹28.88).

Working Capital & Debtors (Incl. Exchange Transactions):

  • Gross Turnover (Incl. Exchange): ₹36,672 Crore (Mar'26) vs. ₹34,400 Crore (Mar'25).
  • Debtors: ₹4,380 Crore (Mar'26) vs. ₹4,762 Crore (Mar'25), aided by a ~₹1,000 Crore recovery from J&K.
  • Creditors: ₹3,532 Crore (Mar'26) vs. ₹2,900 Crore (Mar'25).
  • Net Working Capital: Reduced to ₹848 Crore from ₹1,862 Crore.
  • Gross Debtor Days: Improved to 44 days from 51 days.
  • Net Working Capital Days: Improved to 8 days from 19 days.

Financial Highlights (Consolidated)

For Q4 FY26 (YoY Comparison):

  • Volume: Increased by 24% to 23.6 Billion Units.
  • PBT (Ex-PEL): Increased by 2% to ₹163 Crore (from ₹161 Crore).
  • PBT (Incl. PEL): Decreased by 65%.
  • PAT (Ex-PEL): Remained stable at ~₹122 Crore.
  • PAT (Incl. PEL): Decreased by 67% to ₹121 Crore.

For Full Year FY26 (YoY Comparison):

  • Volume: Increased by 11%.
  • PBT (Ex-PEL): Increased by 14% to ₹925.64 Crore (from ₹810.79 Crore), aided by improved performance from PFS.
  • PAT (Ex-PEL): Increased by 17% to ₹717 Crore (from ₹612 Crore).
  • PAT (Incl. PEL): Decreased by 16% to ₹717 Crore (from ₹853 Crore).

Strategic Updates & Management Commentary

Divestment of PFS: The board has removed the previously communicated "pause" on the divestment process for PTC India Financial Services (PFS). The process to monetize this investment will now be advanced, with material developments to be reported in due course.

Cash Deployment: The company held a net cash balance of ~₹2,800 Crore as of 31st March 2026 (~₹2,400 Cr estimated at the time of the call). Management outlined a three-pronged strategy for deploying cash, including maintaining a war chest for the cyclical trading business, making strategic investments that add value to the core business (not large-ticket like PEL), and enhancing shareholder returns.

Competitive Landscape & Strategy: Management identified three key moats: a strong balance sheet crucial for long-term contracts, deep relationships built over 25 years, and a dominant position in cross-border trading. While competition is intense in plain vanilla/short-term exchange trades (from ~70 licensed traders), PTC has an edge in long-term and cross-border segments. Future growth is expected to be volume-driven rather than margin-driven, with margins expected to remain under competitive pressure.

New Business Initiatives: The company is actively involved in emerging areas:

  • Traded power from Battery Energy Storage Systems (BESS), being an early mover.
  • Supplied green power to GAIL's 10 MW Vijaipur green hydrogen project.
  • Engaging with data center clients to meet their round-the-clock green power requirements.
  • Exploring opportunities in financial derivatives and Virtual Power Plants (VPPs).

Teesta Urja Project Update: The hydro project is being developed in two phases. Phase 1 (cofferdam) is expected to be operational by Sept-Oct 2026, supplying 40-50% of total capacity. The full dam is expected to be ready by 2029.