NTPC Green Energy shares slipped as much as 4% on Monday, hitting an intraday low of Rs 100.31, after the company reported a 15% year-on-year decline in consolidated net profit for the March quarter.
The renewable energy arm of NTPC posted a consolidated profit after tax (PAT) of Rs 197 crore in Q4FY26, compared with Rs 233 crore in the same quarter last year. The earnings figure is attributable to the owners of the parent company.
Interestingly, the decline in profitability came even as revenue surged 47% year-on-year to Rs 913 crore, up from Rs 622 crore in Q4FY25, reflecting strong operational growth across its clean energy portfolio.
However, rising costs weighed heavily on the bottom line. Total expenses jumped 60% year-on-year to Rs 713 crore during the quarter, compared with Rs 445 crore a year ago. Sequentially, expenses also rose 16% from Rs 616 crore reported in Q3FY26. Higher employee benefit costs, finance expenses, depreciation, and amortisation charges contributed to the sharp increase in spending.
On a sequential basis, though, the company staged a strong recovery. PAT skyrocketed over 11 times from just Rs 17 crore in the October-December quarter, while revenue climbed around 40% quarter-on-quarter.
Profit before tax stood at Rs 247 crore in Q4FY26, improving sharply from Rs 37 crore in Q3FY26, though lower than Rs 307 crore reported in Q4FY25.
Margins painted a mixed picture. Net profit margin came in at 21.6% in Q4FY26, significantly better than 2.65% in the previous quarter, but lower than 37.48% recorded a year earlier. Operating margin also softened to 55.3% from 77.75% in Q4FY25, although it improved from 40.83% in Q3FY26.
Stock performance and valuation snapshot
The stock has declined around 8% over the past month and currently commands a market capitalisation of Rs 88,813 crore. Its 52-week high is Rs 119.95 and a low of Rs 84.
Valuation metrics remain elevated, with the stock trading at a price-to-earnings (P/E) ratio of 161.31, a price-to-sales ratio of 27.26, and a price-to-book ratio of 4.86.
From a technical standpoint, the 14-day RSI stands at 44.5, indicating neutral momentum. An RSI below 30 is considered oversold, while levels above 70 suggest overbought conditions. The stock is also trading below five out of its eight key simple moving averages (SMAs), signalling a weak near-term trend.
Foreign institutional investors (FIIs) maintained their stake at 1.61% during the March 2026 quarter. Meanwhile, mutual funds increased their holdings from 3.43% to 3.81%, indicating continued domestic institutional interest in the stock.
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