PTC India Navigates Q2 FY26 with Strategic Renewable Push and Robust Volume Growth

PTC India Limited, a pivotal player in India's power trading landscape, has reported its financial performance for the second quarter and first half of the fiscal year 2025-26, showcasing a period of strategic transition and operational resilience. The company continues to solidify its position as a frontrunner in power trading while aggressively expanding its footprint in the burgeoning renewable energy sector. For Q2 FY26, the company reported a consolidated total revenue from operations of 5,458.73 crore. While consolidated Profit After Tax (PAT) from continuing operations saw a robust 36% increase, the overall consolidated PAT, including discontinued operations, experienced a slight dip of 5% to 222 crore, reflecting a dynamic operational environment.

Operationally, PTC India demonstrated strong momentum, particularly in its core trading activities. The standalone trading volume for Q2 FY26 grew by an impressive 9% to 26.2 billion units, building on a solid H1 FY26 performance where volumes increased by 11% to 49.22 billion units. This growth was broad-based, spanning long-term, medium-term, cross-border, and exchange-traded segments, underscoring the company's diversified market presence. The standalone operational income for Q2 FY26 stood at 136.91 crore, with consultancy income contributing 12.08 crore. However, a notable point of attention was the 43% decrease in surcharge income in Q2 FY26, falling from 74.19 crore to 42.61 crore, indicating shifts in certain revenue components.

Powering the Green Transition: Strategic Initiatives

PTC India is making significant strides in aligning its business with India's ambitious green energy goals. A major development is the approval to enter into a Joint Venture Agreement with NLC India Renewables Limited (NLCIL) to develop Green Energy Projects up to 2000 MW, encompassing solar, wind, hydro, and battery storage systems across India. PTC India will hold a 26% stake in this JV, which is expected to enhance its trading portfolio and advisory services, ensuring long-term sustainability.

Further solidifying its renewable energy commitment, the company has executed a Power Purchase Agreement (PPA) for 100 MW of solar power on a long-term basis for 25 years, with the plant expected to be operational by Q1 FY27. An Expression of Interest (EOI) has also been floated for an additional 500 MW solar project coupled with a 250 MW/1000 MWh energy storage system, demonstrating a forward-looking approach to integrated renewable solutions. Beyond asset development, PTC India is actively serving as a bid consultant for approximately 1,000 MW in solar and hybrid energy projects, diversifying its service offerings and client base.

Navigating Challenges and Capital Allocation

The management addressed concerns regarding the ongoing divestment process of PTC India Financial Services (PFS), acknowledging delays and corporate governance issues that have been raised. They clarified that three independent directors resigned as their tenure was nearing its end, and a new independent director has already been appointed. This transparency, while highlighting challenges, underscores the management's commitment to addressing investor concerns.

On the capital allocation front, PTC India maintains a strong cash position of approximately 3,000 crore. The management articulated a clear framework for deploying these funds: around 1,000 crore will be allocated for working capital in the main trading business, and 1,500-2,000 crore is earmarked for strategic investments in new business ventures, particularly in the renewable energy sector. This strategy aims to ensure revenue visibility for the coming decade, with a preference for productive asset investment over immediate, larger dividend payouts, while still adhering to their dividend distribution policy.

Market Outlook and Future Growth

Looking ahead, PTC India anticipates robust growth in power demand, projecting an annual increase of 6% to 8%, despite potential short-term volatility due to weather conditions. The company is actively participating in market reforms, including discussions on virtual power plants and standardization of exchange products, which are expected to further support green power trading. Management expressed confidence in surpassing last year's trading volumes for FY26, though reaching 100 billion units might be ambitious. The focus remains on leveraging its established market position and strategic renewable energy initiatives to drive sustained growth.

PTC India's Q2 FY26 performance and strategic commentary highlight a company in transition, actively shaping its future in a rapidly evolving energy landscape. With a clear focus on renewable energy, robust trading operations, and a disciplined approach to capital allocation, PTC India is positioning itself for long-term sustainability and growth, aiming to be a key enabler of India's green energy transition.