NTPC Green Energy Q4 FY26: Profit Down 15%, Sales Up 47%

Results snapshot and why it matters

NTPC Green Energy Ltd (NGEL), the renewable energy arm of NTPC, reported a weaker year-on-year profit performance for the March quarter even as revenue climbed sharply. Consolidated net profit attributable to owners of the parent company fell 15.5% YoY to ₹197.05 crore in Q4 FY26, compared with ₹233.22 crore in Q4 FY25. Revenue from operations rose 46.7% YoY to ₹912.63 crore versus ₹622.27 crore a year earlier. The combination of higher revenue and lower profit points to cost and margin pressures during the quarter. NGEL operates in a capital-intensive sector where quarterly earnings can swing due to expenses, financing costs, and project commissioning patterns. The numbers were disclosed in the company’s stock exchange filing and were widely tracked as part of the Q4 results cycle.

Key Q4 FY26 financial numbers

For Q4 FY26, NGEL reported revenue from operations of ₹912.63 crore, which was also described as its highest-ever quarterly revenue in the reports. The revenue figure was up 46.66% YoY and up 39.70% sequentially compared with ₹653.29 crore in Q3 FY26. Profit before tax (PBT) came in at ₹247.26 crore in Q4 FY26, down 19.5% YoY from ₹307.02 crore in Q4 FY25. Despite the YoY decline, the company’s Q4 profit rebounded sharply from the preceding quarter, as Q3 FY26 consolidated net profit was reported at ₹17.48 crore. The quarterly print therefore showed a large swing in bottom-line performance, while topline growth remained strong.

Profit fell YoY despite stronger revenue

The quarter’s headline feature was the divergence between topline growth and bottom-line decline. While revenue grew 46.7% YoY, net profit fell 15.5% YoY. Reports attributed the decline to higher expenses, including one reference to a 60% rise in expenses to ₹713 crore. That cost increase helps explain why profit did not track revenue growth in the same direction. For investors, this split often shifts attention to the sustainability of margins and the trajectory of costs in upcoming quarters.

Sequential turnaround: profit jumped over 10x QoQ

On a quarter-on-quarter basis, NGEL’s profit numbers improved sharply. Consolidated net profit rose from ₹17.48 crore in Q3 FY26 to ₹197.05 crore in Q4 FY26, a sequential increase reported at 1,027.29%. PAT margins were also reported to have expanded from 2.65% in the previous quarter to 21.60% in Q4 FY26. Revenue growth supported part of the turnaround, with Q4 revenue up 39.70% sequentially from ₹653.29 crore in Q3 FY26 to ₹912.63 crore. However, the scale of PAT improvement suggests that profitability drivers below the revenue line also shifted materially compared with Q3.

EBITDA and operating margin moved lower YoY

Operating profitability remained high, but margins narrowed compared with the year-ago quarter. EBITDA (described as operating profit before depreciation, interest, tax, and other income, and also reported as Ebitda) increased 38.3% YoY to ₹774.50 crore in Q4 FY26, compared with ₹560.1 crore in Q4 FY25. Even with higher EBITDA, the EBITDA margin was reported at about 84.9% in Q4 FY26 versus about 90% in Q4 FY25. Another disclosed measure, operating margin, was reported at 84.86% versus 90.04% in the year-ago quarter, a compression of 518 basis points YoY. The margin movement aligns with commentary around rising expenses.

Full-year FY26 performance

On a full-year basis, NGEL posted growth in both revenue and profit. Consolidated net profit rose 9.9% YoY to ₹522.60 crore in FY26. Revenue from operations for the year increased 29.36% to ₹2,858.42 crore, compared with ₹2,209.64 crore in FY25. The FY26 outcome suggests that, despite quarterly volatility, the company delivered year-on-year expansion at the annual level. It also provides context for the Q4 print, where YoY profit dipped but the year as a whole still showed higher earnings.

Key reported metrics at a glance

What the numbers say about cost and margin pressure

The reported cost increase and margin compression are central to interpreting the quarter. A 46.7% jump in revenue typically supports profit growth, but NGEL’s YoY profit decline indicates that incremental revenue did not fully convert into incremental earnings. The EBITDA margin drop to about 84.9% from about 90% is a measurable signal of pressure at the operating level. Meanwhile, PBT declined 19.5% YoY, showing that profitability further down the income statement was also lower versus last year. At the same time, the sharp QoQ PAT recovery and higher Q4 revenue suggest that quarterly results can swing significantly, which is often observed in large renewable platforms where costs and timing effects can vary.

Market context: renewable energy remains capital-intensive

Renewable energy businesses typically require high upfront investment, and quarterly financials can reflect fluctuations in expenses and profitability. NGEL’s Q4 FY26 results show that a strong revenue quarter does not automatically translate into higher profits if costs rise faster or margins narrow. The annual numbers, however, point to steady growth, with FY26 revenue up 29.36% and FY26 profit up 9.9%. For market participants tracking NGEL and the broader renewable segment, the key focus from this quarter is the balance between revenue scaling and cost discipline.

Conclusion

NTPC Green Energy ended Q4 FY26 with record quarterly revenue of ₹912.63 crore, but net profit declined 15.5% YoY to ₹197.05 crore amid margin compression and higher expenses. At the same time, profit rebounded sharply from Q3 FY26, and the company closed FY26 with revenue of ₹2,858.42 crore and net profit of ₹522.60 crore. The next set of updates will be watched for clarity on cost trends and whether operating margins stabilise after the Q4 compression.