PTC India Q3 FY26 Profit Falls 25%, Declares ₹3 Dividend

Introduction

PTC India Limited, a key player in India's power trading market, announced its unaudited financial results for the third quarter and nine months of fiscal year 2026, ending December 31, 2025. The company reported a significant 25% year-over-year (YoY) decline in its standalone Profit After Tax (PAT) for the quarter. Despite the drop in profitability, the Board of Directors approved an interim dividend, signaling confidence in its long-term operational stability and commitment to shareholder returns. The results reflect a challenging quarter marked by margin compression, even as trading volumes continued to show steady growth.

Standalone Financial Performance in Q3

For the third quarter of FY26, PTC India's standalone PAT stood at ₹82.70 crore, a sharp decrease from the same period in the previous fiscal year. This decline occurred despite a 4% YoY increase in trading volumes, which reached 20,010 Million Units (MUs). The pressure on profitability was primarily due to compressed margins. The company's core trading margin was recorded at 3.01 paisa per unit. The overall trading margin remained flat year-over-year at ₹60.28 crore, indicating that while more power was traded, the profitability per unit was lower. Additionally, the company's consulting income for the quarter was ₹10.80 crore, providing a supplementary revenue stream.

Consolidated Results and Margin Pressures

On a consolidated basis, the financial performance also reflected the market pressures. The Profit Before Tax (PBT) from continuing operations for Q3 FY26 was ₹174.99 crore, leading to a Profit After Tax (PAT) of ₹131.24 crore from these operations. The total comprehensive income for the quarter was ₹133.03 crore. This represents a 26% decline when compared to the ₹180.55 crore reported in the corresponding quarter of the previous year, Q3 FY25. The consolidated figures underscore the challenging operating environment faced by the company during the quarter, largely driven by shifts in the power trading market mix.

Nine-Month Performance Offers a Broader View

While the quarterly results showed a decline, the performance over the first nine months of FY26 presents a more encouraging picture. For the period ending December 31, 2025, PTC India recorded a 9% YoY growth in trading volumes. More importantly, the trading margin for this nine-month period grew by 7% YoY. This suggests that despite the margin compression in Q3, the company's performance over the larger timeframe has been positive. The nine-month data indicates underlying strength in the business and its ability to expand its trading activities effectively over a sustained period, mitigating some of the concerns raised by the quarterly dip.

Management Commentary and Strategic Outlook

Dr. Manoj Kumar Jhawar, Chairman & Managing Director of PTC India, addressed the quarterly performance, attributing the margin dip to a higher contribution from exchange-traded contracts. In Q3 FY26, these contracts constituted 60% of the volume, up from 55% in Q3 FY25. Exchange contracts typically operate on lower margins compared to bilateral agreements. Dr. Jhawar emphasized the more positive nine-month figures, highlighting the 9% volume and 7% margin growth as encouraging signs. Looking ahead, he stated that the company expects to improve margins by bundling insights-driven value-added services with its trading transactions. PTC is actively investing in technology to facilitate smarter, information-driven transactions. The management's assessment of power demand remains positive, correlating it closely with India's GDP growth. Policy initiatives like the National Electricity Plan (NEP) 2026 and market-oriented regulations by the Central Electricity Regulatory Commission (CERC) are expected to create demand for new products and services, where PTC aims to maintain its leadership.

Interim Dividend for Shareholders

In a move to reward its shareholders, the Board of Directors of PTC India Limited declared an interim dividend of ₹3 per equity share for the financial year 2025-26. This decision reflects the board's confidence in the company's financial health and cash flow, despite the temporary dip in quarterly profits. The dividend payout serves as a testament to the company's long-standing policy of sharing profits with its investors and its stable outlook on future earnings.

About PTC India Limited

PTC India Limited was established as a Government of India initiative to pioneer the development of a power trading market in the country. It has consistently held a leadership position in this sector since its inception. The company's mandate includes cross-border electricity trading with neighboring countries like Bhutan, Nepal, and Bangladesh. Its core operations encompass long-term power trading from large-scale conventional and renewable projects, short-term trading to balance regional demand and supply, and the development of innovative, value-added services for the power market. The company continues to focus on leveraging technology to enhance its market penetration and shape a competitive power market in India.

Conclusion

PTC India's third-quarter results for FY26 reflect a period of margin pressure driven by a changing business mix, leading to a decline in profitability despite healthy volume growth. However, the company's robust performance over the nine-month period and the declaration of a generous interim dividend suggest underlying operational strength and a positive long-term outlook. With strategic investments in technology and a focus on value-added services, PTC India is positioning itself to navigate market dynamics and capitalize on the anticipated growth in India's power sector.