NTPC Q4 Results: Net Profit Surges 22% to Rs 7,897 Crore as India's Power Giant Expands Green Energy Portfolio

India's leading power generation company NTPC has delivered impressive fourth-quarter results, demonstrating robust financial performance alongside ambitious expansion plans in renewable and nuclear energy sectors. The state-owned utility reported a consolidated net profit of Rs 7,897.14 crore for Q4 FY25, representing a significant 22% increase compared to Rs 6,490.05 crore in the same period last year.

Strong Revenue Growth Drives Quarterly Performance

NTPC's total income for the March 2025 quarter reached Rs 51,085.05 crore, marking a healthy increase from Rs 48,816.55 crore in Q4 FY24. The company's core power generation business remained the primary revenue driver, contributing Rs 49,352.99 crore compared to Rs 47,088.70 crore in the previous year.

This strong quarterly performance contributed to an equally impressive full-year showing. For FY25, NTPC's net profit climbed to Rs 23,953.15 crore from Rs 21,332.45 crore in FY24, while total annual income grew to Rs 1,90,862.45 crore from Rs 1,81,165.86 crore.

Subsidiary Performance Enhances Overall Returns

The power giant's diversified portfolio approach is paying dividends, with subsidiary companies and joint ventures contributing significantly to overall profitability. Profit from subsidiaries increased to Rs 4,139 crore in FY25 from Rs 3,897 crore in the previous year.

Joint venture partnerships also performed well, with NTPC's share of profits rising to Rs 2,214 crore compared to Rs 1,636 crore in FY24. This diversification strategy has helped the company maintain steady growth across multiple business segments.

Generous Dividend Distribution for Shareholders

NTPC's board has recommended a final dividend of Rs 3.35 per share (33.50% dividend rate) for FY25, subject to shareholder approval at the upcoming annual general meeting. This recommendation comes in addition to two interim dividends of Rs 2.50 per share each, distributed in November 2024 and February 2025.

The total dividend payout for the year amounts to Rs 8.35 per share, reflecting the company's commitment to sharing profits with shareholders while maintaining sufficient reserves for future expansion projects.

Significant Capacity Expansion and Operational Metrics

NTPC demonstrated strong operational performance throughout FY25, adding 3,972 MW of new capacity during the year. This expansion brought the company's total operational capacity to 79,930 MW as of March 2025, up from 75,958 MW in the previous year.

Key operational highlights for FY25 include:

• Gross power generation: 372.825 billion units, reflecting a 3.07% increase from 361.703 billion units in FY24
• Average tariff: Rs 4.70 per kilowatt-hour throughout the year
• Coal supply from captive mines: 253.26 million metric tonnes, compared to 231.64 million metric tonnes previously
• Standalone capacity increase: 335 MW to reach 59,413 MW

Ambitious Nuclear Energy Expansion Strategy

NTPC has unveiled an ambitious nuclear power development plan, targeting 30 GW of nuclear capacity to support India's net-zero carbon emissions goal by 2070 and the national target of 100 GW nuclear capacity by 2047.

The company's nuclear strategy involves a comprehensive two-pronged approach. Under the government-approved ASHVINI initiative, NTPC is developing the Mahi Banswara Rajasthan Atomic Power Project, featuring four 700 MW reactors.

In January 2025, NTPC established a wholly-owned subsidiary, NTPC Parmanu Urja Nigam Limited, to explore advanced nuclear technologies including Pressurised Water Reactors, Small Modular Reactors, and Fast Breeder Reactors. The company has identified 28 potential nuclear project sites across Uttar Pradesh, Madhya Pradesh, Chhattisgarh, and Gujarat, with memorandums of understanding already signed with Madhya Pradesh and Chhattisgarh governments.

Green Energy Portfolio Expansion

NTPC currently operates approximately 80 GW of total capacity, with an additional 34 GW under various stages of construction. The company's renewable energy subsidiary, NTPC Green Energy Ltd (NGEL), has achieved significant milestones with 7 GW of green energy currently operational.

The renewable energy pipeline shows strong momentum with 18 GW contracted and awarded, while another 9 GW remains in the development pipeline. This diversified approach positions NTPC well for India's transition toward cleaner energy sources.

Pumped Storage Hydro Projects Portfolio

NTPC maintains a substantial 21,240 MW pumped storage portfolio, distributed between 10,200 MW under NTPC directly and 11,040 MW through subsidiaries THDC and NEEPCO. The company expects to commission its first 1,000 MW Tehri Pumped Storage Project shortly.

The development pipeline includes 18 projects with completed Preliminary Feasibility Reports and 4 projects with Detailed Project Reports in advanced stages. These pumped storage projects offer over 40 years of operational life with attractive regulated returns, serving as critical infrastructure for India's renewable energy transition.

As India's largest power generation company operating under the Ministry of Power, NTPC continues to demonstrate strong financial performance while positioning itself as a leader in the country's clean energy transformation. The combination of robust quarterly results and ambitious expansion plans reflects the company's strategic vision for sustainable growth in India's evolving energy landscape.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

Read More

India's Foreign Exchange Reserves Fall $4.9 Billion to $685.7 Billion: RBI Weekly Data Analysis

The Reserve Bank of India's latest weekly statistics reveal a notable decline in the country's foreign exchange reserves, marking a significant shift from the recent upward trajectory. The central bank's data, released on Friday, May 23, 2025, shows India's total forex reserves decreased by $4.9 billion to $685.7 billion for the week ending May 16, 2025.

Sharp Reversal After Recent Highs

This decline represents a considerable reversal from the positive momentum witnessed in early May 2025, when India's forex reserves had reached a seven-month peak of $690.6 billion. The current drop brings the reserves down from this recent high, highlighting the volatile nature of foreign exchange markets.

The significance of this decline becomes more apparent when considering that India's forex reserves had previously touched an all-time record of $704.89 billion in September 2024. The current levels, while still substantial, reflect the ongoing challenges in maintaining reserve stability amid global economic uncertainties.

Breakdown of Reserve Components

The RBI's comprehensive data reveals interesting patterns across different components of the forex reserves:

Foreign Currency Assets Show Resilience

Despite the overall decline, foreign currency assets demonstrated resilience by registering a $280 million increase to $581.65 billion, up from the previous week's $581.37 billion. This component, which forms the largest portion of India's forex reserves, includes holdings in major international currencies such as the euro, British pound, and Japanese yen.

The valuation of these assets fluctuates based on the appreciation or depreciation of non-US dollar currencies against the American currency, making this component particularly sensitive to global currency movements.

Gold Reserves Experience Significant Drop

India's gold reserves witnessed a substantial decline, falling by $5.12 billion to $81.2 billion from the previous level of $86.33 billion. This represents approximately a 6% decrease in gold holdings, which central banks typically adjust based on various factors including economic uncertainty and geopolitical tensions.

The reduction in gold reserves contrasts with earlier trends in May 2025, when these holdings had increased due to concerns over potential trade policy changes and regional geopolitical developments.

Additional Reserve Holdings

The remaining components of India's forex reserves also experienced minor adjustments:

• Special Drawing Rights (SDRs): Decreased by $42 million to $18.49 billion from $18.53 billion
• Reserve Position with IMF: Declined by $3 million to $4.371 billion from $4.374 billion

Strategic Importance of Forex Reserves

India's foreign exchange reserves serve multiple critical functions in the country's economic framework. The RBI strategically utilizes these reserves to manage currency volatility, particularly to stabilize the Indian rupee during periods of market turbulence.

As of May 25, 2025, the Indian rupee was trading at ₹85.17 against the US dollar, according to market data. The central bank's intervention capability through these reserves remains crucial for maintaining currency stability and investor confidence.

Market Implications and Outlook

The recent decline in forex reserves reflects the complex interplay of global economic factors affecting emerging market economies. While the drop is notable, India's reserves remain at robust levels, providing adequate buffer against external economic shocks.

The mixed performance across different reserve components suggests that the RBI continues to actively manage its portfolio composition based on market conditions and strategic considerations. The increase in foreign currency assets despite the overall decline indicates selective rebalancing rather than wholesale reduction.

For retail investors and market participants, these forex reserve movements serve as important indicators of the country's external sector health and the central bank's policy stance. The data will likely influence market sentiment and currency trading patterns in the coming weeks.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

Read More