NTPC Limited (NTPC.NS) Q2 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to NTPC Q2 FY '26 Earnings Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Bharanidhar Vijayakumar from Avendus Spark. Over to you, sir.

Thank you. Good evening, everyone. On behalf of Avendus Spark, I welcome you all to the 2Q FY '26 and 1H FY '26 Earnings Conference Call of NTPC Limited. Representing the company, we have Mr. Jaikumar Srinivasan, Director, Finance, along with other functional directors. Without further ado, I pass over the call to Mr. Jaikumar Srinivasan. Over to you, sir.

Good evening, everyone. I am Jaikumar Srinivasan, Director of Finance, NTPC Limited and NTPC Green Energy Limited. It's my pleasure to welcome you all to our earnings conference call for the second quarter of FY '26 and half year ended September 30, 2025. Today, I'm joined by my colleagues on the Board, Shri Shivam Srivastava, Director, Fuel, NTPC; Shri Shanmugha Sundaram, Director, Projects of NTPC and NGEL; Shri Ravindra Kumar, Director, Operations, NTPC; Shri Anil Kumar Jadli, Director, Human Resource, NTPC, along with the key members of our senior management team of both the companies. We have announced our unaudited financial results for Q2 and H1 for FY '26. Operational and financial snapshot indicating key performance indicators have also been shared with the stock exchanges and are available for the investor reference. I will now share some key perspective on the Indian power sector to begin with and NTPC and NGEL's performance, key development, sustainable initiatives and growth drivers for the future. Let me begin with a brief outlook on the Indian power sector. India's growing economy, expanding industrial base under the Make in India, Made for the World vision and rapid urbanization are expected to drive sustained growth in the power demand. We are also seeing new age demand accelerators emerging, particularly the giga-scale data centers recently announced by several global technology measures. We expect that the recent geopolitical situation will also offer opportunity for the country to become a hub of global capacity centers. These developments will continue to reinforce the need for reliable, affordable and sustainable power to support the country's long-term economic growth. With GDP projected to grow between 6.5% to 7% in the coming year, electricity demand is expected to rise steadily led by manufacturing and expanding digital infrastructure. The government's focus on Viksit Bharat 2047, coupled with the continued thrust on renewable energy and energy transition is expected to create strong investment opportunities across the power value chain. In the current fiscal, demand growth has been somewhat moderate compared to the previous years, largely due to the milder summer and extended monsoon. However, the underlying economic momentum remains firm and demand drivers, especially from industrial and commercial sector are expected to show upward growth. This landscape presents significant opportunities, and NTPC and NGEL are poised to capture the next phase of India's power sector growth by balancing conventional and nonconventional sources to ensure reliability, affordability and sustainability. With a strong pipeline of projects under execution, a calibrated and a measured investment approach, both entities are prepared to play a pivotal role in meeting the country's energy needs. Now turning specifically to our capacity growth. As of H1 FY '26, NTPC Group capacity rose to 83,893 megawatts, nearly 10% increase from the previous year same period, which was 76,443 megawatts, clearly indicating that we are expanding at a faster pace. We have added 4,403 megawatt till H1 FY '26, by far the highest capacity added in any half year since our inception. Of this, 1,732 megawatts is on stand-alone basis, 1,506 megawatts from NGEL and its JVs and balance 1,165 from other JVs and subsidiaries. Additionally, 956 megawatts has been added in the current month, that is October, taking total fresh capacity addition to 5,359 megawatts as on date. It is worth mentioning that highest ever capacity addition by the NTPC Group in a single year stands at 6,984 megawatts in 2019, '20. However, we have already achieved 5,359 megawatts within the first 7 months of the current financial year. NGEL Group has added 1,506 megawatts in H1 and further added 156 in October till date, taking total installed capacity to 7,564 megawatts. With this, NTPC Group installed capacity rose to 84,849 megawatts. Coming to the operational performance during H1 FY '26 due to the adoption of sustained maintenance practices, we maintained over 90% availability of our coal-based stations, demonstrating operational reliability. The group's total generation stood at 214 BUs, which is around 6 billion units lower compared to H1 FY '25, primarily due to subdued demand during the period. This is consistent with the overall trend observed in the country's coal-based generation during the same period. Our coal station has maintained a PLF of 70.52% vis-a-vis rest of India average of 64.32%, which reflects our best-in-class operational practice. The current stock at our station is 13.4 million metric tons, up by 2.1 million metric ton for the same period last year and is sufficient for 15 days generation at 85% PLF for our stations. Coal receipt for NTPC Group has been 129 million metric ton, of which 21.63 million metric ton is sourced from our captive mines, which is 16.76% of the total receipts. Further, our captive mines registered a dispatch growth of 2.61% vis-a-vis the previous year. NTPC Group has 9 coal blocks with peak rated capacity of 91.6 MMTPA. With the commercial operation declared of the Kerandari coal mine with effect from April 1, 2025, a total of 6 coal blocks are now under commercial operation. NTPC has incurred capital expenditure of INR 13,300 crores in coal mining as on 30th September 2025. I will now take you through some of our key financial numbers, giving comparison to the corresponding period. For NTPC on a stand-alone basis, total income for Q2 FY '26 is INR 40,689 crores as against INR 41,245 crores in the corresponding quarter of the previous year. For H1 FY '26, the total income is INR 84,022 crores as compared to INR 86,298 crores in the corresponding previous period. NTPC's profit after tax for Q2 FY '26 is INR 4,653 crores as against INR 4,649 crores in the corresponding quarter of previous year. On a half yearly basis, PAT is INR 9,428 crores as against INR 9,160 crores in H1 FY '25. Total income of the group for H1 FY '26 is INR 93,083 crores as against INR 94,179 crores in corresponding previous period. Profit after tax of the group for H1 FY '26 is INR 11,334 crores against the corresponding previous year PAT of INR 10,886 crores, registering an increase of 4%. During H1 FY '26, our subsidiaries earned a profit of INR 1,805 crores as compared to INR 1,362 crores in the corresponding period of the previous year, registering an increase of 33%. NTPC share of profit in JVs was INR 1,059 crores in H1 FY '26 as against INR 1,124 crores in H1 FY '25. During H1 FY '26, we have accounted for dividend income of INR 1,271 crores from our subsidiaries and joint venture companies as against INR 762 crores during H1 FY '25. Stand-alone regulated equity as on 30th September '25 was INR 94,454 crores as against INR 89,430 crores as on 30th September 2024, an increase of 6%. Consolidated regulated equity as on 30th September 2025 was INR 1,16,022 crores as against INR 1,05,049 crores as on 30th September 2024, an increase of 10%. Coming to adjusted PAT. On a stand-alone basis, adjusted PAT for Q2 FY '26 is INR 4,518 crores. This is against INR 4,202 crores in the corresponding quarter of the previous year, an increase of 8%. For H1 FY '26, adjusted PAT is INR 8,932 crores as compared to INR 8,379 crores in the corresponding previous period, registering an increase of 6%. On a consolidated basis, adjusted PAT for Q2 FY '26 is INR 5,069 crores as against INR 4,943 crores in the corresponding quarter of the previous year, an increase of 3%. For H1 FY '26, adjusted PAT is INR 10,808 crores as compared to INR 9,850 crores in the corresponding previous period on a consolidated basis, registering an increase of 10%. During Q2 FY '26, a loan agreement amounting to JPY equivalent of USD 100 million was executed on 16th July '25 between NTPC and CTBC Bank Company Limited Tokyo. Average cost of borrowing during H1 FY '26 was 6.11% as compared to 6.63% in H1 FY '26 (sic) [ H1 FY '25 ]. This has been mainly achieved through refinancing and restructuring of loans. As regards capital expenditure in H1 FY '26, we have incurred a group level CapEx of INR 23,115 crores as compared to INR 17,474 crores in the corresponding previous period. While on a stand-alone basis, NTPC has incurred a CapEx of INR 14,149 crores in H1 FY '26 as compared to INR 14,040 crores in the corresponding previous period. The gross property, plant and equipment as on 30th September 2025 on the group level has increased by INR 54,336 crores to INR 4,37,142 crores during last 1 year, an increase of 14%. Turning to NTPC Green Energy Limited...

Participants, please stay connected while we reconnect the management. Ladies and gentlemen, the management is reconnected.

Am I audible?

Yes, sir, you're audible. Please go ahead.

Okay. I'll begin where I left at the time of getting disconnected. So turning to NGEL side. NGEL's revenue from operations for H1 FY '26 on consolidated basis increased 19% to INR 1,292 crores compared to INR 1,082 crores in H1 FY '25. Operating EBITDA also rose significantly by 21% in H1 FY '26 to INR 1,133 crores compared to INR 933 crores in H1 FY '25. NGEL's operating EBITDA margin has improved to 88% in H1 FY '26 as compared to 86% in H1 FY '25. NGEL's revenue from operations for Q2 FY '26 on a consolidated basis surged by 21.5% to INR 612 crores compared to INR 504 crores in Q2 FY '25. Operating EBITDA also rose significantly by 26% in Q2 FY '26 to INR 530 crores compared to INR 420 crores in Q2 FY '25. NGEL's operating EBITDA margin has improved to 86% in Q2 FY '26 as compared to 83% in Q2 FY '25, underscoring the robust profitability of our renewable business. Capital investment remains a strategic priority for NGEL during the 6 months ended 30th September 2025, NGEL and its subsidiaries incurred a consolidated CapEx of INR 6,607 crores, substantially higher than INR 4,884 crores spent during the 6 months ended 30th September 2024. Some of the other key points on financial results that I'd like to share. NTPC has declared the first interim dividend of INR 2.75 per equity share for the financial year '25-'26. Based on the question raised by the investors during earlier con calls, I would like to inform that fixed cost under recoveries till September 2025 is INR 625 crores, and we expect this number to be around INR 250 crores by the end of the year. Our operational gains from coal station for H1 FY '26 is INR 238 crores on account of SG incentive, primary frequency response, et cetera, and INR 49 crores from hydro stations. We are improving our operational practices continuously to reduce under recoveries and maximize gains. Coming to our efforts on the energy storage system, we are exploring different sources of energy storage system, including battery PSPs and CO2-based system. Out of the 21 gigawatt of PSP we are pursuing on different fronts, we have commissioned 2 units of 250 megawatts each at Tehri Pump Storage Project in H1 FY '26, and we expect to commission the remaining 2 units in the current fiscal. Further, based on our engagements with various states, we got firm allocation of 12,670 megawatts of additional PSPs to be executed in NTPC Group for which the preliminary studies are underway. On BESS, we are developing 1,990 megawatt hour through TBCB route, 1,520 megawatt hours at co-located solar projects of NTPC, 5,280 megawatt hours co-located near existing solar projects. Additionally, 5,000 megawatt hours at existing thermal projects being developed by NTPC and viability gap funding of INR 18 lakhs per megawatt hour shall be receivable. Further, the work on 160-megawatt hour CO2-based energy storage system at Kudgi is currently under progress. On the sustainability front, NTPC continues to strengthen its ESG performance through digital interventions, transparent disclosures and a continuous focus on measurable sustainable outcomes. Our ESG ratings have shown notable improvement since last year financial year. MSCI ESG rating has progressed from 3.4 to 4.1, while Sustainalytics' ESG risk rating improved from 35.7 to 31, very close to a planned upgrade. We have declared the commercial operation of flue gas desulfurization systems for a cumulative capacity of 20,270 megawatts and work is in progress for balance 39,390 megawatts. We are continuing our focus on environmental commitments by planting over 1 million trees each year. Biomass co-firing at our plants has also increased significantly, reaching over 5 lakh metric tons in first half of the FY '26, nearly double the level achieved during the same period last year. These positive movements reflect our robust governance practices, enhanced stakeholder engagement and accelerated execution of our environmental commitments. On the international business development side, both units of Bangladesh-India Friendship Power Company Limited, BIFPCL, are currently operating with over 90% availability and a PLF of around 85%. Payments from the offtakers are being received within 60 to 90 days of billing. The groundbreaking of the first phase of Sampur Solar Power Plant was held on 5th April 2025 in the presence of Honorable Prime Minister of India and his Excellency President of Sri Lanka. The project activities are in progress. Recently, a joint declaration was made by the Honorable Prime Minister of India and Honorable Prime Minister of Mauritius to advance the government-to-government proposal for establishing a 17.5 megawatt floating solar PV project with a 48-megawatt hour battery energy storage system at Tamarin Falls, Mauritius. Some of the other key developments include business transfer agreements for transfer of coal mines from NTPC to NTPC Mining Limited was signed for hiring of coal mining business at an estimated value of INR 10,503 crores and Chatti Bariatu and Badam mines has been transferred. We expect to complete transfer of all the remaining mines to NML in the current fiscal. Receivables from various DISCOMs improved to 28 days from 33 days last year same period. Honorable Prime Minister of India has laid the foundation stone on 22nd September 2025 for 2 hydropower projects of NEEPCO in Arunachal Pradesh. The project include Heo Hydroelectric project 240 megawatts and Tato-I Hydroelectric project 186 megawatts, having an estimated cost of over INR 3,700 crores. NTPC Vidyut Vyapar Nigam Limited has registered a growth of 11.45% in the power trading, up from 22.3 billion units to 24.8 billion units. Another important event has been the issuance of CERC Suo Moto order, which provides a structured framework for scheduling of thermal stations and addresses the issue of supply obligation on generators in the event of infeasible schedule by the DISCOMs. It also enables stable operations -- stable plant operations. We would be happy to take any further questions on this topic during the Q&A session. NGEL secured a contract for supply of 0.7 lakh ton of green ammonia in the recently concluded green chemical tender, marking its entry into the emerging segment. This win provides opportunity to set the foothold in the new market of green hydrogen chemicals under the National Green Hydrogen Mission. On the nuclear side, Honorable Prime Minister has laid the foundation stone of Mahi-Banswara Rajasthan Atomic Power Project 4x700 megawatt in Banswara, Rajasthan on 20th September 2025. The Government of India has approved the transfer of the project from NPCIL to ASHVINI at book value and excavation work is expected to commence shortly. While we expand into new areas, we remain steadfast on our prudent practice and core strengths. We are expediting new capacities in coal, renewable and nuclear. Additionally, we are exploring opportunities in energy storage, green chemicals and other new technology areas, including our international presence. As highlighted during annual investor meet, we have revised our capacity addition target from existing 130 gigawatt to 149 gigawatt by 2032 and 244 gigawatt by 2037. Accordingly, the estimated capital expenditure requirement is INR 7,00,000 crore by 2032. Our current capacity under construction stands at 33 gigawatts, consisting of 17 gigawatt coal, 2 gigawatt hydro and 14 gigawatt renewables. To achieve the targeted capacity addition, we are well on track to place awards of contracts of new capacities in both coal and renewable. In the current fiscal, pending some minor clearances, we have placed limited notice to proceed order for 2,400 megawatt Meja II expansion to be executed through Meja Urja Nigam Limited, JV with Uttar Pradesh. We have also placed fresh contracts for 3 gigawatt of renewable capacity. Additional contract for land and connectivity placed for 1,200 megawatts. We are also systematically looking out for large parcels of land banks for our solar project so that connectivity will be available, becomes automatically viable for a large capacity projects with huge land banks. Allotment of land parcels by various state governments with aggregate capacity of 16.5 gigawatt is in advanced stage, 4 gigawatt Andhra, 10 gigawatt Rajasthan, 2.5 gigawatt Gujarat, 6.5 gigawatt through tenders. With this, our total land pool has reached to 22.8 gigawatts. We are exploring partnerships with various international players in the nuclear domain to prepare ourselves for setting up of capacities in our nuclear subsidiary, NTPC Parmanu Urja Nigam Limited once we get required permission from the government. FY '26 so far has been a strong year for both NTPC and NGEL with record capacity addition and healthy financial performance. A major milestone has been the foundation stone laying of the Mahi-Banswara project, which marks our formal beginning of NTPC's nuclear energy journey. As we look ahead to the second half of FY '26, we remain optimistic about both the economy and the power sector. For NTPC, the focus remains on the timely completion of under construction projects, strengthening fuel security and continuously improving plant efficiency and availability. India is once again adding substantial thermal capacity. We are a key part of this national mission. At the same time, NGEL is driving expeditious execution of renewable projects to ensure capacity ramp-up, supporting our goal of achieving 60 gigawatt of RE capacity by FY '32. We are also exploring opportunities in battery storage and hybrid projects to deliver round-the-clock renewable power and strengthen our clean energy portfolio. The nation is progressing towards becoming a developed economy, in turn increasing the power demand. As a key player in the power sector, we are ensuring that we meet this demand while staying ahead of the competition. We are committed to enhancing shareholders' wealth and continue to strive for improving performance in every facet of our business. Thank you for joining us. Over to Bharani.

Sir, we may proceed to the Q&A session?

Yes. The audio quality may not be as good as the -- but advise everybody to be loud enough -- loud and clear.

[Operator Instructions] The first question is from the line of Mohit Kumar from ICICI Securities.

My first question is, sir, on the capacity addition target. Are you on track to meet the capacity target of 11.8 gigawatts, 4.5 gigawatt conventional and 7.2 gigawatt in FY '26? Or do you think there could be some miss?

Yes, very much we are quite geared up. In fact, for FY '26, we have a target of 219 megawatt on a stand-alone basis and 7,825 megawatts for JVs and subsidiaries, both totaling to 9,844. And for financial -- next financial year, the figure is 9,600 megawatts, and for financial year '28, it would be 10,564. So we have a clear visibility on the CODs over the next 3 years.

Is it possible to break the FY '28 number between conventional and RE?

FY '25 or FY '26?

FY '28, FY '28 number. Conventional and RE.

FY '28, yes, the thermal would be 2,120, hydro would be 444 and renewable would be 8,000 or 8 gigawatt, so all totaling to 10,564.

Understood. My second question is, sir, what is the status of Meja Phase II project? Is it expected to take off in near term? Or is it delayed?

Meja, you said?

Meja Phase II, sir, Meja Phase II.

Meja Phase II. Meja Phase II, all phases are in place. Only the state government of UP approval is required. It's a matter of time. But it is expected to take place within, say, 2 months. We'll be starting the project work, say, from 1st of Jan.

Understood. My last question, sir, on the EESL losses, how long the EESL losses will continue in your opinion and the losses will be arrested and it will stop impacting our P&L?

Can you repeat the question?

On the Energy Efficiency Services Limited, how long these losses will continue in your opinion and the losses will be arrested?

Yes, I'll just pass it on to our Executive Director of Investor Relations.

Good evening, everybody. I would just like to inform the members that we are already -- the promoters are taking this very, very seriously regarding this EESL and all attempts are being made to get the receivables from the various urban local bodies. And we are looking at various options, including what [indiscernible] in IntelliSmart.

Understood, ma'am. So does it mean the losses will continue in FY '26 for the entire fiscal?

The losses will continue till FY '26, yes. But I can emphasize that all the promoters are very serious about this matter, and they are taking various actions for the same.

The next question is from the line of Puneet Gulati from HSBC AMC.

My question is on the battery side. You talked about 5,000 megawatt of battery with thermal projects and 5,000 with solar. Can you also elaborate on the time line of execution for these projects?

Expected completion is 3 years from date of award.

And when is the date of award likely to be?

Already, we have tendered 2.3 gigawatts. Another 2.9 gigawatts will come up in, say, December. So we are expecting the award in the financial year itself.

Okay, this financial year. And then within 3 years, it should -- and fair to assume it is all regulated return, right, both solar and thermal?

Yes, [indiscernible] are fully regulated.

And the 5,020 with existing solar, that's also?

No. That is not regulated.

That is not regulated. Okay.

Yes. The one which is co-located with our thermal plants will be part of the thermal business, plus [indiscernible] business.

Okay. So you talked about 4 parts, right? One was through TBCB 1990 megawatt that is TBCB. Then you talked about 15, 20 megawatt of co-location, right? That is also regulated?

No.

5000 is [indiscernible] regulated, located at NTPC plant, 5000 is regulated.

Okay. That's -- and also if you can just remind us what is the balance capacity commissioning for FY '26, how much you still have to do both on thermal side and renewable side?

The [indiscernible] in [indiscernible] is 800 megawatts, and 4 gigawatts in the second half.

4 gigawatts in the second half. Okay.

The next question is from the line of Atul Tiwari from JPMorgan.

Sir, can you shed some light on plans of ordering new coal-based generation capacity in rest of FY '26, FY '27 and FY '28?

You want the ordering? New ordering?

The ordering of new coal-based generation plants.

In this financial year, another 1.6 gigawatt is expected to be awarded. Then coming to next financial year, we are planning 2.4 gigawatt. Then beyond that, we have another -- earlier we had a plan of 800 megawatts. Now we may go for 1.6 gigawatts.

And so far, the [indiscernible] power plant at Mahi Banswara I know -- what is the configuration and how much is the total CapEx?

Mahi Banswara, the cost will be around INR 20 crores per megawatt. The date of completion will be 6 years from first [indiscernible], that will be from December '26 to December 2032, '33. The total CapEx is already around INR 40 -- INR 50,000 crores, total CapEx.

INR 50,000 crores, okay...

The 74 units of 700 megawatt was [indiscernible] 2800 megawatt, the estimated cost per rupees crores per megawatts will be INR 20 crores, and so that takes it to the range estimated around INR 50,000 crores. Execution time is 6 years. And broadly, the offtake will be to state of Rajasthan, Gujarat, Chhattisgarh, [ Andhra Pradesh. ]

Okay. And sir, when will the award of contracts start, for the project?

The [indiscernible] commission contract is already awarded for unit 1 and 2 under [indiscernible] materials for this nuclear already been done by NPCIL, the balance package of nuclear Island and the TG package is expected to award in this financial year.

And sir, does it depend on the passage of Civil Nuclear Liability bill in the Parliament or you are not impacted by that?

This [indiscernible] has no effect from that. That CLNDA Act will help us to move further in the other technology, [ preipolar ] technology.

Okay. And you have all other approvals, environmental clearance and everything else.

Yes.

The next question is from the line of Apoorva Bahadur from IIFL Capital.

Sir, I wanted to get some sense on NTPC Green capacity addition. I can see the capital expenditure which you have incurred in the first half is around INR 6,000 crores. Last year, it was INR 12,000 crores. Sir. Can you let us know like how much of capital expenditure for the projects we are about to commission this year and maybe next year has it been incurred and how much we'll have to incur in the second half?

In the financial year '25, '26, we are going to incur CapEx of around INR 3,000 crores, which will be financed through debt and equity. That is going to be the level of CapEx that is going to come in this financial year, which will be in the next financial year, this would further increase to around INR 45,000 crores to INR 46,000 crores.

This is NTPC consolidated level. And NTPC Green level?

This is at the NTPC Green level.

We plan to spend INR 24,000 crores in the next 6 months at NTPC Green?

Yes, because significant capacity addition is planned in the H2. So therefore, this level of CapEx will come in the second half.

Understood, sir. Very useful. Sir, I'll probably go back to the BES investment that we have lined up. I understand that for the coal co-located BES, it's cost plus. Can you help us understand like how should we think about the BES which will be co-located with the renewable projects? What sort of returns can we expect? And what's the tariff [indiscernible]?

See the co-located BES [indiscernible] done with an intent to use the solar capacity during the off-peak -- peak hours will be [indiscernible]. So that is expected to give us a significant boost in our revenue. But the exact numbers would come up only once we are able to firm up the tie-ups because these are currently the tie-ups for the same unlike the 5 gigawatt, which is on coal is not yet finalized. So we are in the process of acquiring the land nearby the connectivity where we are having, and that is the exact numbers in the return on equity would be only after that.

Okay. So we won't be selling it on a merchant basis. We'll have some tie-up for it?

We are going ahead with the projects. However, the tie-ups will keep on happening as and when the opportunity arises. But the intent is to start the work and move ahead with the projects initially on the merchant basis.

Understood, sir. Sir, last bookkeeping question, if you can help me with the adjusted consolidated PAT for the quarter. I'm sorry, I think we missed that number.

Consolidated PAT.

The adjusted consolidated PAT for Q2 FY '26 is INR 569 crores, which I mentioned in my opening statement also.

The next question is from the line of Satyadeep Jain from AMBIT Capital.

Just a follow-up on this co-located thermal. Just wanted to check this 5 gigawatt that you're adding, how do you decide where to co-locate it? Is it based on the cost of the plant fithead, non-fithead? And the equity will be after VGF, I'm guessing, right? So after the VGF, whatever equity is you look at regulated equity. I just want to understand the model there.

See, the choice of location would be decided based on what is the variable cost over there. Ultimately, the higher variable cost is more likely to have a backing down. So these are the plans. But at the same time, we will be judiciously choosing the plant where after you have stored it, the peak-hours tariff will be viable. So there will be a balancing that would be done between this. And as far as your question about VGF is concerned, the VGF will be the net of VGF we will go for a equity.

Okay. Perfect. And the curtailment, the PLF that was down you mentioned because of grid curtailment and all. This -- did it lead to higher O&M? Just trying to understand as we see this going forward, did it impact some O&M expense, some other expense? I can see the PLF incentive is down, but anything on the operations part?

No, no. It doesn't have a direct correlation like that. Of course, if there is a backing down, the overall tariff is likely to go up because your fixed costs will be distributed over a lesser number of units in that sense. But otherwise, the operation and maintenance will not be -- will not have that much sensitivity.

Okay. And on NTPC, I just wanted to check on the pipeline. It's been around 9 gigawatt, the pipeline, which is not signed PPA. So how do you look at converting -- there is that green hydrogen, GreenCo Kakinanda project. There are some other projects also. So what visibility are you getting on conversion? And how do you look at adding maybe to this pipeline? And also this RERTC projects that Ayana has, including some with Hindalco, any visibility on when can you look at commissioning some of these projects just on that NTPC Green?

So answering the first part -- last part of your question that is of Ayana. Ayana is progressing steadily with its [indiscernible] RE RTC and those projects are going to be commissioned almost by the end of this year. So that is not a challenge at all. For the other -- what was the first part you asked? For the balance PPA, which we have not yet been done, we are judiciously approaching all the TBCB tenders which are coming up. And because the capacity addition is going on in parallel, we are hopeful that we would be able to get into good PPAs through the TBCB routes. And the CI customers also, we have been approaching. So that challenge would be addressed that way.

[Operator Instructions] The next question is from the line of Sumit Kishore from Axis Capital.

NGEL could you give us the full year target for FY '26, '27 and '28 for RE capacity addition? And how much of that is going to be at the JV level? That's my first question.

See, for the current financial year, as was already mentioned, the renewable capacity would be 5365 [ megawatt ] and for the next year it is 8 gigawatt and this is for 2 years. What was the associated question you had?

How much of this capacity are you planning to add at the JV level? I mean how much will not get consolidated line by line in the P&L?

1,500 megawatt would get consolidated from -- would not get consolidated.

Every year for the next 3 years?

No, no, this is for the current financial year.

Okay. And sir, second question is you spoke about the CRC [ sole ] photo order. Could you please explain the controls of it and how does it impact the business, was not very clear in your opening remarks.

Yes. In fact, there were some constraint that NTPC or for that matter, the central generator has been facing that while we had an obligation to supply power, but there was no obligation on the part of the power off-taker, the discounts to give us a feasible schedule because there's always a constraint of ramping up primarily we would -- the generation units has to run on a feasible schedule with a technical minimum. But the earlier dispensation was that the DISCOM was not obliged to maintain that technical minimum, give a technical minimum schedule. At the same time, during the peak hours, the generator was obligated to keep its plant ready. So there was a clear [indiscernible] which was working to the -- which was detrimental to us. But based on the policy advocacy and follow-up, now this motor orders ameliorate that situation for us, and we will be getting a feasible schedule so that a certain amount of technical minimum operation is assured to us. So we are -- from there, we can -- we are able to ramp up to fulfill the peak-hours requirement. Is that clear to you?

Very clear. You mentioned 244 gigawatt of capacity target that was 2047?

2037.

2037 Okay. So that's a substantial amount of capacity you're planning to add between 2032 to 2037. Broadly, how much of this are you planning on thermal, nuclear and RE, if you can give a broad breakup, that would be fine.

Thermal would be 13 gigawatt between '32 to '37. And I think hydro would be close to 0.3 gigawatt only. And renewable we are targeting a substantial amount, almost double of that, close to 130 gigawatt to 240 gigawatt. So that is 55 gigawatt to 60 gigawatt increment and then nuclear would be around 2.1 gigawatt. So that would be the broad breakup...

The next question is from the line of Rajesh Majumdar from 361 B&K.

You have a capacity under construction in thermal of 17 gigawatts and hydro of 2 gigawatts. Can you give us the execution schedule for this over the next few years, how it will pan out

We have under construction capacity of around 33 gigawatt. Broadly the break-up is 17.3 gigawatts is from coal, hydro is 2.18 gigawatts and RE is 13.9. Now if you look at the -- we can give you a COD guidance of this, which we had already -- at the cost of repetition let me say that broadly 6 gigawatt during the current year and 8 gigawatt each in the next 2 years.

That is for renewables you said, you're talking about thermal and hydro.

Thermal and hydro. Thermal is 2,780 during the current year 1600 in the next year and 2120 during the -- FY '28. As far as hydro is concerned, it is 1 gigawatt during the current year. Next year, there won't be any COD achievement, but the year next, it would be 444 megawatt or 0.44 gigawatt.

And could you give us some color on any fresh thermal bidding that you're doing because we've seen some PPAs getting signed between states with Adani and JSW, respectively. So any endeavor on this front?

No, we don't intend participating in any tariff-based competition.

And sir, last question is our regulated equity as of 30th September is INR 116,000 crores. So what is our targeted equity as of FY '28?

FY '28?

Yes.

We can give you this figure. I mean that we'll have to work out on the CODs and the debt equity of that. We will share and give to you separately.

The next question is from the line of Nidhi Shah from ICICI Securities.

In your opening comments, you mentioned the tariffs were down to curtailments. My question is specifically on the RE, have we seen curtailment at the level as well? And is the lower COS also a result of the extended monsoon?

Yes. Generally, that's the result of an extended monsoon and some curtailment in RE, Rajasthan is there because of that.

My second question is on the capacity addition coal for RE. Sir the RE capacity addition has been [indiscernible] in first half and we have also reduced our target for the year. What are all the [indiscernible] we have stating in doing the installation of these projects and getting the commissioning done?

If you see in the first quarter, we added around 900 megawatt and in the second quarter, we added around 600 megawatts. So the second quarter typically being the monsoon season is a muted season as far as capacity addition is concerned. The bulk of our capacity will be in the balance period of, that is in the second half is going to come from the regions of Bhuj and [ Khawara. ] plus Rajasthan. So there is no significant impediment as of now on the solar side. However, if you [indiscernible] typically all wind projects, including ours do face some ROW challenges in the movement of heavy vehicles. So that could be one reason probably for a slight slippage of the wind capacity that we have been targeting.

My last question would be on Meja phase -- sorry can you project a queue will be awarded -- would be awarding them on the EPC basis will be breaking the packages down into BTG BOP and you also mentioned that the corrected 1.6 gigawatt of project, will it be awarded in FY '27 including Meja Phase 2 or has it already been awarded?

Maja, we have already issued LNTP on EPC basis, to [indiscernible] okay? So there is no question of packaging in Maja. Coming to this 1.3 gigawatt we have sold for balance that is for Lara Stage 3. That will be predominantly on packaging.

The next question is from the line of Akash Mehta from Canara HSBC Life Insurance.

So just continuing on the capacity addition front, we on NGL, so we have added about 1.5 gigawatt, as you said 900 megawatt in the first quarter and 600 megawatt in the second quarter. So what was the -- I mean, how much of projects were to get commissioned during the first half in terms of the company's target or commissioning dates?

You want to know the projects that we have commissioned in the first half?

No, no. I mean, like what was the company's target in terms of the first half commissioning and versus what has been achieved. So just wanted to check on that.

Yes. In the first half -- in the first quarter, we exceeded what we had targeted for around 850 megawatt. We did more than that around 900 megawatt. However, in the second quarter, there is a slippage, which is primarily because of the rain. We were targeting some another 300 megawatt to 400 megawatts more in Khavra, which got slipped, which we will make it up in the second quarter -- in the second half.

Okay, sure. And I mean, going ahead also, I mean, if you could just help us give, if possible, target quarterly commissioning at least for the next 2 or 3 quarters, if that's possible?

I can give you typical numbers, but again, on the RE business quarter-on-quarter, there could be movement here and there slightly. But traditionally in the third quarter and the fourth quarter because it is the fair weather season in everywhere. So we are targeting around 2 gigawatt in the third quarter and another 1.7 gigawatt in the fourth quarter. That is our target currently at hand. And it is going to also come, as I told from both this will be both NGL stand-alone NGL along with the [indiscernible] [ ONGPL ] which is our [indiscernible], that is Ayana.

Ladies and gentlemen, we will take this as the last question. That was the last question. I now hand the conference over to Mr. Bharanidhar Vijayakumar from Avendus Spark for closing comments. Over to you, sir.

Yes. On behalf of Avendus Spark, I thank NTPC management for giving us this opportunity to host this call. I'll hand over the call now to NTPC management for any closing remarks, if any.

Yes. Thank you on behalf of the management of both NTPC and NGL. I thank each and every participant in this earnings call for their very relevant queries and fruitful interactions. Thank you so much.

Thank you, sir. On behalf of Avendus Spark, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.