NTPC Limited ($NTPC)

Ladies and gentlemen, good day, and welcome to the NTPC Q4 FY '26 Earnings Conference Call hosted by JM Financial. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Sudhanshu Bansal from JM Financial. Thank you, and over to you, sir.

Thank you, Sawer. Hello, everyone. On behalf of JM Financial, I welcome you all to the Q4 FY '26 Earnings Call of NTPC. For today's call, we have with us the leadership team of NTPC, led by Shri Jaikumar Srinivasan-ji, Director Finance, along with other functional directors and other team members. Before we proceed, I would like to congratulate Srinivasan, sir, for being conferred with the Deal Maker CFO of the Year Award at ET CFO Leadership Summit 2026 on 6 March recognizing his outstanding contribution to strategic transactions and value creation. Heartly congratulations, sir. Now I will hand over call to sir for his opening remarks, after which we will open the floor for Q&A session. Thank you so much, sir, for your kind presence and giving us the opportunity to host the call. Over to you, sir.

Thank you, Sudhanshu. I think the volume needs to be increased on your side, you were barely audible. Of course, we could understand you, but the volume needs to be increased, please see that. So thank you, and welcome you all. Good evening, ladies and gentlemen. Mr. Bansal, you can confirm my audibility is good?

Yes, sir. This is the operator. You are loud and clear, sir.

Good evening, ladies and gentlemen. I'm Jaikumar Srinivasan, Director Finance of NTPC Limited and NTPC Green Energy Limited. It gives me pleasure to welcome you all to our earnings conference call for the fourth quarter and the financial year ended 31st March 2026. Joining me today are my colleagues from the Board of NTPC: Shri Shivam Srivastava, Director Fuel; Shri K. Shanmugha Sundaram, Director Projects; Shri Ravindra Kumar, Director Operations; Shri Anil Kumar Jadli, Director Human Resources; along with other members of our senior leadership team. We have announced our financial results for Q4 FY '26 and for the financial year ended March 2026, and I have shared the operational and financial snapshot with the stock exchange, which are available for your reference. I'll take you through the key developments covering the macroeconomic environment, developments in the power sector and NTPC and NGEL's operational and financial performance before opening the floor for questions. The evolving situation in West Asia has once again highlighted how closely energy markets and geopolitics are linked. The developments reinforce the importance of energy security, diversification of supply chain and building resilient domestic energy systems. Globally, countries are increasingly viewing electricity infrastructure, domestic fuel availability and strategic energy assets not only as an economic priorities but also as a matter of self-reliance and national security. From NTPC's perspective, the current developments are not expected to have any material operational impact. The coal position across all our power stations remain at comfortable levels, sufficient for nearly 18 days, ensuring stable generation and supply reliability. Further, with nearly 18% of our coal requirement being met through captive mines, fuel security for our stations is more assured than ever before. Our limited dependence on gas-based generation also insulates our gas plants, operations from volatility in the global gas market. At the same time, the ongoing global uncertainties continue to reinforce the importance of energy security and self-reliance. NTPC's long-term strategy remains aligned towards strengthening India's energy resilience through expansion across coal, renewables, storage, nuclear and domestic energy value chains, while continuing to provide reliable, affordable and sustainable power to the country. We have been witnessing a sharp increase in power demand since the last quarter. And the trend has further accelerated during the current quarter. According to estimates by the World Metrological Organization, the impact of El Nino in India is expected to keep heatwave conditions elevated through the summer and post monsoon months of 2026. If the phenomenon continues further, above normal temperature and stressed monsoon conditions may continue into early 2027 as well, leading to higher electricity demand, particularly due to increased cooling requirements. In addition, the current global situation is expected to accelerate the shift from hydrocarbons towards electricity across sectors such as clean cooking, transportation and industrial applications. This transition is expected to further support long-term growth in city demand. Over the last 1 year, the Indian power sector has undergone several important developments, which are reshaping the long-term outlook of utilities. One of the most significant trends has been the increase in electricity demand driven by economic growth pricing cooling requirements, urbanization and increased digital infrastructure. The country has witnessed record peak demand of 271 gigawatts and day generation of 6,268 million units recorded on 21 May 2026, highlighting the importance of reliable baseload generation alongside renewable capacity addition. In this environment, energy security and supply reliability have become central priority for policymakers as well as utilities. At the same time, India has accelerated its clean energy transition through rapid renewable capacity addition, expansion of transmission infrastructure and strong policy support for storage solutions. Alongside renewables, the government has also renewed focus on thermal capacity additions to maintain disability and meet rising demand. As for the later CEA estimates, the additional coal capacity requirement till 2036 is projected to be 86 gigawatt, of which 68 gigawatt is in pipeline. Out of this, NTPC is currently executing 16.5 gigawatt of capacities and around 4.6 gigawatt is in various stages. Further, policy initiatives aimed at improving domestic coal production and captive mining has strengthened fuel security across the sector. Recent policy changes in nuclear energy and enactment of SHANTI Act have opened new long-term opportunities for integrated power utilities. For NTPC, these developments broadly validates the company's strategy of maintaining a balanced and diversified energy portfolio. While our thermal fleets continue to play a critical role in supporting grid reliability and meeting rising demands, we are simultaneously expanding our presence across diversified portfolios. The company remains well positioned to benefit from India's long-term power demand supported by fuel security, a robust project pipeline. Then I come to the key highlights during FY '26. As on 31 March 2026, NTPC's group installed capacity stood at 89,108 megawatt. During the year, we have added 9,618 megawatt of capacity. NTPC contributed 1,823 megawatt and JVs and subsidiaries contributed 7,795 megawatt, making the highest ever annual capacity addition since inception. This also includes the acquisition of the 1,350 megawatt Sinnar Thermal Power Station in partnership with MAHAGENCO. As on date, NTPC Group has crossed 90 gigawatt mark. During FY '26, NTPC Group added 4,738 megawatt of RE capacity. Out of this, NGEL added 4,225 megawatt compared to 2,977 megawatt added in FY '25. In addition, 490 megawatt have been added in FY '27 till date, taking the total installed renewable energy capacity of NTPC group to 12,068 megawatt. NTPC Group generation stood at 432.2 billion units in FY '26 as compared to 438.7 billion units in FY '25. NTPC coal station achieved a PLF of 72.04% against rest of India average of 63.20%. We have also achieved growth of 13% in power trading through NVVNL. Generation from NGEL stood at 14.6 billion units as compared to 6.8 billion units in FY '25, registering a growth of 114%. Outstanding receivable days improved to 15 days as on 31st March '26 compared to 29 days for the previous year. Coal production from group captive coal mines under commercial operation increased to 47.88 million metric tonne, registering a growth of 8.5% vis-a-vis previous year. Coal production started from Pakri Bawadi Northwest mine in December '25, and mine was declared commercial operation with effect from 1st of April 2026. With the transfer of Pakri Bawadi coal mines on 1st of April 2026, the transfer of NTPC's mining business to NTPC Mining Limited, a wholly owned subsidiary, has been fully completed under the business transfer agreement. Government of India enhanced investment approval limit for renewable subsidiaries up to INR 20,000 crores, supporting NTPC's target of 60 gigawatt renewable capacity by 2032. Work in respect of 5 gigawatt hours BESS capacity at NTPC's existing thermal power stations is being executed under cost-plus mode. CRC has issued regulations for co-located battery energy storage system, which are crucial for renewable integration and peak management. This amendment integrates energy storage system into the mainstream tariff framework. Additionally, 320 megawatt hours BESS is being executed by NGEL and further capacities are also under pipeline. On the nuclear front. AERB has granted excavation concern for unit 1 and 2 of Mahi Banswara project. Site selection studies are also underway across multiple states for development of nuclear power projects under NTPC Parmanu Urja Nigam Limited. The last unit of 250 megawatt of PSP was declared commercial operation in April 2026. With this, PSP has become fully operational. NTPC achieved significant improvement in ESG performance during FY '25-'26, with MSCI ESG rating upgraded from CCC to BB. S&P CSS score improving to 50 against global average of 41 and sustained progress across leading global ESG benchmarks. During FY '26, our group thermal station coal fired 15.19 lakh metric tonne of biomass more than double as compared to 7.03 lakh metric tonnes used last year. On the fund mobilization front, during Q4 of FY '26, loan agreement for USD 150 million JPY-denominated was execute service Mizuho Bank Limited. The loan carries an interest rate of 0.98% per annum over 6 months compounded Tokyo overnight average rate donna and has the average maturity of 7 years. The door-to-door tenor of the loan is 8 years. The weighted average interest rate on borrowings during FY '26 stood at 5.98% compared to 6.61% in FY '25, reflecting the benefits of proactive financing strategic restructuring of the company's loan portfolio. As regards the capital expenditure. In FY '26, we have incurred a group CapEx of INR 49,068 crores as compared to INR 44,636 crores in the previous year. While on the stand-alone basis, NTPC has incurred CapEx of INR 28,462 crores in FY '26 as compared to INR 22,965 crores in the previous year. The gross property, plant and machinery as on 31st March 2026 on group level has increased from INR 4,04,210 crores to INR 4,70,618 crores during last 1 year, an increase of 16%. I will now take you through some of our key financial numbers given comparison of the corresponding period. Firstly, NTPC stand-alone financials. Total income for Q4 FY '26 is INR 44,030 crores as against INR 45,830 crores in Q4 FY '25. On an annual basis, for FY '26, the total income is INR 1,69,725 crores as compared to INR 1,74,414 crores in the previous year, a decline by 2.69% per annum due to the lesser demand experienced during the year. NTPC's profit after tax for Q4 FY '26 is INR 8,747 crores as against INR 5,778 crores in the corresponding quarter of previous year, registering a growth of 51.4%. NTPC profit after tax for FY '26 is INR 23,162 crores as against INR 19,649 crores in the previous year, registering a growth of 18%. Adjusted PAT for FY '26 is INR 19,530 crores against INR 18,016 crores in the previous year, registering a growth of 8%. During FY '26, we have accounted for dividend income of INR 2,264 crores from our subsidiaries and joint ventures as against INR 2,092 crores during FY '25. The stand-alone regulatory equity for conventional power and mining business as on 31st March 2026 is INR 94,631 crores, up from INR 90,902 crores as on 31st March 2025. Coming to the NTPC's consolidated group financials. Total income of the group for FY '26 is INR 1,89,799 crores as against INR 1,90,862 crores in FY '25. Profit after tax of the group for FY '26 is INR 27,546 crores as against INR 23,953 crores in FY '25, registering an increase of 15%. During FY '26, our subsidiaries earned a profit of INR 3,312 crores. NTPC's share of profit in JVs was INR 2,864 crores in FY '26. Consolidated regulated equity for the group as a whole stood at INR 1,20,319 crores as on 31st March 2026 as compared to INR 1,08,791 crores as on 31st March 2025. Coming to NTPC Green Energy's highlights. Consolidated revenue from operations increased by 29% to INR 2,858 crores in FY '26, while operating EBITDA grew by 29% to INR 2,475 crores. EBITDA margin remains at 87%. For the Q4 FY '26 revenue from operation for NGEL Group has increased to INR 913 crores from INR 622 crores in Q4 FY '26, showing an increase by 47%. Operating EBITDA has also increased from INR 560 crores in Q4 FY '25 to INR 775 crores in Q4 FY '26, increased by 38%. I'm pleased to inform that NTPC Board has recommended a final dividend of FY '25-'26 of INR 3.50 per share, subject to the approval of shareholders. This is in addition to the interim dividend of INR 5.50 per share already paid during FY '26. Total dividend for the FY '26 will be INR 9 per share, in line with the company's commitment to delivering value to its shareholders. We continue to pursue growth through a balanced expansion across conventional and clean energy segments while maintaining focus on fuel security, project execution and disciplined capital allocation. NTPC Group currently has over 34 gigawatt of capacity under construction, comprising 16.5 gigawatt of coal-based capacity, about 2.6 gigawatt of hydro capacity and 15 gigawatt of renewable energy capacity providing a strong foundation for near to medium-term growth. In parallel, we are also focusing on expanding storage capacities through BESS, pump storage projects, long-duration energy storage technologies like CO2 storage and flow batteries to support grid stability and renewable integration. On the thermal side, we have completed the trial operation of Patratu Stage 1 Unit 2 during Q1 FY '27 and expect the third unit to be commissioned within the current fiscal year. In the Renewables segment, we are planning to add around 8 gigawatt capacity. Alongside capacity addition, work has commenced at Pudimadaka green hydrogen hub for development of green methanol and sustainable aviation fuel, supporting our long-term diversification into emerging energy value chains. We are progressing on coal gasification initiatives which have the potential to support continuous utilization of gas as using domestic resources. Over the long term, nuclear energy will remain an important pillar of our growth strategy through projects being developed under swine as well as other stand-alone opportunities. We believe these initiatives supported by NTPC's diversified portfolio and regulatory business models will continue to provide stable returns and long-term value creation. We remain committed to enhancing shareholders' value through continuous improvement, prudent growth and operational excellence. I would like to thank all our investors for their continued trust and support. Thank you all for joining us. We will now be happy to take your questions. I now hand over to JM Financial for the coordinating the question-and-answers. Thank you so much.

[Operator Instructions] Your first question comes from the line of Mohit Kumar from ICICI Securities.

My question is, sir, how do you think about capacity addition in FY '26 and FY '28 given the current pipeline? Can you break that capacity addition stand-alone, self and JV for the conventional and for the green, sir, both, yes?

As far as FY '27 is concerned, on a totality basis, we are planning around 9,557 megawatt of capacity. If I break down it into thermal, hydro and renewable, thermal would constitute 1,070 megawatt; hydro will be 250 megawatt; and renewable, total would be 8,237 megawatt. Of this 176 megawatt coming from renewables would be on a stand-alone basis and 9,381 megawatt would be coming from the JVs and the subsidiaries. This is as far as FY '27 is concerned. The year next, FY '28, the total plant capacity addition is 10,039 megawatt, comprising of thermal 4,060 megawatt, hydro total will be 444 megawatt and renewable total will be 8,135 megawatt. And this would broadly come from -- 660 megawatt will come from TDPS Stage 3 unit 1 we are expecting in Q3. Patratu Unit 3 in the quarter 3, around -- this will be 800 megawatt. So this will yield us 1,460 megawatt. Hydro, we are expecting -- hydro Vishnugad of the THDC, 444 megawatt. And as far as renewable is concerned, 8,135 megawatt, broadly 8,069 megawatt would come from JVs and subsidiaries, predominantly the NGEL. And 66 megawatt will come from NTPC itself. This is as far as the financial year '28 is concerned. In a similar way for FY '29, we are planning 11,478 megawatt total capacity. 8,408 megawatt would be renewable total. We don't expect any hydro addition during that year. Thermal total will be 3,070 megawatt. The identified thermal capacity addition is TTPS Stage 3, Unit 2, which will come in the Q1 of the year, 660 megawatt. Lara Stage 2 unit 1 and 2 will contribute 2 units of 800 megawatt, 1,600 megawatts. And we are expecting the Sinnar thermal unit, Unit 3, Q2 and Unit 4 and 5 in the -- these are 270 megawatt units, 3 units, which we'll be adding in the fiscal year, 810 megawatt. So that would be the broad breakup for 11,478 megawatt.

Understood. That's very helpful, sir. My second question, sir, what is the status of the nuclear power projects? And where is Mahi Banswara right now? Could we expect tender of the equipment work to start in this fiscal. And the related question is what kind of nuclear capacity you think you'll be able to commence work in the next 1 to 2 years?

See, as far as the very first project, Mahi Banswara is concerned, capacity, as you know, is a 4 unit of 700 megawatt, total of 2.8 gigawatt. And broadly, this 2,770 megawatt of capacity consent has come from the customers from Rajasthan, Gujarat, Chhattisgarh, Andhra Pradesh. The excavation package for this project has already been awarded for Unit 1 and 2 on 13th of September 2025. Excavation concerned by Atomic Energy Regulatory Board, AERB, has been received on 18th of March '26. Forest Clearance amendment accorded on 20th of June '25. Environmental clearance is in place in the May last year itself. The first pour of concrete is anticipated by August 2027. And first unit synchronization we are planning in November 2032. Now in this regard, the design consultancy also has been awarded on 23rd of December 2025. And equity infusion of INR 800 crore to Ashwini has been done by JV partners on January 26. As far as the mega packages are concerned, nuclear islands, mega EPC, NIT is expected by 15th of June '26. And it will be followed by TG Island EPC, NIT by 30th of March 2027. Now so as you know that -- so this is -- by 2032, we are expecting one of this unit, and there will be a gap of 6 months will be the staggering for the remaining units.

Understood, sir. And any color on any other project which you think you can take up in the next 24 months?

No. As far as anything over and above this is concerned, we are right now in the process of identifying locations. 30 locations across India being explored. We have entered into MOU and with NP government, Satis government and joint working group as informed and consent given by government of Andhra Pradesh and studies have been completed, MP, Gujarat, Orissa, UP, Bihar, Maharashtra has given consent for preliminary studies. Water availability has been confirmed in some of the places. So we are working on the ground level thing, availability, ensuring availability and the broad feasibility. So this is the situation. But right now, we are under execution, we can say is an sort of project

The next question comes from the line of Parikshit Kandpal with HDFC Securities.

Yes, so my first question is on NGL. So I want to understand what was the curtailment for NGL in terms of units and value for FY '26 and Q4 FY '26?

No. As far as curtailment is concerned, we -- NGL experienced a curtailment of 314 MUs during the year. This -- I mean this is besides the drafts loss, which we can say is 135 MUs. So these are the 2 things which are added to the grid situation.

And in terms of like impact on EBITDA, so if you can quantify this for the year as a whole, in terms of how much is the...

Broadly speaking, you can take that -- as far as -- yes, yes -- I would say that as far as the tranche is concerned, we are compensated for that. But as regards the grid curtailment where we are experiencing because of the temporary G&A, it would have an impact close to INR 90 crores.

INR 20 crores?

INR 90 crores, INR 90 crores.

Okay, INR 90 crores. Second question is, I mean, we have initially said that 5 and 8, 8 gigawatt for '26, '27, '28 on the NGL install capacity addition. So there has been a shortfall in FY '27. So just wanted to understand for '28-'29 for the 8, 8 gigawatts so have we secured the transmission? So what is now the availability of transmission of acquisition? And if you can also add that beyond this, I mean, are you seeing further growth drivers in the pipeline, which is currently a capacity end up at 3.4 gigawatts, so do you think that this number can jump substantially over the next couple of years so that this 8, 8 gigawatts can actually start growing from these levels?

See, first thing is for -- it was not FY '27. So FY '26 that we were planning around 5 gigawatt, and we -- some of the units spilled over to the next year or we expect it to see lower. But as far as the current year is concerned, the 8 gigawatt, we continue to hold to that. And we -- right now, we are planning 8 gigawatt -- on an average of 8 gigawatt per annum. But yes, we would be exploring various other opportunities to top it up, including inorganic acquisitions. So our idea would be to steeply increase it so that we fulfill our target of 60 gigawatt much ahead of what we are planning by 2032.

And how much of the transmission network we have secured for these FY '27 and '28? So what percentage would have been secured for these capacities to come on time, that will be my last question?

See, as far as FY '27 is concerned, we have the firm connectivity of 57% and TG&A of 38%. As far as FY '28 is concerned, whatever CODs are expected in FY '28, we have projected firm connectivity of 88% and 3% would be coming from the TG&A. Remaining 9% is something which we are yet to tie up. FY '29 84% we have firm connection and remaining 16, we'll have to work on the connectivity.

The next question comes from the line of Sumit Kishore from Axis Capital.

Congrats on your highest ever good capacity addition in FY '26. My first question is for NTPC thermal fleet, are there coal units which are having to face the challenge of fitting technical minimum of 55% PLF during day time when solar availability peaks? So how is NTPC managing this risk and what is the strategy for the future? That's my first question.

See, as far as this issue of -- curtailment would be wrong word, I would say, the backing down of thermal to the suburban to the RE injection is concerned, we have been facing this issue, and we have had taken up this issue at a policy level that the thermal fleets will have to be supported for a technical minimum because below this, it becomes increasingly infeasible. And accordingly, there has been a very favorable pronouncement wherein we have been assured a technical minimum of 55%. Without -- I mean if it goes down, we are not obligated to then keep the unit life and we'll be compensated further availability under fixed charges. Now added to this is how are we trying to mitigate this Well, we are we have also kind of advocated and got a dispensation of at co-locating batteries in some of these thermal power plants, whereby this would mitigate the excess -- the backdown power can be charged during the daytime and discharged during the evening peak for peak load management. So battery work has already started. And CRC has given its tariff framework for this, supporting this thing. So this would be essentially in a cost-plus framework where we are assured us of our returns or return on equity as well as our fixed charges. And -- so this would -- this added with the technical minimum support should see us through this problem. And going ahead, based on the experience in this initial set of co-located batteries, we can think in terms of expanding it to other because at a national level, then it becomes a very potent solution for managing the grid.

Is the technical minimum support approved by the regulator already or this is something that you are business?

No, no, as far as technical minimum of 55% is concerned, this is already the rule.

If a unit goes below...

I'll tell you. If a unit goes -- if I have declared a certain capacity higher than the technical minimum or let us say 85% or 100% and the scheduling is -- comes below 55% for some reason, and I'm not obliged to run this plant, I can take a reserve shutdown. And whatever is the comfortable time required for ramping up it later on, I'll do that. So I'll be -- I'm not obliged to then supply the power during the evening. So this is the protection we have got. In this respect, I would invite the Director Operation, Mr. Ravindra to elaborate further on this.

Moreover to beneficiary giving less than 50%, then we -- as per the new regulation, as per the new amendment, getting into solution, we are getting support up to 55% through the SCUC and SCED supports. So we are running -- maximum, we are getting the support. If we are not getting, then we are not obliged to run when we are taking unit [indiscernible] And for that, we are again getting paid also.

My second question and last question is on pump storage projects. What is the total anticipated CapEx for pipeline projects in pump storage and what is likely to get incurred in the next 5 years? And which projects are likely to get commissioned first?

Broadly, NTPC is working on 4,800 megawatt of PSPs. This is primarily to be executed through JV and subsidiary THDC and which are the hydro subsidiaries are working on 13,210 megawatt. So that puts the NTPC Group broad plan at 18,010 megawatt. Now out of the above, COD has been declared in the FY '26 itself or 750 megawatt, that is the THDC SPSP. And COD declaration of 250 megawatt has been done in the current financial year, FY '27 first quarter. So that takes it 1,001 gigawatt is already done in this. We have projects with firm a location by state government. NTPC has 4,800 megawatt, THDC 6,800 megawatt and NITCO 1,600 megawatt that totals to 13,200 megawatt. Balance 3,810 megawatt are under planning. In THDC, 3,310 megawatt and NITCO 500 megawatt. Another 3 gigawatt to 5 gigawatt, you can expect to be commercialized by 2032 to '33. We have prepared 21 PFR demonstrating that NTPC has the capability to develop PSP and adequate loan is available. This will have an average completion time of anything 6 to 6.5, 7 years. And so this is the broad plan which we are working on. So you can expect some 3 gigawatt to 5 gigawatt completion, we have the target in the next 7 years.

Your next question comes from the line of Apoorva Bahadur from IIFL Capital.

Sir, I just wanted to check about this NGEL pipeline. When compared to previous quarter, the full pipeline, I think, has reduced from 32 gigawatt to 30 gigawatts. Can you give some color on this? Why is this reduction and which projects have been removed?

NGEL, you are saying? .

Yes, sir, the consolidated Green business pipeline.

Okay. I'll invite Mr. Niraj Sharma, the CFO of NGEL, to elaborate on this.

Apoorva, actually, we have, you can say, adjusted or actualized our total pipeline plus contracted awarded capacity that we had. We had earlier shown 32 gigawatt up to Q3 of last year. However, now we have seeing where -- in which of the JVs or the subsidiaries progress is being made and normalize the numbers. So that is why the numbers have come down from 32 gigawatt to 30 gigawatt. However, there are many other MOUs or activities where we are working upon, and we are expecting to increase the pipeline to -- beyond that in the coming days. Thank you.

Understood, sir. And I think during the comments, sir also mentioned about the coal gasification plans and targets. So sir, if you can provide some color where -- which are the specific projects we are working on, what type of capacity and time lines?

Yes, I will request Director Fuel, Shivam Srivastava, to give you some detailed details about this.

Yes, we have started -- regarding coal gasification, we have taken up a pilot project at one of our mines, Talaipalli. And we have -- we are going to IEL, and this has a capacity of 4 lakh tonnes per annum. And this is basically for synthetic natural gas production. It's a pilot project.

So it's initial stages. We'll keep you updating more on as we progress on this.

Sure, sir. Sir, also, I think on the previous question, you commented that we have around 57% firm connectivity for FY '27 renewable capacity addition. Did I hear it right, 57, 5-7?

Yes, that's right. Yes.

So should we expect some TG&A like curtailments to increase next year and then subsequently normalize?

See, it would taper. Like the point is that, yes, at this present point of time, it is 57%. But some of the offtake will certainly happen through the G&A, depending on the circumstances. But then as the connectivity gets added, the curtailment should taper.

Okay. Sir, again, on a previous question about the thermal backing down. While we appreciate the fact that companies entitled to a 55% technical minimum, but can you share with us what is the -- if there is any incremental costs being incurred for backing down to 55% in terms of higher O&M or lower heat rate? And how are we compensated for that?

No. See -- I mean, one is the floor percentage that it need not go below 55%, and Mr. Ravindra also explained to you about the CCSU support that is available. But within this range of 100% to 55%, we are compensated for various parameters, degradation in the parameters in terms of heat rate auxiliary consumptions. And this has been kind of taken up with the regulator, and we have got very favorable dispensation over the last 2 years. And right now, we have been adequately compensated for this.

The FY '26 profit number contains all the compensation benefit as well?

Of course, of course. The sales -- I mean, the sales would include all these things.

Sure, sir. Sir, if I may squeeze just 1 last question. There has been some news items, news reports around a possible listing of TSCC if there are any plans, would you like to share them?

No, there are no definitive plans at this point of time. As a group, we keep exploring all these avenues for -- as a part of our financial strategies and unlocking value. This is one of the options that is available. But as we -- because this involves -- this is a joint venture, this THDC comes under a joint venture with the UP government. These are matters which has to be dealt at the fairly senior policy level. So once we have a clear mandate on this, we'll share with you.

Your next question comes from the line of Aditya Sahoo from HDFC Securities.

Just a couple of data points over here. If you could provide the quarterly CUF that we have for solar and wind projects for Q4?

Quarterly CUF?

Yes. For solar and wind projects for Q4.

One second. Just hold. We have noted down. Can you meanwhile go to the second question, we'll give it to you?

Sure, sir. The other one was in the [indiscernible] FY '27 and '28, what sort of CapEx guidance do you have, particularly for NGEL, consolidated NGEL?

CapEx guidance? See, as far as the -- you have been specific about NGEL, so let me give you that -- we have a broad CapEx for the group of INR 6,22,000 crores till the financial '32, and we have allocated roughly half of that, around INR 3 lakh crores for renewable energy. We should broadly be done by NGEL. I don't have a year-wise breakup for that much as I have a year-wise breakup of the entire thing, but let me try and see if I have a -- yes, for NGEL, for current year, it would be CapEx of INR 35,800 crores. Next year, it would be INR 46,000 crores; and the year next, it would be INR 48,000 crores. So we'd be implementing a debt equity of 80-20, so you can have the debt and equity component.

Understood, sir. On the [Technical Difficulty] number on an annual basis, the bifurcation in the other expenses pertaining to how much of that would be the component for power [Technical Difficulty] for the NGEL consolidated?

So there's a lack of clarity. Can you be louder and -- we didn't get you.

Sure, sir. This is attending to the other expenses, if you could provide the component towards power charges and the O&M that we do at NGEL consolidated for FY '26?

So Aditya, we can provide you those data numbers later, separately.

Sure, sir. Sure. Just 1 last question over here. While you had mentioned the transmission tie-up is that In terms of the PPA tie-up for the capacities that we plan to commission, what percentage do we have for '27 and '28 in terms of the PPA tie-up?

We have, over the next 3 years, we have broadly an average 72% to 75% capacities have been PPAs already in place. For FY '27, it is 79%. FY '28 CODs of 8,069 megawatt, we are already covered with 71% PPA. And the year next, around 8,400 megawatt, it is 66% [indiscernible] will be.

Understood, sir. Just on the CF I'll wait for that. And I'll go back to the line.

So breakup of other expense we'll provide to you. We have noted down. We'll fulfill your requirement.

Sure. Sure, sir. On the CUF part also, if that would be possible, that would be helpful for the solar and wind for Q4.

Sure, sure. Thank you.

Your next question comes from the line of Arihant from Bowhead India Fund.

Sir, I wanted to know, do we have any plans of doing battery storage in existing renewable projects, co-location of battery storage? And the second question was regarding the 1.5 gigawatt renewable project that we are planning to do in NTPC Rajasthan Green Energy Limited, what's the update on that? And when can we expect that project to be completed?

Yes. Your first question was on battery. So let me tell you that, yes, we have -- we are embarked on battery storage as far as renewable is concerned. Besides, of course, the co-located battery for thermal, which I was mentioning 5 gigawatt hours, we are currently working on 1,320 megawatt of batteries on the renewable side. On the stand-alone project of battery, it 320 megawatt, which is under execution or confirm offtake arrangement is there. And coal-located with solar projects, it will be 1,000 megawatt, which is under tendering right now. Execution is yet to start, but there is a confirmed offtake arrangement. So right now, 1,320 megawatt we are working on. But there are around 4 gigawatt more, which is under planning stage right now, which would be at it would be Bikaner, Sitapur and one which is Chhattisgarh. So all this put together would be close to 4 gigawatt. And in addition, we are also, as you are aware about the non-solar connectivity. We are, in addition, application for nonsolar connectivity of 14.5 gigawatt has been applied and with bits of 2 to 4 hour capacity, which is under initial stages of planning right now.

Okay, sir. And regarding the Rajasthan 1.5 gigawatt solar project, which we are doing in Rajasthan JV, what's the update on that?

I will request Mr. Sarit Maheshwari, the CEO of NGL to give you the exact detail about this.

See, we have already moved ahead quite a bit on the 1.5 gigawatt project. We have the land in possession. We have also entered into the the tie-up for the implementation support agreement and other things. We are currently working out the commercial offtake arrangements with Rajasthan. And all the tendering activities, everything has been completed. And once we reset the commercial settlement of agreements on the offtake front, we will immediately move ahead with that.

Okay. And sir, 1 more question regarding competitive bidding, like in FY '26, the projects under tariff competitive bidding were low. So just wanted to understand like we were focusing more on execution of current projects, what was the reason for lower bidding? And do we expect to get back to 2, 3 gigawatt winning levels through tariff competitive bidding, which we have done earlier in FY '24-'25?

You've seen the way the biddings have happened in the last year. And NGL always has its threshold levels before which when we do not find merit in the competitive base we stay away. So we are always keenly looking at the various opportunities that come by. And we will continue to participate, and we will have the business at our terms.

Okay. And sir, one last question. Can you tell like out of 8 gigawatt capacity which we are planning to add in FY '27 and '28 in NGL, how much of that will come through JVs, any rough idea on that?

So in FY '27, out of the 8 gigawatt around 1.9 gigawatt would come through JVs, primarily through Ayana and a part of that would come through a JV with IOCL that is INGEL. And in FY '28 out of the 8 gigawatt around 624 megawatt would come to the JV route.

The next question comes from [ Dashant Jain ] of [ Gastar Capital ].

Sir, what was the reasons for other expenses to go up significantly on a Y-on-Y and Q-on-Q basis?

Not clear, please repeat.

Sure. Sir, what was the reasons for other expenses to significantly increase on a Y-o-Y and Q-o-Q basis?

This is in NGL or NTPC?

NTPC, the consolidated results.

Okay. Just a second.

Sure.

If you see the other expense, it has gone up by -- from INR 5,806 crores to INR 6,972 crores this on a stand-alone basis, which is 20% above. Now if you -- see, there is an exchange rate variation of significant exchange rate variation of INR 784 crores. But however, what happens is in the cost-plus framework, the corresponding, we are entitled to the corresponding compensation for ERV. So that corresponding regulatory income of INR 780 crores is available on the sales side. And we have also provided for some INR 478 crores provisioning, INR 193 crores pertains to ESL and INR 149 crores NBPPL and INR 100 crores for So these are some onetime provisions which we have made.

Okay, fair. And just...

[indiscernible] transportation expenses as -- okay, okay, please continue.

No, please go ahead.

No, there is a nominal increase in the O&M expenses year-on-year, which we are entitled to, INR 198 crores. So all this is contributing to this figure.

Okay. Sure, sir. And sir, just on -- just a basic question. Like how do we reconcile the capacity additional growth with respect to the revenue growth? Like before an investor, how much sector should we keep in mind to understand the financial? Like the capacity addition has been happening, but if you look at the revenue terms, it has not -- like it has been flat above low single digit. So how should we reconcile those things?

See, these are -- the effect is because of some composite factors. Capacity addition happens where your megawatt increases. However, on the thermal side, if you are aware that the plant load factor compared to the past has been low because of the lower demand during the daytime, during the solar hours because of the RE injection, isn't it? Now because of that, although I am compensated for the -- your fixed charges or because of the lower generation, my sales is also down to that extent. And to the extent my fuel cost also goes down, while my bottom line is protected.

So basically, the compensation is like we are -- the bottom line can protected because we get a confirmation from the government or whatever, right, even if the demand has been low?

See, the demand -- see, when the demand is low, the offtake is low. If the uptake is low, to that extent, I have to back down my generation. Because of the backing down of generation, my fuel cost also -- I don't fire that much fuel. So my cost also goes down, my revenue also goes down because of the lower offtake. Whereas my margins are protected because my fixed charges, once my plants are available, the fixed charges has to be given to me, which improves the element of return on equity. So my investment is protected.

Okay. Fair enough.

Separately, also, we can later on have a discussion on this.

Sure, sir, I'll take this offline. No issues.

Ladies and gentlemen, we will take that as a last question for today. I now hand the conference over to the management for closing comments.

Thank you so much. On behalf of both NTPC and NGL I extend my sincere thanks the Government of India, especially the Ministry of Power and Ministry of New and Renewable Energy for their continued guidance and support. We place on record our gratitude to our investors and analysts for their continued participation and the trust and confidence reposed in NTPC. I thank all the participation -- participants who have joined this call. I would also like to express my sincere thanks to my fellow members on the Board for their continued support and guidance. I take this also opportunity to express our appreciation to JM Financial for organizing this earning conference call and faciliting interaction with the investors and analyst community. . Any further queries or clarification may kindly be address to NTPC's Investor Relation Department in addition to whatever we have already promised to supplement this thing. Thank you so much.

Thank you. Ladies and gentlemen, on behalf of JM Financial, that concludes this conference. Thank you, everyone, for joining us, and you may now disconnect your lines.