NTPC Green Energy Ltd Management Discussions

Economic Overview

The global economy remained resilient during FY 2025-26 despite elevated geopolitical risks, trade-policy uncertainty and intermittent volatility in energy markets. India continued to stand out as one of the fastest-growing major economies, supported by resilient domestic consumption, public capital expenditure, a healthy services sector, improving private investment intent and structural reforms. Indias real GDP growth for FY 2025-26 has been estimated at 7.4%¹, while the near-term outlook remains favourable even as the global economy navigates conflict, inflation and supply chain uncertainties.

For the power sector, this macroeconomic backdrop remains constructive. Growth in manufacturing, transport, digital infrastructure, urbanisation, electric mobility and green industrialisation is increasing the structural demand for electricity and accelerating the need for low-carbon, flexible and dependable energy systems. These trends are supportive of NGELs strategy of expanding utility-scale renewable generation, storage-linked offerings and emerging green energy solutions.

Sector Overview

Indias energy transition gathered decisive momentum during the year under review. As on 31^st March 2026, the countrys total installed power capacity stood at 532.74 GW, of which 283.47 GW, or 53.21%, was based on non-fossil fuel sources. Renewable energy sources (including hydro) accounted for 274.69 GW, comprising 150.26 GW of solar, 56.09 GW of wind, 51.41 GW of hydro, 11.75 GW of bioenergy and 5.17 GW of small hydro.

India achieved the important milestone of 50% cumulative installed power capacity from non-fossil fuel sources in June 2025, five years ahead of the target year under its Nationally Determined Contributions. During FY 2025-26, India added a record 55.29 GW of non-fossil capacity. Solar led this expansion with 44.61 GW of additions, while wind capacity addition reached a record 6.05 GW during the year.

Indias total electricity generation during FY 2025-26 reached 1,840 BU, of which non-fossil sources contributed 539.97 BU, representing 29.2% of total generation. Renewable generation excluding large hydro rose to 308.81 BU, recording growth of 21.10% over the previous year. In the global context, solar PV remained the leading driver of energy transition and wind recorded another year of robust capacity addition, reinforcing the relevance of NGELs portfolio mix and growth strategy.

India also improved its international standing in clean energy. As per Renewable Energy Statistics 2026 released by IRENA (with data as of December 2025), India moved to 3^rd position globally in renewable energy installed capacity, ahead of Brazil. This underscores the scale and depth of Indias renewable energy opportunity and the importance of strong execution companies such as NGEL.

Policy and Regulatory Environment

The policy and regulatory environment for clean energy remained favourable during FY 2025-26. Key developments included reduction of the GST rate on renewable energy devices and parts for their manufacture from 12% to 5%, extension of certain customs duty exemptions for battery manufacturing-related capital goods, launch of the Renewable Energy Equipment Import Monitoring System (REEIMS), revision of the Renewable Consumption Obligation framework, and important amendments by CERC relating to ISTS charge waivers, Deviation Settlement Mechanism (DSM) and connectivity.

The policy focus also moved toward the next phase of the transition - dispatchable renewable power, storage integration, quality control, green hydrogen and introduction of instruments like VPPA and CfD. The National Green Hydrogen Mission continued to progress on demand creation, electrolyser manufacturing, green ammonia tenders, standards and hydrogen hubs. In addition, CEA / MNRE projections continue to indicate a very large future requirement for energy storage, both battery-based and pumped storage, to support the integration of renewable energy at scale.

NGEL - Company Overview and Business Progress

NTPC Green Energy Limited (NGEL) is the renewable energy arm of NTPC Group and plays a central role in advancing the Groups clean energy strategy. During FY 2025-26, NGEL made substantial progress in capacity addition, execution pipeline development and business diversification.

During FY 2025-26, NGEL group crossed the milestone of 10 GW operational capacity. As of 31^st March 2026, your Companys total portfolio stands at 26,544 MW, comprising 10,076 MW of operational capacity and 16,468 MW of contracted and awarded capacity. Additionally, the company has a project pipeline of 3,426 MW backed by signed MoUs and term sheets. The groups project base during the year spanned solar, wind, hybrid, battery energy storage systems (BESS), pumped storage and firm and dispatchable renewable energy (FDRE). Significant progress was recorded at large projects such as Khavda and Bhadla, alongside advances at the Pudimadaka Green Hydrogen Hub in Andhra Pradesh. NGEL also continued to expand through subsidiaries, joint ventures and state-oriented partnerships, strengthening its execution reach and market access.

Opportunities

The opportunity landscape for NGEL remains compelling. Indias target of 500 GW of non-fossil fuel electricity capacity by 2030, increasing electricity demand, rising corporate decarbonisation requirements, growth in open access and C&I procurement, and the emergence of new products such as peak power, RTC power, FDRE and storage-linked tenders collectively create a large addressable market.

Battery energy storage systems, pumped storage, round-the-clock supply and green hydrogen are expected to become increasingly important drivers of sectoral growth. With its scale, parentage, project execution capabilities and diversified development portfolio, NGEL is well placed to participate meaningfully in the next phase of Indias energy transition.

Challenges / Threats / Risks

While the long-term outlook remains favourable, the renewable energy business continues to face challenges relating to land acquisition, transmission connectivity, right-of-way, supply chain variability, weather risk, construction synchronisation, and timely conversion of bid wins into revenue-generating assets. As the portfolio shifts toward storage-linked, hybrid and dispatchable solutions, project complexity and execution intensity are also increasing. Counterparty credit risk in the power sector, delays in power sale agreement closure, evolving regulatory standards and technology-related changes can also affect project economics and commissioning schedules. NGELs diversified portfolio, NTPC Group parentage, project management strengths and increasing engagement with central / intermediary counterparties remain important mitigants.

Diversification and Initiatives in New Business Areas

In line with your Companys long-term growth strategy and evolving market dynamics, the Company is actively broadening its business horizon beyond the legacy route. Your Company is exploring new business opportunities in different areas as summarized below:

Vanadium Redox Flow Battery (VRFB)

Your Company has initiated the adoption of advanced long-duration energy storage solutions, including Vanadium

Redox Flow Battery (VRFB) technology. Through its subsidiary, NTPC Renewable Energy Limited, your Company has undertaken development of a 100 MWh VRFB based Energy Storage System at Khavda Solar Park, Gujarat – one of the first utility-scale deployments of its kind in India. With its longer life cycle, enhanced safety profile, high recyclability and suitability for longer discharge applications, VRFB technology is expected to play a key role in improving renewable integration, reducing curtailment and supporting round-the-clock green power delivery. This initiative reflects NGELs strategic commitment to diversifying beyond conventional lithium-ion storage, while reinforcing its focus on promoting indigenous, make in India energy storage solutions to strengthen domestic capabilities in advanced storage technologies.

Agri-Photovoltaic (AgriPV)

Your Company has initiated the development of Agri-Photovoltaic (AgriPV) projects aimed at integrating solar power generation with agricultural activities. The Company floated an EPC tender for the development of 100 MW of AgriPV projects, marking a significant step towards optimizing land use while supporting rural livelihoods. The initiative is designed to enable dual land utilisation by allowing crop cultivation alongside solar installations, thereby enhancing land productivity, creating additional income streams for farmers and improving resilience against climate variability. Through this initiative, NGEL aims to promote sustainable farming practices while contributing to Indias renewable energy capacity expansion and energy transition goals.

C&I Business

In response to the rising demand for clean energy, NGEL is actively expanding its presence in the Commercial and Industrial (C&I) segment, with a evolving focus on energy-intensive sectors like data centres. Through customised renewable energy solutions under open access, group captive and bilateral supply arrangements, Your Company seeks to enable these consumers to transition towards sustainable energy sources. This strategic focus not only supports the growth of NGELs renewable energy portfolio but also contributes to the broader national agenda of industrial decarbonisation and energy transition.

Collaboration with State Governments/ CPSEs

NGELs strategic collaborations are aimed at leveraging complementary strengths, facilitating faster project execution, enhancing access to land and transmission infrastructure, and supporting state-specific clean energy requirements. By adopting a partnership-led model through Joint Ventures and strategic alliances, your Company is expanding its renewable energy footprint while contributing to Indias energy transition, strengthening energy security, and advancing the nations long-term decarbonisation objectives.

1. NTPC MAHAPREIT Green Energy Limited (NMGEL) is a 74:26 subsidiary of your Company with Mahatma Phule Renewable Energy and Infrastructure Technology Limited (MAHAPREIT). The Company has been incorporated on 8^th April 2025 with the objective of developing, operating and maintaining Renewable Energy Parks and Projects comprising Solar, Wind and Hybrid technologies, with or without Energy Storage Systems. The Company plans to develop up to 10 GW of renewable energy capacity in Maharashtra and other states across India.

2. Chhattisgarh NTPC Green Energy Limited (CNGEL) is a 74:26 subsidiary of your Company with Chhattisgarh State Power Generation Company Limited (CSPGCL). Incorporated on 5^th December 2025, the Company aims to develop, operate and maintain Renewable Energy Parks and Projects, including UMREPPs, comprising Solar, Wind and Hybrid technologies with or without Energy Storage Systems, with a planned capacity of up to 2 GW in Chhattisgarh and other identified locations. The Company is also exploring Floating Solar opportunities and aims to supply renewable power to utilities, DISCOMs and C&I consumers across India.

3. MoU signed with PTC India Limited on 31^st March 2026, for exploring the possibilities of power sale of RE (with or without BESS), RTC, FDRE etc. to PTC through bilateral arrangements and other market mechanisms up to 2 GW or more.

4. MoU signed with The Singareni Collieries Company Limited (SCCL) on 19^th November 2025, for development of Renewable Energy Projects/parks including Solar, Wind and Hybrid Projects with or without storage with an aggregate capacity upto 2 GW, Green Hydrogen/derivative, green mobility etc.

Other MoUs for new business opportunities

1. MoU signed with CtrlS Data Centre on 31^st October 2025, for development of RE Projects/Assets with Capacity up to 2 GW.

2. MoU signed with Nxtra Data Limited on 24^th March 2026, for development of up to 500 MW RE Projects for captive consumption.

3. MoU signed with ENEOS Corporation on 10^th October 2025 for jointly exploring the possibility of NGEL to deliver green methanol and hydrogen derivative products to ENEOS.

Outlook

NGEL enters FY 2026-27 with a significantly scaled operating base, a diversified execution and tendering pipeline and a stronger strategic position in utility-scale renewables, storage, FDRE and green hydrogen. Indias policy support, market demand and clean energy ambitions continue to provide a favourable environment for sustained growth. The Companys immediate focus will remain on disciplined project execution, timely commissioning, capital-e_cient scale-up, portfolio diversification and strengthening of emerging businesses. With a larger operating portfolio, expanding capability across delivery models and a strong strategic fit with NTPC Groups energy transition agenda, NGEL remains well positioned to create long-term stakeholder value.

Financial Discussion and Analysis

FY 2025-26 was a landmark year for NTPC Green Energy Limited (NGEL) as the Company strengthened its position among Indias leading renewable energy developers. Supported by strong growth in renewable power generation, strategic project commissioning, and continued expansion across solar, wind and green hydrogen businesses, NGEL delivered robust operational and financial performance. As at 31^st March 2026, the Company had 6 subsidiaries and 4 joint ventures. On a consolidated basis, the Group profit after tax increased by 9.96% from _ 474.12 crore in FY 2024 25 to _ 521.35 crore in FY 2025 26.

Key Operational Highlights (Consolidated)

Particulars	Unit	2025-26	2024-25	% Change
Installed Capacity (As on 31st March)	MW	10,076	5,902	70.72
Capacity additions	MW	4,174	2,977	40.21
Generation	MU	14,596	6,901	111.51

Key Financial Highlights (Consolidated)

Particulars	Unit	2025-26	2024-25	% Change
Revenue from operations	_ Cr	2858.42	2209.64	29.36
Other income	_ Cr	176.70	256.06	-30.99
Total income	_ Cr	3035.12	2465.70	23.09
Employee benefits expense	_ Cr	77.71	64.25	20.95
Other expenses	_ Cr	305.65	228.66	33.67
Total O&M expenses	_ Cr	383.36	292.91	30.88
Earnings before Interest, Tax, Depreciation &	_ Cr	2651.76	2172.79	22.04
Amortization (EBITDA)
Operating EBITDA	_ Cr	2475.06	1916.73	29.13
Finance costs	_ Cr	887.00>	760.68	16.61
Depreciation and amortization expenses	_ Cr	1,101.95	758.25	45.33
Profit before tax and share of profits/(Loss) of joint ventures	_ Cr	662.81	653.86	1.37
Share of profits/(Loss) of joint ventures	_ Cr	19.85	-1.23
Profit Before Tax	_ Cr	682.66	652.63	4.60
Tax expense	_ Cr	161.31	178.51	(9.64)
Profit after Tax	_ Cr	521.35	474.12	9.96
Earnings per share (Basic & diluted)	_/share	0.62	0.67	(7.46)

Revenue From Operations

Revenue from operations primarily comprises income from energy sales and consultancy, project management and supervision fees. Revenue from sales of energy increased by 30.10% from _2,112.92 crore in FY 2024-25 to _2,748.90 crore in FY 2025-26 and continued to contribute over 96% of operating revenue. The growth was primarily driven by incremental generation from newly commissioned renewable energy assets. Consultancy income remained stable at _21.99 crore during the year as compared to _21.20 crore over the previous year.

Capacity Utilization Factor (CUF) was lower at 22.48% as compared to 24.07% during FY 2024-25 primarily due to lower solar irradiation/wind speeds and grid curtailment, which adversely impacted power generation and consequently reduced energy sales during the year.

Other Income

Other income declined by 30.99% from _256.06 crore in FY 2024-25 to _176.70 crore in FY 2025-26. The decrease was mainly attributable to decline in interest income on bank deposits because of reduction in earnings from the temporarily invested unutilized IPO proceeds. Interest income from such deposits decreased to _89.25 crore during FY 2025-26, compared to _165.25 crore during FY 2024-25, resulting in a lower overall interest income from deposits with scheduled commercial banks.

Operating Expenses

Total operation and maintenance expenses increased by 30.88% from _292.91 crore in FY 2024-25 to _383.36 crore in FY 2025-26.

Employee Benefit Expense

Employee benefit expense comprises salaries and wages, contribution to provident and other funds, and staff welfare expenses of _ 153.31 crore of which _ 62.94 crore was transferred to expenditure during construction period and _ 12.66 crore recovered in respect of employees on deputation/secondment. On a net basis, employee benefit expenses increased by 20.95% from _64.25 crore in FY 2024-25 to _77.71 crore in FY 2025-26 due to increase in manpower deployed for expanding renewable energy operations.

Other Expenses

Other expenses aggregated to _ 417.36 crore and mainly consisted of power charges, repairs and maintenance expenses, rates and taxes, insurance, professional and consultancy fees, and other miscellaneous expenses. Out of above expenses, an amount of _ 119.97 crore was allocated to expenditure during the construction period. During the financial year, the Company incurred an expenditure of _8.25 crore towards various CSR activities. Other expenses increased by 33.67% from _228.66 crore in FY 2024-25 to _305.65 crore in FY 2025-26. The increase was primarily due to higher operation and maintenance expenditure arising from increased operational capacity.

EBITDA

EBITDA increased by 22.04% from _2,172.79 crore in FY 2024-25 to _2,651.76 crore in FY 2025-26 driven primarily by higher revenue from renewable energy generation resulting from commissioning of new projects. Operating EBITDA increased from _1,916.73 crore in FY 2024-25 to _2,475.06 crore in FY 2025-26, reflecting strong growth in core operating performance. Despite significant capacity additions and expansion of operations, the Company maintained a strong Operating EBITDA margin of 86.59%, demonstrating the inherent operational efficiency of renewable energy assets and disciplined cost management.

Finance Cost

Finance costs increased by 16.61% from _760.68 crore in FY 2024-25 to _887.00 crore in FY 2025-26. The increase was primarily on account of additional interest costs associated with projects commissioned during the year. Despite higher borrowing levels, strong operating cash flows enabled comfortable servicing of debt obligations.

Depreciation

Depreciation and amortization expenses increased by 45.33% from _758.25 crore in FY 2024-25 to _1,101.95 crore in FY 2025-26. The increase was largely attributable to capitalization of newly commissioned renewable energy projects resulting in higher asset base .

Share of Profit from Joint Ventures

Share of profit from Joint Ventures improved significantly from a loss of _1.23 crore in FY 2024-25 to a profit of _19.85 crore in FY 2025-26.

Profit after tax (PAT)

Profit After Tax increased by 9.96% from _474.12 crore in FY 2024-25 to _521.35 crore in FY 2025-26.

The growth demonstrates resilience of the Companys business model and continued scale-up of renewable energy operations despite higher interest and depreciation charges arising from expansion activities.

Key Ratios

Ratios	FY 2025-26	FY 2024-25	% Change
Debt–Equity Ratio	1.54	0.97	58.76
Debt service coverage ratio	1.58	1.38	14.49
Interest Coverage Ratio	2.83	2.62	8.02
Debtors Turnover	4.51	3.50	28.86
Operating EBITDA	86.59%	86.74%	(0.15)
Margin (%)			Percentage points

The Debt–Equity Ratio increased by 58.29% primarily due to a significant increase in borrowings availed to finance the Companys ongoing renewable energy projects and capacity expansion. During the year, the Company also raised _1,500 crore through issuance of unsecured non-convertible debentures by way of private placement. While shareholders equity increased on account of profits earned during the year, the increase in borrowings outpaced the growth in equity, resulting in a higher Debt–Equity Ratio.

Debtor turnover ratio increased by 28.77% mainly due to an increase in revenue from operations (excluding other operating revenues), while the average trade receivables remained relatively stable. This reflects improved efficiency in the utilisation and collection of trade receivables during the year.

Financial Summary of Subsidiary Companies

Key financial highlights of our subsidiaries for the financial year 2025-26 are as follows :

Company	NGELs Ownership (%)	NGELs Investment in equity (net of impairment) _ Cr	Total Income _ Cr	Profit/ (Loss) FY 2025-26 _ Cr
1 NTPC Renewable Energy Ltd.	100%	10,844.46	931.91	108.42
2 Green Valley Renewable Energy Ltd.	51%	173.45	-	(0.03)
3 NTPC Rajasthan Green Energy Ltd.	74%	170.41	-	(2.76)
4 NTPC UP Green Energy Limited	51%	0.05	-	(0.46)
5 NTPC-MAHAPREIT Green Energy Limited	74%	0.07	-	(1.11)
6 Chhattisgarh NTPC Green Energy Limited	74%	0.07	-	(0.01)
Total		11,188.51	931.91	104.05

Financial Summary of Joint Venture Companies

Proportion of ownership and financial performance of the joint ventures for the financial year 2025-26 are given below:

Company	NGELs Ownership (%)	NGELs Investment in equity (net of impairment) _ Cr	Total Income _ Cr	Profit/ (Loss) FY 2025-26 _ Cr
1 Indian Oil NTPC Green Energy Limited	50%	258.05	-	-
2 ONGC NTPC Green Private Limited	50%	3,252.55	1,441.45	35.48
3 MAHAGENCO NTPC Green Private Limited	50%	2.50	0.03	(0.04)
4 AP NGEL Harit Amrit Limited	50%	7.05	0.21	(0.62)
Total		3,520.15	1,441.69	34.82

Standalone Performance

The standalone financial performance of the Company during financial year 2025-26 is as follows:

Particulars	Unit	2025-26	2024-25	% Change
Revenue from operations	_ Cr	1,966.67	2,022.54	(2.76)
Other income	_ Cr	176.91	250.60	(29.41)
Total income	_ Cr	2,143.58	2,273.14	(5.70)
Total O&M expenses	_ Cr	300.37	281.70	6.63
Earnings before Interest, Tax, Depreciation & Amortization (EBITDA)	_ Cr	1,843.21	1,991.44	(7.44)
Operating EBITDA	_ Cr	1,666.30	1,740.84	(4.28)
Profit Before Tax (PBT)	_ Cr	549.68	667.77	(17.68)
Profit/(Loss) for the period	_ Cr	405.97	489.26	(17.02)

Internal control

The Company has established robust internal control systems comprising policies, procedures and control frameworks designed to enhance operational efficiency, ensure adherence to policies, and support smooth and effective business processes. The internal control systems are commensurate with the size and nature of the Companys operations. In accordance with section 143(3)(i) of the Companies Act, 2013, the Statutory Auditors issue a separate report on the adequacy and operating effectiveness of internal financial controls over financial reporting, which forms part of the Standalone and Consolidated Financial Statements. The Audit Committee reviews the financial statements and audit observations in consultation with the Internal and Statutory Auditors before recommending the same to the Board for approval

Disclosure of Accounting Treatment

The consolidated financial statements are prepared on going concern basis following accrual system of accounting and comply with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 as amended, and other relevant provisions of the Companies Act, 2013 and the provisions of the Electricity Act, 2003 to the extent applicable.

Credit ratings.

The Company continues to enjoy highest credit ratings for its NCDs and borrowings from banks as detailed hereunder:

	Rating Agency Remarks
Instruments	CRISIL Ratings	India Ratings & Research
Non-convertible debentures	CRISIL AAA/Stable	IND AAA/Stable
Long Term loans	CRISIL AAA/Stable	IND AAA/Stable
Bank Guarantees	Crisil A1+	IND AAA/Stable/IND A1+
Cash Credit/STWCL	Crisil A1+	IND AAA/Stable/IND A1+

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis and in the Directors Report, describing the Companys objectives, projections and estimates, contain words or phrases such as "will", "aim", "believe", "expect", "intend", "estimate", "plan", "objective", "contemplate", "project" and similar expressions or variations of such expressions, are "forward-looking" and progressive within the meaning of applicable laws and regulations. Actual results may vary materially from those expressed or implied by the forward-looking statements due to risks or uncertainties associated therewith depending upon economic conditions, government policies and other incidental factors. Readers are cautioned not to place undue reliance on these forward-looking statements.

	For and on behalf of the Board of Directors
	Sd/-
	Gurdeep Singh
Place: New Delhi	Chairman & Managing Director
Date: 04.08.2026	(DIN: 00307037)