NTPC Green Energy Ltd Management Discussions

Economic Overview

The global economy demonstrated resilience in 2024, with the International Monetary Fund (IMF) estimating a growth rate of 3.3%, a pace expected to continue through 2025. This stability comes despite persistent geopolitical tensions, inflationary pressures, and energy market volatility. Global growth in 2025 and 2026, is projected at 2.8% and 3% respectively, led by the swift escalation of trade tensions and extremely high levels of policy uncertainty. The IMFs World Economic Outlook (WEO) projects India to be the fastest-growing major economy in 2025 and 2026, with growth rates of 6.2% and 6.3% respectively. The report also indicates that India is on track to surpass Japan to become the worlds fourth-largest economy in terms of nominal GDP, highest among the top 10 economies. This performance is supported by resilient domestic consumption, rising private investment, and robust growth in manufacturing and services sectors Indias gross domestic product (GDP) at constant (Fiscal 2012) prices was Rs 176.5 trillion (first revised estimates) for Fiscal 2024 vis-?-vis the final estimate of Rs161.6 trillion for Fiscal 2023 as per data released by the National Statistical Office (NSO) in February 2025. Additionally, as per RBI estimates, the Indian GDP growth rate is expected at 6.7% in FY 2025-26.

Sector Overview

The global installed capacity stood at 9,080 GW as of 2023¹ in which the fossil fuels lead the installed base with a 52% share, whereas carbon-free generation sources (nuclear, hydropower, and combined renewables) contribute ~47% and 2% from biomass and waste.

Indias installed generation capacity, which stood at 356 GW at the end of Fiscal 2019 has reached ~475 GW in Fiscal 2025 (as of March 2025) as per CEA, on the back of healthy renewable capacity additions (including solar, wind, hybrid, and other renewable sources) even as additions in coal and other fuels have declined. Capacity additions in the conventional power generation segment are projected to be around 30-35 GW from Fiscals 2025 to 2030, driven by higher than decadal average power demand.²

RE Overview:

In 2024, there is a significant annual appreciation in global renewable capacity addition of 15.1% supported by increasing policy support and reducing cost, especially in solar PV which results in annual capacity addition of 585 GW.³ In FY 2024-25, India stood 4^th globally in Renewable Energy Installed Capacity (including Large Hydro), 4^th in Wind Power capacity, and 4^th in Solar Power capacity. The country has added an unprecedented 28 GW of renewable energy capacity in FY 2024-25, marking an increase of nearly 55% over the previous years addition of 18.6 GW. Indias solar power sector led the renewable energy growth, with capacity additions soaring from 15 GW in FY 2023-24 to nearly 23.8 GW in FY 2024-25, a remarkable 58% increase. The country also achieved the significant milestone of surpassing 100 GW of cumulative installed solar capacity this year.⁴ As per CEA, by Fiscal 2030, RE capacity (excl. large hydro) of additional 220 GW is expected to be driven by various government initiatives, favourable policies, competitive tariffs, innovative tenders, development of solar parks, green energy corridors, etc.

By 2030, India aims to reach a total of 280 GW of solar power led by mega solar parks, and fast paced adoption of decentralised solutions such as rooftop solar systems. India has exhibited unwavering commitment in achieving its ambitious target of 500 GW of non-fossil fuel energy capacity by 2030 and reach net-zero carbon emissions by 2070.

KEY POLICIES & REGULATORY CHANGES

The Government of India is taking proactive and strategic measures to address emerging challenges in the energy sector. A renewed emphasis has been placed on expanding nuclear energy capacity, alongside advancing comprehensive policies for the deployment of renewables. Simultaneously, initiatives are underway to strengthen the countrys energy storage and transmission infrastructure to support greater renewable integration. Some of the key sectoral reforms and initiatives are

i. Right of Way (RoW) compensation Guidelines: To ensure timely development of power transmission infrastructure for evacuating envisaged 500 GW of renewable energy by 2030, the Ministry of Power revised the RoW guidelines in June, 2024, linking compensation to the market value of land. For tower base area, the compensation has been increased from 85% to 200% of the land value. For the RoW Corridor, compensation has been raised from 15% to 30% of the land value.

ii. Open Access Reforms: Amendments to the Electricity Rules, 2005, have rationalized open access charges, allowing large consumers to procure electricity from the most cost-eRsective sources nationwide, promoting competition and efficiency in the power market.

iii. Guidelines for funding of testing facilities, infrastructure, and institutional support under the National Green Hydrogen Mission: (Notified on 04/07/2024 by MNRE) The scheme encompasses the development of robust quality and performance testing facilities to ensure quality, sustainability, and safety in GH2 production and trade. The scheme has a total budgetary outlay of Rs 200 crores and National Institute of Solar Energy (NISE) will be the Scheme Implementation agency. Further, on 08/11/24, MNRE issued scheme Guidelines for implementation of Pilot projects for production and use of Green Hydrogen using innovative methods/ pathways in the Residential, Commercial, Localized Community, Decentralized/Non-Conventional, applications, includes any new sector or technology not covered in previous Mission schemes.

iv. MNRE Sets Minimum Efficiency Standards for Solar Modules, Inverters, and Batteries.

The Ministry of New and Renewable Energy (MNRE) has released "Solar Systems, devices and Components Goods Order, 2025," on 28/01/2025, mandating minimum efficiency benchmarks for solar modules, inverters, and batteries used in government-funded projects. These standards are part of an effort to enhance the quality and performance of renewable energy components and to ensure better returns on public investment.

v. Draft guidelines for the procurement of storage capacity/stored energy from PSPs through tariRs-based competitive bidding: (Notified in Sep 2024, by MoP). These guidelines aim to promote the development of PSPs and provide a transparent, fair, standardised procurement framework based on open competitive bidding with risk-sharing between various stakeholders.

vi. Scheme Guidelines for implementation of "VGF Scheme for ORsshore Wind Energy Projects. (Notified on 11/09/2024 by MNRE): With an objective to commission 1,000 MW of offshore wind energy projects off the coast of Gujarat and Tamil Nadu, MNRE notified the VGF scheme. The scheme with an outlay of INR 7,453 crore, would be implemented by SECI based upon the public-private partnership model. Along with this, MNRE also issued the "Guidelines for Competitive Bidding Process for Award of ORsshore Wind Power Projects under Viability Gap Funding (VGF) Scheme", to provide a transparent, fair, standardised procurement framework based on open competitive bidding.

vii. Advisory on co-locating Energy Storage Systems with Solar Power Projects: The CEA has issued an advisory mandating storage to enhance grid stability and cost efficiency. The key recommendations are:

• All Renewable Energy Implementing Agencies (REIAs) and State utilities to incorporate a minimum of 2-hour co-located Energy Storage Systems (ESS), equivalent to 10% of the installed solar project capacity, in future solar tenders. This measure aims to mitigate intermittency issues and provide critical support during peak demand periods.

• Distribution licensees may also consider mandating 2-hour storage with rooftop solar plants. This will improve supply reliability for consumers while reducing the burden on distribution networks caused by over-injection during peak solar hours.

Reforms in RE Sector in India

? Permitting Foreign Direct Investment up to 100 percent under the automatic route.

? Scheme for the Development of Solar Parks and Ultra-mega Solar Power Projects with a target of setting up 40,000 MW capacity.

? Green Energy Corridors: to create an intra-state transmission system for renewable energy projects. Central Financial Assistance (CFA) is provided to set up transmission infrastructure for evacuating power from Renewable Energy projects.

? Investment of Rs 207 billion, including central support of Rs 83 billion, for strengthening of interstate transmission system for evacuation and Grid Integration of 13 GW renewable energy from Ladakh.

? National Green Hydrogen Mission launched with an outlay of Rs 197.44 billion with the aim to make India a Global Hub for the production, utilization, and export of Green Hydrogen and its derivatives.

? Viability gap funding for 4,000 MWh battery energy storage systems and formulation of a detailed framework for pump storage projects.

? Waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30^th June 2025

? Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2030

? The government has issued orders that power should be dispatched against a Letter of Credit (LC) or advance payment to ensure timely payment by distribution licenses to RE generators.

? Launch of Green Term Ahead Market to facilitate the sale of renewable energy power through exchanges

Solar Power

The global average solar module price has crashed from $1.78 per watt-peak in 2010 to $ 0.15-0.20 per watt-peak in April- November 2023. IEA has estimated a Solar PV capacity (utility scale) addition of ~2,100 GW over a period of CY2024-29 and global renewable capacity additions shall reach almost 940 GW annually by 2030 – 70% more than the record level achieved last year. The Government of India have provided subsidies and incentives to solar developers in the form of preferential tariffs for solar projects under long-term power purchase agreements, generation-based incentive schemes, accelerated depreciation, tax incentives, and other incentives to end-users, distributors, system integrators and manufacturers of solar energy products. In the arena of Solar Energy, the total installed capacity of Solar energy in India is 105 GW in March 2025 which accounts for a share of 61% of RE installed capacity of 172 GW. States like Gujarat, Rajasthan, Madhya Pradesh, Andhra Pradesh, Karnataka, and Tamil Nadu offer more solar irradiance as compared to other parts of India, which makes them desirable for installing solar projects.

Wind Energy

In 2024, 117 GW of new wind capacity was added globally, up slightly from 116.6 GW in 2023, bringing total global capacity to 1,136 GW.⁵ Only 8 GW of offshore wind capacity was installed globally in 2024, marking a 26% drop from 2023. At COP28 Dubai, nations committed to tripling renewable capacity by 2030, with wind installations needing to reach 320 GW annually. The government of India has declared a trajectory for Renewable Purchase Obligations, specifying the percentage of renewable energy that electricity suppliers must procure, including wind power. The government, through institutions like IREDA, offers various loan schemes to support wind energy projects, including top-up loans, loans against future cash flow, and takeover of existing loans. Rules for unlocking ORsshore Wind Energy has been notified in 2023 for regulating the leasing of offshore areas for wind energy projects. In the Budget for Fiscal 2026, the Government promotes offshore wind energy development, with a Viability Gap Funding (VGF) scheme for 1,000 MW of offshore wind capacity India has achieved a cumulative installed wind power capacity of 50.04 GW till 31^st March 2025. In FY 2024–25, India added 4.15 GW of wind power capacity, up from 3.25 GW in FY 2023–24. India ranks 4^th globally in terms of total installed wind power capacity, trailing only behind China, the United States, and Germany. The top wind energy-producing states in India are Gujarat, Karnataka, and Tamil Nadu. National Institute of Wind Energy estimates that Gujarat has 36 GW and Tamil Nadu about 35 GW of offshore wind energy potential. India boasts a robust wind turbine manufacturing industry with an annual production capacity of about 18,000 MW.

Green Hydrogen

The global green hydrogen market is expanding rapidly, with its size estimated at USD 12.31 billion in 2025 and projected to reach about USD 199.22 billion by 2034, growing at a CAGR of over 41%.⁶ Major economies like the EU, US, Japan, and China are driving this surge through ambitious policies and incentives. India is positioning itself as a global leader in green hydrogen, targeting 5 million metric tons of annual production, 60–100 GW of Electrolyser capacity, and 125 GW of renewable energy dedicated to hydrogen by 2030.⁷ The National Green Hydrogen Mission, with a budget of Rs19,744 crore, aims to attract over Rs8 lakh crore in investments, create more than six lakh jobs, and abate 50 million metric tons of CORs annually. India has already awarded contracts for 412,000 TPA of green hydrogen production and approved 3 GW of Electrolyser manufacturing, with seven pilot projects underway across key sectors.

Battery Energy Storage Systems

The BESS market is experiencing substantial growth, with some forecasts projecting a rise from USD 25.02 billion in 2024 to USD 114.05 billion by 2032 and is projected to grow at a CAGR of 19.58% between 2024 and 2032.⁸ Lithium ions batteries are currently dominating the market, holding a significant market share. In addition to it, other technologies like solid-state batteries, Zinc-air batteries, and flow batteries are also gaining traction. As per National Electricity Plan (NEP) 2023 of Central Electricity Authority (CEA), the energy storage capacity requirement is projected to be 82.37 GWh (47.65 GWh from PSP and 34.72 GWh from BESS) in 2026-27. This requirement is expected to increase to 411.4 GWh (175.18 GWh from PSP and 236.22 GWh from BESS) in the year 2031-32. Further, CEA has also projected that by the year 2047, the requirement of energy storage is expected to increase to 2380 GWh (540 GWh from PSP and 1840 GWh from BESS), due to the addition of a larger amount of renewable energy considering the net zero emissions targets set for 2070

OPPORTUNITIES, CHALLENGES/ THREATS/ RISKS

Opportunities

Under the Government of Indias Vision India @2047, the nation has set an ambitious target of becoming a USD 30 trillion economy, with per capita income transitioning into the developed economy bracket of USD 18,000–20,000. In alignment with this vision, the Indian economy is on a strong growth trajectory. As per the International Monetary Fund (IMF), India is projected to grow at 6.5% in 2025 - one of the highest growth rates among the top ten global economies, driven by resilient domestic consumption, increasing private sector investment, and robust expansion across manufacturing and services.

Electricity continues to be a foundational enabler across all sectors of the economy. Fueled by rising industrialization, urban expansion, and rural electrification, Indias per capita electricity consumption stood at 1,395 kWh in FY 2023–24. According to the Central Electricity Authority (CEA), this figure is expected to grow at a compound annual growth rate (CAGR) of 5–7% through FY 2030. To meet this escalating demand, India is projected to add approximately 220 GW of renewable energy capacity (excluding large hydro) by FY 2030. This expansion will be supported by a suite of enabling policies and initiatives, including competitive bidding mechanisms, development of solar parks, expansion of green energy corridors, and targeted national programs such as PM-KUSUM and the Inter-State Transmission System (ISTS) waiver. By FY 2030, the countrys total installed generation capacity is expected to reach 700–710 GW, with renewable energy accounting for nearly 50% of the overall portfolio—demonstrating Indias strong commitment to a sustainable energy future.

Furthermore, rapid urbanization and the electrification of transport, agriculture, and other emerging sectors are expected to contribute significantly to electricity demand growth. In response to climate imperatives, India has committed to install 500 GW of non-fossil fuel-based energy capacity by 2030, including 280 GW of solar and 140 GW of wind power. Achieving this vision will require an average annual capacity addition of 40–50 GW, presenting a substantial opportunity for large-scale infrastructure development and investment in the renewable energy sector.

In addition, transformative technologies such as Battery Energy Storage Systems (BESS) and Green Hydrogen are evolving to play a pivotal role in enabling Indias energy transition. BESS will be critical in addressing the intermittency of renewable energy by enhancing grid stability, enabling peak load management, and supporting frequency regulation. With policy support including viability gap funding, ISTS waiver extensions, and upcoming market-based mechanisms for ancillary services, the battery storage segment is expected to witness significant scale-up in the coming years. Simultaneously, Green Hydrogen is emerging as a strategic landscape for decarbonising hard-to-abate sectors such as steel, aluminiun, cement, refining, fertilizers, and heavy transport. Together, these emerging segments not only align with Indias clean energy goals but also unlock significant innovation and growth opportunities across NGELs diversified portfolio.

The Renewable Energy Sector expects newer business models for capacity addition which would include Solar plus BESS tenders, peak power tenders and Round the Clock RE Tenders.

Challenges/ Threats/ Risks

While the long-term outlook for the renewable energy sector remains positive, a number of structural and operational challenges continue to pose risks to NGELs growth trajectory and financial performance. Unfavorable shifts in government policies, including reduced incentives or changes in regulatory norms, may adversely affect revenue generation and profitability. However, considering Indias commitments under the COP framework, its climate goals, and the governments continued emphasis on renewable energy, the probability of abrupt policy reversals remains low. This is reflected in recent capacity trends, where approximately

84 GW of renewable energy was added over the past five years, compared to only ~27 GW of conventional capacity, reafirming the policy focus on clean energy.⁹

Despite adequate power availability, low ofitake by distribution companies (DISCOMs) in several states remains a concern, largely due to their weak financial health. Further, delays in signing of PPAs has also impacted deferment in the RE capacity addition in the medium term. In many cases, DISCOMs resort to load shedding rather than purchasing power, owing to persistent issues of revenue under-recovery. Nevertheless, NGELs diversified counterparty mix, competitive tariffs, enabling guidelines of the Government of India and the presence of payment security mechanisms help mitigate counterparty credit risks to a large extent. The solar power industry is currently facing cost pressures on account of volatility in module prices, exchange rates, freight, and commodity prices. This may impact on the capital cost of the renewable players as they may not be able to pass on the cost increase from the procurers.

The RE sector is highly competitive, with numerous players vying for market share. The capable new entrants can pose challenges. Climate change and extreme weather events can affect the performance and reliability of renewable energy systems, potentially leading to disruptions or damage to infrastructure. Further, economic downturns and financial instability can reduce capital available and increase costs for renewable energy investments, affecting the renewable players expansion plans.

Execution risks related to under-construction projects also pose potential challenges, with delays in land acquisition, regulatory clearances, and infrastructure availability possibly affecting project timelines, profitability, and liquidity. NGELs strong experience in executing large-scale renewable energy projects serves as a key mitigant.

Furthermore, the availability of contiguous land and acquisition challenges associated with land parcels are some of the key challenges that RE developers are facing which hampers timely project execution. To acquire large tracts of land in a single resourceful location, many stakeholders have to be involved, which slows down the pace of project execution.

Availability of timely transmission connectivity is another challenge. To optimize costs, utilization levels, and losses associated with the transmission system, it is crucial to have robust transmission planning. Concerns about connectivity for renewable projects have been raised by the various stakeholders at the appropriate levels.

Availability and timely access to transmission infrastructure is another constraint in the sector. Nonetheless, initiatives like the Green Energy Corridor Scheme and the creation of Renewable Energy Zones are projected to enhance grid capacity to support the planned scale-up of renewable energy capacity and ease existing bottlenecks.

While the sector remains well-aligned with national climate ambitions and continues to attract policy and investment support, addressing these structural challenges, especially those related to DISCOM financial health, land availability, and transmission access, will be critical to sustaining momentum and ensuring long-term value creation for NGEL and its stakeholders.

NGEL

NTPC Green Energy Limited (NGEL) is a subsidiary of NTPC Limited - a Maharatna CPSE, which was incorporated on April 7, 2022, with a clear purpose to steer and consolidate NTPCs renewable energy initiatives under one dedicated platform. As the clean energy arm of Indias largest power producer, NGEL plays a critical role in advancing the groups long-term vision of reaching 60 GW of renewable energy capacity by 2032.

As of March 31, 2025, NGEL has firmly established itself as the largest renewable energy public sector entity in the country (excluding hydro) based on operational capacity. Its portfolio spans solar, and wind projects located across more than Nine (9) states, helping balance generation risks, and ensuring greater reliability through geographic diversification. With 5,419 MW of solar and 483 MW of wind assets in operation, NGEL continues to lead from the front in Indias energy transition.

Remaining committed to scale and impact, NGEL is actively developing a strong pipeline of utility-scale renewable energy projects tailored to cater the growing electricity demand of the country. As of the end of FY 2024–25, the companys total portfolio stood at 23,179 MW, which includes 5,902 MW of operational assets and 17,277 MW of projects under implementation. Additionally, it has 9,080 MW of early-stage projects which are backed by signed MoUs or term sheets awaiting final agreements. Together, this adds up to a robust pipeline of 32,259 MW, underscoring NGELs central role in supporting Indias ambitious clean energy goals.

NGEL leading Indias green hydrogen rollout with the Pudimadaka Green Hydrogen Hub in Andhra Pradesh, spanning 1,200 acres and set to produce up to 1,500 TPD of green hydrogen supported by over 6 GW of electrolyser and 7.5 GW of renewable capacity. The hub will also manufacture derivatives like green ammonia, methanol, and sustainable aviation fuel, targeting both domestic and export markets supporting Indias clean energy and sustainability goals. For our operational projects, we have entered into long-term Power Purchase Agreements (PPAs) or Letters of Award (LoAs) with an off taker that is either a Central government agency like the Solar Energy Corporation of India ("SECI"),

SJVN and NHPC or a state government agency or public utility.

NGEL is strategically planning to leverage these advantages for future business generation and achievement of NTPCs cherished 60 GW operational capacity target. NGEL is confident of meeting future challenges with the following strengths: a. Strong Project Management b. Operational Efficiency. c. Highly talented team of committed professionals and has been able to induct, develop and retain the best talent. d. Sound Corporate Governance e. Robust Financials and Systems With a strategic approach, strong project execution, and a growing national footprint, NGEL continues to power Indias renewable future.

Internal Control Systems and Their Adequacy

NGEL has adequate internal control systems and processes for efficient conduct of business. The Company is complying with the relevant laws and regulations. The financial statements are prepared in accordance with generally accepted accounting principles in India, accounting standards notified from time to time by the Ministry of Corporate Affairs under the Companies Act, 2013. A comprehensive delegation of power exists for smooth decision making which is periodically reviewed to align it with changing business environment and for speedier decision making. Elaborate guidelines for the preparation of accounts are followed consistently for uniform compliance.

FINANCIAL DISCUSSION AND ANALYSIS

A detailed discussion and analysis on financial statements is furnished below. Reference to Note(s) in the following paragraphs refers to the Notes to the standalone financial statements for the financial year 2024-25 placed elsewhere in this Annual Report.

A. Financial position

The items of the Balance Sheet are as discussed under:

1. Property, plant & equipment (PPE) and Capital work-in-progress (Note-2 & Note-3)

The PPE and Capital work-in-progress of the Company are detailed as under:

Rs Crore

	As at March 31
Particulars			% Change
	2025	2024
Gross block of PPE (Note-2)	18,311.08	17,497.56	5%
Net block of PPE (Note-2)	15,300.02	15,184.02	1%
Capital work-in-progress (Note-3)	38.79	284.05	(86)%

During the year, total gross block of PPE has increased by 5% while capital work-in-progress has decreased by 86% mainly due to addition of new commercial capacity.

2. Non-current financial assets (Note-5 & Note-6)

(a) Equity investments in subsidiaries and joint ventures (Note-5)

The break-up of equity investments in subsidiaries and joint ventures is as follows:

Rs Crore

	As at March 31
Particulars
	2025	2024
Subsidiaries	7,591.48	1,444.51
Joint ventures	3,200.65	0.05
Total	10,792.13	1,444.56

During the year, equity investments in subsidiaries and joint ventures increased by Rs 9,347.57 crore. Details of equity infusion during the year is as under: Rs Crore

Name of Company	Amount
NTPC Renewable Energy Limited	6,050.00
Green Valley Renewable Energy Limited	96.90
NTPC Rajasthan Green Energy Ltd.	0.07
Indian Oil NTPC Green Energy Pvt. Ltd.	48.00
ONGC NTPC Green Pvt. Ltd.	3,152.55
MAHAGENCO NTPC Green Energy Pvt. Ltd.	0.05
Total investments during the year	9,347.57

(b) Other financial assets (Note-6)

Other Non-current financial assets comprise of share application money pending allotment in Joint Venture Companies. Rs Crore

	As at March 31
Particulars			% Change
	2025	2024
Share application money pending allotment in Joint Venture Company (Note-6)	0.05	-	-
Total	0.05	-	-

Other financial assets comprise of share application money pending allotment in our Joint Venture Company, AP NGEL Harit Amrit Limited. AP NGEL Harit Amrit Ltd. (ANHAL) has been incorporated on 6 February 2025 with a 50:50 equity participation of the company and NREDCAP. The shares against the share application money pending allotment are expected to be allotted in due course.

3. Other non-current assets (Note-7)

The changes in other non-current assets during the year are as follows:

Rs Crore

	As at March 31
Other non-current assets			% Change
	2025	2024
Capital advances	156.19	200.86	-22%
Security deposits	0.3	0.28	7%
Advance tax and tax deducted at source (net of provision for tax)	24.32	5.73	324%
Total	180.81	206.87	-13%

4. Current assets (Note-8 to Note-12)

The changes in the current assets during the year are as follows:

Rs Crore

Particulars	As at March 31		Y o Y
				% Change
Current assets	2025	2024	Change
Inventories	24.78	24.50	0.28	1%
Trade receivables	478.82	699.45	-220.63	-32%
Cash and cash equivalents	0.83	113.45	-112.62	-99%
Bank balances other than cash and cash equivalents	3,481.35	356.52	3,124.83	876%
LIGN=LEFT>Other financial assets	120.44	4.08	116.36	2852%
Other current assets	7.52	4.33	3.19	74%
Total current assets	4113.74	1202.33	2911.41	242%

(a) Inventories (Note-8)

Inventories mainly comprise of stores & spares, which are maintained for operating stations and other consumables. The Value has increased by 1%

(b) Trade receivables (Note-9)

As on 31 March 2025, current trade receivables amounted to Rs478.82 crore and the corresponding trade receivables as on 31 March 2024 were Rs699.45 crore. Trade receivables include revenue for the month of March amounting to Rs201.97 crore (31 March 2024: Rs193.03 crore) net of advance, to be billed to beneficiaries after 31 March 2025. Excluding this, trade receivables are equivalent to ~52 days of sales as on 31 March 2025

(c) Cash and cash equivalents (Note-10) & Bank balances other than cash and cash equivalents (Note-10A)

Cash and cash equivalents & Bank balances other than cash and cash equivalents have increased from Rs469.97 crore as at 31 March 2024 to Rs3,482.18 crore as at 31 March 2025. The main reason for change is unutilized net IPO Proceeds amounting to Rs3,350.00 crore as at 31 March 2025 which is temporarily invested in deposits held in the Companys Monitoring Account.

(d) Other financial assets (Note-11)

Other current financial assets have increased by Rs116.36 crore. This is mainly due to Government grant of Rs105 crore receivable from Solar Energy Corporation of India under MNRE Scheme for setting up solar PV power projects and increase in claims amounting to Rs11.21 crore recoverable from government agencies/companies against deposit works completed for solar projects.

(e) Other current assets (Note-12)

Other current assets mainly comprise of advances (other than capital advances) and prepaid expenses.

Rs Crore

	As at March 31
Particulars			% Change
	2025	2024
Advances (other than capital advances)	1.31	0.66	98%
Prepaid expenses	6.21	3.67	69%
Total	7.52	4.33	74%

Other current assets have increased mainly due to increase in Advances to contractors and suppliers (other than capital advances) by Rs0.65 crore and prepaid expenses by Rs2.54 crore pertaining to prepaid insurance.

5. Total equity (Note-13 & Note-14)

The total equity of the Company at the end of financial year 2024-25 increased to Rs18,486.50 crore from Rs6,264.52 crore in the previous year, an increase of 195.10%. Details are tabulated below: Rs Crore

Particulars	Total Equity
Opening balance	6,264.52
Changes in equity share capital during the year	2,706.72
Profit for the year	489.26
Other comprehensive income	-
Premium received on shares issued during the year	9073.67
Share issue expenses	(47.67)
Closing balance	18,486.50

During financial year 2024-25, your Company allotted 178,03,88,965 equity shares of Rs10/- per share aggregating to Rs1780,38,89,650 for cash on rights basis to NTPC Limited.

Further, during financial year 2024-25 your Company successfully launched an Initial Public Offering of Rs10,000 crore. Your Company allotted 926,329,669 equity shares of Rs10/- per share pursuant to IPO at a securities premium of Rs98 per equity share under fresh issue.

The increase in total equity resulted in book value per share rising to Rs21.94 from Rs10.95 as at the end of previous year.

6. Non-current and current liabilities (Note-15 to Note-25)

a. Non-current financial liabilities-Borrowings (Note-15)

Details of non-current borrowings including current maturities are as under:

Rs Crore

	As at March 31
Particulars
	2025	2024
Non-current financial liabilities-Borrowings (Note-15)	7,421.78	7,542.47
Current maturities of non-current borrowings included in current financial liabilities-Borrowings (Note-20)	620.69	620.69
Total borrowings	8,042.47	8,163.16

During the financial year 2024-25, debt amounting to Rs500 crore was raised and repayment to the tune of Rs620.69 Crore was made for recoupment of capital expenditure and other general corporate purposes. The Company continues to enjoy highest credit ratings for borrowings from banks, as detailed hereunder:

Credit Rating Agency	Rating	Remarks
CRISIL Ratings	CRISIL AAA/Stable	Highest ratings
India Ratings & Research	IND AAA/Stable	Highest ratings

Your Companys repayment schedule consists of annual payments of Rs620.69 crore, made through two half-yearly installments, continuing up to 31^st March 2038.

b. Non-current financial liabilities - Lease liabilities (Note- 16)

Lease liabilities have decreased from Rs111.02 crore as at 31 March 2024 to Rs97.42 crore as at 31 March 2025. The lease liabilities are repayable in instalments as per the terms of the respective lease agreements, generally over a period of more than 1 year and up to 33 years.

c. Non-current liabilities - Deferred tax liabilities (net) (Note-17)

Deferred tax liabilities (net) have increased from Rs1,229.96 crore as at 31 March 2024 to Rs1,408.47 crore as at 31 March 2025. The increase in deferred tax liabilities (net) during the year is mainly due to capitalization of new units during the year.

d. Other non-current liabilities (Note-18)

Other non-current liabilities have increased from Rs1,394.84 crore as at 31 March 2024 to Rs1,436.66 crore as at 31 March 2025.

e. Current liabilities (Note-20 to Note-25)

The break-up of current liabilities is as under:

Rs Crore

	As at March 31
Particulars			Y-o-Y Change	% Change
	2025	2024
Borrowings (Note-20)	670.73	620.69	50.04	8%
Lease liabilities (Note-21)	13.84	19.45	-5.61	-29%
Trade payables (Note-22)	78.11	60.53	17.58	29%
Other financial liabilities (Note-23)	725.80	1,008.01	-282.21	-28%
Other current liabilities (Note-24)	85.96	70.26	15.70	22%
Provisions (Note-25)	0.09	0.08	0.01	13%
Total	1,574.53	1,779.02	-204.49	-11%

Current financial liabilities - Borrowings (Note-20) comprise of current maturities of long-term borrowings, and short-term borrowings in the form of cash credit to finance the mismatches in the short-term fund requirement. Cash credit as on 31 March 2025 was Rs50.04 crore.

Current financial liabilities - Lease liabilities (Note-21) comprise of current maturities of lease liabilities. The same has decreased from Rs19.45 crore as at 31 March 2024 to Rs13.84 crore as at 31 March 2025.

Current financial liabilities - Trade payables (Note-22) mainly comprise amount payable towards supply of goods & services etc. Trade payables have increased by Rs17.58 crore.

Other current financial liabilities (Note-23) mainly comprise payables towards capital expenditure. The details of other current financial liabilities are as under: Rs Crore

		As at March 31
Particulars
	2025	2024
Payable for capital expenditure	667.97	913.37
Contractual Obligation	24.45	15.41
Payable to customers	2.11	0.00
Other payables	31.27	79.23
Total	725.80	1,008.01

Other current financial liabilities have decreased mainly due to decrease in payables for capital expenditure by Rs282.21 crore.

Other current liabilities (Note-24) mainly consist of advances from customers, current portion of Government grants and statutory dues. Other current liabilities have increased by Rs15.70 crore.

Current liabilities - Provisions (Note-25) During the year current liabilities-provisions have decreased by Rs0.08 crore. However, same is offset to some extent due to inclusion of provision for employee benefits of Rs0.09 crore.

B. Results from operations

1. Total Income (Note-26 & Note-27)

Rs Crore

Sl. No.	Particulars	2024-25	2023-24	% Change
	Revenue
1	Energy sales	1,925.82	1,875.99	3%
2	Consultancy, project management and supervision fee	21.20	10.05	111%
		1947.02	1886.04	3%
	Other operating revenues
3	Interest from beneficiaries	2.65	-	-
4	Recognized from Government grants	72.87	65.09	12%
		75.52	65.09	16%
	Revenue from operations	2,022.54	1,951.13	4%
5	Other income	250.60	77.56	223%
	Total income	2,273.14	2,028.69	12%

The income of the Company mainly comprises of income from energy sales, consultancy and other services, interest received from beneficiaries, Government grants, interest from deposits with banks, interest from advances to contractors & suppliers, liquidated damages recovered and late payment surcharge from beneficiaries. The total income for financial year 2024-25 is Rs2,273.14 crore as against Rs2,028.69 crore in the previous year registering a increase of 12.05%.

Elements of Total income are discussed below:

Energy sales (including electricity duty)

Your Company sells electricity to bulk customers, mainly electricity utilities owned by State Governments. Sale of electricity is generally made pursuant to long-term Power Purchase Agreements (PPAs) entered into with the beneficiaries.

Income from energy sales for the financial year 2024-25 was Rs1,925.82 crore constituting 84.72% of the Total income, marking an increase by 2.66% over the previous years income of Rs1,875.99 crore. The average tariRs for the financial year 2024-25 is Rs3.61/kWh as against Rs3.65/kWh for the previous year.

Consultancy and other services

During the financial year 2024-25, Consultancy, project management and supervision fees amounted to Rs21.20 crore as against Rs10.05 crore in the previous financial year.

Interest from beneficiaries

Interest from beneficiaries amounting Rs 2.65 crore (31 March 2024: Nil) represents amount recovered from the beneficiary due to change in law.

Recognised from Government grants

Government grants for financial year 2024-25 is Rs72.87 crore as against Rs65.09 crore in the previous year.

Other income (Note-27)

The break-up of other income is as under:

Rs Crore

Particulars	2024-25	2023-24
Interest from
Deposits with banks	189.97	30.05
Advance to contractors and suppliers	12.55	12.4
Other non-operating income
Liquidated damages recovered	28.78	16.9
Late payment surcharge from beneficiaries	16.17	15.61
Sale of scrap	1.03	0.01
Interest on Income Tax Refund	0.34	0.05
Provision written back	0.25	0.00
Others	1.51	2.54
Total	250.60	77.56

Other income has increased by Rs173.04 crore. Interest from Deposit with Bank includes interest income of Rs165.25 crore earned on unutilised proceeds from Initial Public Offer (IPO) which has been temporarily invested in deposits with scheduled commercial banks.

2. Expenses (Statement of Profit & Loss and Note-28, 29, 30 & 31) 2.1 Expenses related to operations

FY	2024-25		2023-24
Commercial generation (MUs)		5884.10		5671.95
Expenses	Rs Crore	Rs per kWh	Rs Crore	Rs per kWh
Employee benefits expense	62.05	0.11	37.02	0.07
Other expenses	219.65	0.37	166.22	0.29
Total	281.70	0.41	203.24	0.36

The expenditure incurred on employee benefits and other expenses for the financial year 2024-25 was Rs281.70 crore as against the expenditure of Rs203.24 crore incurred during the previous year. These components are discussed below.

2.1.2 Employee benefits expense (Note-28)

Employee benefit expense comprises salaries and wages, contribution to provident and other funds, and staff welfare expenses of Rs66.06 crore of which Rs1.17 crore was transferred to expenditure during construction period and Rs2.84 crore was recovered for employees posted in JV Company.

2.1.3 Other expenses (Note-31)

Other expenses comprise primarily of power charges, repairs and maintenance, rates and taxes, insurance, professional charges and consultancy fee, and miscellaneous expenses of Rs214.63 crore of which Rs0.68 crore was transferred to expenditure during construction period. Other expenses also include CSR expenses of Rs5.70 crore

2.2 Finance costs (Note-29)

The finance costs for the financial year 2024-25 are Rs661.18 crore in comparison to Rs 681.86 crore in the financial year 2023-24. The details of interest and other borrowing costs are tabulated below: Rs Crore

Particulars	2024-25	2023-24
Interest expense on financial liabilities measured at amortized cost
Rupee term loans	651.69	656.83
Lease liabilities	3.35	8.78
Cash credit	0.04	-
Sub-total	655.08	665.61
Interest expense on others	5.98	16.25
Others	0.12	-
Sub Total	6.10	16.25
Total Finance costs before EDC	661.18	681.86
Less: Transferred to
Expenditure during construction period (net)	4.78	2.81
Total Finance costs	656.40	679.05

Finance costs has decreased by 3.34% over previous financial year mainly due to repayment of borrowings.

2.3 Depreciation and amortization expense (Note-30)

The depreciation, amortization and impairment expense charged to the Statement of Profit and Loss during the financial year 2024-25 was Rs667.27 crore as compared to Rs633.09 crore in the financial year 2023-24, registering an increase of 5.40%. This is mainly due to increase in the gross PPE by Rs813.52 crore in the financial year 2024-25 over the previous year.

3. Tax expense (Note-36)

Tax expenses include deferred tax (Net) amounting to Rs178.51 which is mainly on account of difference in carrying value as per books and Income tax.

4. Profit after tax

The profit of the Company after tax is tabulated below:

Rs Crore

Particulars	2024-25	2023-24
Profit before tax	667.77	513.31
Less: Tax expense	178.51	142.84
Profit after tax	489.26	370.47

C. Cash flows

Statement of cash flows comprises of cash flows from operating activities, investing activities and financing activities. Net cash generated from operating activities increased to Rs1,887.81 crore during the financial year 2024-25 as compared to Rs1,605.49 crore in the previous year majorly due to working capital changes amounting to Rs190.52 crore.

Cash outflows on investing activities arise from expenditure on purchase of property, plant and equipment, investments in joint ventures & subsidiaries and tax outflow on income from investing activities. Considering all the investing activities, the net cash used in investing activities was Rs13,013.27 crore in the financial year 2024-25 as compared to Rs4,922.18 crore in the previous year.

During the financial year 2024-25, the Company had an inflow from proceeds from issue of equity shares of Rs11,748.80 crore, including Rs9,968.41 from proceeds of Initial Public Offering (Net of issue expenses). The proceeds from non-current borrowings is Rs500 as against Rs3,418.50 in the previous year and Rs50.04 crore from current borrowings. Cash used for repayment of non-current borrowings during the financial year 2024-25 was Rs620.69 crore as against Rs310.34 crore repaid in the previous year. Payment of lease liabilities during the financial year 2024-25 was Rs13.46 crore as against Rs15.08 crore in the previous year. Interest (including interest on lease liabilities) paid during the year was Rs651.85 crore as compared to Rs673.08 crore during the previous year. Thus, from financing activities during the year, the Company has an -inflow of Rs11,012.84 crore as against an inflow of Rs3,420 crore in the previous year.

Cash, cash equivalents and cash flows on various activities is summarized below:

Rs Crore

Particulars	2024-25	2023-24
Opening cash & cash equivalents	113.45	10.14
Net cash from operating activities	1,887.81	1,605.49
Net cash used in investing activities	(13,013.27)	(4,922.18)
Net cash inflow/(outflow) from financing activities	11,012.84	3,420.00
Change in cash and cash equivalents	(112.62)	103.31
Closing cash & cash equivalents	0.83	113.45

FINANCIAL SUMMARY OF SUBSIDIARY COMPANIES

The Company has 4 subsidiary companies as on 31 March 2025, out of which NTPC Renewable Energy Limited is wholly owned by the Company. A summary of the financial performance of the subsidiary companies during the financial year 2024-25 is given below: Rs Crore

Sl. No.	Company	NGELs investment in equity	Total Income	Profit/ (Loss) for the year
1	NTPC Renewable Energy Ltd.	7,494.46	193.99	(11.13)
2	Green Valley Renewable Energy Ltd.	96.95	-	(2.78)
3	NTPC Rajasthan Green Energy Ltd.	0.07	-	-
4	NTPC UP Green Energy Limited	-	-	-
	Total	7,591.48	193.99	(13.91)

FINANCIAL SUMMARY OF JOINT VENTURE COMPANIES

Proportion of ownership and financial performance of the joint venture companies for the financial year 2024-25 are given below: Rs Crore

Sl. No.	Company	NGELs Ownership (%)	NGELs Investment in equity	Total Income	Profit/ (Loss) for the year
A.	Joint venture companies incorporated in India
1	Indian Oil NTPC Green Energy Limited	50.00	48.05	-	(2.75)
2	ONGC NTPC Green Private Limited	50.00	3,152.55	16.09	0.28
3	MAHAGENCO NTPC Green Private Limited	50.00	0.05	-	-
4	AP NGEL Harit Amrit Limited	50.00	-	-	-
	Total		3,200.65

Consolidated financial results

A brief summary of the financial results on a consolidated basis is given below:

Rs Crore

Particulars	2024-25	2023-24
Total income	2,465.70	2,037.66
Profit before tax	652.63	485.71
Tax Expense	178.51	142.85
Profit for the year	474.12	342.86
Other comprehensive income (net of tax)	-	-
Total comprehensive income for the year	474.12	342.86

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: 05 August, 2025	(DIN: 00307037)