NTPC Green Energy shares in focus on solar auction win in Uttar Pradesh

NTPC Green Energy, a subsidiary of NTPC, has successfully secured 1,000 megawatts (MW) of solar power capacity in an auction conducted by Uttar Pradesh Power Corporation Limited (UPPCL). The company signed a Power Purchase Agreement (PPA) at a discovered tariff rate of Rs 2.56 per kilowatt-hour (kWh). This development marks a significant step for NTPC Green Energy in expanding its renewable energy portfolio.

In parallel, the company has entered into a partnership with Honeywell India to explore the production of Sustainable Aviation Fuel (SAF) in India. This initiative aims to produce SAF using Honeywell's eFining technology, which utilises carbon dioxide captured from NTPC power plants and green hydrogen.

In financial performance, NTPC has reported a 4% year-on-year increase in its consolidated net profit for the March quarter, reaching Rs 5,778 crore, up from Rs 5,556.4 crore in the same period last year. The revenue from operations also saw a 3.2% year-on-year rise, amounting to Rs 43,903.7 crore. However, the company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) showed a slight decrease of 1%, totalling Rs 11,255 crore compared to Rs 11,340.6 crore previously. The operating margin contracted slightly to 25.6%, down from 26.7%.

In terms of shareholder returns, NTPC's Board of Directors has proposed a final dividend of Rs 3.3 per share for the financial year 2025, subject to approval at the upcoming Annual General Meeting (AGM). This proposed dividend follows two interim dividends of Rs 2.5 per share each, which were distributed in November and February respectively. These financial results and strategic initiatives underscore NTPC's commitment to enhancing its renewable energy footprint while ensuring stable returns for its shareholders.