PTC India Q3 Results: Profit Drops 25% on Lower Rebate Income, But Trading Volume Grows 4%

New Delhi, February 20, 2026: PTC India Limited (Scrip Code: 532524) today reported its financial results for the third quarter and nine months ended December 31, 2025, revealing a mixed performance. While the company demonstrated resilience with a 4% growth in trading volumes, its bottom line was impacted by a significant decrease in rebate income due to improved liquidity among state distribution companies (DISCOMs).

In a pivotal development for the company's future, the management also provided key updates on the ongoing changes in its promoter structure, with NTPC poised to become the sole promoter.

Financial Highlights: A Story of Volume vs. Income

On a standalone basis for Q3 FY26, PTC India's profit after tax (PAT) declined by 25% year-on-year to ₹83 crores, compared to ₹111 crores in the same quarter last year. This dip was mirrored in the profit before tax (PBT), which fell 25% to ₹111 crores.

Key Financial Metrics (Standalone):

For the 9-month period (9M FY26):

• Trading Volume surged by 9% to 69.23 billion units (BU).

• PAT declined by a moderate 4% to ₹321 crores.

Why the Profit Drop? The "Rebate" Factor
Dr. Manoj Kumar Jhawar, Chairman and Managing Director, and CFO Pankaj Goel explained that the primary reason for the reduced profitability was a sharp decline in net rebate and surcharge income. This income typically arises from early payments to generators and late payments from buyers.

CFO Pankaj Goel clarified, "The rebate income decreased basically due to the improved liquidity of the states." Dr. Jhawar added that this trend may be temporary. "If weather was again not to be as benign and the demand increases... their power procurement cost... also increases, then the situation may change again."

Trading Margin & Volume Breakdown

Despite the profit dip, the company's core trading operations showed strength.

• Average Trading Margin: For the 9-month period, the average trading margin stood at 3.38 paisa per unit.

• Segment Margins (Q3 FY26):

  • Short-term margin (including exchange): 0.87 paisa/unit (up from 0.75 paisa/unit last year).

  • Long-term margin: 7.91 paisa/unit (up from 7.7 paisa/unit last year).

• Volume Mix (Q3 FY26): Short-term trades (including exchange) constituted 67% of the volume, while medium and long-term trades made up the remaining 33%.

Promoter Rejig: NTPC to Go It Alone

A major point of discussion was the future of the company's ownership. The management confirmed that the board has approved the proposal for three existing promoters—PFC, Power Grid, and NHPC—to relinquish their promoter rights and board representation.

This move will leave NTPC as the sole promoter of PTC India. When asked about the potential for a merger with NTPC's own trading arm, NTPC Vidyut Vyapar Nigam (NVVN), Dr. Jhawar stated, "Should that happen... we are going to be benefited... There is a lot of synergy." He noted that if such a synergy were realized, the large volume of NTPC's surplus power could flow through PTC.

Strategic Initiatives & Outlook

• Cash Reserves & Deployment: The company has a robust cash balance of ₹3,292 crores. Management clarified that approximately ₹2,000 crores is required as a "war chest" for working capital in the core trading business, while the remaining ₹1,200 crores is being explored for strategic equity investments. Recent MoUs with NLC India and SECI are steps in this direction.

• Market Coupling & HPX: The recent APTEL order directing CERC to frame regulations for market coupling is seen as a positive for PTC's associate company, Hindustan Power Exchange (HPX). "If significant volume... was to move away... to all the 3 exchanges in an equitable manner, then it will definitely add immense value to the HPX," said Dr. Jhawar.

• Cross-Border Trade: Operations with Bangladesh remain stable. Outstanding dues from the country stand at a manageable ₹72 crores, a significant improvement from past levels.

• Teesta Urja Project: Partial power generation from the Teesta project is expected to begin within the next six months following the construction of a coffer dam.

Management Commentary

In his closing remarks, Dr. Manoj Kumar Jhawar reassured investors, "Our trading volumes and trading numbers have been robust in this quarter also... What should be, our company should be judged basically for growth in the trading volumes. And I think we have delivered a solid growth."

Investor Takeaway

PTC India's Q3 results present a nuanced picture. While short-term profitability has been squeezed by external factors like DISCOM liquidity, the core business of power trading is growing in volume and maintaining stable margins. The impending shift to a single, powerful promoter in NTPC opens up significant long-term strategic possibilities, making this a stock to watch closely as the regulatory and corporate landscape evolves.