PTC India Limited (NSE: PTC) Q1 2026 Earnings Call dated Aug. 08, 2025
Corporate Participants:
Unidentified Speaker
Manoj Kumar Jhawar — Chairman & Managing Director
Pankaj Goel — PTC India Limited
Analysts:
Unidentified Participant
Mangesh Kulkarni — Analyst
Harshit Singhania — Analyst
Presentation:
operator
Good afternoon ladies and gentlemen and welcome to the earnings conference. Call for QNFI 26 for PTC India Limited. PTC India was incorporated in 1999 to undertake trading of power to achieve economic efficiency and security of supply and to develop a vibrant power market in the country. PTC is a pioneer in starting a power market in India and undertakes trading activities that includes long term trading of power generated from large power projects as well as short term trading arising as a result of supply and demand mismatches.
In addition to the trading business, PTC has incubated techno commercial consulting business to develop power market for the C and I Consumers, secs. Support trust etc. Let us now begin with the introduction of the management team we have with us today. Dr. Manush Kumar Jawar, Chairman and Managing Director, Mr. Rajiv Malhotra, Executive Director and Chief Risk Officer Mr. Pankaj Koel, Executive Director and CFO Mr. Bikram Singh, Executive Director, Marketing Mr. H.L. chaudhary, EVP Commercial and Operations and Sri Anand Kumar, VP Investor Relations. At this moment all participant lines are in the listen only mode. Later we will conduct a question and answer session.
At that time you may click on the Q and A tab to ask a live question. Please note that this conference is being recorded. I would now like to request Dr. Manoj Kumar Jawar, CMD to give his opening remarks. Thank you. And over to you sir.
Manoj Kumar Jhawar — Chairman & Managing Director
Good evening everyone. I extend a warm welcome to all of you to our post earning calls following the announcement of our Q1 FY 2026 results. This call gives us an opportunity to share key insights into our company’s performance and the long term vision. We deeply value this engagement with our esteemed shareholders, our investors, partners and the representatives who play a pivotal role in our continued growth and success. During the first quarter of new financial year, while national demand of energy experienced a marginal dip of 1.2% for trading volume grew by 13% to 23 billion units.
This was achieved while maintaining a trading margin of 3.37 PI c per unit. Notably, 60% of the trading volume came from exchange traded products while the remainder came from bilaterals long term medium term contracts. Improved margin realization has also contributed to an 8% increase in the trading income. Just to recall, in the last quarter we informed you that we have floated an invitation of expression of interest for 500 megawatts of renewal energy capst. The response has been encouraging and our team is working with project developers to finalize purchase and Sell agreement at competitive rates. As the thing developers, we will inform the shareholders and exchanges.
Our product and service offerings are helping in retaining clients which are C and I segment and increased business opportunities. We are bit consultant for renewable capacity development of around 1,000 megawatt in solar and hybrid mode in the cross border market. Our operations continue across all three grid connected neighboring countries which is Bhutan, Nepal and Bangladesh. Energy flows to the Bangladesh remain stable under the agreed contextual framework with regular flow of payments to our accounts. Bhutan is experiencing rising year round electricity demand particularly during the winter months when the water availability for hydal plants declines. Similarly in Nepal we have commenced both import and export of electricity based on their supply demand profiles.
Looking ahead, we expect power demand to grow steadily at 6 to 8% per annum. Although short term volatility may arise due to transient weather conditions. A February monsoon is expected to create more demand and support this outlook. The guidelines for PHP based power will further accelerate the adoption of storage in the energy basket. Regulatory bodies are also actively fostering market reforms including discussion on virtual power plants and standardization of exchange products including amendment in power market regulations to ensure level playing field among exchanges, traders and OTC platforms. I now invite our Executive Director and CFO Sri Pankaj Goyal to present the financial highlights for the quarter.
Following the his presentation, we will open the floor for question and answer session. Thank you once again for your continued trust and support. We appreciate your participation in today’s call.
Pankaj Goel — PTC India Limited
Thank you. Thank you sir. Good evening to all. So now I will go through the potential performance of PTC India Limited on first on standalone basis for the quarter ended June 25. Visa is the corresponding quarter June 24. So the volume has for the quarter has increased by 13% to 23 billion units from 20.5 billion units. Volume has increased mainly because of increase in exchange rate and cross border trade. Operating margin from sale of Electcity has increased by 8% to 78 crore from 72 crore. Total operational income decreased by 13% to 111 crore from 127 crore.
The profit before tax stood at 141 crore as compared to 144 crore during the corresponding quarter. Profit after tax stood at 105 crore as compared to 106 crore. Total comprehensive income stood at 105 crore as compared to 107 crore. Earning per share for the quarter stood at rupees 3.54 as compared to rupees 3.59 during the last corresponding quarter. Now I’ll go through the financial performance on consolidated Basis for The quarter ended June 25, volume has increased by 12% to 23 billion units from 20.6 billion units. Profit before tax from continuing operation has increased by 42% to 289 crore from 203 crore.
The profit before tax has mainly increased on account of higher share of profit before tax from PTC Financial Services. Profit after tax from continuing operation has increased by 61% to 243 crore from 151 crore. Consolidated pad from continuing operation and discontinued operation has increased by 28% to 243 crore from 189 crore total. Other comprehensive income has also increased by 28% to 243 crore From 190 crore. Earning per share for the quarter on consolidated basis stood at rupees 6.59 as compared to rupees 5.87.
Thank you. So now we can have the floor open for question and answer session.
Questions and Answers:
operator
Thank you very much, sir. Ladies and gentlemen, we will now begin with a question and answer session. To ask a question, please click on the Q and A tab on the panel and click on Raise hand button. The operator will announce your name when it is your turn to ask a question. Please accept accept the prompt on your screen and unmute your microphone while proceeding with your question. You may also type in your text question in Ask a question tab. Ladies and gentlemen, we will wait for a moment while the question queue assembles it. Ladies and gentlemen, to ask a question please click on the Q and A tab on the panel and click on Raise hand button.
The conference is now being recorded. We’ll take the first question from the line of Mangesh Kulkarni from Almonds Financial Services. Please go ahead.
Mangesh Kulkarni
Am I audible?
Manoj Kumar Jhawar
Yes. Sure.
operator
Yes, sir. Please proceed.
Mangesh Kulkarni
Yes, sir. Thank you for giving me an opportunity. I just wanted to ask about now. Our subsidiary PTC Financial Services has also reported very good numbers and giving very good pictures on the recovery front in the next quarter also. So are we expecting any special dividend from the PTC in this coming financial year? As well as what are we coming back to our disinvestment plans for the ptc? What are our PTC finances? So what are our views on the subsidiary now?
Manoj Kumar Jhawar
Two things regarding any special dividend. I mean the matter has to be considered by the board. Whenever a consensus emerges that any dividend is to be declared. We shall definitely be making an announcement here. I would not like to go further than that. That is one thing. Second thing. Regarding the disinvestment of PTC Financial Services Limited Board is seized up the matter. As I had told in earlier conference calls also this matter is being actively discussed and agent when any consensus or a directional view appears from the board we shall be informed the market. Right now this matter is under consideration of the board so I cannot comment more than that.
Mangesh Kulkarni
Okay sir. And how do we view our prospects for the Hindustan Power Exchange after this new discussion came on the connectivity of the exchanges?
Manoj Kumar Jhawar
Yes, actually market yeah Market coupling is something about which we have been following since a very long period advocating. We believe that it is a good development, it is a favorable development. It will help consolidate the very very fragmented markets. It will bring in competition and it is likely to help the HPX significantly. So we hope that this is going to be another business driver for us going forward. Market coupling would definitely help HPX and since we own 22.5% of the HPX indirectly benefits would accrue to PTC also.
Mangesh Kulkarni
And sir these exchanges have also started electricity futures. So PTC as a trader is participating in these particularly MCX and all these things.
Manoj Kumar Jhawar
Yes, actually I mean this is a new development recently and in today’s AGM it’s itself we had put up a proposal before our shareholders to allow us to participate in this market in a significant manner and represent our clients and trade on their behalf. So I hope when the final results of AGM are announced we will have necessary authorization from our shareholders also in this regard. And yes we are in discussion and continuous engagement with both NSE as well as MCX where these future products have been launched and we intend to participate meaningfully in these markets.
operator
Mr. Kulkarni, does that answer your question?
Manoj Kumar Jhawar
Thank you very much sir.
operator
Thank you. We’ll take the next text question from Darshika Kemka from Avfencorp and the question is what is the reason that surcharge income has been recognized as other income which was a part of other operating income in the last quarter.
Manoj Kumar Jhawar
I would request our CFO to respond to that.
Pankaj Goel
So you know that the historically we were treating the surcharge income in our other operating income. So now the recently in 24 and the early 25 the Institute of Chartered Accountant to their advisory committee has opined in some other case that these type of surcharge income and surcharge expenses has to be shown in other income and other and interest expenses, finance cost. And in that regard the our we have a discussion with our statutory auditors also and we have also examined the various of our promoters also like they are the big generators and they are also receiving Surcharge expense income also. So as per their balance sheet of the promoters and other traders also. So they are also showing this surcharge income in the other income. So accordingly on a prudence basis and to be more presentable we have also regrouped the figures. Actually instead of other operating income to other income also that is the only reason. But there is no financial implications of the same.
Manoj Kumar Jhawar
In summary, it is compliance of the regulatory directives and practice being followed in peer companies. So this decision has been taken in consonance with that and in consultation with the auditors.
operator
Thank you sir. We’ll take the next question. Voice question from the line of Channamalu Ahlakodi, an individual investor. Please go ahead. Mr. Halakodi, I have unmuted your line. Please proceed sir.
Unidentified Participant
Am I audible, sir?
Manoj Kumar Jhawar
Yes, you are audible sir.
Unidentified Participant
What I am asking a question is a matter of transparency in decision making process of PTC India. Sir, since last five years the divestment of petition of financial services is pending. No clear answer is given to investors from parent company regarding its divestment. We invested in PTC India and on core business. But still you are not. You are engaged in financial services business Now Government announced implementation of market coupling from January 2026. In this situation management should concentrate more on core business. What is your real stand with divestment of PTC in the financial service?
Manoj Kumar Jhawar
Sir, as I told you earlier, if I may recapture the history previously the board of the PTC had taken a decision that will go for disinvestment of PEL as well as PFS at a later stage. The process for disinvestment of PEL was taken forward but a hold was put on the disinvestment of pfs. At a later stage we concentrated more on disinvestment of the PEL and that has been successfully concluded as is known to all shareholders. Now again that question has come up for consideration of the board and it is under active consideration of the board right now. Unless and until a decision has been taken by the board I cannot really give a straight jacket answer to this question. Key what we are going to do when we are going to do Unless until board itself takes a call it cannot be responded like that.
Unidentified Participant
Not cancelled? No, sir.
Manoj Kumar Jhawar
No, definitely not cancelled. As I told you, this matter is under consideration of the court.
Unidentified Participant
Okay sir. Okay. Thank you.
operator
Thank you. We’ll take the next text question from Harshit Singhania from Robo Capital. And the question is, is there any quantifiable impact from market coupling on hpx?
Manoj Kumar Jhawar
Actually HPX is likely to benefit from this market coupling thing. And if we examine the entire market scenario, the collective segment has got two components. One is the DEM and another one is the rtc. So in the DEM component the volume traded is roughly around 80 billion units. And if we multiply the 4 paise per unit margin which is earned on all power traded in the DEM market that gives us a revenue potential of around 240 crore rupees per annum. That was basically 100% concentrated in IEX earlier. Now with this coupling thing happening, the exchange which is able to provide better services to the clients, the exchange which has got better connect with the clients, someone who has got a better technology platform would possibly have a real shot to, I mean earn some volumes out of that market. So that remains to seen to be seen as to how much of that 100% concentrated market from IEX can be taken away by HPX. But currently it is zero. So I would say that journey only upward.
operator
Thank you sir. The next text question is from Suyash Bhave from Wealth Guardian and the question is PTC holds 22% in HPX. Due to that they cannot trade on it. Now post market coupling will PTC look at reducing stake in HPX below 5% to start trading on it?
Manoj Kumar Jhawar
Our investment in HPX was a strategic one. Now when to divest? Whether to divest would be a call to be considered in an appropriate point of time. At this point of time. At this point of time we would be basically interested in watching the market as it evolves post this market coupling thing. But a decision would be taken in the best interest of both HPX and PTC so that long term value to the shareholders is accrued.
operator
Thank you sir. Participants, to ask a question please click on the Q and A tab on the panel and click on raise hand button or you may also type in your text question in Ask a question tab. The next question is from Ragini Pandey from Elara Capital and the question is what was the short term volume in QN FY26 and what the long term and medium term volume in Q1 FY26?
Pankaj Goel
Yeah so in Q1 26 the short term volume including the exchange trade was around 13.9 billion units. And as far as the long term trade including the cross border is concerned so the total was 8 billion units for FY26 first quarter of FY26.
operator
The next questions are what is the share of short term and long term volume in overall volume and what was the trading margin in these segments? That is short term and long and medium term.
Pankaj Goel
Just. Yeah, just a minute. So the overall volume for short term in 60% and long term US is 40%.
Manoj Kumar Jhawar
Margins. .
Pankaj Goel
Just a minute. And t he margin is 3.37 paisa.
Manoj Kumar Jhawar
In short term?
Pankaj Goel
And in short term the margin is 0.81 paisa. Long term margin is around 7.49%.
operator
So the next question is why did the surcharge income decline?
Manoj Kumar Jhawar
You see actually I mean earlier if we recall in previous shareholders interaction a concern was raised regarding our huge outstandings accumulating against the Bangladesh as well as a few states. So the increasing areas were a cause of concern for many shareholders. So we took a concentrated efforts in that direction. And then as a matter of as a result of that effort the outstanding position against many clients has improved significantly. Now the Bangladesh is making the timely payment and sometimes it is even availing rebate. So what is happening that earlier whatever delay was there because of that we were able to earn rebates while the we were able to earn the rebate but the clients were not the discounts were not earning the rebate. Now what is happening that discounts are also earning the rebate. They are making timely payment and we are also making timely payment to the generators. So our rebate income which is net of the rebate which earned from generator and the payment which we receive from the discount it has come down but it is an indication of actual better management of the receivables.
operator
Thank you sir. The next text question is from Ragini Pandey from Ilara Capital. What was the revenue and part from hpx?
Manoj Kumar Jhawar
Pankaj is responding that.
Pankaj Goel
Yeah. So revenue of the HPX Total revenue is 12.42 crore for this quarter and pad for this quarter is around 6.41 crore.
operator
Thank you. The next text question is from Suyash Bhave from Wealth Karjan. And the question is is there any update on the capital allocation of the funds received from the PTC Energy stake sale?
Manoj Kumar Jhawar
We have retained that. We have retained a large portion of the divestment proceeds and we intend to deploy that into meaningful businesses which are not far off from our core area of operations. But right now the, I mean CAPEX allocation for next 25 years is the kind of decision which we are going to take. So that takes time. We are considering the options. Whenever we have concrete announcements to make will come to the market. We are right now evoluting many options.
operator
Thank you sir. The next text question is from Harshit Singhania from Robocapital. Is There any revenue or margin guidance that the management would like to give for next two to three years.
Manoj Kumar Jhawar
Forward looking statements I would not like to enter into. But I mean what I can say is we will like to maintain the momentum. Our trading volumes have been growing at a rate which is faster than the total energy generation rate in the country. The total overall generation had grown by certain number, but our trading margins have grown by almost 11%. So we would like to keep that momentum and we hope that it will serve our shareholders nicely.
operator
Thank you sir. Participants, to ask question please click on the Q and A tab on the panel and click on the Raise hand button. You may also type in your text questions in Ask A Question tab. The next text question is what is the company’s take on virtual Power Purchase Agreement Draft notification floated by cerc?
Manoj Kumar Jhawar
Yeah, it is a very interesting emerging area and being a trader we see a lot of value but we have to wait for the final guidelines to appear in this regard. This will be a very interesting opportunity in the sense that a large part of that business is likely to be built on solid IT platforms and effective execution. So we are seized off that and we are watching the development keenly. We hope to play a meaningful role in that market as and when those final guidelines come.
operator
Thank you sir. The next text question is Ministry of Power has recently withdrawn Uniform Renewable Energy Tariff that is uret. How do you see impact of this on your company?
Manoj Kumar Jhawar
Basically it has to be understood that this mechanism was instituted by the government because under the REIA nomenclature and REIA REAIA framework bids, the States were unwilling to enter into power purchase agreements. Now PTC not being designated as reia, it has got no impact on the business of the ptc. If we get an REIA assignment which we have been trying for quite some time, maybe it will have a positive impact on outlook. Right now it has got no impact.
operator
Thank you sir. Participants, to ask questions please click on the Q and A tab on the panel and click on Raise hand button. You may also type in your text questions in Ask a Question tab. The next text question is from Suyash Bhave from Wealth Guardian and the question is does introduction of market coupling indicate potential future introduction reduction of mbed and if implemented is MBED positive or negative for ptc?
Manoj Kumar Jhawar
It is hundred percent positive if MBED and then at a later stage if, sorry if MBED comes then what it would entail is that all the capacity which has been tied into the long term context, which are almost 85% of the power being traded generated and consumed in the country would also come to some kind of market mechanism. And that being the case, that will be an exponential growth opportunity for trader like us.
operator
Thank you sir. To ask a question please click on the Q and A tab on the panel and click on raise hand button. You may also type in your text questions. The next question is from Darshika Kimka from Avfencorp. And the text question is how will the rule of max 5% stake in HPX impact on the company? When does the company plan to divest in stakes its stakes?
Manoj Kumar Jhawar
Actually first thing we would like to, I mean approach the regulatory commission. But. Right now it is premature to take the decision. I mean we will have to take a call. Right now we would like to evaluate as to how this market is unfolding post this market coupling thing. So decision to divest has to be properly timed and it has to be value accretive for our shareholders as well as hpx. Right now I cannot give a definitive time frame kind of thing.
operator
Thank you sir. To ask a question please click on the Q and A tab on the panel and click on raise hand button. You may also type in your text questions. Ladies and gentlemen, as there are no further questions I would now like to hand the conference over to Dr. Manoj Kumar Jhawar CMD for closing comments. Thank you. And over to you sir.
Manoj Kumar Jhawar
Thank you very much shareholders. Actually your support is very important. And today, I mean we were, we had faced the shareholders in the AGM also. Hopefully all our resolutions were supported by the shareholders. I thank you for that also and we hope to keep a meaningful engagement with you whenever you have got any other queries. Also you are free to connect with our company security department or our investor relationship team. During coming times we would have many more conferences, some formal, some informal also. And we hope to build a long term relationship which is based on mutual trust and transparency.
Thank you so much.
operator
Thank you members of the management. Ladies and gentlemen, on behalf of PDC India limited that concludes today’s session, thank you for your participation. You may now click on the exit meeting to disconnect. Thank you.