PTC India Limited (NSE: PTC) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Manoj Kumar Jhawar — Chairman and Managing Director
Pankaj Goel — Chief Financial Officer
Analysts:
Naresh matai — Analyst
Mangesh Kulkarni — Analyst
Abhir Pandit — Analyst
Yash Surpuria — Analyst
Vipul Kumar Shah — Analyst
Rajiv Agrawal — Analyst
Naresh Matai — Analyst
Presentation:
operator
Good evening ladies and gentlemen and welcome to the earnings conference. Call for Q3 and 9 months FY26 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 our market for the CNI, consumers, Secs. Port trusts, etc. Let us now begin with the introduction of the management team we have with us today. Dr. Manoj Kumar Jhawar, Chairman and Managing Director. Mr. Rajiv Malhotra, Executive Director and Chief Risk Officer. Mr. Pankaj Goyal, Executive Director and CFO Mr. Bikram Singh, Executive Director, Marketing. Mr. H.L. chaudhary, EVP Commercial and Operations. Mr. Mukesh Ahoja, VP Finance. Mr. Rajiv Maheshwari, Company Secretary and Mr. Anand Kumar, VP Investor Relations. At this moment all participants 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 and Managing Director
Thank you. Good evening everyone. I extend a warm welcome to all of you to our poster NCAS. Following the announcement of our quarter three financial year 2526 results. I am attaching this conference from Goa. But my management team is in Delhi and I’m joined by them virtually. So the entire PTC management team is there and has already been introduced by the moderator. This call gives us an opportunity to share key insights into our company’s performance and our long term vision. We deeply value this engagement with our esteemed shareholders, our investors, partners, shareholders and their representatives.
Excuse me just moment. It’s just a sore throat. During the nine month of current financial year 2526 our national demand of energy grew by less than 1%. But our trading volumes grew by 9% to 63.74 billion units. The average trading margin for the nine month period is 3.38 pisa per unit. Notably 60% of the trading Volume came from exchange traded products with the remainder coming from bilaterals long terms and medium term trades. Improved volume and margin realization has increased the trading income to 234.29 crores and 9% increase in trading income over the corresponding period for the previous financial year. In the cross border markets, our operations continue across all three grid connected neighboring countries, Bhutan, Nepal and Bangladesh.
Energy flows to Bangladesh remain stable under the agreed contextual framework with regular flow of payments to our accounts. Due to increased domestic demand in winter in Bhutan, cross border power import from Bhutan has been scheduled somewhat lesser than the previous year’s levels. We expect this to settle at a long term average level as contact is for surplus power after domestic demand of the Bhutan which is currently rising is met. However, the power from India to Nepal and Bhutan to meet their winter demand is increasing and flowing as per the executed context. On coupling of exchanges.
Recently Apptel has passed an order directing Hon. Cerc to follow the regulatory process and frame regulations before implementing the coupling of the exchanges. We believe that this will be beneficial to our associate company which is Hindustan Power Exchange. Looking ahead, we expect power demand to remain firm although short term volatility may be due to target weather conditions. On regulatory and policy fronts, Draft National Electricity Policy has been announced and it proposes deepening of power markets, regulatory frameworks for distributed energy aggregation and leveraging India’s energy stake for digital integration of market based transactions. However, Honeywell CERC is proposing to formally classify integrated energy storage systems as a regulated asset with defined technical terms.
This is also expected to give clarity to investors and consequently scale up its implementation. So, thank you once again for your continued trust and support. We appreciate your participation in today’s call. Now I would invite our CFO to give a glimpse of the financial numbers. Thank you.
Pankaj Goel — Chief Financial Officer
Thank you. CMD sir. Good evening to all the shareholders. Now I have go through the financial results for the quarter and nine month ended December 25th. First I’ll go through the standalone results for the quarter. During the quarter the volume has increased by 4% to 20 billion units from 19.2 billion units. The volume has mainly increased due to our exchange rate. The total operational income has decreased by 14% to 89 crore from 103 crore. So this decrease mainly is on account of decrease in our net rebate income. The rebate income is decreased basically due to the improved liquidity of the states.
The profit before tax has decreased by 25% to 111 crore from 148 crore. Profit before tax has decreased mainly due to decrease in our net rebate and surcharge income, profit after tax has decreased by 25% to 83 crore from 111 crore. In line with the PBT, PAT has also decreased by 25%. Total comprehensive income has decreased by 25% to 83 crore From 111 crore. Earning per share for the quarter stood at rupees 2.79 in comparison to rupees 3.74 during the last quarter. Now I’ll go through the nine months result for the December 25th. So volume has increased by 9% to 16.2 billion units from 63.7 billion units.
The volume has increased mainly due to our exchange and cross border trades. During the nine months the total operational income has decreased by 5% to 337 crore from 353 crores. Total operational income has decreased due to decrease in net rebate income. Profit before tax has decreased by 3% to 433 crore from 448 crore. The main reason for decrease is due to the decrease in net rebate income and surcharge income. Profit after tax has decreased by 4% to 321 crore from 333 crore. Total comprehensive income has decreased by 3% to 322 crore from 334 crore. Earning per share for the nine month period stood at rupees 10.85 paisa compared to rupees 11.26.
Now I’ll go through the consolidated results for the quarter. The volume has increased by 4% to 20 million units from 19.3 billion units. Profit before tax on a consolidated basis has decreased by 23% to 175 crore from 227 crore. So decrease in on account of as I have already explained that there is a decrease in profit before tax on a standalone basis also and also due to the lower profit before tax of PTC Financial Services during the quarter. Profit after tax has decreased by 26% to 131 crore from 176 crore. Consolidated PAT has decreased by 28% to 131 crore from 181 crore total other comprehensive income has decreased by 26% to 133 crore from 181 crore.
Earning per share for the quarter stood at rupees 3.85 in comparison to rupees 5.32. Now I’ll go through the consolidated results for the nine month ended. The volume has increased by 8% to 69.2 billion unit from 64.2 billion units. Profit before tax from continuing operation has increased by 17% to 762 crore from 649 crore consolidated. Profit for the nine month has increased mainly on account of increase in the profit before tax of PTC financial services and their profit has increased due to basically reversal of impairment provisions which were created in earlier years. Profit after tax from continuing operation Is increased by 22% to 596 crore from 490 crore consolidated pad from continuing operation and discontinued operation has decreased by 1% to 596 crore from 604 crore total.
Other comprehensive income has decreased by 1% to 598 crore from 604 crores. Earning per share for the nine month stood at rupees 16.9 in comparison to rupees 18.54 during the last nine month period ended. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. To ask a question, please click on the QA 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 the prompt on your screen and unmute your microphone while proceeding with your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take a first question from Dr. Naresh matai from srimati mmk college. Please go ahead. Doctor Naresh, please unmute your microphone and go ahead with your question please. Since there is no response, we’ll move on to the next question from Chennamalu Halagodi, an individual investor. Please go ahead with your question.
Naresh matai
Thank you for this opportunity. In previous con call regarding divestment or dilution of pfs. You said you are awaiting for the report from a private report reported consultants on private equity and you will discuss the same report in the board. Then what is the outcome of the report and what is the outcome of the board discussion?
Pankaj Goel
Sir. The assignment has been given to SBI Capes. We are awaiting their final report and we shall be discussing the report once it is made available to us. Many rounds of discussions have happened with the consultants. But before I discuss this with the board, I cannot share more on this.
Naresh matai
Thank you sir. One more question from my side, sir. PFS is not able to raise fresh funds and not able to increase AUM size. And parent company also stopped financial support to PFS to increase AUM and delaying dilution process also. You are just wasting time of investors of PFS and PTC India take early action regarding divestment of PFS for benefit of the investment of investors of the both PFS and PTC India.
Manoj Kumar Jhawar
Sir. I will. I will look at it this way. Kindly understand the capital adequacy ratio. If our PFS is already very high, very comfortable, almost 3000 crore rupees of the net worth is lying in that company. So basically they do not need further equity infusion from the parent. So that said, it is not as if that we are not supporting them. It is for that company to raise further debt financing complementing their existing equity structure. That is number one. Number two, even if a divestment has to be done, it cannot be done in a heft. Otherwise it we will be losing the investor value.
So a process has to be followed and different options have to be evaluated. So rest assured we are also mindful it is not as if that we are not aware of the timing or the essays of the timing. But we are working on it.
Naresh matai
Okay sir. Thank you sir.
operator
Thank you. Next question is from Naresh matai from Sumangal Investments. Please go ahead.
Naresh matai
Yeah, Am I audible?
Manoj Kumar Jhawar
Yes, please go ahead.
Naresh matai
So my question, first question relates to this lower surcharge and lower requirement rebate due to improved discom financial situation. So is this a new normal that in all subsequent quarters and years we’ll see lower surcharge and lower rebate income? Sir.
Manoj Kumar Jhawar
It is difficult to predict. But let us understand the overall scenario in which the power sector has been operating for the past one year. Weather has been generally very very benign and the power purchase costs on the exchanges have been very down and subdued. So what it led to was a significant reduction in the power procurement cost for the discounts and because of that they temporarily have better liquidity. If you compare it with the prior periods. Now going forward if weather was again not to be as benign and the demand increases and commensurate with the demand, their procurement cost per unit terms also increases then situation may change again.
So these things and many ups and downs like this we have seen over the years and we expect it to continue.
Naresh matai
My second question relates to our short term margin and long term margin which generally is always part of the presentation. But this time those figures have not been shared. So can you share the short term and long term margin for this quarter and comparable same last year?
Manoj Kumar Jhawar
Yeah. So the short term margin for this quarter was including the Exchange rate is 0.87 paisa per unit. And in the last quarter the short term Trade margin was 0.75 paisa per unit. And the long term margin during this quarter is 7.9 paisa per unit as against 7.7 paisa per unit during the last quarter.
Naresh matai
Last quarter or last year, sir?
Manoj Kumar Jhawar
Last quarter. Oh, sorry, last December 24th corresponding quarter.
Naresh matai
Okay. Okay, thank you sir. I’ll rejoin the three.
operator
Thank you. Before we take the next question, would like to remind participants to ask a question. Please click on the QA tab on the panel and click on raise hand button. Next question is from Mangesh Kulkarni from Almonds Financial Services. Please go ahead. Mangesh, please unmute your microphone and go ahead with your question please.
Mangesh Kulkarni
Yeah, Am I audible?
Manoj Kumar Jhawar
Yes, please go ahead.
Mangesh Kulkarni
Yeah, so thank you very much for giving me an opportunity, sir. I would like to ask broadly about the decision taken earlier about the NTPC becoming the promoter and how the transaction is going to happen. Like all the remaining three shareholders, they will be divesting their shareholding, will be bought by the NTPC and then whether it will be open offer for public. Also what, what kind of transact is thought about and what happens to the NTPC’s trading company which is already there just like PTC, NTPC is also the second largest trading company in the trading space.
So broadly how that transaction is going to happen.
Manoj Kumar Jhawar
First thing is regarding this ntpc. So as we have already shared with the stock exchanges and general public at large, currently the understanding is only this that the three promoters would relinquish their promoter rights. That means the representative shall not be sitting on the board and those companies, that is pfc, Power Grid and NHPC would not be having a promoter stake regarding their own equity. As of now we are not aware if any understanding has been reached between the NTPC and other promoters over the time. If there is any information on that front to be shared and if we come to know about it, we shall be sharing with the general public at all.
That is second thing. G G, yes.
Mangesh Kulkarni
Yeah, yeah, yeah.
Manoj Kumar Jhawar
You just continue then I’ll ask.
Mangesh Kulkarni
Second thing was regarding the NTBC with this WebHR. So of course the NTBC is already having a trader power trading company full fledged under their belt. So how and what shall come out of this transaction once NTPC becomes sole promoter of the ptc? These things it is a little early to say for me but I think in coming days all those things will become clear. But as of now, as of now yesterday we have already shared with the board stock exchanges that other three promoters, the board as a PTC board has approved the proposal of three proporters to withdraw themselves as being promoter of this company.
Manoj Kumar Jhawar
Anything is not discussed on this Front from the management of the ptc. Management of ptc Management of the PTC where the road ahead is not discussed with the management of the ptc. I think these things do take time. This thing do take time. Discussion is not a one time affair. Things evolve continuously. Options are evaluated continuously. So as and when we are in no of more more to share we have anything more to share on this front we shall be sharing.
Mangesh Kulkarni
Answer on HP X Can you explain the financials performance of this quarter?
Manoj Kumar Jhawar
Yeah please. Yeah yeah. So the total income of of the IX during this quarter was 8.64 crore as against 8.22 crore in the corresponding quarter. For the nine months ending in this quarter their total income was 36.4 crore as against 30.27 during the corresponding nine months. And the profit after tax actually in this period in this quarter they have a loss of 2.46 crore as against the profit of 1.28 crore in the corresponding quarter and for the nine month period during the current nine month period they were having a profit of BAT of 4.42 crore as against a profit of 8.38 crore corresponding nine months.
Mangesh Kulkarni
What was the reason for loss this quarter? Any. Yeah, for this. Basically the expense on technology and some manpower expense was the main reason for this loss in this particular quarter. But with the market coupling and all the scenario is looking positive for hpx. Yes.
Manoj Kumar Jhawar
That means technology investment is good for the long term benefit that is positive. Yeah. Yes. Yeah.
Mangesh Kulkarni
So thank you. Thank you very much for the opportunity and all the best.
operator
Thank you. Next question is from Abir Pandit from Old Bridge Mutual Fund. Please go ahead.
Abhir Pandit
Hi sir. Thank you for this opportunity. Are you able to hear me?
Manoj Kumar Jhawar
Yes, please go ahead sir.
Abhir Pandit
So with respect to the latest developments in on market coupling specifically the Apple judgment, just wanted to know your thoughts on the actual implementation of on market coupling and our investment in hpx. So how will it affect affect hpx? I mean I understand the growth potential is expected there but do you see that market coupling being executed in the short term? Let’s say in the six month period.
Manoj Kumar Jhawar
First there have to be a regulation is amply clarified by the FTEL order. So first regulation has to CRC has to come out with a regulation. Meanwhile in parallel technological preparations can go on to some extent and they have been going on just as Vikram has clarified that we are not lagging behind in terms of investment in the IT platforms. So once regulations making process is completed then I think it should not take.
Abhir Pandit
Long Sir, Is there any time frame.
Manoj Kumar Jhawar
For this Normally really we cannot predict as to, I mean how fast or how slow CRC can come out with regulation on this subject. That is not.
Abhir Pandit
Okay. Okay, no worries sir. Also just was looking at your balance sheet sir. We have a good amount of investments and cash balances available. So is, are there any newer areas which we, we are specifically looking at for investments in order to deploy those investments.
Manoj Kumar Jhawar
So that is one. If you look at our cash balances though it comprises of two components. One is the working capital which is meant to support our core trading business. And currently we are, it may look as if we are having a very high level of cash on our balance sheets because the cash is not currently deployed in the working capital cycle. Currently we are sitting in a situation that there are no significant outstandings against any of our major principal trading partners. And because of that that working capital cycle is so squeezed that we are almost.
If, if I’m right, we are not having more than four days of average outstanding against anyone. So on one hand it is a very good operational performance but on the other hand it affects our rebate and surcharge incomes. But having said that, to support our trading business I think at least 2000 crore rupees war chest is required to remain competitive in this business. And that, that has always been the case. So other than that, this 10001100 crore rupees or so which we had received from Sala PL stake, that fund is available for equity investment or other kind of investments.
The management is cognizant of that. We are working on many fronts. If you, you have been following our company you would know that we, we have recently, I mean signed MOUs with nevillary rig Light Corporation. We have signed MoU with Seki, we have signed Mo with other, some of other PSUs also. So basically all these MoUs are meant to explore what could be the possible synergy and what could be possible avenues for further investments. When we have anything concrete to share, we shall be sharing.
Abhir Pandit
Okay, so so basically you are suggesting that 2000 crores is the watches that you have and a certain amount of working capital requirement will necessarily have the cash balances to be at a particular level continuously, right? Okay, what would that level be sir?
Manoj Kumar Jhawar
2000 crore would be. I, I would think that would be required to support the trading business. Particularly if the prices for the electricity in per unit terms firm up. Then for trading the same amount of electricity basically you need more working capital so that things is a little bit cyclical in nature. But 2000 crore rupees I think would be required to support the trading business over and above the cash can be deployed for securing further sources of revenue. That is pure investment. Okay. Okay.
Abhir Pandit
Thank you sir. That’s it. That’s it. From the side.
operator
Thank you. Next question is from Rajiv Agrawal from Sterling Capital. Please go ahead.
Abhir Pandit
Rajiv, please unmute your microphone and go ahead with your question. Please. Raji, we are unable to hear you. Since there is no response, we’ll move on to the next question from Suyash Bhave from Wealth Guardian.
Manoj Kumar Jhawar
Please go ahead with your question.
Abhir Pandit
Yeah sir, regarding that MOU with seti, can you throw some light on what is its scope? What kind of business business are we looking to do there? Swish. Your volume is very low. Can you speak a bit louder please? Am I more audible now? Yes, hello. Am I more audible now? Yes. Suyash, please go ahead. Yeah sir, regarding that MOU with Seki, can you throw some light on what is its scope? What kind of business are you looking to currently?
Manoj Kumar Jhawar
Currently SE is doing the REIA business only. But now they want to be in the merchant side of the power business also. So for merchant side of power business, they see a lot of synergy with the organization like ptc. So that MOU is SEKI basically aims and intends to the mutually beneficial opportunities on the side of power renewable energy business. They are good at contacting, we are good at selling. So there is a synergy. So will that.
Naresh matai
So just to understand this better, will that help us in increasing our LT volumes? Long term volumes?
Manoj Kumar Jhawar
Actually long term traders are not permitted as of now unless and until you are on Reia. And now that Reia thing is also, I mean at the decline. So even the already designated REIs are unable to sell the power. So what we see the evolving scenario in the power sector is like this. That on the one hand for enabling the financial closure, there could be a long term contact with the developer. And on the other hand that power cannot be sold on back to back basis as it is to any discount. So that power slicing and dicing and some customization and mixing, mixing and matching and merging has to be done.
So that is where a role of trader like us comes. So strictly speaking, to answer your question, no. For this power on the back to back basis cannot be sold on long term basis. It has to be medium term, it has to be short term, it has to be exchanged, it has. It has to be mix and match and merge of anything. So that is what our specialty is. That is what we do all the time.
Naresh matai
Okay sir, understood.
Manoj Kumar Jhawar
Thank you.
operator
Thank you. Next question is from OP Gandhi from Siddhi Technology. Please go ahead. OP Gandhi, please unmute your microphone and go ahead with your question please. Yes, we can hear you now. Please go ahead.
Abhir Pandit
Are you. I am audible. Yes. Yeah. So my first question is what is the outstanding amount from government of Bangladesh and with the new government is in place. So what is the likely business with the Bangladesh government? And my second question is about the how is the volume growing in month of January, February and March this year in comparison to the last last year.
Manoj Kumar Jhawar
Thank you. Outstanding. Pankaj can share. Regarding further business opportunity. Regarding the further business opportunities I can say that currently number one there is a congestion in the transmission corridor. So there is I think very little feasibility of supplying more power to the Bangladesh. There is of course there is absolutely no possibility of importing power from the Bangladesh. Because they are already power deficit country. Regarding the outstandings I would request Pankaj to clarify.
Abhir Pandit
Yeah. So basically Bangladesh is presently taking rebate. So they are making payment early. So the only the one bill is outstanding. Around 72 crore is only outstanding from Bangladesh.
Manoj Kumar Jhawar
If you want to put that in perspective at one point of time this outstanding was to the tune of 800 crore rupees or so.
Pankaj Goel
Yes, yes, yes.
Pankaj Goel
Does that answer your question, Mr. Gandhi? Thank you. We’ll take one text question from Darshika Kemka from AV Fincor. The question is please help with the volume breakdown for the quarter. And what is outlook on the performance for the next quarter.
Abhir Pandit
Pankaj please.
Manoj Kumar Jhawar
Yeah. So as far as the quarter volume breakdown is concerned we have traded in short term bilateral trade 1.4 BU. In exchange we have traded around 12 BU. And in medium term it’s 730 million units. In cross border trade it’s around 584 million units. In long term trade we have traded around 48 billion units. And in Bangladesh it’s around 411 million units. So that is for the quarter breakup.
operator
Thank you. We’ll take our next question from Yash Surpuria, an individual investor. Please go ahead.
Yash Surpuria
So thank you sir for the opportunity. I would just like you to shed some light on the long term PPS. Are we allowed to sign long term. PPAs or we aren’t allowed. And what are what will be the general tenure, sir for them as per the standard bidding guidelines for the procurement of long term power which is the conventional power traders are not permitted. So for the long term conventional power no trader are no further new contacts can happen. For the renewable power there is a construct of REIA I.e. renewable energy implementation Agency. So if Renewable Energy Implementation Agency is inviting the tender then only they can charge a trading margin. Others are not permitted to charge any trading volume or enter into long term contracts even for renewal powers.
Manoj Kumar Jhawar
No sir, there won’t be any long. Term contracts for us in conventional market. Market is really moving away except for in let us say hydal projects which actually are very long gestation projects. I think market is now moving away. Market is likely to be dominated by medium term contests and complementarity. When people realize that it is not in their own financial interest to have 25 years contact with full commitment for fixed costs or that period of time people are now realizing the benefit of flexibility. And I think market is migrating towards that situation in which there would be many midterm contacts and even the context of the nature which are not currently happening that let us supply power to make for six months for next 25 years, things like that.
So I think market structure is evolving. Okay, thank you sir, all the best. Thank you.
operator
Thank you. Next question is from Vipul Kumar Shah from Sumangal Investments. Please go ahead.
Vipul Kumar Shah
Hi sir. So what is the cash on balance sheet on as on 31st December?
Manoj Kumar Jhawar
Yeah, just a minute. So as on 31st December it was around 3292 crore.
Vipul Kumar Shah
Okay. And sir, most of our short term volume is through exchanges. So my question is why should a buyer, whether it is a discom or an enterprise or CI company should route it through us? What is the advantage for them to pay whatever little spread that we are having?
Manoj Kumar Jhawar
Previously also in many meetings I have clarified basically a trader serves three purpose in a power market. Number one, not every buyer would want to, I mean create a control room kind of thing in which he is manning the that control center 24 by 7 with skilled people who can put the bit directly into into the exchange. Of course theoretically it is doable but they prefer services of some trader who can do it on their behalf. We run a 24 by 7 control room specifically for this purpose. So that is the trade services that is number one.
Number two is trade financing. Trade financing means someone may be temporarily short of liquidity but he may still need power. And tomorrow at a later stage he might be expecting some liquidity. At that point of time he may settle the accounts with the trader. So we provide and facilitate that trade financing also. So that is our second service and third service is the market intelligence itself. We, if consumer is availing our services can really advise the consumer in a professional manner that what would be the best possible way of meeting his power needs in short term or medium term.
So these are the three services which a trader can provide. These are valuable services.
Vipul Kumar Shah
Okay sir, and last question. So over next five, seven years do you think that long term market will totally go away and almost all volume will shift to short term through exchanges?
Manoj Kumar Jhawar
You see actually this question has to be addressed in two parts. Number one, unless and until there is a long term contract for off take of power from a project the financial closure of projects won’t happen. So at least one leg of the transaction for financial closure of the expected and upcoming power projects there has to be certain degree of assurance to the financiers that power would be taken up. So for developer of course they are always perpetually in the need for a financial closure and therefore a long term ppa. So I don’t see that that need going away.
What I see is that the back to back basis that power cannot be directly sold to a discom or any other consuming entity. The consuming entities on the other hand want flexibility. So that means there is a ample room for traders like us to be in this business that we can take calculated risk and we can do the long term contracting with the developers and then we slice dice and mix and match and merge that power and tailor made and custom made the solutions for the clients at the discomband. So of course long term trade is not going away but less and less it is likely that there would be an intermediary in between.
Vipul Kumar Shah
Thank you, very helpful sir.
Manoj Kumar Jhawar
Thank you.
Vipul Kumar Shah
Thank you.
operator
Next question is from Rajiv Agrawal from Sterling Capital. Please go ahead.
Rajiv Agrawal
Yes, can you hear? Yes, hello. What is the business opportunity do you see from market coupling whenever it is implemented? That is my first question and my second question is how do you calculate. This operational income and trading margin which you normally show in the presentation? How do we calculate this number from the financial results?
Pankaj Goel
The business opportunity from the market coupling directly it is not coming to the PTC because PTC in any case is simply a trader on the exchanges. And currently since PTC owns more than 22% equity in the HPX so it is an associated company and therefore we cannot take the trader trading membership on the hpx. So our trading portfolio is being serviced with the help of other two exchanges. So per se directly it is not affecting the PTC but indirectly since we own 22.5% of the HPX and if significant volume of our trading was to move away from leading and dominant exchange to all the three Exchanges in an equitable manner Then it will definitely add value, immense value to the hpx.
And then being the leading shareholder of the HPX that benefit will accrue to ptc. So that is first part of your equation. Second part I would request Pankaj to respond to.
Rajiv Agrawal
Yeah. So the. As you are saying that the. There are three parts of the total operational income which we show in the results. First there is a pure trading margin that is between the gap between the sale and purchase price. Let’s say we purchase the power at 100 rupees and we sell it for 100.4 this thing. So it’s 0.4 paisa is our margin. So that is how this trading margin is calculated. Then there is a second element of rebate then which we used to get that if we make early payment to the generator. And likewise the our buyer also sometimes gives us the payment on time.
So we calculate the rebate expenses and the net rebate income. Then we calculate the net rebate income the difference between the payable and the receivable. And then there is a third element of consultancy income. So taken these three parts. So we calculate the total operational income. Okay.
operator
Okay. Thank you. Next question is from Anjali Singh, retail investor. Please go ahead.
Yash Surpuria
Anjali, please unmute your microphone and go ahead with your question please. Yes. Good evening everyone. My question is that out of the 3,200 crore cash that we have on books what is the capital allocation plan that we have for the future?
Pankaj Goel
Anjaliji, I think I have already answered that question. Out of 3200 crore which we are having on our balance sheet 2000 crore rupees is required to meet the transient nature working capital requirements of the code trading business. Today we are sitting in a situation in which there are no significant outstanding against the Bangladesh or against Jammu and Kashmir or other any other discount utility per se. But these things are very very transient. Tomorrow that need may again come up. So if we are unable to do the trade financing then we will not be able to effectively manage our trading operations.
Almost 2000 crore rupees is what I would reasonably want to keep for the trading business. So that leaves me with the remaining capital of 1200 crore rupees. And for that we are I mean excluding many options. Capex is a serious business. And whatever we do it has to bring long term value to the PTC shareholders. So we are exploring many options.
Yash Surpuria
I have one more question. When do we expect to the Teesta Orja plant? When do we expect to start the productions?
Pankaj Goel
Pankaj so the T STHA they are developing in two stages. The first stages is the. They are constructing the coffer dam. And once the power generation I think the partial generation will be started from constructing of the coffer dam. And then in the second phase they will do the full construction of the full dam by which the full generation will be started. So the construction of the coffer dam is in full swing I think maybe within a period of next six months. So the coffer time will be constructed and the power will be started generating from that.
Yash Surpuria
Okay. All right. Thank you very much. Thank you. We’ll take a text question from Ragini Pandey from Ilara Capital. She has three questions. I’ll read them one by one. First question is on a standalone basis finance cost is at INR 56 million versus INR 282 million last year. What is the reason for such a decrease?
Manoj Kumar Jhawar
Yeah, so the. In the finance cost there is a surcharge expense is also included. So that it depends on that how much surcharge we have received and how much of surcharge we have paid. So in the finance cost the basically it is not just a vanilla, the working capital cost it also included the surcharge expenses. So because of that there are times. So if I. If you want that I’ll give you a full breakup of what is what it’s included. Just a minute.
Yash Surpuria
I think she’s asking about the surcharge expenses, sorry, financing expenses. So I think because of your improved liquidity your expenses have gone down.
Manoj Kumar Jhawar
Many finances expenses. Mr. It includes the surcharge expenses also. Just a minute. I’ll give you a breakup. Just a minute. Yeah. So on a standalone basis. Yeah. So finance cost includes in this for the quarter. It is 2.49 crore of surcharge expenses are there and 3 crore of interest expenses is there. And during the last corresponding quarter it is 25 crore of surcharge expenses and 2.32 crore of interest.
Yash Surpuria
Okay. Second question is please share your short term volumes and long and medium term volume and the share in the Overall mix in Q3 FY26.
Manoj Kumar Jhawar
Yeah. So as I have informed earlier the short term trade is 13.4 billion units which tender amounts to a 67% of the volume. And then there are medium term long term trade which constitutes around 33% of the total volume during the quarter. And during the corresponding quarter 63% is the short term volume. And the balance 37% is towards the medium term and the long term trade rate.
Yash Surpuria
And her third question is share Your short term and long term and medium term training margin.
Manoj Kumar Jhawar
Yeah. So short term margin during the quarter is 0.87 paisa per unit and under the long term during the quarter is 7.91 paisa per unit and during the corresponding quarter the short term margin is 0.75 paisa per unit and in long term it is 7.96 paisa.
operator
Thank you. We’ll take our next question from Dr. Naresh Matai from Shrimati MMK College. Please go ahead.
Naresh Matai
Doctor. Am I audible? Am I audible? Yes, please go ahead. Good evening everybody. With a good amount of reserves and surplus can we the shareholders expect in the near future to get bonus shares from PTC India.
Manoj Kumar Jhawar
Recently if you are aware that possibly our promoter structure is also undergoing a change. So I would not like to comment on that unless and until these things have been discussed among the promoters. But as in if we have got anything to declare we shall come out and make a public declaration. As of now it is not under consideration.
Naresh Matai
Thank you so much.
operator
Thank you. Next question is from OP Gandhi from Siddhi Technology. Please go ahead.
Rajiv Agrawal
Yeah, my question, I am repeat question now assuming that NTPC will come in the promoters seat maybe in three months time after the resolution passed in EGM and all and NTPC has a large power power capacity. So do you think that you will have a benefit of synergy between NTPC and ptc? Assuming that NTPC power trading may be merged in due course of time then any, any synergy between you and NTPC.
Manoj Kumar Jhawar
Sir, should that happen that possibility that the trading arm of the NTPC and the PTC the business somehow, I mean a synergy is provided in that case we are going to be benefited because now there is a regulation which says that the URS, the unrequisition surplus power of all the NTPC power plants it has to be compulsorily first offered into the trading for trading in the markets and unless and until that is done the fixed cost is not paid to the ntpc. So that power volume is also a significant volume that would come to us if should that synergy thing happen.
So yeah there is a lot of statistics.
Yash Surpuria
So do you think that NTPC will be in the promoter seat by three months time and although the NTPC to decide to buy other promoters or not.
Manoj Kumar Jhawar
That is their separate business. So one thing is that sir, one thing I would like to clarify that NTPC is not coming in to become a promoter. NTPC is already a promoter. It is the other way around that all other three promoters have decided to relinquish their rights as promoters. So NTBC has remained and become the sole promoter.
Yash Surpuria
That is my. That is my intention. The NTPC will become a sole promoter. So do you think that with the rating improvement in PTC Finance. So since under your chairmanship there is a lot of improvement in PTC finance, corporate governance. But after the NTPC being the promoter, do you think that more and more rating improvement will be there in PTC finance?
Manoj Kumar Jhawar
PTC Finance is separate and listed company. I think their own rating would depend on a lot many factors. It would be improper for me to comment about the affairs of that company per se. But yes, NTPC is a very, very reputable player. And if they become our sole promoter, then of course that benefit of legacy and benefit of synergy, it comes to all the group entities. That much I can say.
Yash Surpuria
Thank you sir.
Manoj Kumar Jhawar
Thank you.
Yash Surpuria
Thank you. We’ll take a text question from Nikunj Mehta from Wealth Guardian. Do you have any plans to sail to sell some stake in HPX to other partners in the ecosystem? And second question is when can we see any business coming out of the MoU with NLC India and how big can it become?
Manoj Kumar Jhawar
First thing regarding the sale of the stake in the hpx. Basically if we have to member on the hpx, then we must first wait for the market coupling to happen. If that happens and the HPX is able to capture significant amount of.
Yash Surpuria
I’m sorry sir, you’re sounding muffled. Can you just repeat the answer please? So we are unable to hear you. No, we still can’t hear you sir. No, Dr. Java, we can’t hear you. Ladies and gentlemen, please stay connected. Sir, can you rejoin please? Dr. Java, Doctor Java, can you speak now? Is it clear now?
Manoj Kumar Jhawar
Yes, yes sir. Please go ahead.
Pankaj Goel
Okay, okay, okay. So regarding hpx, first thing we must wait for the outcome of this market coupling exercise. Then only I think it will be a relevant question whether or not we are runners of that exchange and whether or not we are selling equity of that exchange. I think a lot hinges on with how, how, how the exchange business itself is going forward. So I would like to, I mean not comment on that, that aspect right now. What was your second question that was regarding this.
Yash Surpuria
I’ll repeat. Second question is when can we see any business coming out of the mou?
Pankaj Goel
Yeah, yeah. So there I. I think it is progressing at a reasonable pace. I believe that internally NLC has to take some Government of India approvals and they are in the process of doing so. So once that comes and we are I mean no. As to that, concrete approvals are now available on both sides. So we can move really very fast. They are very good company and we see a lot of synergy because they are a coal company and they want to migrate and become a relevant renewable energy company also. And for that we see a lot of synergies with them.
So maybe in upcoming technologies like battery energy storage solutions or some other RE projects we can partner with them.
Rajiv Agrawal
Thank you. The next text question is from Paresh Shah, retail investor. Please throw some light on buyback of shares. Are we thinking on it? Do we merge with ntpc?
Manoj Kumar Jhawar
As of now there is no proposal under consideration of the management for buyback of the shares. Recently the rules for the buyback have been changed in this budget. Earlier it was absolutely not favorable even to the investors. But as of now there is no proposal under consideration.
Rajiv Agrawal
Thank you. Next question is from Rajiv Agrawal from Sterling Capital. How do we calculate operational income and trading margin shown in presentation?
Manoj Kumar Jhawar
Sir, I think that I have already replied to that question.
operator
Okay, thank you sir. We’ll take the next question from Dr. Naresh Matai from Srimati MMK College. Please go ahead with your question. Dr. Naresh.
Naresh matai
Am I audible? Yes. Good evening everybody. In the near future can we expect any kind of a reward for shareholders in the form of rights issue and such that benefits the company’s reserves and surplus as well as the increases the shareholder shareholding by subscribing to the rights issues.
Pankaj Goel
Sir, as of now we are not planning any rights issue because unless and until we have some definitive plan as to how to deploy that capital which we further collect from the shareholders, we should not be going to the shareholders to collect more money. If you have been presenting throughout this conference you would know that many people are asking as to what you are doing with your cash results. So let me formulate a capex plan then if need arises we’ll discuss and debate and then take a decision.
Naresh matai
Very aptly answered sir. Thank you so much.
operator
Thank you. The next follow up question is from OP Gandhi from Siddhi Technology. Please go ahead.
Abhir Pandit
Mr. Gandhi, please go ahead with your question. Please unmute your connection.
Pankaj Goel
Yeah Javaji, there is a suggestion from our side. We have done a from working on BTC today NTPC. So NTPC and other promoters are holding 16, 16 and half percent. And Damodar Valley is also holding around 4 and half percent or 5%. So combined they are holding 22, 21, 22%. And if NTPC power trading is merged with PTC so they will get a approximately 15 to 20% for the rest take. So then that way NTPC can consolidate in your book say 35 to 40%. Then if you buy back the shares then NTPC can have a indirect stake of more than 45%.
So I think you pass this our suggestion to NTPC board. Certainly all options will be discussed. A lot depends on as to how. I mean what is the take of the NTPC management. But your I mean suggestion is noted sir.
operator
Thank you. As there are no further questions I would now like to hand the conference over to Dr. Manoj Kumar Jawar CMD for closing comments. Over to you, sir.
Manoj Kumar Jhawar
Okay. Good afternoon shareholders. I’m sorry, I. I was. When I was reading my speech. I bout of sore throat I think interrupted my speech many times. But thank you for patient listening. And thank you for your support through the turbulent times. I can assure you one thing that our trading volumes and trading numbers have been robust in this quarter. Also it may look as if that we have not been able to achieve that much income from the surcharge RT rebate. But those are transitory in nature. What should be our company should be judged basically for growth in the trading volumes.
And I think we have delivered a solid growth in the trading volume. And we look forward to your continued support and understanding. Thank you so much.
operator
Thank you sir. Ladies and gentlemen, on behalf of PTC India Limited that concludes today’s session. Thank you for your participation. You may now click on the exit meeting to disconnect. Thank you. It.