Chairman's Statement

Dear Shareholders,

I welcome you all to the 50^th Annual General Meeting of our company.

In FY2025–26, your company has delivered strong operational and financial performance while making significant progress in expanding its presence across renewables, storage, nuclear and other emerging areas of the energy supply chain.

The global energy landscape is changing rapidly. Geopolitical tensions, supply-chain disruptions, volatility in commodity markets and the growing importance of digital infrastructure have reinforced a fundamental reality: energy security is once again at the centre of economic and strategic priorities and Energy security has never received this level of attention in history.

As India pursues rapid economic growth and advances towards the vision of Viksit Bharat by 2047, ensuring adequate, reliable and affordable electricity will remain critical to sustaining economic development.

India’s installed power capacity has crossed 550 GW, with non-fossil sources accounting for more than half of the capacity. At the same time, electricity demand continues to grow strongly. Peak demand crossed 270 GW during current fiscal and is projected by the Central Electricity Authority to reach around 459 GW by FY36. Daily average electricity requirement increased substantially to around 5,400 MU in FY26, compared with around 4,950 MU in FY25, reflecting the continued rise in India’s electricity demand. Rising industrial activity, infrastructure development, urbanization, electric mobility and the rapid growth of digital services and data centers will further increase the requirement for reliable electricity.

Against this backdrop, NTPC’s role is becoming broader and more strategic. We are not only expanding generation capacity; we are building an integrated energy platform capable of supporting India’s growth through conventional generation, renewable energy, storage, nuclear, mining, power trading and new energy technologies.

Strong growth in capacity and generation

FY26 was a landmark year in terms of capacity addition. NTPC Group added 9.6 GW of capacity during the year, the highest annual addition in the Company’s history. Of this, 5.48 GW, or nearly 60%, came from non-fossil sources. Our installed capacity reached around 89 GW, more than doubling from 43 GW in FY14. We also have a substantial construction pipeline, nearly 35.7 GW providing visibility for continued growth over the coming years.

Your company’s generation performance remained strong. NTPC generated 432 billion units of electricity during FY26, contributing about 24% of India’s total generation while our share of installed capacity remained around 17%. This is significant because our generation share has remained strong even as renewable capacity has expanded rapidly across the country. It reflects the continued competitiveness, reliability and availability of our fleet.

Our coal-based stations achieved a plant load factor of 72.04%, maintaining a clear lead over the national average. The strong performance reflects sustained focus on plant availability, maintenance, efficiency and operational discipline. At the same time, we are preparing our thermal fleet for the changing requirements of the power system, including greater flexibility to complement renewable generation. We have issued EOI for installing sub-critical Units upto 250 MW capable of two shift operation. This is essential to accommodate more renewables while meeting the peak load requirements.

Energy security remains a core priority

The experience of recent years has demonstrated that the energy transition must go hand in hand with energy security. Renewable energy will grow rapidly, but the power system will also require reliable and dispatchable sources of electricity to meet demand at all times.

NTPC has therefore continued to strengthen its domestic fuel capabilities. NTPC group has six operational and 3 under development, emerging as the third-largest coal mining company in India. Captive coal production reached 48.65 million tonnes in FY26, registering year-on-year growth of 6.22%. Around 18% of our coal requirements were met through captive mines during the year, while long-term fuel supply arrangements and improved logistics continued to provide security of supply.

Our approach is not to choose between conventional and renewable energy, but to build a balanced portfolio that can meet India’s energy requirements through different stages of the transition. Our thermal fleet will continue to remain an important pillar of the electricity system, while becoming more efficient, flexible and environmentally responsible.

Your company has continued its efforts for biomass co-firing, water conservation, ash utilisation and carbon management. During FY26, our group thermal stations co-fired around 1.52 million tonnes of biomass, more than twice the previous year’s level. We are also constructing a carbonated brick plant at Ramagundam capable of producing 2 lakh bricks per day. This will be a carbon-negative building material and a unique initiative in the country.

Accelerating the clean energy transition

Our transition towards a diversified energy portfolio gained further momentum during FY26. NTPC Green Energy Limited has emerged as an important growth platform, and its renewable generation increased significantly to 14.6 billion units in FY26, more than double the previous year’s generation.

Our renewable portfolio is supported by a visible development pipeline. We have raised our long-term capacity ambitions and now target generating capacity of 149 GW by 2032, including 60 GW of renewable energy, with an aspiration to reach 244 GW by 2037 excluding Storage. This represents a significant increase over our earlier capacity plans and reflects our confidence in India’s long-term electricity demand and the role NTPC can play in meeting it.

The scale of this transformation is reflected in our investment programme. Our revised plan envisages cumulative capital expenditure of around ₹16.86 lakh crore up to FY37, across thermal, hydro and pumped storage, renewables, battery storage, mining and nuclear. This will be one of the largest investment programmes undertaken by an Indian power utility and will create significant opportunities for domestic manufacturing, employment and associated infrastructure.

We recognize that such a large investment programme must be accompanied by financial discipline. Our focus will therefore remain on maintaining a prudent balance between growth, leverage, returns and shareholder distributions.

Storage and flexibility will be central to the next phase

As renewable penetration increases, the power system will require greater flexibility. Energy storage will increasingly become an essential part of the electricity value chain, alongside generation and transmission.

Your company is building capabilities in both Battery Energy Storage Systems and Pumped Storage Projects. Our current pipeline includes significant storage capacity, and we are also exploring emerging technologies that can provide long-duration storage like CO2 storage and Redox flow batteries without dependence on conventional critical minerals.

Our objective is to develop storage capabilities not merely as an adjunct to renewable generation, but as an important business in its own right.

Nuclear power: a new strategic frontier

One of the most important areas of our future growth is nuclear energy. India has set a target of 100 GW of nuclear capacity by 2047 under the Nuclear Energy Mission. The Government’s roadmap envisages a significant increase from the present installed capacity, with a substantial portion of the additional capacity expected to be developed by public sector enterprises, joint ventures and other participants. Draft Rules and Regulations under SHANTI Act have also been issued by the Government.

Your company has positioned itself to contribute to this national mission. We aim to contribute around 30 GW of nuclear capacity towards the national target. Through NTPC Parmanu Urja Nigam Limited, our wholly owned subsidiary and Anushakti Vidhyut Nigam Limited, our joint venture with NPCIL, we are developing capabilities for the future. Our immediate focus includes the 2.8 GW Mahi Banswara nuclear project in Rajasthan, while studies and discussions are progressing for additional 34 sites in 13 States and technologies.

Nuclear power will complement both renewable and thermal generation by providing reliable, low-carbon, round-the-clock electricity. It will therefore have an important role in India’s long-term energy security and clean energy transition.

Financial performance with a focus on sustainability

Our strong operating performance translated into another year of robust financial results. The NTPC Group achieved its highest-ever consolidated Profit After Tax of ₹27,546 crore in FY26, an increase of 15% over the previous year. Standalone PAT increased by 18% to ₹23,162 crore. Group EBITDA also increased to ₹60,564 crore, while the Group’s net worth rose to around ₹2.03 lakh crore.

Our balance sheet continues to provide a strong foundation for the investment programme ahead. The consolidated debt-equity ratio improved from 1.34 in FY25 to 1.32 in FY26, despite the significant increase in capital expenditure. In FY26, we achieved a weighted average interest rate of 5.98% on our borrowings, reflecting proactive refinancing and effective optimization of our borrowing portfolio.

We also maintained a strong focus on cash flows and receivables. Outstanding receivable days improved to 15 days as of March 2026, compared with 31 days a year earlier, while collections remained robust. This improvement strengthens our liquidity position and provides greater flexibility to support future investments.

At the same time, we remain committed to sharing the benefits of our performance with shareholders. FY26 marked another year of consistent dividend distribution, continuing a record spanning more than three decades. During the financial year 2025-26, NTPC paid an interim dividend of Rs 5.50 per share with the Board recommending a final dividend of Rs 3.50 per share, subject to shareholders’ approval, thus bringing the total dividend for the year to Rs 9 per share

I am happy to inform you that your Company has once again received “NIL” comments from the CAG, reflecting the Company’s strong governance practices, robust financial management and commitment to transparency and accountability.

Building an integrated energy company

The transformation of NTPC is not limited to adding generation capacity. We are building capabilities across the entire energy value chain.

Our power trading business continues to support efficient utilisation of generation resources and market development. NTPC Vidyut Vyapar Nigam Limited traded 46.52 billion units during FY26. Our mining operations are strengthening fuel security, while renewable energy, storage and nuclear power are opening new avenues for growth.

We have also expanded our international presence. NTPC incorporated its first international subsidiary in Mauritius, an important step in our ambition to build a broader global footprint and take our project development and energy expertise beyond India.

Digital transformation is another important part of our growth strategy. Artificial intelligence, machine learning, predictive analytics, digital twins and advanced forecasting are increasingly becoming part of power generation, renewable operations, mining and maintenance. These technologies can improve plant availability, optimize generation and maintenance, strengthen safety and support better decision-making.

We are also strengthening our enterprise-wide internal control and digital architecture through SAP-enabled systems through SAP HANA. The objective is to create a more integrated, responsive and data-driven organization capable of managing a much larger and more diversified business.

Sustainability and responsible growth

Our growth strategy is firmly linked with sustainability. During FY26, NTPC made measurable progress across several ESG parameters. Our MSCI ESG rating improved from CCC to BB, while our S&P Corporate Sustainability Assessment score increased to 50, above the global average of 41. These improvements reflect the continued strengthening of our environmental, social and governance practices.

Strong corporate governance remains fundamental to our way of doing business. We believe that robust governance enhances efficiency, supports sustainable growth and strengthens the trust of our stakeholders. Accordingly, we remain committed to the highest standards of ethics, transparency, accountability and fairness, going beyond regulatory requirements in all our decisions and actions.

Together, our strong operational performance, financial resilience, growth strategy, commitment to sustainability, and robust governance framework give us the confidence to continue creating sustainable, long-term value for our shareholders.

Preparing NTPC for the next decade

The next decade will be one of the most significant periods of growth in NTPC’s history. India’s electricity requirement will continue to rise as the economy expands and living standards improve. At the same time, the composition of the power system will change rapidly.

We believe the future power system will need three things simultaneously: scale, flexibility and reliability. Scale will come from rapid capacity addition. Flexibility will come from storage, hydro, pumped storage, flexible thermal generation and digital technologies. Reliability will come from a diversified portfolio supported by secure fuel supplies and strong operational capabilities.

NTPC is uniquely positioned to bring these three elements together.

Our immediate priorities will be to deliver the projects already under construction, accelerate renewable and storage capacity, strengthen fuel security, expand our presence in nuclear power, improve the efficiency and flexibility of our thermal fleet, and develop new energy businesses that can contribute to India’s transition.

We will also remain focused on the quality of growth. Every investment must be supported by sound commercial principles, appropriate risk assessment and disciplined capital allocation. With the scale of investment envisaged, maintaining a strong balance sheet, accessing diversified sources of finance and improving project execution will be as important as adding capacity itself.

Looking ahead

As we look to the future, our direction is clear. NTPC will continue to be a dependable partner in India’s growth while transforming itself into a diversified and integrated energy company.

Our journey from an installed capacity of 43.1 GW in FY14 to around 91 GW today demonstrates our ability to grow at scale. The next phase will be even more ambitious: 149 GW by 2032 and 244 GW by 2037, with 60 GW of renewable capacity by 2032, alongside substantial investments in storage, hydro, nuclear and conventional generation. We are also progressing well on the Coal Gasification-based Synthetic Natural Gas Project, with a capacity of 5.75 lakh tonnes per annum. Once established, this will be the first plant of its kind in India and will directly substitute imported natural gas.

We will continue to balance our responsibility to provide reliable and affordable electricity today with our responsibility to prepare for India’s energy needs tomorrow. We will continue to strengthen energy security while accelerating the clean energy transition. And we will continue to invest in technology, people and capabilities that will allow NTPC to remain relevant in a rapidly changing energy landscape.

The confidence placed in NTPC by the Government of India, our shareholders, customers, lenders, employees, partners and other stakeholders has been central to our progress. I would like to express my sincere appreciation to all of them, particularly the Ministry of Power, Ministry of Coal, Ministry of Railways, Ministry of Environment, Forest and Climate Change, Ministry of New and Renewable Energy, DIPAM, CERC, CEA, CAG, DAE, State Governments and other regulatory and statutory institutions for their continued support and guidance.

I also place on record my appreciation for the dedication of the NTPC family. Our achievements are the result of the commitment of thousands of employees working across power stations, projects, mines, renewable energy sites, offices and communities across the country.

The opportunity before NTPC is significant. India is entering a period of sustained economic and energy growth, and the power sector will remain central to this transformation. This is already reflected in FY27, with generation growth exceeding 9% to date. We are committed to meeting this opportunity with the same sense of responsibility, execution capability and financial discipline that have defined NTPC over the years

Together, we will continue to power India’s growth, strengthen its energy security and accelerate its transition towards a cleaner, more resilient and sustainable energy future, while creating enduring value for all our stakeholders.