PTC India (PTCIN IN) – Management Meet Update – Strong balance sheet and growth optionality – Not Rated

We recently hosted the management of PTC India (PTCIN) for a non-deal roadshow. As India's pioneering power trader with over two decades of operating experience, PTCIN has built a dominant franchise in the bilateral power trading market. Traded volumes have grown at 10%/8% CAGR over the last 5/10 years (up to FY26), with the company commanding ~30% market share in bilateral power trading and facilitating ~5% of India's total electricity consumption in FY26. The business mix continues to shift toward short-term trading (with margin cap of Re0.04/kWh), which contributed to 56% of traded volumes in FY26 versus 50% in FY21, driven by higher renewable energy penetration and the resulting need for power balancing. The management expects long-term trading volumes to improve from FY28, supported by the commissioning of the 1.2GW Teesta Urja project and 1.2GW NTPC Green capacity. PTCIN's balance sheet remains a key strength, with FY26 cash and cash equivalents of INR29bn and investments of INR9bn, together representing ~75% of its INR51bn market capitalization. The investment portfolio includes a 65% stake in PTC India Financial Services (PTCIF), which has an AUM of INR33bn and is targeting INR50bn over the next 12–18 months. The core power trading business generated PAT of INR2.6bn (excluding other income) in FY26. PTCIN declared a FY26 dividend of INR8.5/share, translating into a payout ratio of 63% and a dividend yield of ~5%. Not Rated.