📈 CMP: ₹184.63 | 📉 -0.72% today
🔌 Sector: Power Trading | 💸 Dividend: ₹11.70/share (Interim + Final)
🌀 FY25 Highlight: ₹457 Cr profit from PTC Energy stake sale to ONGC Green

⚡ At a Glance

PTC India has posted a historic FY25 with a PAT of ₹854.78 Cr, up 132% from last year — thanks largely to a one-time ₹457 Cr gain from selling its renewable arm, PTC Energy Ltd, to ONGC Green. But even if you strip out the fireworks, the core trading ops still grew 17%, with volumes rising 11% YoY to 82.75 BUs.

The question now: After a blockbuster FY25, can PTC sustain momentum—or was this a one-lightning-bolt year?

🏢 About the Company

• Founded: 1999 (Govt of India initiative)
• Business: Power trading — short-term, long-term, cross-border
• Clients: State DISCOMs, power generators, cross-border entities
• Cross-Border Trade: Bhutan, Nepal, Bangladesh
• Innovation: Launched multiple trading products over the years (day-ahead, contingency, etc.)

💼 Think of PTC as the Zomato of electricity: they don’t generate power — they just deliver it better.

📊 Financials Breakdown (Standalone)

💸 The ONGC Green Deal

📢 PTC divested PTC Energy Ltd to ONGC Green:

🎯 This is the cleanest way to “book a profit” without selling your soul. One asset sold, one year transformed.

🔌 Trading Business Performance

• Total Volume Traded: 82.75 BU
• Short-Term Trades: 66% of total volume
• Consulting Income: ₹50.35 Cr
• Core Margin: 3.37 paisa/unit (steady despite volatility)

🧠 Short-term trading demand = volatility hedge + profitability engine

💬 From the CMD’s Office

“Our improved margins, rising short-term volumes, and completed divestment all point to a stronger, leaner PTC going forward.”
— Dr. Manoj Kumar Jhawar, CMD

EduTranslation:
“We made money. Real money. Now we’ll try to do it again without having to sell anything.”

📈 Sector Outlook

• Electricity demand is expected to remain strong due to:
  • Weather volatility (hotter summers, colder winters)
  • Urban electrification
  • Industrial expansion (esp. steel, infra, EVs)
• Trading Market Liberalization:
  • More traders entering = level playing field
  • But PTC still holds early mover + govt trust edge
• Cross-border trading is growing — PTC already has MoUs with Bhutan, Nepal, and Bangladesh

📊 Forward Valuation

Let’s assume:

• FY26 PAT (core, not one-time): ₹400–₹450 Cr
• Shares: ~56.9 Cr
• EPS FY26E: ₹7–8
• Assign P/E of 12x (average for PSU + stable cashflow)
• Fair Value Estimate = ₹96–₹120

But… add back one-time ₹457 Cr = possible realized FV of ₹140–₹150

CMP = ₹184.63 → Seems overpriced post-divestment if future isn’t reinvented

🧠 EduInvesting Take

PTC India just played its best card — and played it perfectly.

✅ Divested non-core asset
✅ Booked ₹450+ Cr cleanly
✅ Kept core business profitable
✅ Announced ₹11.70 dividend (6.3% yield!)

But… 90% of the FY25 PAT was from the sale, not operations.

So while the stock deserves a re-rating, don’t expect a repeat PAT unless they:

• Add new products (RE trading, real-time market, bilateral blocks)
• Expand cross-border dominance
• Or consolidate the fragmented trader market

⚠️ Risks

• One-time divestment high = Not repeatable in FY26
• Margins are wafer-thin — 3.37 paisa/unit won’t change your life
• Sector remains regulatory-heavy — DISCOM payments, peak shortages, etc.
• Competition increasing — IEX, PXIL, and private players nibbling in

🗓️ Published: May 27, 2025
✍️ By: Prashant Marathe
🔖 Tags: PTC India Ltd, Power Trading India, ONGC Green Acquisition, FY25 Results, Power Sector Stocks, Electricity Demand India, PSU Dividend Stocks, EduInvesting