Sourav Paul

Mumbai. Petrochem prices. polymers, aromatics, the intermediates nobody talks about until they suddenly matter. work goes into Indianpetrochem.com. This blog is more of a notebook half-formed observations, weird import parity charts, the occasional rant about logistics.

[souravpaul]

India's tyre exports hit record Rs 27,312 crore in FY26

India’s tyre exports reached a record Rs 27,312 crore in FY26.

That is 9% higher than Rs 25,057 crore in the previous fiscal.

The United States remained the largest market.

It accounted for Rs 4,082 crore, or 15% of export value.

However, its share declined from 17% after tariff changes affected Indian tyre imports.

The US raised tariffs from 25% to 50% in August 2025.

A later reduction to 18% in February 2026 provided some relief.

Germany, Italy, Brazil and France were among the other major destinations.

ATMA linked the export performance to diversification and cost optimisation.

The tyre industry has invested around Rs 30,000 crore in capacity expansion over four to five years.

The industry’s estimated annual turnover is around Rs 1 lakh crore.

But the margin picture is becoming more difficult.

JK Tyre has flagged an expected 18–20% rise in its raw-material basket in Q1FY27 versus Q4FY26.

The basket includes natural rubber, carbon black, synthetic rubber, polyester cord, nylon cord and process oils.

Natural rubber prices have also reached a nine-year high on global exchanges.

The key point is that India’s tyre export story is strong, but raw-material inflation could pressure margins in the June quarter.

For more such stories, go to www.indianpetrochem.com

[souravpaul]

NHPC offer-for-sale opens retail window on 3 June 2026 as government offloads 6% equity

The Ministry of Power has notified stock exchanges about an Offer for Sale of equity shares in NHPC Limited.

The Government of India is the promoter seller.

The offer covers up to 60,27,02,088 equity shares.

This represents 6.00% of NHPC’s paid-up equity capital.

The retail investor window opened on June 3, 2026.

Offer structure

The OFS has a base offer and a greenshoe option.

The base offer is 3.00% of paid-up equity capital.

This equals approximately 30,13,51,044 shares.

The greenshoe option is another 3.00%.

If fully exercised, the total sale can reach 60,27,02,088 shares.

Disinvestment move

The OFS is part of the Government’s disinvestment programme.

It allows the Centre to monetise part of its holding.

At the same time, the Government will retain strategic control.

NHPC remains a major hydropower public-sector enterprise.

The transaction improves market float and liquidity in the stock.

Retail window

The retail investor window was scheduled for June 3, 2026.

Retail investors participating in an OFS may receive a discount.

This depends on the offer terms and SEBI guidelines.

The retail window gives individual investors access to a PSU infrastructure stock.

It also broadens participation beyond institutional investors.

NHPC profile

NHPC is one of India’s largest hydropower producers.

Its project fleet is spread across Himalayan and north-eastern river systems.

The company has Navratna PSU status.

It has also been a consistent dividend-paying public-sector company.

This makes it relevant for investors seeking cash-generative infrastructure exposure.

Why this matters

The OFS is one of the larger PSU disinvestment actions in the Indian power sector in FY27.

A 6.00% stake sale is a meaningful liquidity event.

It can improve free float.

It can also improve trading depth in the counter.

Higher free float may support institutional participation over time.

Institutional relevance

Institutional investors will watch subscription levels closely.

A strong response can signal confidence in regulated and cash-generative power-sector PSUs.

Mutual funds and foreign portfolio investors may also assess NHPC’s valuation against dividend yield and growth prospects.

The greenshoe option allows the Government to increase the sale if demand is strong.

Hydro growth pipeline

NHPC’s strategic direction involves adding new hydropower capacity.

North-eastern India remains an important growth area.

Hydropower also supports grid balancing as renewable energy expands.

This gives NHPC strategic relevance beyond conventional generation.

It can support India’s long-term clean and flexible power needs.

Investor considerations

Investors will assess NHPC’s project execution record.

They will also watch capex, commissioning timelines and regulatory returns.

Hydropower projects can have long gestation periods.

Land, environment, geology and resettlement issues can create delays.

Dividend continuity will also remain an important factor.

Strategic message

The NHPC OFS gives investors an opportunity to participate in a large hydropower PSU.

The Government is offering up to 6.00% of paid-up equity capital.

The offer includes a 3.00% base sale and a 3.00% greenshoe option.

The key watchpoints are final subscription, OFS pricing, retail participation, government residual stake, free-float improvement, NHPC’s hydropower pipeline and future dividend payouts.

For more such stories, go to www.energylineindia.com

[souravpaul]

CEAT plans two tyre-capacity expansions worth up to Rs 220 crore

CEAT’s filing contains two separate capacity-expansion proposals with a combined investment envelope of up to Rs 220 crore.

The first project requires up to Rs 110 crore and is intended to meet growing demand for 2/3-wheeler tyres.

The second project also requires up to Rs 110 crore and is intended to meet growing demand for off-highway tyres.

Both projects are proposed to be financed through a combination of internal accruals and debt. This means CEAT is not presenting these as purely internal-cash-funded expansions; the proposed funding structure includes a debt component.

The disclosure is product-category specific but not location specific in the visible extract. It does not provide plant location, capacity addition in number of tyres or tonnage, commissioning timeline, project phasing, expected revenue, customer linkage, margin impact or payback period.

The key point is the product split. CEAT is not announcing a generic tyre-capacity addition. It is separately allocating capital to mobility and off-highway segments.

The company is preparing capacity in two identified tyre categories where it sees demand requirement: 2/3-wheeler tyres and off-highway tyres.

The two projects have equal disclosed investment ceilings of up to Rs 110 crore each.

The filing does not disclose enough to estimate future volumes, revenue contribution or balance-sheet impact beyond the proposed funding mix.

For more such stories, go to www.indianpetrochem.com

[souravpaul]

Solarworld Energy Solutions reports 157% income surge to Rs. 1,416 crore in FY26, PAT at Rs. 120 crore with order book at Rs. 2,813 crore

Solarworld Energy Solutions Limited has reported strong FY26 financial performance.

The company’s total income rose to Rs. 14,160.66 million.

This was up 157% from Rs. 5,510.85 million in FY25.

EBITDA stood at Rs. 1,879.27 million.

Profit after tax stood at Rs. 1,204.74 million.

Profit growth

PAT increased 56% year-on-year.

Earnings per share rose to Rs. 14.95.

This compares with Rs. 10.68 in FY25.

The improvement shows that the company scaled revenue while still expanding earnings.

This is important in a competitive solar EPC market.

Q4 performance

Q4 FY26 income alone reached Rs. 6,069.53 million.

This means the March quarter contributed about 43% of full-year income.

The pattern shows heavy execution in the second half of the year.

It also reflects the project-based nature of the solar EPC business.

Order book

Solarworld’s order book stood at Rs. 28,130.42 million as of March 31, 2026.

This is approximately twice the company’s FY26 annual income.

The order book provides strong multi-quarter revenue visibility.

It also gives the company a base for continued growth in FY27.

Why this matters

India’s solar EPC market is expanding rapidly.

Large renewable projects are being awarded by SECI, state agencies and private developers.

Companies with execution capability are benefiting from this growth.

Solarworld’s 157% income growth shows that it is capturing this market opportunity.

Execution profile

The high Q4 revenue contribution suggests major project execution during the March quarter.

This is common in India’s solar sector.

Developers and EPC contractors often push commissioning before financial year-end.

The key issue is whether this execution pace can be sustained without working capital pressure.

Margin and profitability

EBITDA of Rs. 1,879.27 million shows meaningful operating profitability.

PAT of Rs. 1,204.74 million gives the company a stronger earnings base.

The EPS increase also supports shareholder value.

However, solar EPC margins can remain under pressure because of competitive bidding and cost volatility.

Governance update

The Board also noted the resignation of Rini Chordia.

She resigned as Chairperson and Independent Director with effect from close of business on May 26, 2026.

The Board also approved reconstitution of board committees from May 27, 2026.

These governance changes are material for investors.

Audit opinion

The company received an unmodified audit opinion.

This is a positive signal for financial credibility.

It gives stakeholders comfort on the audited FY26 numbers.

It also supports confidence as the company scales project execution.

Strategic message

Solarworld Energy Solutions’ FY26 result shows a rapid scale-up in India’s solar EPC market.

Total income rose 157% to Rs. 14,160.66 million.

PAT increased 56% to Rs. 1,204.74 million.

The order book stood at Rs. 28,130.42 million as of March 31, 2026.

The key watchpoints are order execution, working capital, margin protection, board committee reconstitution, project commissioning pace and FY27 order inflows.

For more such stories, go to www.energylineindia.com

[souravpaul]

Ganesha expands Warangal rPET plan after strong Q4 jump

Ganesha Ecosphere reported a strong Q4 FY26 improvement.

Revenue rose to Rs 423.9 crore from Rs 357.2 crore sequentially.

Ganesha Ecopet approved an additional 22,500 TPA rPET granules capacity at Warangal.

This will take total installed rPET granules capacity to 87,000 TPA.

For more such stories, go to www.indianpetrochem.com

[souravpaul]

CERC grants transmission licence to TP Gopalpur for 765/400 kV 2x1500 MVA GIS project across four states

The Central Electricity Regulatory Commission has granted a transmission licence to TP Gopalpur Transmission Limited.

The order was issued on May 21, 2026.

The matter is Petition No. 125/TL/2026.

The licence has been granted under Sections 14, 15 and 79(1)(e) of the Electricity Act, 2003.

The project will be implemented under the inter-state transmission system framework.

Project scope

The project includes a new 765/400 kV gas-insulated substation.

The transformation capacity will be 2x1500 MVA.

The scope also includes 765 kV 330 MVAr bus reactors.

Associated 765 kV and 400 kV bays are also part of the scheme.

The project is targeted for completion by December 31, 2027.

Four-state relevance

The project has relevance across Bihar, Jharkhand, Odisha and West Bengal.

State transmission utilities from these four states were among the respondents.

CTUIL and REC Power Development and Consultancy Limited were also respondents.

This shows the multi-state coordination required for the project.

Why this matters

A 765/400 kV substation of this size is a major grid node.

It can strengthen inter-state power transfer capability.

It can also support evacuation of generation from eastern India.

The additional high-voltage infrastructure will help reduce congestion and improve grid reliability.

GIS advantage

The project uses gas-insulated substation technology.

GIS is useful where land is limited or where compact high-voltage infrastructure is needed.

It also supports better reliability in difficult environmental conditions.

This makes it suitable for strategic transmission nodes.

Transformation capacity

The 2x1500 MVA configuration provides 3,000 MVA of transformation capacity.

This allows large volumes of power to move between 765 kV and 400 kV networks.

Such capacity is important as regional demand rises.

It also supports large-scale renewable and conventional generation evacuation.

Private transmission role

TP Gopalpur Transmission Limited is the licensed transmission developer.

The company was earlier known as ERES-XXXIX Power Transmission Limited.

The project reflects continued private participation in India’s ISTS buildout.

Tariff-based competitive bidding has become a major route for such transmission projects.

Beneficiary impact

For Bihar, Jharkhand, Odisha and West Bengal, the project can improve transfer capability and supply reliability.

For generators, it provides stronger evacuation infrastructure.

For DISCOMs, better inter-state transmission can support more reliable procurement.

For consumers, it can reduce the risk of grid bottlenecks affecting supply.

Execution challenge

The key deadline is December 31, 2027.

The project must manage equipment procurement, construction, bay integration and commissioning.

High-voltage GIS equipment and transformers are long-lead items.

Timely execution will therefore be critical.

Strategic message

CERC’s licence to TP Gopalpur Transmission Limited adds another major 765 kV node to India’s inter-state grid.

The 765/400 kV, 2x1500 MVA GIS substation will support power transfer across eastern India.

The project strengthens grid reliability, evacuation capacity and inter-state transmission resilience.

The key watchpoints are equipment ordering, construction progress, coordination with state utilities, and commissioning by December 31, 2027.

For more such stories, go to www.energylineindia.com

[souravpaul]

A-1 Limited, the rebranded acid maker, files a clean compliance report

A-1 Limited submitted a clean FY26 Secretarial Compliance Report to BSE.

The company was formerly known as A-1 Acid Limited.

No fines, show-cause notices or warnings were recorded.

The report also confirmed that no directors were disqualified.

For more such stories, go to www.indianpetrochem.com

[souravpaul]

PTC India declares Rs. 5.50 final dividend, taking FY26 payout to Rs. 8.50; consolidated PAT at Rs. 717.44 crore

PTC India Limited has announced a final dividend for FY26.

The Board met on May 19, 2026.

It recommended a final dividend of Rs. 5.50 per share.

The face value of each share is Rs. 10.

This takes the total FY26 dividend to Rs. 8.50 per share, including the Rs. 3 interim dividend.

Profit performance

PTC India reported consolidated profit after tax from continuing operations of Rs. 717.44 crore.

This compares with Rs. 853.73 crore in FY25.

However, the FY25 number included a one-off Rs. 241.72 crore gain from the divestment of PTC Energy Limited.

This means the headline decline should be read with the divestment base effect in mind.

Audit opinion

The statutory auditors issued an unmodified opinion.

This applies to both standalone and consolidated financial results.

A clean audit opinion is important for investor confidence.

It also supports the credibility of the company’s reported earnings and dividend decision.

Trading volume growth

PTC India’s core power trading business showed steady growth.

Q4 FY26 trading volume rose 24% year-on-year.

It reached 23,572 million units.

Full-year FY26 trading volume increased 12%.

It reached 92,802 million units.

Operating margin

Q4 FY26 total operating margin rose 29%.

It stood at Rs. 104.02 crore.

Full-year total operating margin stood at Rs. 408 crore.

The core trading margin held at 3.35 paisa per unit.

This remains the key profitability metric for PTC’s power trading business.

Dividend significance

The Rs. 8.50 total payout makes PTC India one of the more attractive dividend names in the listed power trading space.

Income-focused investors are direct beneficiaries.

The record date for eligibility will be announced separately.

Shareholders will now watch the timeline for AGM approval and dividend payment.

Strategic monetisation

The Board has also decided to re-initiate monetisation of PTC India’s stake in PTC India Financial Services.

This reverses the earlier pause in the process from 2021.

The move signals renewed intent to unlock value from non-core holdings.

It may also sharpen management focus on the core power trading business.

PFS stake importance

PTC India Financial Services has been a key strategic investment for PTC India.

Monetising the stake could release capital.

It could also support future shareholder returns.

However, the process will be subject to regulatory approvals and market conditions.

Market context

PTC India remains India’s largest power trading company.

Its role is important as electricity markets become more dynamic.

Short-term power demand, renewable integration, market coupling discussions, and exchange-based procurement are changing the trading environment.

Sustaining volume growth will be important for future earnings.

Strategic message

PTC India’s FY26 results show stable core trading performance and a strong dividend signal.

The company reported Rs. 717.44 crore consolidated PAT from continuing operations.

It announced a total FY26 dividend of Rs. 8.50 per share.

Trading volume rose 12% for the full year.

The next watchpoints are the dividend record date, PFS monetisation progress, trading volume growth, and margin stability.

For more such stories, go to www.energylineindia.com

[souravpaul]

HLE Glascoat’s Omeras acquisition is visible, but still loss-making

HLE Glascoat’s FY26 release shows that acquisition-led expansion has increased scale.

But integration drag remains visible.

Omeras recorded EBITDA loss of Rs 15.3 crore and PAT loss of Rs 15.6 crore during the year.

The story is integration risk.

For more such stories, go to www.indianpetrochem.com

[souravpaul]

JSW Energy clocks record FY26 EBITDA of Rs. 11,041 crore; installed capacity rises 2.6 GW to 13.45 GW

JSW Energy Limited delivered a record annual EBITDA performance in FY26.

The company reported EBITDA of Rs. 11,041 crore.

Installed capacity increased by 2.6 GW during the year.

Total installed capacity reached 13.45 GW.

Generation rose 58% year-on-year.

The results show that JSW Energy has converted its Strategy 3.0 ambitions into measurable operating outcomes.

Demand backdrop

The performance came despite weak national electricity demand growth.

Joint MD and CEO Sharad Mahendra said India’s total power demand grew only 0.9% in FY26.

This was the lowest demand growth in five years.

The weakness was mainly due to an extended monsoon.

Industrial and agricultural demand remained muted during the first half of the year.

Q4 recovery

The company indicated that demand recovered in Q4 FY26.

This provides a more constructive outlook for FY27.

The recovery is especially relevant as India moves into the peak summer demand period.

For generators with available capacity, stronger summer demand can improve plant utilisation and merchant realisation.

Capacity addition

JSW Energy added 2.6 GW of installed capacity during FY26.

This is one of the larger annual capacity additions by a private sector power company in India.

The capacity growth supported the 58% increase in generation.

Higher generation translated into stronger energy revenue and record EBITDA.

Strategy 3.0

FY26 was described by the company as a pivotal year for Strategy 3.0.

The strategy focuses on aggressive expansion in renewable energy and storage.

It also includes continued optimisation of conventional power assets.

The company is building a platform that combines generation scale, energy transition assets, and disciplined capital allocation.

JSW Steel share sale

JSW Energy also executed a strategic capital release during the year.

The company sold 2.5 crore shares of JSW Steel through a bulk deal on NSE on May 18, 2026.

Gross proceeds stood at Rs. 3,150 crore.

After the sale, JSW Energy’s residual holding in JSW Steel stood at 4,50,38,350 equity shares.

Capital allocation signal

The JSW Steel share sale improves JSW Energy’s return on capital employed.

It also releases capital for reinvestment into the company’s own growth pipeline.

This is important because renewable and storage projects require large upfront capital.

The transaction gives the company additional balance sheet flexibility.

Shareholder impact

Shareholders benefit from record EBITDA and capacity expansion.

They also benefit from the strategic capital release.

The key question now is how quickly the company deploys the released capital into higher-return power assets.

Investors will watch whether this improves earnings growth without weakening balance sheet discipline.

Consumer and market impact

For industrial consumers and power procurers, a larger JSW Energy platform can improve competition.

More private sector capacity can support both long-term PPAs and merchant supply.

If JSW Energy continues scaling renewable and storage assets, it can also support more firm and flexible clean power contracts.

This may influence tariff discovery in future procurement rounds.

Strategic message

JSW Energy’s FY26 performance shows strong execution in a soft demand year.

Record EBITDA of Rs. 11,041 crore, 2.6 GW of capacity addition, 13.45 GW installed capacity, and 58% generation growth all point to a stronger operating base.

The next watchpoints are PPA coverage for new assets, merchant pricing in FY27, renewable project commissioning, storage execution, and deployment of the Rs. 3,150 crore proceeds from the JSW Steel share sale.

For more such stories, go to www.energylineindia.com

[souravpaul]

HLE Glascoat’s Omeras acquisition is visible, but still loss-making

HLE Glascoat’s FY26 release shows that acquisition-led expansion has increased scale.

But integration drag remains visible.

Omeras recorded EBITDA loss of Rs 15.3 crore and PAT loss of Rs 15.6 crore during the year.

The story is integration risk.

For more such stories, go to www.indianpetrochem.com

[souravpaul]

JSW Energy clocks record FY26 EBITDA of Rs. 11,041 crore; installed capacity rises 2.6 GW to 13.45 GW

JSW Energy Limited delivered a record annual EBITDA performance in FY26.

The company reported EBITDA of Rs. 11,041 crore.

Installed capacity increased by 2.6 GW during the year.

Total installed capacity reached 13.45 GW.

Generation rose 58% year-on-year.

The results show that JSW Energy has converted its Strategy 3.0 ambitions into measurable operating outcomes.

Demand backdrop

The performance came despite weak national electricity demand growth.

Joint MD and CEO Sharad Mahendra said India’s total power demand grew only 0.9% in FY26.

This was the lowest demand growth in five years.

The weakness was mainly due to an extended monsoon.

Industrial and agricultural demand remained muted during the first half of the year.

Q4 recovery

The company indicated that demand recovered in Q4 FY26.

This provides a more constructive outlook for FY27.

The recovery is especially relevant as India moves into the peak summer demand period.

For generators with available capacity, stronger summer demand can improve plant utilisation and merchant realisation.

Capacity addition

JSW Energy added 2.6 GW of installed capacity during FY26.

This is one of the larger annual capacity additions by a private sector power company in India.

The capacity growth supported the 58% increase in generation.

Higher generation translated into stronger energy revenue and record EBITDA.

Strategy 3.0

FY26 was described by the company as a pivotal year for Strategy 3.0.

The strategy focuses on aggressive expansion in renewable energy and storage.

It also includes continued optimisation of conventional power assets.

The company is building a platform that combines generation scale, energy transition assets, and disciplined capital allocation.

JSW Steel share sale

JSW Energy also executed a strategic capital release during the year.

The company sold 2.5 crore shares of JSW Steel through a bulk deal on NSE on May 18, 2026.

Gross proceeds stood at Rs. 3,150 crore.

After the sale, JSW Energy’s residual holding in JSW Steel stood at 4,50,38,350 equity shares.

Capital allocation signal

The JSW Steel share sale improves JSW Energy’s return on capital employed.

It also releases capital for reinvestment into the company’s own growth pipeline.

This is important because renewable and storage projects require large upfront capital.

The transaction gives the company additional balance sheet flexibility.

Shareholder impact

Shareholders benefit from record EBITDA and capacity expansion.

They also benefit from the strategic capital release.

The key question now is how quickly the company deploys the released capital into higher-return power assets.

Investors will watch whether this improves earnings growth without weakening balance sheet discipline.

Consumer and market impact

For industrial consumers and power procurers, a larger JSW Energy platform can improve competition.

More private sector capacity can support both long-term PPAs and merchant supply.

If JSW Energy continues scaling renewable and storage assets, it can also support more firm and flexible clean power contracts.

This may influence tariff discovery in future procurement rounds.

Strategic message

JSW Energy’s FY26 performance shows strong execution in a soft demand year.

Record EBITDA of Rs. 11,041 crore, 2.6 GW of capacity addition, 13.45 GW installed capacity, and 58% generation growth all point to a stronger operating base.

The next watchpoints are PPA coverage for new assets, merchant pricing in FY27, renewable project commissioning, storage execution, and deployment of the Rs. 3,150 crore proceeds from the JSW Steel share sale.

For more such stories, go to www.energylineindia.com

[souravpaul]

Kalpataru Projects reports 22% revenue jump to Rs. 27,143 crore in FY26; net debt plummets 53% to Rs. 915 crore, dividend at Rs. 11 per share

Kalpataru Projects International Limited delivered its highest-ever consolidated revenue in FY26.

Revenue stood at Rs. 27,143 crore.

This was up 22% year-on-year.

The company also cut net debt sharply.

Net debt declined 53% to Rs. 915 crore.

This makes FY26 one of Kalpataru Projects’ strongest years in terms of both growth and deleveraging.

EBITDA and profit growth

EBITDA grew 22% to Rs. 2,240 crore.

Pre-tax profit surged 62% year-on-year to Rs. 1,334 crore.

Pre-tax margin expanded by 120 basis points to 4.9%.

Consolidated EPS rose 71% to Rs. 60.90 per share.

The numbers show that the company delivered not only higher revenue but also better profitability.

Q4 performance

Q4 FY26 revenue stood at Rs. 7,778 crore.

This was up 10% year-on-year.

Q4 EBITDA stood at Rs. 640 crore.

This was up 19% year-on-year.

Q4 pre-tax profit rose 73% year-on-year to Rs. 511 crore.

The quarterly performance confirms strong execution momentum heading into FY27.

Order book strength

Kalpataru Projects closed FY26 with an order book of Rs. 65,457 crore.

This provides approximately 2.4 years of revenue visibility.

Order intake during FY26 stood at Rs. 26,400 crore.

This exceeded annual revenue.

The positive book-to-bill ratio supports continued order book growth.

Transmission and distribution

The transmission and distribution business remained a key growth pillar.

It contributed the largest share of FY26 order inflows.

The company benefited from domestic transmission orders as well as international opportunities.

Markets such as the Middle East and Africa continued to support demand for transmission infrastructure.

India transmission opportunity

India’s transmission build-out remains a major opportunity for Kalpataru Projects.

The tariff-based competitive bidding pipeline is large.

CEA data points to a major under-construction transmission project pipeline.

Transmission expansion is being driven by renewable energy evacuation, inter-state power transfers, and grid reliability requirements.

This positions EPC contractors such as Kalpataru Projects for sustained demand.

Dividend recommendation

The Board recommended a dividend of Rs. 11 per equity share.

This represents 550% payout on face value of Rs. 2 per share.

The dividend rewards shareholders after a strong year of earnings growth.

It also reflects confidence in cash generation after meaningful deleveraging.

Balance sheet improvement

The 53% reduction in net debt is one of the most important elements of the FY26 performance.

Lower debt improves financial flexibility.

It can reduce interest burden.

It also strengthens the company’s ability to bid for large EPC contracts and manage working capital.

For lenders, the improvement indicates stronger credit metrics.

Working capital watchpoint

Net working capital days stood at 75.

This remains an important monitorable.

EPC companies need disciplined working capital management because execution often requires upfront mobilisation, inventory, and receivable funding.

Sustained growth will depend on maintaining order execution while controlling cash conversion cycles.

Strategic message

Kalpataru Projects’ FY26 results show a strong combination of revenue growth, profit expansion, deleveraging, and shareholder payout.

The company enters FY27 with a large order book, improving balance sheet, and strong exposure to transmission, buildings, factories, and oil and gas pipeline opportunities.

The key monitorables will be execution discipline, order conversion, working capital efficiency, and further value unlocking from non-core assets.

For more such stories, go to www.energylineindia.com

[souravpaul]

PFC and REC boards to meet May 16 to deliberate merger; combined entity to manage loan book exceeding Rs. 15 lakh crore

Power Finance Corporation Limited and REC Limited have separately announced board meetings for May 16, 2026.

Both boards will deliberate on their proposed merger.

The move could combine India’s two largest power-sector lenders into one financial institution.

The merged entity would manage a loan book exceeding Rs. 15 lakh crore.

This would create one of India’s largest infrastructure finance platforms.

Board meeting details

PFC and REC filed separate board meeting intimations on May 13, 2026.

Trading windows for both companies have been closed from May 14, 2026.

The closure will remain in force until further orders.

This signals that both companies are considering a material corporate transaction.

Strategic background

PFC and REC are both Maharatna Government of India enterprises.

Both operate under the Ministry of Power.

Both finance power generation, transmission, distribution, renewable energy, and related infrastructure.

Their borrower base overlaps across NTPC, NHPC, PGCIL, state DISCOMs, and private renewable developers.

Scale of combined entity

PFC’s total assets exceed Rs. 9 lakh crore.

REC’s loan book is above Rs. 5.9 lakh crore.

A merger would create a combined balance sheet of more than Rs. 15 lakh crore.

This scale would give the merged entity stronger bargaining power in domestic and international debt markets.

It could also support larger green bond issuances.

Merger rationale

The merger could reduce competitive overlap between the two lenders.

It could also lower funding costs through scale.

A single larger institution may simplify project financing for large power-sector borrowers.

It can also provide larger single-counterparty lending limits for mega transmission, renewable, hydro, thermal, and distribution projects.

Shareholder issue

For minority shareholders, the merger ratio will be the most important valuation event.

PFC’s market capitalisation is approximately Rs. 1.4 lakh crore.

REC’s market capitalisation is approximately Rs. 1.2 lakh crore.

Determining a fair share-swap ratio will require careful consideration of book value, profitability, asset quality, growth outlook, and dividend profile.

PFC dividend

PFC also recommended a final dividend of Rs. 3.95 per equity share for FY26.

This is in addition to Rs. 14.60 per share already paid as interim dividends.

The total FY26 payout therefore stands at Rs. 18.55 per share.

The dividend signals strong cash generation even as merger deliberations move forward.

Regulatory approvals

If the boards approve the merger, the transaction will require multiple clearances.

These may include approvals from SEBI, RBI, the Ministry of Power, the Ministry of Finance, stock exchanges, shareholders, and potentially the National Company Law Tribunal.

The full execution process could take 12 to 18 months.

Sector impact

The merged entity would become the dominant power-sector financier.

It could play a major role in funding India’s 2030 renewable energy targets.

India’s energy transition may require more than Rs. 20 lakh crore of new infrastructure financing.

A larger PFC-REC platform could be central to mobilising that capital.

Strategic message

The May 16 board meetings mark the clearest formal signal yet of a possible PFC-REC merger.

If completed, it would reshape India’s power-sector finance landscape.

The combined institution would have unmatched scale, a massive loan book, deep PSU linkages, and major relevance for renewable energy, transmission, distribution reform, and conventional power investment.

For more such stories, go to www.energylineindia.com

[souravpaul]

DVC clocks 40,103 MU in FY26 with record 33.3 MU solar and 6 MMT captive coal output

Damodar Valley Corporation delivered a strong FY2025-26 operating performance.

Total power generation stood at 40,103 MU.

This included 39,719 MU from thermal generation.

Hydel generation contributed 351 MU.

Solar generation reached a record 33.3 MU.

This was the highest solar generation in DVC’s history.

Thermal backbone

Thermal generation remained the core of DVC’s supply portfolio.

The corporation generated 39,719 MU from thermal stations during FY26.

This reflects sustained output from its coal-based fleet.

DVC remains a key supplier to the industrial belt across West Bengal, Jharkhand, Bihar, and its command area.

Its thermal fleet continues to support baseload power supply in the Eastern Region.

Hydel outperformance

DVC’s hydel generation stood at 351 MU.

This was higher than the target of 280 MU.

The outperformance is notable because hydel generation is highly dependent on water availability and seasonal conditions.

A stronger hydel year improves supply flexibility.

It also helps reduce dependence on costlier replacement power during certain periods.

Record solar output

Solar generation reached 33.3 MU.

This was the highest solar output ever recorded by DVC.

The number remains small compared with its thermal generation base.

However, it shows that DVC’s renewable portfolio is beginning to contribute more meaningfully.

Solar projects on DVC land and real estate are now becoming part of its generation mix.

Captive coal production

DVC also achieved record coal excavation of 6 MMT from its Tubed captive mine in Latehar, Jharkhand.

This improves fuel security for the corporation.

Captive coal output reduces exposure to market volatility and supply disruptions.

It also strengthens the economics of DVC’s thermal fleet.

New coal mines

DVC has secured fresh coal mines with cumulative capacity of 53 MMT.

These include Mahuagarhi and Mandakini-B blocks.

The additional mine capacity gives DVC long-term coal security.

This is important as the corporation plans future supercritical units and continues to support baseload supply.

Grid modernisation

During the year, DVC also commissioned India’s first real-time ULDC Phase-III Load Despatch Centre.

This strengthens operational visibility and grid management.

A modern despatch centre is important for managing thermal, hydel, and renewable generation together.

It also improves coordination with regional and state load despatch systems.

Eastern Region relevance

DVC’s performance is significant for the Eastern Region.

The region has faced forced outage stress during the summer period.

DVC’s reliable generation helps reduce the procurement burden on state DISCOMs.

It also supports industrial consumers in the manufacturing corridors of West Bengal and Jharkhand.

Stakeholder impact

State DISCOMs benefit from stable DVC supply.

Industrial users benefit from improved reliability and fuel-backed generation.

DVC’s captive mining performance supports cost control.

The record solar generation also signals gradual diversification toward cleaner generation.

Strategic message

DVC’s FY26 performance shows how a legacy public-sector utility can modernise while maintaining baseload strength.

The corporation generated 40,103 MU.

It posted record solar generation.

It achieved record captive coal excavation.

It also strengthened grid operations through real-time despatch infrastructure.

The next phase will depend on how DVC balances coal security, supercritical thermal expansion, solar scale-up, and regional grid reliability.

For more such stories, go to www.energylineindia.com

[souravpaul]

Berger Paints’ warehouse fire loss gets reversed through insurance confidence

Berger Paints India’s FY26 results contain an important exceptional-item story beyond normal paints and coatings performance.

The company disclosed that during the quarter ended June 30, 2025, there was a fire at its warehouse in Barasat, West Bengal.

No casualty was reported.

The financial impact of loss of inventory and certain fixed assets due to the fire was Rs 36.81 crore.

The company filed an insurance claim and recorded an insurance claim receivable as on March 31, 2026.

This resulted in reversal of the recorded loss during Q4 FY26.

For more such stories, go to www.indianpetrochem.com

[souravpaul]

Punjab Chemicals says new molecules are moving from consolidation to growth

Punjab Chemicals and Crop Protection’s Q4 FY26 call points to a company moving from a two-to-three-year consolidation phase into a more active growth phase built around new products, export customers and capacity debottlenecking.

Management said the company recorded its highest-ever revenue from operations in FY26 at Rs 1,029.8 crore, growing 14.4% year-on-year.

The company also said new product additions and molecules introduced over the last two to three years are now seeing good growth.

Punjab Chemicals is progressing on MoUs signed earlier, with these products slated for commercialization in FY27.

The company is targeting margins of 15–16% in the next financial year, rising gradually to 18% over two to three years.

For more such stories, go to www.indianpetrochem.com