Shares of NTPC Green Energy Ltd. fell more than 7% on February 24, continuing their downward trend for a second consecutive session. The decline comes as the company’s three-month shareholder lock-in period ended, triggering concerns about potential selling pressure.
According to Nuvama Alternative & Quantitative Research, nearly 18.33 crore shares, accounting for 2% of the company’s outstanding equity, have become eligible for trading following the expiration of the lock-in period. While this does not necessarily mean all shares will be offloaded, it does give existing shareholders the option to sell.
Despite the decline, NTPC continues to hold an 89% stake in NTPC Green Energy even after its partial divestment during the company’s IPO.
Financial Performance Highlights
The company recently reported a 52.3% year-on-year (YoY) jump in net profit, with its profit after tax (PAT) rising to ₹89.4 crore, compared to ₹58.7 crore in the same quarter last year.
- Revenue increased 4.1% YoY to ₹460.9 crore from ₹442.6 crore in Q3 FY24.
- EBITDA (earnings before interest, taxes, depreciation, and amortization) declined 2.3% YoY to ₹384.6 crore from ₹393.6 crore.
- EBITDA margin fell to 83.5% from 88.9% in Q3 FY24, signaling pressure on operational profitability.
While NTPC Green Energy’s long-term growth prospects in the renewable sector remain strong, investors will be closely watching any potential stock movements as shares unlocked for trading may impact price trends in the short term.
