💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations for H1 FY2026 was INR 1,475.68 Cr, representing a decline of 8.58% compared to INR 1,614.26 Cr in H1 FY2025. The company operates in a single reportable segment: 'power generation and allied activities'.

Geographic Revenue Split

100% of revenue is derived from India, primarily through power supply to MSEDCL in Maharashtra. Specific regional splits within India are not disclosed.

Profitability Margins

Operating Profit Margin for FY2025 was 21.16%, a decrease from 22.72% in FY2024 (-6.90% YoY) due to lower profits. Net Profit Margin improved to 6.58% in FY2025 from -30.56% in FY2024, a 121.52% increase driven by the absence of exceptional write-offs of investments and loans that occurred in the previous year.

EBITDA Margin

Operating Profit Margin (EBITDA-based) stood at 21.16% for FY2025. Core profitability was impacted by a loss before tax of INR 47.62 Cr in H1 FY2026 compared to a profit of INR 88.68 Cr in H1 FY2025.

Capital Expenditure

The company reported no major capital expenditure plans in the near term. Historical property, plant, and equipment assets were valued at INR 10,178.50 Cr as of September 30, 2025.

Credit Rating & Borrowing

The company maintains a defined waterfall mechanism for debt servicing. Interest coverage ratio improved 7.41% YoY to 1.45 in FY2025 due to a decrease in interest expenses. Finance costs for H1 FY2026 were INR 260.25 Cr, up 6.43% from INR 244.52 Cr in H1 FY2025.

⚙️ Operational Drivers

Raw Materials

Thermal Coal (Fuel) is the primary raw material, accounting for approximately 80.8% of total revenue from operations (INR 1,192.59 Cr in H1 FY2026).

Import Sources

Sourced domestically within India, primarily from the state of Chhattisgarh where SECL mines are located.

Key Suppliers

South Eastern Coalfields Limited (SECL) is the primary supplier, providing 1,533 coal rakes in FY2025, averaging 4.2 rakes per day.

Capacity Expansion

Current installed capacity is 1,350 MW (5 units of 270 MW each). No specific expansion timeline for additional MW is disclosed, though the company is evaluating strategic acquisitions of distressed assets.

Raw Material Costs

Cost of fuel, power, and water consumed was INR 1,192.59 Cr in H1 FY2026, representing 80.8% of revenue. This cost decreased slightly from INR 1,211.47 Cr in H1 FY2025 (-1.56% YoY).

Manufacturing Efficiency

The company achieved a Plant Availability Factor (PAF) of 82% in FY2025. Higher PAF is critical as it ensures the full recovery of capacity charges from DISCOMs.

Logistics & Distribution

Distribution is handled via the state grid. The company collected INR 3,150 Cr from MSEDCL in FY2025, including INR 110 Cr of disputed receivables, indicating high dependency on this single distribution counterparty.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth is targeted through strategic acquisitions of distressed thermal power assets in collaboration with investment funds, leveraging existing project execution skills, and participating in the Government's 'Power for All' vision. The company also sells surplus uncontracted power on the Indian Energy Exchange (IEX).

Products & Services

Thermal electricity (Power Generation) sold to state utilities and through short-term market exchanges.

Brand Portfolio

RattanIndia Power

New Products/Services

Strategic focus on 'distressed asset resolutions' and 'growth-oriented partnerships' to diversify the power portfolio, though specific new product contributions are not yet quantified.

Market Expansion

Active evaluation of strategic acquisitions and partnerships to scale operations beyond the current 1,350 MW capacity.

Market Share & Ranking

Not disclosed, but positioned as a significant private Independent Power Producer (IPP) in Maharashtra.

Strategic Alliances

Collaborations with marquee special situations and infrastructure-focused investment funds for asset acquisition.

🌍 External Factors

Industry Trends

The industry is shifting towards better DISCOM liquidity via the Revamped Distribution Sector Scheme (RDSS), which has a 3.03 lakh crore outlay. This is expected to reduce payment defaults and improve the predictability of revenue for IPPs like RTNPOWER.

Competitive Landscape

Competes with other IPPs and state-owned generation companies. Competitive advantage is derived from operational efficiency (82% PAF) and successful debt restructuring.

Competitive Moat

Moat consists of a 1,350 MW installed capacity with established fuel linkages and long-term PPAs. This is sustainable due to the high capital intensity and regulatory hurdles for new thermal plants.

Macro Economic Sensitivity

Highly sensitive to industrial power demand in Maharashtra and national coal allocation policies. GDP growth directly correlates with higher power off-take.

Consumer Behavior

Shift toward 24/7 power reliability increases the importance of base-load thermal power despite the rise of renewables.

Geopolitical Risks

Minimal direct exposure, but global coal price volatility can impact domestic auction prices and availability.

⚖️ Regulatory & Governance

Industry Regulations

Regulated by CERC/MERC guidelines. Revenue is subject to 'Change in Law' events and regulatory orders; the company accounts for these based on management estimates which are subject to final settlement by authorities.

Environmental Compliance

Operations fall under 'power generation', subject to stringent emission and ash disposal norms. Specific ESG compliance costs were not disclosed.

Taxation Policy Impact

The company reported zero current tax expense for H1 FY2026 due to accumulated losses. Deferred tax credit of INR 20.37 Cr was recorded in FY2025.

Legal Contingencies

A Section 7 IBC application was filed by an RPS holder (Redeemable Preference Shares) during Q2 FY2026. The company is also involved in litigation regarding disputed receivables with MSEDCL, having recovered INR 110 Cr recently.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the outcome of the IBC Section 7 application, which could impact corporate control. Additionally, the inability to redeem RPS due to lack of profits (as per Section 55(2) of the Act) poses a financial risk.

Geographic Concentration Risk

100% of physical assets and primary revenue are concentrated in Maharashtra, India.

Third Party Dependencies

Critical dependency on SECL for coal (fuel) and MSEDCL for revenue (off-take).

Technology Obsolescence Risk

Thermal power faces long-term risks from the transition to renewable energy, though it remains essential for base-load requirements in the medium term.

Credit & Counterparty Risk

Receivables from MSEDCL are a key focus; the company collected INR 3,150 Cr in FY2025, but historical delays in DISCOM payments remain a systemic risk.