| PTC India Limited | ||||
| Rating reaffirmed at 'Crisil A1+'; Corporate Credit Rating Withdrawn | ||||
| Rating Action | ||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||
| 1 crore = 10 million | ||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has reaffirmed its ‘Crisil A1+’ rating on the short-term bank facilities and commercial paper of PTC India Limited (PTC India).
Crisil Ratings has withdrawn its corporate credit rating (CCR) following the receipt of request from the company. The rating withdrawal is in line with Crisil Ratings policy on withdrawal of ratings.
The ratings continue to reflect PTC India’s leading position in the domestic power trading market, healthy relationships with customers and strong market linkages because of its long track record, as well as negligible bad debt since inception. The ratings also factor in the robust financial risk profile with no term debt obligation, low working capital limit utilisation and healthy liquidity. The company has been net debt negative since fiscal 2023 and is expected to sustain this position in the near-to-medium term. These strengths are partially offset by exposure to counterparty risk and susceptibility to open positions.
Crisil Ratings takes note of the resignation of three independent directors from the board of PTC India Financial Services Ltd (PFSL; a wholly owned subsidiary). While the management does not envisage any impact of the resignations on the business and financial risk profiles of PTC India, any regulatory or compliance action or impact on the credit profile of the company will be monitorable. |
Analytical Approach Crisil Ratings has considered the standalone business and financial risk profiles of PTC India. Adjustments for assets and liabilities have been made as per the Crisil Ratings capital allocation approach for the financing business under PFSL.
Please Refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers - Strengths Leading position in the domestic power trading market PTC India is the largest player in the Indian power trading market with market share of ~32% of volume traded in fiscal 2025. The market share is estimated at a similar level in fiscal 2026. The company is likely to maintain its dominant market position over the medium term despite intensifying competition.
PTC India started power trading in India in 2001 and over the years has established relationships with various players, including state power utilities (SPUs). Long and medium-term trades, which fetch higher margins (including cross border), contributed around 41% of volume, while short-term trades accounted for the balance during the first nine months of fiscal 2026. Efficiency in client servicing and management should help the company maintain its market leadership.
Healthy financial risk profile The financial risk profile is underscored by a comfortable capital structure and healthy cash accrual. PTC India receives rebate from generation companies in case of timely payment for the power procured and charges surcharge from distribution companies (discoms) in case of delay in payment for power sold. Net working capital cycle* ranged from 10 to 26 days over the three fiscals through March 2025. The company has no long-term debt and meets its working capital requirement through fund-based limit of Rs 2,000 crore (largely unutilised). Cash and equivalent was healthy at ~Rs 2,879 crore as on March 31, 2026. With the receipt of cash from sale of PTC Energy Ltd, cash balance has improved and the company had net cash** surplus as on March 31, 2026.
No additional investments or support is envisaged from PTC India to PFSL. However, PTC India may provide need-based support in case of distress. Any significant investment in PFSL, which may impact the financial risk profile of PTC India, will remain a key rating sensitivity factor.
*Net working capital cycle = receivables less payables; Crisil Ratings has also added the sale or purchase of electricity of agency nature to revenue from operations as the receivables or payables include those amounts as well. **Net cash = cash and equivalent – total debt |
Key Rating Drivers - Weaknesses Exposure to counterparty risk The company remains susceptible to the weak credit risk profiles of customers, mainly SPUs. It tries to mitigate counterparty risk by distributing sales across multiple buyers and through payment security mechanisms. Seasonal reversal of buy-and-sell positions of SPUs acts as a natural hedge. However, the company’s large scale of operations reduces risk of default and enables it to negotiate better terms with clients. Net working capital cycle were at 15–30 days over the three fiscals ended March 31, 2025. From 38 days during the Covid-19 pandemic, the working capital cycle has reduced consistently. However, prolonged delays in payment by customers remain a key rating sensitivity factor.
Susceptibility to open positions PTC India will leverage its more than two-decade-long experience and might be taking limited open positions in the power trading market, which should add a revenue stream. The company has already signed one such agreement of 100 MW and would look for further opportunities. |
Liquidity Strong Cash and equivalent was around Rs 2,879 crore and fund-based bank limit was Rs 2,000 crore as on March 31, 2026, which remains largely unutilised. These, along with annual cash accrual, will sufficiently cover the working capital expenses over the medium term. Ability to stretch payables provides additional support. Given the operational track record and longstanding relationships with discoms, liquidity will remain healthy over the medium term. Furthermore, the management has committed to maintain adequate liquidity to meet the working capital requirement. |
Rating sensitivity factors Downward factors
*Excluding receivables on account of tariff revision, compensation and change in law, which are paid only after being received |
About the Company PTC India was incorporated in 1999 to support implementation of the mega power policy of the government. NHPC Ltd, NTPC Ltd (‘Crisil AAA/Stable/Crisil A1+’), Power Finance Corporation Ltd (‘Crisil AAA/Stable/Crisil A1+’) and Power Grid Corporation of India Ltd (‘Crisil AAA/Stable/Crisil A1+’) are the promoters. PTC India has a Category I license issued by the Central Electricity Regulatory Commission under the Electricity Act, 2003, which permits unlimited trading in power. It is the largest player in the power trading market with share of ~32% in fiscal 2025. |
Key Financial Indicators (standalone)#
#As per analytical adjustments made by Crisil Ratings |
Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
* - Interchangeable with fund-based facilities |
Annexure – List of Entities Consolidated
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| Annexure - Rating History for last 3 Years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Annexure: List of instruments and names of regulators of the instruments As required by SEBI CRA Circular dated Feb 10, 2026, a list of activities or instruments falling under the purview of various FSRs, along with the names of respective FSRs, is being disclosed below:
* Includes securitisation transactions involving assignee payout, acquirer's payout. ~ The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In PRs subsequent to issuance(s), Crisil Ratings Limited shall separately capture the rated quantum details along with names of respective regulators. ^ Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions. # There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. @ These ratings were assigned during regulatory regime prior to introduction of SEBI CRA Circular dated Feb 10, 2026 and the investor side regulators have accordingly been included.
Note: Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
Criteria Details
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