2 September 2025

 

OPG Power Ventures Plc

("OPG", the "Group" or the "Company")

 

Final Results for the Year Ended 31 March 2025

 

OPG (AIM: OPG), the developer and operator of power generation assets in India, is pleased to announce its final results for the year ended 31 March 2025 ("FY25").

 

FY25 Summary:

 

·    FY25 revenues of £156.7m (FY24: £160.8m).

·    In FY25, OPG generated cash from operations of £22.3m (FY24: £20.8m). At year end, OPG had a net cash position of £15.6m (FY24: £3.6m).

·    Adjusted EBITDA* was £13.8m in FY25 (FY24: £17.2m).

·    Profit before tax was £5.2m in FY25 (FY24: £7.7m).

 

Unless specified, all figures in £m	FY 25	FY 24
Revenue	156.7	160.8
Other Operating Income	3.7	3.6
Adjusted EBITDA*	13.8	17.2
Earnings per share (pence)	0.35	1.02
NAV per share (pence)	41.1	42.3
Total generation (including deemed) (billion kWh)	2.32	2.32

*defined as Earnings before Interest, Tax, Depreciation & Amortization and Share Based Payments

 

Investigation

On 15 November 2024, the Company announced that it was subject to an investigation into alleged regulatory non-compliances by the Group under the Foreign Exchange Management Act ("FEMA"). FEMA regulates, consolidates and amends the law relating to foreign exchange, with the purpose of facilitating external trade and payments and promoting the orderly development and maintenance of the foreign exchange market in India, including foreign direct investment into India and overseas investment by Indian companies.

 

The Group considers that it has undertaken all material transactions, following professional advice on compliances with FEMA and is confident that it has been compliant. The Group offered full co-operation to the investigation. The Group's plants continue to operate as usual and the Group does not anticipate any material impact of the investigation process on the Group.

 

The Group considers that it has a robust track record of corporate governance and compliance and has full faith and confidence in the regulatory system of India.

 

Mr. N. Kumar, Non-Executive Chairman said: "FY25 marked another year of steady operational delivery. Our 414 MW thermal plant in Tamil Nadu maintained industry level PLFs, ensuring consistent power supply during periods of elevated demand. This strong performance reflects the discipline of our teams, robustness of our asset base, and effectiveness in managing operations across varying market conditions."

 

"We remain committed to providing transparent governance, stakeholder value and long-term strategic clarity. Our priorities are maintenance of strong cash flows, repayment of debt, asset reliability and calibrated investment in optimisation initiatives. As the Indian power sector continues to evolve, thermal power is likely to remain indispensable for supporting peak demand, grid stability and round-the-clock energy access."

 

For further information, please visit www.opgpower.com or contact:

 

OPG Power Ventures PLC	Via Tavistock below
A P Singh
Cavendish Capital Markets Limited (Nominated Adviser & Broker)	+44 (0) 20 7220 0500
Stephen Keys/Katy Birkin/George Lawson
Tavistock (Financial PR)	+44 (0) 20 7920 3150
Simon Hudson / Nick Elwes

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time.

 

 

Chairman's Statement

 

India remains the world's fastest-growing major economy and its energy sector continues to be a critical enabler of that growth.

 

India's Growth Story and the Role of Power

India's economic engine is accelerating at a scale and speed that is redrawing the global growth landscape. FY25 saw GDP expand by a robust ~6.5% (Source: IMF), powered by an unprecedented manufacturing boom, nationwide infrastructure build-out, rapid urban transformation, and deep penetration of technology across sectors. Government-led initiatives such as Production Linked Incentive (PLI) schemes and the push towards electrification of everything, from industry to mobility, are driving a structural surge in power demand. As industrial clusters, data centres, transportation networks and rural development programmes expand, the need for reliable, scalable and round-the-clock electricity has never been more critical. Positioned at the centre of this transformation is the energy sector - thermal based generation in particular - that remains pivotal in powering India's journey towards economic leadership.

 

India's power sector continued its upward trajectory in FY25, with total electricity generation reaching 1,821 billion units (BU), a 5% year-on-year increase over FY24's 1,733 BU. As of March 2025, India's total installed power capacity stands at approximately 475 GW, with 245 GW from thermal power. More importantly, thermal continues to dominate the generation mix with over 74% share, owing to its unmatched role in delivering base-load power and ensuring grid stability, as Plant Load Factors (PLF) across these thermal assets tend to be more than double of renewable plants. Recognizing the importance and need of such base load energy, the Government of India (GOI) is aiming to add 80 GW of new thermal capacity by 2032. Against this backdrop, OPG Power Ventures remains a vital contributor to India's energy story, offering consistency, reliability and operational resilience.

 

Operational Strength and Consistency

FY25 marked another year of steady operational delivery. Our 414 MW thermal plant in Tamil Nadu maintained industry level PLFs, ensuring consistent power supply during periods of elevated demand. This strong performance reflects the discipline of our teams, robustness of our asset base, and effectiveness in managing operations across varying market conditions.

 

Financial Performance and Prudent Fiscal Management

The financial year saw OPG post a revenue of 156.73 GBP Mn and an EBITDA of 13.83 GBP Mn, reflecting continued focus on operational efficiency and cost control. The balance sheet remains healthy, backed by disciplined capital allocation and efficient working capital management. Prudent cash flow strategies have enabled us to meet our debt obligations comfortably while maintaining sufficient liquidity.

 

Governance, Strategy and Outlook

We remain committed to providing transparent governance, stakeholder value and long-term strategic clarity. Our priorities are maintenance of strong cash flows, repayment of debt, asset reliability and calibrated investment in optimisation initiatives. As the Indian power sector continues to evolve, we firmly believe thermal power will remain indispensable, in the near future, for supporting peak demand coverage and round-the-clock energy access.

 

In closing, I wish to thank all my colleagues on the board, employees, regulators, partners and shareholders for their trust and continued belief in OPG. Your support strengthens our resolve to deliver consistent value through orderly execution. We move ahead with clarity, confidence and purpose.

 

N. Kumar

Non-Executive Chairman

01 September 2025

 

 

CEO's Operational Review

 

The Group remains steadfast in pursuing resilient and value-accretive growth, in alignment with India's energy vision to propel development

 

Macroeconomic and Industry Overview

FY25 was a defining year for the Indian power sector, supported by strong economic growth and continued policy support. India being the world's fastest-growing major economy has seen robust electricity demand driven by industrial expansion, urbanisation and rising per capita consumption. Growth in Power demand surpassed earlier forecasts, peaking at over 250 GW during the summer months. Thermal power generation maintained its dominance in the energy mix, contributing over 74% of total electricity generated during the year. This reaffirmed the importance of coal-based power in ensuring energy security and round-the-clock availability of electricity.

 

On the coal front, domestic production hit a new record of over 1 billion tonnes, a milestone achievement that reduced import dependency and improved fuel security. GOI's initiatives such as the SHAKTI Scheme ensured improved availability of coal. The current policy landscape is focused on ramping up domestic output while gradually reducing import reliance, which in turn has contributed to a softening of international coal prices. The Ministry of Power of GOI, has played a key role in this transition, proactively facilitating long-term PPAs and refining coal allocation mechanisms to ensure consistent fuel supply for power generators.

 

Operational Performance

The Company continued to supply electricity to various state distribution companies across India, under a well-diversified portfolio of short, medium and long-term contracts. This structured sales mix has helped anchor operational flexibility in response to the evolving market dynamics.

 

OPG delivered a steady operational performance in FY25, with electricity generation of 2.324 BU, closely tracking FY24 levels (2.323 BU). The plant sustained a PLF of 69%, underscoring operational consistency. Power was generated through a balanced mix of domestic and imported coal, ensuring reliability and cost competitiveness. The average realized tariff for the year stood at 6.5 pence per unit, compared to 7.5 pence in the previous year, largely reflecting market dynamics and balanced sales mix. Despite the tariff decline, profitability remained stable owing to effective coal procurement strategies and softened input costs.

 

Sustaining Performance

Auxiliary consumption was maintained at 8.5%, in line with sectoral benchmarks. An in-house solar plant commissioned within the premises supplied power for internal operations, improving net plant efficiency, reducing carbon footprint and saving auxiliary consumption annually. The facility has implemented multiple initiatives to further reduce emissions per electricity generated, reinforcing its commitment to cleaner operations. Further, Biomass blending continues to support cleaner combustion practices.

 

Water usage was minimised through the use of air-cooled condensers, positioning the facility as a zero-discharge unit. These measures contribute to operational sustainability without compromising generation reliability.

 

Safety and Compliance

FY25 marked another year of excellent safety performance, with zero Total Recordable Incident Rate (TRIR). The company strengthened its on-ground safety systems, conducted periodic drills, and maintained a proactive health and safety framework, reinforcing a culture of accountability and care.

 

Avantika Gupta

Chief Executive Officer

01 September 2025

 

 

Financial Review

 

In FY25, the Group navigated market cyclicality with financial discipline, sustaining stability and long-term value with focus of deleveraging the balance sheet and strengthening the financial position.

 

The following is a commentary on the Group's financial performance for the year ending 31 March 2025.

 

Revenue

In FY25, the Group delivered revenue of £156.7 million, reflecting a moderation of £4.1 million (2.5%) from FY24. The shift is largely attributable to market cyclicality against an exceptional prior-year base, while the Group's operating fundamentals remain strong.

 

Adjusted EBITDA was £13.8 million, representing 8.8% of revenue, compared with £17.2 million (10.7%) in FY24. The variance reflects revenue movement, though profitability continues to be supported by disciplined operations and ensuring sustainable performance.

 

Year Ended 31 March	FY 25 £m	Percentage of revenue	FY 24 £m	Percentage of revenue
Revenue	£156.7		£160.8
Cost of Revenue (excluding Depreciation)	(£132.5)		(£132.8)
Gross Profit	£24.2	15.4	£28.0	17.4
Other Operating Income	£3.7		£3.6
Other Income	£4.0		£0.2
Distribution	(£18.0)		(£14.6)
General and Administrative Expenses
Adjusted EBITDA	£13.8	8.8	£17.2	10.7
Depreciation	(£5.7)		(£5.5)
Net Finance Costs	(£2.9)		(£3.9)
Income Before Tax	£5.2	3.3	£7.7	4.8
Reversal of Impairment provision and Share of Profits from Associates	£0.0		£0.0
Profit Before Tax	£5.2	3.3	£7.7	4.8
Taxes	(£3.8)		(£3.4)
Profit for the Year	£1.4	0.9	£4.3	2.7

Note: due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

 

In FY 25, the average tariff realised was 6.5p/kWh, compared to previous year's 7.5p/kWh.  The total generation (including deemed generation), amounted to 2,324 million units, representing similar levels as compared to the previous year's 2,323 million units. While generation levels in FY25 closely tracked those of the previous year, the Company maintained its focus on the short-term market, responding to evolving demand trends and ensuring steady plant utilisation.

 

Coal prices moderated to normative levels during the year, supporting operating margins. However, global supply dynamics remain sensitive to shifts in China and India's coal demand, Indonesian export policies, and weather-related disruptions, factors that continue to influence international pricing and availability

Operational Review	FY 25	FY 24
Total generation, incl. "deemed" generation (m units)	2,324	2,323
Plant Load Factor (PLF) (percent)	68.50	69.21
Average tariff (pence/unit)	6.5	7.5

 

Gross Profit

For FY25, Gross Profit (GP) stood at £24.2 million, representing 15.4% of revenue, compared with £28.0 million (17.4%) in FY24. The year-on-year movement reflects a normalisation in operating margins following the exceptional benefits seen in the previous year from stabilised coal prices and stronger generation levels.

 

While the reported GP is lower in absolute terms, the outcome is consistent with expectations in a year marked by fluctuating input costs and evolving market dynamics. Importantly, the Group maintained disciplined cost management and ensured operational efficiency, thereby sustaining a resilient margin profile in line with industry trends.

 

The Group remains focused on optimising its cost base and enhancing efficiency to safeguard profitability, while continuing to prioritise stable cash flows and long-term shareholder value creation.

 

Adjusted EBITDA

Adjusted Earnings before Interest, Depreciation, Taxes and Amortisation ("Adjusted EBITDA") is a key indicator of the Group's underlying cash generation, as it excludes the effects of financing, depreciation, exceptional charges, and other non-operational items such as share-based compensation. This measure enables a clearer comparison of profitability across periods and with peers, by focusing on core operating performance and removing distortions from capital structure and accounting treatments.

 

Figures pertaining to FY 24 have been reinstated to reflect reclassification adjustments carried out during FY 25, ensuring consistency and comparability across reporting periods.

 

In FY 25, Adjusted EBITDA stood at £13.8 million, representing 8.8% of revenue, compared to £17.2 million or 10.7% of revenue in FY 24. The movement reflects a recalibration from the exceptionally strong operating environment of FY 24, as well as the impact of higher input costs during the year. Importantly, despite this moderation, the Group continued to generate strong operating cash flows, underscoring the resilience of its business model.

 

Profit Before Tax

Profit from operations before tax was £5.2 million, or 3.3% of revenue, in FY 25, relative to £7.7 million (4.8% of revenue) in FY 24. The variance primarily stems from margin compression following a high base year; however, the Group remains focused on operational discipline and efficiency improvements. These initiatives are expected to enhance long-term profitability and reinforce the platform for sustained shareholder value creation.

 

Profit Before Tax (PBT) reconciliation for FY 25 (£m)

 

PBT £m	FY 25
PBT FY 25	£5.2
PBT FY 24	£7.7
Decrease in PBT	(£2.5)
Decrease in GP	£(3.8)
Increase in Other Operating Income	£0.1
Increase in Other income	£3.8
Increase in Distribution, General & Administrative Expenses, Expected Credit Loss	(£3.4)
Decrease in Net Finance Costs	£1.0
Decrease in Depreciation and Amortisation	(£0.2)
Decrease in PBT	(£2.5)

 

Taxation

The Group's operating subsidiary continues to benefit from a tax holiday period. However, the subsidiary is subject to Minimum Alternate Tax (MAT) on its accounting profits. The taxes paid under MAT can be used to offset future tax liabilities that may arise after the conclusion of the tax holiday period.

 

The tax expense for the year amounted to £3.8 million.

 

Profit After Tax from continuing operations

Profit After Tax from continuing operations stood at £1.4 million in FY25, compared to £4.3 million in FY24, reflecting a reduction of £2.9 million (66.2%). The decline primarily mirrors the flow-through impact of lower operating earnings in the year, alongside prudent provisioning and conservative recognition policies that the Company has maintained in line with its disciplined financial approach.

 

While PAT is lower year-on-year, the underlying fundamentals of the business remain intact. The Company continues to generate steady operating cash flows and retains financial flexibility to support growth initiatives. Management remains focused on driving operational efficiency and portfolio optimization, which are expected to underpin sustainable long-term profitability.

 

Current Year's Operations:

The plants are running well with a Plant Load Factor of 69%. The plants have continued to operate steadily, supported by reliable offtake arrangements across both long-term and short-term markets. Market dynamics have shown signs of stabilization despite fluctuations in exchange rates and seasonal supply variations. The Company remains focused on enhancing operational resilience by optimizing fuel sourcing strategies, including pursuing opportunities under government-led coal initiatives, while maintaining flexibility to adapt to evolving market conditions. These measures are aimed at ensuring cost efficiency and supporting consistent generation performance.

 

Earnings per Share (EPS)

The Group's total reported EPS decreased from 1.02 Pence in FY 24 to 0.35 Pence in FY 25.

 

Dividend policy

The Board remains firmly committed to prudent capital management, prioritising liquidity to support operational needs, future capex requirements, and to withstand against evolving macroeconomic uncertainties. In line with this approach, the Board has decided not to declare a dividend for FY25. The Group's dividend policy will be reviewed periodically, keeping in view business performance, cash flows, and strategic priorities.

 

The Foreign Exchange Gain / Loss on Translation

The British Pound to Indian Rupee appreciated to a closing rate of £1= INR 110.38 as at 31 March 2025 from a rate of £1= INR 105.28 as at 31 March 2024 resulting in an exchange loss of £7.03 million. The same has been recognised under "Exchange differences on translating foreign operations".

 

Property, Plant and Equipment & Intangible Assets

The net book value of Property, Plant and Equipment and Intangible Assets stood at £148.2 million, reflecting the impact of depreciation, asset disposals and foreign exchange movements, partially offset by additions during the year.

 

Other Non-Current Assets

Other Non-Current Assets (excluding Property, Plant and Equipment & Intangible Assets) declined by £4.5 million in FY25. The reduction was primarily driven by a £4.3 million decrease in non-current investments, which moved from £18.3 million to £14.0 million during the year.

 

Current Assets

Current Assets declined by £29.5 million (31.2%) year-on-year, reflecting adjustments across working capital balances. The most notable changes were:

 

·   Inventories contracted by £13.3 million, driven by lower stock holdings in line with operational requirements.

·   Trade receivables reduced by £16.1 million, reflecting tighter collections.

·   Other short-term assets advanced modestly by £1.8 million, providing partial offset.

·   Current tax assets edged lower by £0.04 million.

·   Restricted cash balances decreased by £5.5 million, following scheduled utilisation

·   Cash and cash equivalents improved by £3.6 million, strengthening liquidity.

 

Liabilities

Total liabilities witnessed a sharp reduction, with current liabilities declining by £27.1 million (44.2%). This movement was primarily driven by:

 

·   Borrowings, including current maturities of long-term debt, which reduced by £6.9 million, reflecting repayments during the year.

·   Trade and other payables, which contracted significantly by £20.1 million, in line with operating requirements.

·   Other current liabilities, which saw a marginal decline of £0.01 million.

 

On the non-current side, liabilities decreased by £10.7 million (26.1%), largely attributable to:

 

·   A fall in the non-current portion of long-term debt by £11.3 million, reflecting repayments.

·   Trade and other payables, which decreased by £0.4 million.

 

Partially offsetting these reductions, net deferred tax liabilities rose by £1.0 million, reflecting timing differences between book and tax treatments.

 

Capital Structure and Financial Leverage Analysis

 

Debt Profile and Leverage Metrics

The Company's borrowings portfolio witnessed a significant deleveraging during FY25, with total outstanding debt declining substantially to £10.5 million from the previous year's £28.6 million. The gearing ratio, calculated as net debt divided by equity plus net debt, improved markedly to -0.09x from -0.02x, reflecting the organization's strengthened balance sheet position. Notably, the Company abstained from raising any new debt facilities during the financial year.

 

Liquidity Position

The net cash position (total borrowings minus cash and current and non-current investments in mutual funds) experienced a remarkable enhancement, strengthening from £3.6 million to £15.6 million, primarily attributable to systematic debt reduction amounting to £18.1 million. This strategic debt retirement underscores management's commitment to optimizing the capital structure. The Net Debt to EBITDA ratio further improved from -0.2x to -1.1x, demonstrating enhanced earnings coverage relative to the Company's net cash position and reinforcing its robust financial flexibility.

 

Finance Costs and Income

Financial expenses registered a marginal uptick of £0.5 million year-over-year, while finance income demonstrated robust growth of £1.5 million. Consequently, net finance costs contracted from £3.9 million in FY24 to £2.9 million in FY25, representing an improvement of £1.0 million.

 

Restricted Cash Holdings (Pledged as Security for Funding Purposes)

Current restricted cash reserves decreased to £2.7 million from £8.3 million (66.8% reduction), while non-current restricted cash holdings declined to £1.5 million from £1.9 million (21.4% reduction). These movements reflect the Company's enhanced operational cash flow management and reduced collateral requirements.

 

Cash flow

Cash flow from operations; before, and after, the changes in working capital was £13.0 million (FY 24: £17.1 million) and £22.3 million (FY 24: £20.8 million) respectively.

 

Movements (£m)	FY 25	FY 24
Operating cash flows from operations before changes in working capital	£13.0	£17.1
Tax Paid	(£0.8)	(£0.5)
Change in working capital assets and liabilities	£10.1	£4.2
Net Cash generated by operating activities from operations	£22.3	£20.8
Purchase of Property, Plant and equipment (net of disposals)	(£3.6)	(£3.6)
Investments(purchased)/sold, incl. in solar projects, shipping JV, market securities, movement in restricted cash and interest received	£12.7	£3.3
Net Cash from / (used in) investing activities	£9.2	(£0.2)
Finance cost paid, incl. foreign exchange losses	(£6.1)	(£5.6)
Dividend paid	-	-
Total cash change from operations before net borrowings	£25.4	£15.0

 

Ajit Pratap Singh

Non-Executive Director

01 September 2025