NHPC Limited is a premier hydropower generation company in India, established in 1975. As a 'Navratna' category Public Sector Undertaking (PSU), it plays a pivotal role in the nation's energy sector. The company manages the entire lifecycle of hydropower projects, from initial concept and investigation through to design, construction, operation, and maintenance. With an authorized capital of ₹17,500 crore, NHPC has a substantial operational footprint, controlling approximately 16% of India's total installed hydroelectric capacity. Its portfolio includes 31 power stations with a combined installed capacity of 8,833 MW, comprising 8,271 MW from 24 hydropower projects and 562 MW from 7 renewable energy (solar and wind) projects. NHPC's operations are geographically diversified, with a presence across 15 states and 2 Union Territories. Beyond power generation, the company has expanded its services to include consultancy and power trading, leveraging its deep in-house engineering expertise and established track record of strong operational performance.

Official Website: http://www.nhpcindia.com/

• Profit & Loss (9M FY'26 vs. 9M FY'25):

• Total Income: Increased by 5.62% to ₹9,565.57 crore from ₹9,056.90 crore.

• Total Expenditure: Rose significantly by 22.17% to ₹6,942.36 crore. This was driven primarily by a 96.45% surge in 'Other Expenses' to ₹2,945.63 crore.

• Profit After Tax (PAT): Grew by 7.18% to ₹2,671.04 crore.

• NHPC's Share in PAT: Increased by 7.09% to ₹2,305.58 crore.

• Key Expense Changes: Employee benefit expenses and finance costs saw significant decreases of 21.82% and 29.33% respectively, while depreciation and amortization expenses increased by 51.87%.

• Balance Sheet (as of Dec 31, 2025):

• Total Equity & Liabilities: Stood at ₹1,15,382.49 crore, up from ₹1,02,677.71 crore at the end of FY'25.

• Shareholder's Funds (Net Worth): Increased to ₹41,465.47 crore.

• Borrowings: Long-term borrowings rose to ₹42,395.40 crore from ₹35,681.73 crore.

• Assets: Capital Work in Progress (CWIP) is a major component at ₹32,993.78 crore, reflecting the large number of projects under construction.

• Key Financial Ratios (Consolidated, 9M FY'26):

• Earnings Per Share (EPS): ₹2.30 (not annualized).

• Book Value Per Share: ₹41.28.

• Return on Net Worth (RoNW): 5.68% (not annualized).

• Debt-Equity Ratio: Stands at 1.17, indicating a leveraged but manageable capital structure for a capital-intensive industry.

• Dividend History:

• The company has a consistent track record of paying dividends. For FY'25, the dividend per share was ₹1.91, representing a payout ratio of 64% of profit.

• Dividend payout has been robust, ranging from 48% to 64% over the last five fiscal years.

The company demonstrates stable revenue growth and profitability, supported by a strong balance sheet, although a significant increase in 'Other Expenses' and rising debt levels warrant monitoring.

• Integrated Hydropower Player: NHPC is involved in the entire value chain of hydropower development, from concept to commissioning. This end-to-end control provides significant operational efficiency and technical expertise.

• Government Backing & 'Navratna' Status: As a premier PSU with 'Navratna' status, NHPC enjoys strategic importance, financial autonomy, and strong government support, which is critical for securing large-scale, long-gestation projects.

• Dominant Market Position: The company commands a 16% share of India's installed hydroelectric capacity, making it a key player in the nation's clean energy landscape.

• In-house Expertise: Strong in-house engineering and consultancy capabilities allow NHPC to manage complex projects efficiently and offer services to other entities, creating an additional revenue stream.

NHPC's unique position as a government-backed, fully integrated hydropower leader with deep technical expertise provides a strong competitive moat in a capital-intensive and strategically important sector.

• Role of Hydropower: Hydropower constitutes 10% of India's total installed power capacity of 513,730 MW as of December 2025. This highlights its role as a significant but not dominant source of energy.

• Contribution to Clean Energy: Hydropower is a critical component of India's clean energy mix, providing stable, dispatchable power to balance the intermittency of other renewable sources like solar and wind.

• National Generation Context: For the first nine months of FY'26, hydropower contributed 10% (142 Billion Units) to the country's total generation. NHPC's consolidated generation represented 18% of the total hydropower generation, underscoring its importance within the sub-sector.

The industry outlook is constructive, driven by the national focus on increasing clean energy capacity, where hydropower's reliability and storage capabilities are highly valued.

• Massive Project Pipeline: The company has a total pipeline of over 50,000 MW across various stages. This includes 9,204 MW under construction, 10,763 MW awaiting clearances, and 21,320 MW under survey and investigation.

• Capacity Addition Trajectory: NHPC projects a significant ramp-up in installed capacity, from the current 8,271 MW (hydro) to 14,161 MW by FY 29-30. This represents a 71% increase over the next five years.

• Regulated Equity Growth: Future earnings are directly linked to the growth in Regulated Equity. The company projects its consolidated regulated equity to grow from ₹18,075 crore in FY 24-25 to ₹33,838 crore by FY 30-31, an 87% increase. This expansion is expected to drive a proportional increase in Profit After Tax.

• Diversification into Solar: NHPC is actively expanding its renewable energy portfolio with 1,190 MW of solar projects under construction and a vast pipeline of projects as an intermediary procurer.

Growth is underpinned by a clearly defined and massive project pipeline in both hydropower and solar, which is set to nearly double the company's regulated equity and significantly boost its generation capacity over the next five to six years.

• Pumped Storage Projects (PSPs): NHPC is aggressively pursuing PSPs, with a pipeline of 19,430 MW under investigation across Maharashtra, Andhra Pradesh, Odisha, and other states. PSPs are critical for grid stability and energy storage, representing a major new growth vector.

• Solar Power Expansion: The company is building its own solar assets (1,190 MW under construction) and acting as an Intermediary Procurer for over 20,000 MW of solar, wind, and hybrid projects. This positions NHPC as a key player in India's solar energy expansion.

• International Projects: NHPC is exploring opportunities in Nepal with the West Seti (800 MW) and SR6 (460 MW) projects, indicating a strategic intent to expand its footprint beyond India.

• Unlocking Value from Projects Under Clearance: A substantial portfolio of 10,618 MW in hydro projects is awaiting clearance. As these projects move into the construction phase, they will provide a long-term, visible growth trajectory well into the next decade.

The company is capitalizing on opportunities beyond traditional hydropower, with a strategic focus on high-growth areas like pumped storage, solar energy, and international expansion.

• Plant Availability Factor (PAF): For 9M FY'26, the consolidated PAF was 79.27%. The company earns incentives for exceeding normative PAF, with Omkareshwar power station achieving a PAF of 100.28%.

• Generation Performance: For 9M FY'26, the consolidated generation was 25,532 Million Units. Certain power stations like Indrasagar are performing exceptionally well, generating at 238% of their annual design energy.

• Capital Expenditure (Capex): Capex has been on a steep upward trend, reflecting the aggressive project pipeline.

• FY'23: ₹6,961 crore

• FY'24: ₹8,652 crore

• FY'25: ₹11,596 crore

• FY'26 Target: ₹13,052 crore (Consolidated)

The company maintains healthy operational metrics while significantly accelerating capital expenditure to fund its large-scale capacity expansion plans.

• Hydro Project Commissioning Timeline:

• FY 25-26: Commissioning of two units of Subansiri Lower (500 MW).

• FY 26-27: Full commissioning of Subansiri Lower (1000 MW), Rangit–IV (120 MW), Pakal Dul (1000 MW), and Kiru (624 MW).

• FY 27-28: Commissioning of Kwar (540 MW).

• FY 28-29: Commissioning of Ratle (850 MW).

• FY 29-30: Commissioning of Teesta VI (500 MW).

• Solar Project Commissioning Timeline:

• 1,190 MW of solar projects are under construction with expected commissioning dates primarily in 2026. This includes large projects like the 600 MW project in Gujarat and the 200 MW projects in Khavda, Gujarat.

• Long-Term Vision: The extensive pipeline of projects under clearance (10,618 MW hydro) and survey (21,320 MW hydro & PSP) provides a clear roadmap for growth for the next 15-20 years, solidifying NHPC's role in India's energy transition.

NHPC has a detailed, multi-year execution plan focused on commissioning nearly 6,000 MW of new hydro capacity by 2030, complemented by a fast-tracked solar expansion.

• EBITDA Margin: For the first nine months of FY'26, the consolidated EBITDA margin stood at a strong 50%. This indicates high operational profitability, characteristic of the hydropower sector's low variable costs once projects are commissioned.

• Profit Margin: The consolidated Profit After Tax (PAT) margin for the same period was 30%. This reflects the company's ability to convert a significant portion of its income into net profit.

• Incentive Income: Margins are supplemented by incentive earnings. In FY'25, the company earned ₹864.76 crore from incentives related to secondary energy, PAF, and deviation charges, contributing meaningfully to profitability.

The company operates with very healthy and stable margins, driven by the regulated tariff structure and supplemented by performance-based incentives.

• Receivables Risk: The company faces counterparty risk from state-owned distribution companies. As of December 31, 2025, total trade receivables were ₹2,329 crore, with ₹380 crore overdue for more than 45 days. The top five debtors, primarily state utilities, account for a significant portion of this amount.

• Project Execution Risk: Hydropower projects are complex, capital-intensive, and have long gestation periods. Delays can lead to significant cost overruns. For example, the Subansiri Lower project's anticipated cost is ₹27,948.52 crore, a substantial increase from its original estimate of ₹6,285.33 crore in 2002.

• Regulatory & Clearance Risk: A large part of the future growth pipeline (10,763 MW) is dependent on receiving timely statutory, environmental, and forest clearances, which can be a lengthy and uncertain process.

Key risks are concentrated in receivables collection from state utilities and the inherent execution and regulatory hurdles associated with large-scale infrastructure projects.

• Major Commissioning Milestones:

• The 800 MW Parbati-II Hydroelectric Project was fully commissioned in April 2025, becoming NHPC's largest operating power station.

• Two units (500 MW) of the Subansiri Lower project, the country's largest hydro project, were commissioned in late 2025 and early 2026.

• The 300 MW Karnisar Solar Power project in Rajasthan was fully commissioned in October 2025.

• New Project Agreements:

• MoUs were signed with the Government of Chhattisgarh in August 2025 to develop two major Pumped Storage Projects with a combined capacity of 1,800 MW.

• Project Clearances:

• The Central Electricity Authority (CEA) has given its concurrence for the 1,720 MW Kamala Hydroelectric Project in Arunachal Pradesh in May 2025, moving a major project one step closer to execution.

The company has recently achieved significant operational milestones by commissioning several large-scale hydro and solar projects, while simultaneously securing the pipeline for future growth through new agreements and clearances.