NHPC Reports Strong Financials for FY26

NHPC's net profit surged by 25% to Rs 3,766 crore in the fiscal year ended March 31, 2026, up from Rs 3,007 crore in FY25. Revenue from operations grew 12% to Rs 11,615 crore from Rs 10,380 crore in the prior year. Power generation increased by 16% to 29,619 million units from 25,548 million units.

What Happened

NHPC Limited announced its full-year financial results for FY26, showcasing significant growth in both profitability and operational scale. The company reported a Profit After Tax (PAT) of Rs 3,766 crore, a notable increase from Rs 3,007 crore in FY25. Revenue from operations also saw a healthy rise of 12%, reaching Rs 11,615 crore for FY26. This growth was underpinned by a substantial 16% increase in power generation, with the company producing 29,619 million units during the fiscal year. Capital expenditure (CAPEX) also escalated to Rs 13,689 crore from Rs 11,596 crore in the previous year.

Why It Matters

The strong financial performance indicates NHPC's successful execution of its capacity expansion plans, particularly with the commissioning of units at the Subansiri Lower project. The increased power generation directly translates to higher revenue and profits, benefiting shareholders. The significant CAPEX indicates a focus on future growth and asset enhancement.

The Background

NHPC is India's largest hydropower producer and has been instrumental in the country's energy infrastructure development. The company's performance is closely tied to its project execution capabilities and regulatory tariff orders. Recent years have seen a focus on bringing new capacities online and managing operational challenges.

What Changes Now

With the successful commissioning of units at Subansiri Lower, NHPC is poised to leverage these new capacities for revenue generation. The company is also anticipating future tariff orders for key projects like Parbati-II and Subansiri. A shift to a lower tax regime from FY27 is expected to improve post-tax profitability further. Construction on the Indira Sagar-Omkareshwar PSP is slated to commence this year.

Risks to Monitor

Despite the positive results, NHPC faces operational hurdles. The TLDP-III and TLDP-IV projects were impacted by silt issues following flash floods in October 2023, affecting their performance. Furthermore, the company has reported under-recoveries in tariff petitions for Parbati-II and Subansiri Lower projects. The Teesta-V project did not contribute to performance in the last fiscal year, highlighting project-specific sensitivities.

Key Metrics

• FY'26 Revenue: Rs 11,615 Crore (vs Rs 10,380 Crore in FY'25)
• FY'26 PAT: Rs 3,766 Crore (vs Rs 3,007 Crore in FY'25)
• FY'26 Power Generation: 29,619 MU (vs 25,548 MU in FY'25)
• FY'26 CAPEX: Rs 13,689 Crore (vs Rs 11,596 Crore in FY'25)
• Q4 FY'26 PAT: Rs 1,460 Crore (vs Rs 854 Crore in Q4 FY'25)

What to Watch Next

Investors will be closely watching for the final tariff orders for the Parbati-II project, expected this quarter. The progress on the construction of the Indira Sagar-Omkareshwar PSP and any interim tariff orders from the Central Electricity Regulatory Commission (CERC) for the Subansiri Lower project will also be key indicators.