National Hydroelectric Power Corporation (NHPC) reported a 5.2% year-on-year drop in net profit for the third quarter, reaching Rs 219 crore. Revenue also saw a similar 5.2% decline to Rs 2,221 crore. Despite the profit dip, NHPC announced an interim dividend of Rs 1.40 per equity share for the fiscal year 2026, with February 10 set as the record date.
Profit Tumble Amidst Operational Concerns
National Hydroelectric Power Corporation (NHPC) revealed a significant 5.2% decline in its net profit for the third quarter, ending December, with earnings falling to ₹219 crore from ₹231 crore in the same period last fiscal. This downturn accompanies a parallel 5.2% decrease in revenue, which settled at ₹2,221 crore.
EBITDA Plummets, Margin Squeezed
The company's operational performance also showed strain. Operating income, or earnings before interest, taxes, depreciation, and amortization (EBITDA), experienced a steep 79.2% quarter-on-quarter reduction, landing at ₹212 crore. Consequently, the EBITDA margin contracted sharply to 44.4%, indicating pressure on profitability from core operations.
Dividend Payout Signals Shareholder Commitment
Despite the financial headwinds, NHPC's board approved an interim dividend of ₹1.40 per equity share for the fiscal year 2026. This distribution is set to disburse approximately ₹1,968 crore to shareholders. The company has fixed February 10 as the record date for determining eligible shareholders for this payout. This follows previous dividend announcements, including a final dividend of ₹0.51 per share in August and interim dividends of ₹1.40 and ₹0.50 per share in February and August of 2024, respectively.
Market Reaction Cautious
The quarterly results were released after market hours on Wednesday. NHPC's stock closed marginally higher, up 0.01% at ₹78.49 on the BSE, slightly lagging the broader market's advance of 0.09% in the benchmark Nifty 50. Investors will be watching future project execution and operational efficiency to gauge the company's recovery trajectory.
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