NHPC reported an 18.5% rise in revenue for the June quarter, driven by new capacity additions like Subansiri Lower. However, shares fell approximately 2% on August 5, 2026, as investors weighed the benefits of this expansion against rising interest and depreciation costs, which kept net profit growth muted at 2.9%.
NHPC Ltd released its financial results for the first quarter of fiscal year 2027, revealing a performance that produced mixed reactions from the stock market. On August 5, 2026, the company’s share price fell by approximately 2% as investors assessed the financial impact of its recent large-scale infrastructure projects.
The company reported a strong increase in its operational numbers, with consolidated revenue rising 18.5% year-on-year to ₹3,808 crore. Operating profit, or EBITDA, grew even faster, jumping 30.6% to ₹2,352 crore, with margins reaching 61.8%. This growth was primarily driven by the commissioning of new power units, including significant contributions from the Subansiri Lower project, and the return to service of the Teesta-V power station, which resumed operations in July 2026 after being offline due to flood damage.
Despite this strong operational performance, the company’s bottom-line net profit grew by only 2.9%, reaching ₹1,096 crore. For investors, this smaller profit growth is a key point of focus. As NHPC completes and commissions its massive power projects, it incurs higher interest payments on the debt taken to build them. Additionally, it must record higher depreciation charges—a non-cash expense that accounts for the wear and tear of these new assets. Together, these higher finance and depreciation costs offset much of the operational gain, limiting the net profit growth that shareholders ultimately see.
Looking ahead, the company faces inherent risks associated with its business model. Developing large hydroelectric projects involves complex engineering in difficult terrain, which brings significant execution risk, such as potential delays or cost increases. Furthermore, the company is still awaiting final tariff approvals from the Central Electricity Regulatory Commission (CERC). These final approvals are essential, as they determine the actual revenue the company can collect from its projects.
Investors will likely track the company's ability to manage its debt levels while continuing its expansion plans. While new capacity additions are helping the company grow its revenue, the speed at which this growth converts into bottom-line profit will depend on controlling finance costs, maintaining steady power generation despite environmental and water-flow variations, and successfully securing regulatory tariff approvals for its new units.