NHPC - NHPC Ltd
📢 Recent Corporate Announcements
NHPC's Board has approved the monetization of future cash flows, specifically the Return on Equity (RoE), from its Uri-II and Dhauliganga Power Stations. This monetization will span a 10-year period and is scheduled to be executed in a single tranche during the financial year 2026-27. The move is designed to unlock immediate capital from existing assets, which can be redeployed into the company's extensive pipeline of new hydroelectric and renewable projects. The board also reserved the right to include other power stations in this monetization scheme if required.
- Monetization of future Return on Equity (RoE) approved for Uri-II and Dhauliganga Power Stations.
- The monetization period is fixed for 10 years starting from FY 2026-27.
- The transaction is planned as a single tranche to maximize immediate liquidity.
- The proposal allows for the inclusion of additional power stations beyond the two named units.
- Board meeting concluded on April 14, 2026, confirming the strategic shift toward asset recycling.
The Cabinet Committee on Economic Affairs (CCEA) has approved a massive investment of ₹26,069.50 crore for the 1720 MW Kamala Hydro Electric Project in Arunachal Pradesh. The project will be implemented through a Joint Venture with the State Government and is expected to generate 6870 MUs of energy annually. The Government of India is providing substantial budgetary support of over ₹6,000 crore for infrastructure and flood moderation. While the completion period is long at 96 months, this significantly bolsters NHPC's long-term capacity growth and renewable energy footprint.
- Total investment of ₹26,069.50 crore approved for the 1720 MW Kamala Hydro Electric Project.
- Expected annual energy generation of 6870 MUs with a project completion timeline of 96 months.
- Government of India to provide ₹4,743.98 crore for flood moderation and ₹1,340 crore for infrastructure support.
- Central Financial Assistance of ₹750 crore provided towards the equity share of the State Government.
- Project to be executed via a Joint Venture between NHPC Limited and the Govt. of Arunachal Pradesh.
NHPC Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, provided by KFin Technologies Limited, confirms that share dematerialization and rematerialization requests for the quarter ended March 31, 2026, have been processed. This is a standard administrative procedure to ensure that the company's share records are accurately maintained with the depositories. The filing indicates that the company is adhering to its regulatory reporting timelines.
- Compliance certificate for the quarter ended March 31, 2026, submitted to BSE and NSE.
- KFin Technologies Limited confirmed the processing of demat and remat requests during the period.
- Details of securities have been furnished to all stock exchanges where NHPC shares are listed.
NHPC's subsidiary, NHDC Limited, has received an income tax demand notice of ₹231.78 crore for the assessment year 2024-25, which includes ₹45.31 crore in interest. The company clarified that the demand arose because the assessing officer failed to consider eligible MAT credit worth ₹184.37 crore and is filing for rectification under Section 154. Additionally, NHPC has increased its stake in Ratle Hydroelectric Power Corporation Limited (RHPCL) from 49.72% to 51% following a matching equity contribution. This change solidifies NHPC's majority control over the RHPCL subsidiary.
- NHDC Limited received a tax demand of ₹231.78 crore, including ₹45.31 crore in interest charges.
- The tax dispute centers on ₹184.37 crore of MAT credit which the company claims was erroneously ignored by the tax department.
- NHPC's shareholding and voting rights in RHPCL increased from 49.72% to 51% after equity allotment.
- The company expects no significant financial impact once the tax rectification process is completed.
NHPC Limited has signed a formal implementation agreement with Jammu & Kashmir State Power Development Corporation Limited (JKSPDCL) for two major hydroelectric projects. The projects include the 240 MW Uri-I Stage-II and the 260 MW Dulhasti Stage-II, totaling 500 MW of new capacity in Jammu & Kashmir. These projects will be developed on a Build-Own-Operate-Transfer (BOOT) basis for a long-term period of 40 years. This move strengthens NHPC's project pipeline and ensures long-term revenue visibility from the region.
- Agreement signed for 240 MW Uri-I Stage-II and 260 MW Dulhasti Stage-II projects
- Total combined capacity addition of 500 MW in the UT of Jammu & Kashmir
- Projects to be developed on a BOOT basis with a 40-year concession period
- Partnership finalized with JKSPDCL following an earlier preliminary communication in Feb 2026
NHPC Limited's Board of Directors has approved a proposal to raise debt up to Rs 8,000 crore during the financial year 2026-27. The funds are intended to be raised through a mix of Non-Convertible Corporate Bonds, Term Loans, and External Commercial Borrowings (ECB). This borrowing plan will be executed in one or more tranches on a private placement basis. Such a significant fundraise typically supports the company's capital-intensive hydroelectric projects and long-term expansion goals.
- Approved borrowing limit of up to Rs 8,000 crore for the financial year 2026-27.
- Fundraising via Secured/Unsecured, Redeemable, Taxable, Non-Convertible Corporate Bonds.
- Option to raise funds through Term Loans and External Commercial Borrowings (ECB) in suitable tranches.
- Bonds to be issued on a private placement basis in one or more series/tranches.
NHPC Limited has informed the stock exchanges that its trading window for dealing in company securities will be closed starting April 1, 2026. This action is a standard regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of financial results. The window will remain closed until 48 hours after the announcement of the financial results for the quarter and year ending March 31, 2026. The specific date for the Board Meeting to approve these results will be shared at a later date.
- Trading window closure effective from April 1, 2026
- Closure relates to financial results for the quarter and year ending March 31, 2026
- Window to reopen 48 hours after the official declaration of results
- Complies with Clause 4 of Schedule B and Regulation 9 of SEBI Insider Trading rules
NHPC Limited has been assigned an ESG (Environmental, Social, and Governance) score of 60 by ESG Risk Assessments & Insights Limited. This assessment was conducted independently by the rating agency using publicly available data, rather than through a formal engagement by the company. The disclosure is part of the mandatory reporting under SEBI LODR regulations. For investors, this score provides a baseline for the company's sustainability and governance performance relative to the broader market.
- ESG Risk Assessments & Insights Limited assigned an ESG score of 60 to NHPC Limited.
- The rating was prepared independently based on public domain data without company engagement.
- Disclosure made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.
- The score is now available for public record on both BSE and NSE websites.
NHPC Limited has scheduled a Board of Directors meeting for March 25, 2026, to deliberate on the company's borrowing plan for the financial year 2026-27. The proposal includes raising funds through various instruments such as secured or unsecured corporate bonds, term loans, and External Commercial Borrowings (ECB). Consequently, the trading window for NHPC securities will be closed for designated persons from March 19 to March 27, 2026. This meeting is a critical step in securing the necessary capital for the company's upcoming projects and operational needs in the next fiscal year.
- Board meeting scheduled for March 25, 2026, to approve the FY 2026-27 borrowing plan.
- Fundraising options include corporate bonds, term loans, and External Commercial Borrowings (ECB).
- Trading window closure period set from March 19, 2026, to March 27, 2026.
- The borrowing plan is intended to meet financial requirements for the upcoming 2026-27 fiscal year.
NHPC Limited has declared the Commercial Operation (CoD) of Unit #1 (250 MW) of its 2000 MW Subansiri Lower Hydroelectric Project, effective March 20, 2026. This project, located across Assam and Arunachal Pradesh, consists of eight units of 250 MW each. With this latest commissioning, a total of three units (750 MW) have now achieved commercial operation status. The company expects to commission the remaining five units (1250 MW) in a phased manner, which will significantly enhance its revenue-generating capacity.
- Unit #1 (250 MW) to start commercial operations from 00:00 hours on March 20, 2026.
- Subansiri Lower HE Project has a total planned capacity of 2000 MW (8 x 250 MW).
- Three units (Unit #1, #2, and #3) are now in commercial operation, totaling 750 MW.
- The project is a major hydroelectric asset situated in the Assam/Arunachal Pradesh region.
NHPC Limited has informed the exchanges that Shri Premkumar Goverthanan (DIN: 10064794) has ceased to be an Independent Director of the company effective March 2, 2026. This change comes upon the completion of his tenure as per the Ministry of Power (MoP) order dated March 2, 2023. The transition is a routine administrative matter in compliance with SEBI Listing Obligations and Disclosure Requirements. As a PSU, such board rotations are standard and do not indicate any internal conflict or operational shift.
- Shri Premkumar Goverthanan ceased to be an Independent Director effective March 2, 2026.
- The cessation follows the completion of a fixed tenure mandated by the Ministry of Power order dated March 2, 2023.
- The announcement was made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.
- The change is part of routine board rotation and is not expected to impact the company's strategic direction.
NHPC Limited has successfully raised ₹2,000 crore via the private placement of unsecured, non-convertible bonds designated as the AH Series 2041. The bonds carry a fixed coupon rate of 7.29% per annum and have a long-term tenure of 15 years. Principal repayment is structured to occur in ten equal annual installments of ₹200 crore each, starting from the end of the 6th year (February 2032). This capital raise is part of the company's routine financing strategy for its long-gestation hydro and renewable energy projects.
- Raised ₹2,000 crore through private placement of 2,00,000 bonds at ₹1,00,000 each.
- Fixed coupon rate of 7.29% p.a. with a 15-year tenure maturing on February 27, 2041.
- Principal repayment structured in 10 annual installments of ₹200 crore starting from the 6th anniversary.
- The bonds are unsecured, non-cumulative, and will be listed on the Wholesale Debt Market segments of BSE and NSE.
NHPC's board has approved investment proposals for two major hydroelectric projects in Jammu & Kashmir with a combined capacity of 500 MW. The Uri-I Stage-II (240 MW) project is estimated to cost ₹2,708.95 crore, while the Dulhasti Stage-II (260 MW) project is budgeted at ₹2,993.96 crore. Construction for both projects is scheduled to commence on March 1, 2026, pending final implementation agreements with the UT government. This move represents a significant capital expenditure aimed at long-term capacity growth.
- Approved Uri-I Stage-II HE Project (240 MW) with an estimated cost of ₹2,708.95 Crore
- Approved Dulhasti Stage-II HE Project (260 MW) with an estimated cost of ₹2,993.96 Crore
- Total combined investment outlay for both projects is approximately ₹5,702.91 Crore
- Construction start date for both projects is targeted for March 1, 2026
- Projects include specific allocations for Interest During Construction (IDC) and enabling infrastructure
NHPC Limited has announced its participation in the Kotak Securities' Chasing Growth 2026 Investor Conference. The event is scheduled for February 24, 2026, and will involve in-person interactions with analysts and investors in Mumbai. This engagement is part of the company's routine investor relations activities as per SEBI (LODR) Regulations, 2015. While no specific financial data was disclosed, such conferences often serve as a platform for management to discuss growth strategies and project updates.
- Participation in Kotak Securities' Chasing Growth 2026 Investor Conference.
- Scheduled date for the in-person interaction is Tuesday, February 24, 2026.
- The conference will take place in Mumbai, involving analysts and institutional investors.
- Disclosure made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.
NHPC Limited has announced that it has been awarded an ESG rating of 61 out of 100 by S&P Global. This score is based on the Corporate Sustainability Assessment (CSA)-2025, in which the company participated during January 2026. A solid ESG score is increasingly important for attracting institutional capital and ESG-focused investment funds. This disclosure demonstrates the company's commitment to transparency and sustainability benchmarks in the power sector.
- NHPC awarded an ESG score of 61/100 by S&P Global.
- Rating based on the Corporate Sustainability Assessment (CSA)-2025.
- The company participated in the assessment process in January 2026.
- The score is publicly accessible via the S&P Global sustainability portal.
Financial Performance
Revenue Growth by Segment
Consolidated operating income grew 7.3% YoY from INR 10,346 Cr in FY24 to INR 11,101 Cr in FY25. This growth was primarily driven by the power generation segment, despite a 8.7% dip in standalone generation (19,878 MUs in FY25 vs 21,779 MUs in FY24) because the cost-plus tariff model ensures recovery of fixed costs regardless of volume fluctuations.
Geographic Revenue Split
Revenue is primarily generated from Northern, Eastern, and Northeastern India. NHPC operates 23 power stations across 13 states, with significant exposure to Jammu & Kashmir and Himachal Pradesh, where major projects like Parbati-II (800 MW) and Uri-I are located.
Profitability Margins
Net Profit Margin (PAT/OI) declined from 38.6% in FY24 to 30.7% in FY25. Profit After Tax (PAT) fell 14.7% YoY to INR 3,409 Cr in FY25 from INR 3,995 Cr in FY24, primarily due to the shutdown of the Teesta-V project and lower water availability which reduced incentive income and operational efficiency.
EBITDA Margin
EBITDA margin (OPBDIT/OI) compressed from 57.0% in FY24 to 52.3% in FY25. This 4.7% margin contraction was caused by higher operational expenses and lower generation at key plants like Teesta-V and TLDP-III due to flash floods and outages.
Capital Expenditure
NHPC has a massive capex plan with INR 11,596 Cr spent in FY25 and a target of INR 13,052 Cr for FY26. Total planned capitalization of approximately INR 35,000 Cr in regulated assets is expected during FY26-FY27, driven by the commissioning of 3,500 MW of new capacity.
Credit Rating & Borrowing
Maintains a [ICRA]AAA (Stable) rating. Borrowing costs are highly competitive due to GoI ownership (67.4%), with access to long-term subordinated debt at concessional rates for strategically important projects in J&K.
Operational Drivers
Raw Materials
Water (Hydrology) is the primary 'raw material' representing 0% of direct purchase cost but 100% of generation potential; Solar PV modules and Wind turbines represent 70-80% of project costs for the 1,383 MW solar and wind pipeline.
Import Sources
Water is sourced from Himalayan river basins (Indus, Ganga, Brahmaputra). Solar components are largely sourced from domestic manufacturers and imports from China for the 1.4 GW solar expansion.
Key Suppliers
Major EPC and equipment suppliers include BHEL, GE Power, and various solar module manufacturers for the 6.4 GW solar pipeline awarded under the REIA scheme.
Capacity Expansion
Current installed capacity is 8,140 MW (7,771 MW Hydro, 369 MW Renewable). Planned expansion includes 9,897 MW under construction (8,514 MW Hydro, 1,383 MW Solar) and a pipeline of 24,535 MW under survey, including 19,060 MW of Pumped Storage Projects (PSPs).
Raw Material Costs
Direct raw material costs are negligible for hydro; however, construction material costs (steel, cement) for the INR 13,052 Cr FY26 capex are significant. Procurement is managed through competitive bidding to optimize project IRR.
Manufacturing Efficiency
Plant Availability Factor (PAF) stood at 73.9% in FY25, down from 77.6% in FY24. The company earned INR 384.77 Cr in incentive income in FY25 by maintaining availability above normative levels despite adverse conditions.
Logistics & Distribution
Power is distributed via the Inter-State Transmission System (ISTS). Distribution risk is mitigated by Tripartite Agreements (TPA) between the GoI, State Governments, and RBI, ensuring payment security.
Strategic Growth
Expected Growth Rate
15-18%
Growth Strategy
Growth will be achieved through the commissioning of 1,370 MW capacity in FY26, including the 800 MW Parbati-II project. This will increase the regulated equity base from INR 14,161 Cr in FY25 to over INR 18,000 Cr in FY26, directly boosting PAT under the CERC cost-plus model.
Products & Services
Hydroelectric power, Solar power, Wind power, and Project Management Consultancy services.
Brand Portfolio
NHPC (Navratna PSU), NHPC Renewable Energy Limited, Jal Power Corporation Limited, NHDC Limited.
New Products/Services
Pumped Storage Projects (PSPs) with 19,060 MW in the pipeline to provide peaking power and grid balancing, which can command a premium tariff over base-load hydro.
Market Expansion
Expanding into Gujarat (900 MW Kuppa PSP), Chhattisgarh (MoU signed), and Odisha (Harbhangi and Badanalla PSPs) to diversify beyond the Himalayan region.
Market Share & Ranking
NHPC is the largest hydropower utility in India, accounting for approximately 15% of the country's total installed hydro capacity.
Strategic Alliances
JVs include Chenab Valley Power Projects Limited (59.15% stake) and Ratle Hydroelectric Power Corporation Limited for projects in J&K.
External Factors
Industry Trends
The industry is shifting toward 'Hydro as a Battery' via PSPs. The Ministry of Power's Hydropower Purchase Obligation (HPO) trajectory till FY2030 ensures mandatory demand for NHPC's power from all Discoms.
Competitive Landscape
Key competitors include SJVN, NTPC (Hydro division), and NEEPCO, though NHPC remains the dominant specialist player in the hydro segment.
Competitive Moat
Moat is built on 'Cost-Plus' regulation and 'High Entry Barriers'. Large hydro projects take 10-15 years to build and require massive capital (INR 111,562 Cr asset base), making it nearly impossible for new private entrants to compete at NHPC's scale.
Macro Economic Sensitivity
Highly sensitive to government infrastructure spending and renewable energy targets. National goal of 500 GW non-fossil capacity by 2030 drives NHPC's 1.4 GW solar and 19 GW PSP pipeline.
Consumer Behavior
Increasing demand for 'Round-the-Clock' (RTC) renewable energy is forcing Discoms to seek hydro/PSP power to balance intermittent solar/wind supply.
Geopolitical Risks
Strategic projects in Jammu & Kashmir and Arunachal Pradesh (Subansiri Lower) are subject to regional stability and border security considerations.
Regulatory & Governance
Industry Regulations
Governed by CERC Tariff Regulations 2024-29. These norms define the 15.5% RoE and recovery of all fixed costs (depreciation, O&M, interest) provided normative plant availability is met.
Environmental Compliance
All operational units are compliant with environmental norms. Large hydro projects face moderate social risks related to Resettlement & Rehabilitation (R&R), which NHPC manages through established statutory permits.
Taxation Policy Impact
Effective tax rate is approximately 25-28%; H1 FY26 tax provision stood at INR 923.14 Cr on a PBT of INR 3,273.58 Cr.
Legal Contingencies
Critical monitorable is the CERC approval of capital cost for Parbati-II and Subansiri Lower; any 'disallowance' of cost overruns by the regulator would directly impact the equity base and future PAT.
Risk Analysis
Key Uncertainties
Project execution risk: Subansiri Lower (2000 MW) has faced significant time and cost overruns. Any further delay beyond FY26 would defer the expected INR 4,000 Cr jump in regulated equity.
Geographic Concentration Risk
High concentration in the Himalayan belt (J&K, Himachal, Sikkim, Arunachal), making the portfolio vulnerable to regional seismic activity and climate-change-induced flash floods.
Third Party Dependencies
Dependency on State Discoms for revenue; however, the TPA and LPS rules have improved collection efficiency to nearly 100% in recent cycles.
Technology Obsolescence Risk
Low risk for hydro assets which have a 40-year PPA and 100-year physical life. Digital transformation is focused on real-time grid integration for the 6.4 GW solar portfolio.
Credit & Counterparty Risk
Counterparty risk is 'Satisfactory' but monitored. Cash and bank balances of INR 2,750 Cr provide a liquidity cushion against any temporary payment delays from weak Discoms.