NHPC Q1 FY’26 presentation: Revenue jumps 19%, ambitious capacity expansion ahead

Introduction & Market Context

NHPC Ltd (NSE:NHPC), India’s premier hydropower company, presented strong first-quarter results for fiscal year 2025-26, showcasing robust financial growth and significant progress on its capacity expansion plans. The state-owned enterprise, which recently achieved Navratna status in August 2024, continues to strengthen its position in India’s renewable energy landscape with a diversified portfolio spanning hydroelectric, solar, and wind power projects.

As a key player controlling 16% of India’s installed hydroelectric capacity, NHPC is strategically positioned in a sector that represents 10% of the country’s total power generation capacity. The company’s consolidated physical snapshot reveals its extensive operational footprint across 15 states and 2 union territories.

As shown in the following comprehensive overview of NHPC’s operations and geographical presence:

Quarterly Performance Highlights

NHPC reported impressive financial results for Q1 FY’26, with consolidated revenue from operations reaching ₹3,213.77 crore, marking a significant 19.28% increase compared to ₹2,694.20 crore in the same quarter last year. Total income rose to ₹3,442.76 crore, up 13.33% year-over-year, despite a 33.38% decline in other income.

The company achieved an EBITDA of ₹2,032 crore with a robust EBITDA margin of 59%, while profit after tax attributable to owners of the parent company stood at ₹1,065.02 crore, representing a healthy profit margin of 35%. These strong financial metrics underscore NHPC’s operational efficiency and revenue generation capabilities.

The following consolidated financial highlights provide a detailed breakdown of the company’s Q1 FY’26 performance:

Generation performance also showed improvement, with consolidated generation increasing to 8,813 MU (million units) in Q1 FY’26 from 7,914 MU in Q1 FY’25. This represents 22% of India’s total hydropower generation for the quarter, reinforcing NHPC’s crucial role in the country’s renewable energy landscape.

The company’s key financial ratios and balance sheet position as of Q1 FY’26 provide further insight into its financial health:

NHPC’s statement of assets and liabilities reveals a strengthened financial position, with shareholders’ funds increasing to ₹40,725.71 crore in Q1 FY’26 from ₹39,668.16 crore at the end of FY’25. However, long-term borrowings also rose to ₹37,977.55 crore from ₹35,681.73 crore, reflecting the company’s ongoing capital expenditure for expansion projects.

Strategic Initiatives

NHPC’s ambitious capacity expansion strategy is central to its long-term growth plans. The company currently operates with an installed capacity of 8,247 MW, comprising 7,771 MW of hydropower and 476 MW of renewable energy across 30 power stations. Its project pipeline is substantial, with 9,790 MW under construction, 7,666 MW awaiting clearances, and an impressive 20,950 MW under survey and investigation.

The following breakdown illustrates NHPC’s current capacity and future project pipeline:

The company’s capacity addition roadmap outlines a clear trajectory for growth, with plans to increase its consolidated capacity to 13,405 MW by FY 2029-30. Key projects contributing to this expansion include the Subansiri Lower (1,250 MW), Teesta VI (500 MW), Kwar (540 MW), and Ratle (850 MW).

NHPC has significantly increased its capital expenditure to support this growth strategy. The CAPEX for FY’25 reached ₹11,596 crore on a consolidated basis, and the target for FY’26 is set at an ambitious ₹13,052 crore. This represents a substantial increase from the ₹2,722 crore spent in FY’18, highlighting the company’s accelerated investment in capacity expansion.

A notable strategic shift is NHPC’s growing focus on diversification beyond traditional hydropower into solar, wind, and pump storage projects. The company has partially commissioned 214.28 MW out of a 300 MW solar power project in Bikaner, Rajasthan, with full commissioning expected by September 2025. Additionally, NHPC has signed MoUs with the governments of Chhattisgarh and Rajasthan for the joint development of pump storage and other renewable energy projects.

The company’s key financials and shareholding pattern demonstrate its strong foundation for executing these strategic initiatives:

Forward-Looking Statements

NHPC’s presentation highlighted several major achievements and future milestones. The company fully commissioned the Parbati-II Hydroelectric Project (800 MW) on April 15, 2025, marking a significant addition to its operational capacity. Furthermore, the Central Electricity Authority accorded concurrence to the 1,720 MW Kamala Hydroelectric Project in Arunachal Pradesh in May 2025, adding another substantial project to NHPC’s pipeline.

The company is making significant inroads into pump storage projects across multiple states, including Maharashtra, Andhra Pradesh, Madhya Pradesh, Odisha, and Gujarat. These projects, with a combined capacity of over 19,000 MW, represent NHPC’s strategic response to India’s growing need for flexible power generation and storage solutions to complement the increasing share of intermittent renewable energy sources in the country’s power mix.

NHPC’s international expansion is also progressing, with survey and investigation work underway for the West Seti (800 MW) and SR6 (460 MW) hydroelectric projects in Nepal, signaling the company’s ambitions beyond India’s borders.

With a clear focus on expanding its renewable energy portfolio and maintaining its leadership in hydropower, NHPC is well-positioned to capitalize on India’s energy transition while contributing significantly to the country’s clean energy goals. The company’s robust financial performance in Q1 FY’26, combined with its extensive project pipeline and strategic diversification efforts, suggests a promising outlook for sustainable growth in the coming years.

Full presentation:

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