NHPC - NHPC Limited Share Price

During the earnings call on February 6, 2026, management provided an optimistic outlook for NHPC Limited, citing several key metrics and future growth plans:

1. Financial Performance: For the nine months ended December 31, 2025, NHPC's power generation increased to 25,849 MUs from 22,397 MUs, a growth of about 15%. Revenue rose to Rs.8,800 Crore, a 10% year-on-year increase, and Profit After Tax (PAT) reached Rs.2,306 Crore, reflecting a 7% increase from Rs.2,153 Crore.

2. Project Developments:

   • Subansiri Lower Project (2,000 MW): Two units have entered commercial operation, with a third unit expected shortly. Full commissioning of all units is targeted by December 2026, with Rs.25,691 Crore already spent against a revised budget of Rs.27,949 Crore.
   • Karnisar Solar Project (300 MW): This is NHPC's largest solar project, now fully operational.
   • Dibang Multipurpose Project (2,880 MW): Major contracts are nearly awarded, with a levelized tariff of Rs.4.46 per unit.
   • Teesta-VI: Physical progress stands at 71%, aiming for commissioning in 2029.
   • Rangit-IV: Expected to be completed by October-November 2026 with 95% progress.

3. Future Capacity Expansion:

   • In FY'26, management anticipates spending about Rs.13,300 Crore on CAPEX and Rs.15,000 Crore in FY'27, with a capacity addition of approximately 2,744 MW in FY'27 from hydro alone and an ongoing solar capacity plan of 1,190 MW.
   • New projects, including the Kamala (1,720 MW) and Upper Subansiri (1,605 MW), are expected to begin construction by the end of FY'26.

4. Pumped Storage Initiatives: NHPC is exploring various sites for pumped storage projects, planning to start at least two this calendar year, adding around 2,000 MW.

5. Regulatory Outlook: Management expressed confidence that cost overruns, deemed beyond control, will be accepted for tariff determination by CERC, ensuring the financial sustainability of their projects.

Overall, NHPC Limited's management indicated a robust growth trajectory in both renewable energy and hydroelectric projects, underpinned by strong financial results and strategic project completions.

Here are some of the major questions and answers from the Q&A section of the NHPC earnings transcript:

Question: "So, I just want to know your CAPEX guidance for FY'27 and FY'28 and if you can just repeat the CAPEX that you have incurred for FY'26?"

Answer: "For Nine Months FY'26, our CAPEX is Rs. 8,844 Crore compared to Rs. 7,405 Crore last year. We plan to spend Rs. 13,300 Crore in FY'27 and Rs. 15,000 Crore in FY'28. Post that, our average annual CAPEX will range between Rs. 12,000 to 13,000 Crore."

Question: "Can you share the total capacity addition you intend to do for FY'27 and FY'28, bifurcated between hydro and renewable?"

Answer: "We've already added 1,350 MW this year. By March'26, we're set to add 2,100 MW more. For FY'27, we expect to add 2,744 MW from hydro and an additional 1,190 MW from solar capacity under construction, most of which will be added by the end of next financial year."

Question: "In Q3 FY'26, generation increased by 23%, but revenue declined by 3%. Any reason for this?"

Answer: "Yes, our revenue drop is primarily due to a one-off revenue of approximately Rs. 500 Crore in the previous year's Q3 from pay anomalies and arbitration interest. Excluding this, our revenue shows a better performance compared to the prior year."

Question: "What is the levelized tariff for the Subansiri Lower Hydroelectric Project?"

Answer: "The levelized tariff is set at around Rs. 7.50 per unit, based on a CAPEX of Rs. 28,000 Crore. We believe CERC will consider cost overruns that were beyond our control during tariff determination."

Question: "Can you provide insight on the pump storage projects and when construction might begin?"

Answer: "We anticipate starting construction on at least two pump storage projects of around 2,000 MW this year. The exact timeline for commissioning will depend on regulatory approvals, but we're optimistic about viability and demand for these projects."

These responses succinctly summarize the management's key points about financials, project timelines, and future strategies while providing relevant figures and forecasts.