NHPC Powers Ahead: Strong 9M FY'26 Performance and Ambitious Growth Trajectory

NHPC Limited, a prominent Navratna Public Sector Undertaking in India's hydropower sector, has reported a robust financial performance for the first nine months of Financial Year 2026, ending December 31, 2025. The company's consolidated total income reached an impressive 9,566 Crore, with a Profit After Tax (PAT) of 2,671 Crore. This strong showing was significantly bolstered by a 15% year-on-year increase in power generation, totaling 25,849 Million Units (MUs), primarily driven by the commissioning of new projects. Revenue from operations also saw a healthy 10% increase, reaching 8,800 Crore, underscoring the company's operational efficiency and strategic capacity additions.

Operational Excellence and Capacity Expansion

NHPC's commitment to expanding its operational footprint was a key highlight of the period. The company successfully commissioned two units of the Subansiri Lower Hydroelectric Project, each contributing 250 MW, on December 23, 2025, and February 1, 2026, respectively. This 2000 MW project, set to be fully operational by December 2026, is poised to become India's largest hydro power station. Furthermore, the 800 MW Parbati-II Hydroelectric Project was fully commissioned on April 15, 2025, now standing as NHPC's largest fully operational power station. Diversifying its energy mix, NHPC also fully commissioned the 300 MW Karnisar Solar Power Project in Bikaner, Rajasthan, on October 16, 2025, marking its largest operational solar asset.

The company's project pipeline remains formidable, with several large-scale projects under construction. The Dibang Multipurpose Project (2880 MW) is progressing well, with all major contracts awarded and works in full swing. Other significant projects include Teesta-VI (500 MW) at 71% physical progress, Ratle Hydroelectric Project (850 MW) at 26% progress, and the Chenab Valley Power Projects Limited (a subsidiary) projects like Pakal Dul (1000 MW) and Kiru (624 MW), both at 77% physical progress. These projects, with attractive levelized tariffs, are on track for commissioning by their respective target dates, demonstrating NHPC's strong execution capabilities.

Strategic Diversification: Renewables and Storage

NHPC is strategically pivoting towards a more diversified energy portfolio, with a strong emphasis on renewable energy and energy storage solutions. The company's solar capacity under construction stands at 1,190 MW, with significant portions expected to be commissioned by the end of the next financial year. However, management acknowledged challenges in securing Power Purchase Agreements (PPAs) for some solar projects due to evolving demands from Discoms, who are increasingly seeking 24-hour Round-The-Clock (RTC) supply or assured peak power, rather than standalone solar.

Recognizing the critical role of energy storage in a renewable-heavy grid, NHPC is aggressively pursuing Pumped Storage Schemes (PSPs). The company is exploring PSPs across multiple states, including Maharashtra, Andhra Pradesh, Madhya Pradesh, Odisha, Rajasthan, and Chhattisgarh. Notably, MoUs have been signed with the Government of Chhattisgarh for the Kurund (1000 MW) and Hasdeo Bango (800 MW) PSPs. NHPC plans to commence construction on at least two PSPs, totaling over 2,000 MW, during the current calendar year (2026). These projects are viewed as highly attractive, with competitive generation costs, and are crucial for grid stability and meeting future energy demands.

Financial Health and Future Outlook

NHPC's financial health remains robust, supported by a strong balance sheet and disciplined capital allocation. The company's Debt Equity Ratio stands at 1.17 on a consolidated basis for 9M FY'26. Management provided clear CAPEX guidance, projecting Rs. 13,300 Crore for the current fiscal year (FY'26) and Rs. 15,000 Crore for FY'27, with an average annual CAPEX of Rs. 12,000-13,000 Crore thereafter. This substantial investment is aimed at fueling its ambitious growth plans across hydro, solar, and pumped storage projects.

Despite some operational challenges, such as a 3% decrease in Plant Availability Factor (PAF) due to monsoon shutdowns and geological issues affecting certain projects, management expressed confidence in its ability to navigate these hurdles. They are optimistic about CERC's understanding of cost overruns beyond management control for tariff determination, ensuring recovery for delayed projects. The company's proactive engagement with local authorities to resolve issues like protests hindering project surveys further underscores its commitment to project execution.

NHPC is poised for sustained growth, driven by its strong project pipeline, strategic diversification into renewables and storage, and a clear vision for contributing to India's clean power future. The management's focus on timely project commissioning and efficient operations positions NHPC as a key player in the nation's energy transition.