NHPC profit rises 36% to Rs 1,658 crore in September quarter

NHPC Limited reported consolidated profit of Rs 1,657.57 crore for the quarter ended September 30, 2026, up 36% year on year, as revenue from operations rose 33% to Rs 4,482.55 crore and operating margin reached 51.88%. The unaudited results were approved on November 4, 2026.

What drove NHPC's September-quarter profit increase?

NHPC's September-quarter profit increased as revenue from operations grew by Rs 1,117.29 crore from a year earlier and profit before movement in regulatory deferral account balances rose to Rs 1,361.56 crore from Rs 1,036.54 crore. The net movement in regulatory deferral account balances increased to Rs 296.01 crore from Rs 182.74 crore, taking reported profit for the period to Rs 1,657.57 crore.

Revenue from operations was Rs 4,482.55 crore, compared with Rs 3,365.26 crore in the quarter ended September 30, 2025, and Rs 3,808.31 crore in the preceding quarter ended June 30, 2026. Other income declined to Rs 187.03 crore from Rs 264.72 crore a year earlier, but total income still increased to Rs 4,669.58 crore from Rs 3,629.98 crore, led by operating revenue.

Total expenses rose to Rs 2,772.98 crore from Rs 2,057.54 crore in the September 2025 quarter. Profit before exceptional items, regulatory deferral account balances, tax and the share of profit from associate and joint venture entities was Rs 1,896.60 crore, compared with Rs 1,572.44 crore a year earlier; NHPC's share of such equity-accounted profit was Rs 0.95 crore, against Rs 0.09 crore.

NHPC's half-year results showed revenue from operations of Rs 8,290.86 crore for the half year ended September 30, 2026, compared with Rs 6,579.03 crore in the corresponding 2025 period. Half-year profit rose to Rs 2,835.66 crore from Rs 2,350.44 crore, while total income increased to Rs 8,629.30 crore from Rs 7,072.74 crore.

How did NHPC's margins and costs change during the quarter?

NHPC's operating margin improved to 51.88% in the September 2026 quarter from 48.65% a year earlier and 47.73% in the June 2026 quarter. Net profit margin was 36.98%, compared with 36.23% in the September 2025 quarter and 30.93% in the preceding quarter, based on the company's reported definitions of operating profit and profit for the period relative to revenue from operations.

Finance costs doubled year on year to Rs 556.17 crore from Rs 277.69 crore, while depreciation, amortisation and impairment expense increased to Rs 610.03 crore from Rs 441.46 crore. Other expenses rose to Rs 938.10 crore from Rs 710.25 crore, and employee-benefit expense increased to Rs 392.16 crore from Rs 326.46 crore.

Generation expenses moved in the opposite direction, declining to Rs 276.52 crore from Rs 301.68 crore a year earlier. Sequentially, total expenses increased from Rs 2,661.53 crore in the June 2026 quarter, while revenue from operations increased from Rs 3,808.31 crore, contributing to the quarter-on-quarter operating-margin increase of 4.15 percentage points.

NHPC identifies electricity generation as the group's principal business activity. Its power trading, contracts, project management and consultancy activities do not form reportable segments under Indian Accounting Standard 108, Operating Segments, and the group reports one geographical segment because its power stations are located in India.

What does NHPC's balance sheet say about debt?

NHPC's paid-up debt capital was Rs 59,425.30 crore at September 30, 2026, compared with Rs 54,343.89 crore at March 31, 2026 and Rs 46,940.05 crore a year earlier. The reported amount includes long-term debt, lease liabilities, short-term borrowings and bonds fully serviced by the Government of India.

The debt-equity ratio was 1.36 at September 30, 2026, compared with 1.31 at March 31, 2026 and 1.14 a year earlier. Non-current borrowings increased to Rs 50,519.93 crore from Rs 46,173.52 crore at March 31, while current borrowings rose to Rs 6,699.63 crore from Rs 5,960.42 crore.

Total equity increased to Rs 50,751.78 crore at September 30 from Rs 48,404.85 crore at March 31, 2026. Cash and cash equivalents rose to Rs 2,751.04 crore from Rs 1,961.15 crore, while trade receivables increased to Rs 4,283.37 crore from Rs 2,629.40 crore over the same six-month period.

NHPC reported a debt service coverage ratio of 2.35 for the September 2026 quarter, compared with 2.51 a year earlier and 2.54 in the June 2026 quarter. Its interest service coverage ratio was 4.98, below 5.92 a year earlier but above 3.85 in June, while the current ratio was 1.10 compared with 1.22 in September 2025.

Which projects and regulatory matters affected NHPC's results?

NHPC provisionally recognised Rs 678.17 crore of sales in the September 2026 quarter after commissioning the fourth 250 megawatt, or MW, unit of its 2,000 MW Subansiri Lower Project. Four of eight units, representing 1,000 MW, had been commissioned by September 30, 2026, and a tariff-fixation petition has been filed with the Central Electricity Regulatory Commission, or CERC.

The 800 MW Parbati-II hydroelectric project accounted for provisional sales recognition of Rs 553.47 crore in the September quarter, compared with Rs 217.69 crore in the corresponding 2025 quarter. For the half year, NHPC recognised Rs 1,252.48 crore provisionally for Subansiri Lower and Rs 917.89 crore for Parbati-II, pending final CERC tariff approvals.

NHPC provided Rs 231.30 crore in the September 2026 quarter for survey and investigation expenditure on the Teesta IV hydroelectric project, citing uncertainty over implementation. The company also exercised an option under Section 200(5) of the Income Tax Act, 2025, effective from tax year 2026-27, with the resulting income-tax expense and net deferred-tax liabilities subject to review in forthcoming quarters.

The company commissioned the fifth 250 MW Subansiri Lower unit on October 23, 2026, raising commissioned project capacity to 1,250 MW. Separately, an order remains awaited after a September 28, 2026 hearing on the proposed amalgamation of wholly owned subsidiary Jalpower Corporation Limited with NHPC.

Conclusion

NHPC's September-quarter performance combined a 33% increase in revenue from operations with a 36% rise in consolidated profit and an operating-margin increase to 51.88%. The reported profit also reflected a Rs 296.01 crore movement in regulatory deferral account balances, while finance costs reached Rs 556.17 crore and paid-up debt capital stood at Rs 59,425.30 crore.

The next disclosed operating development is the further commissioning of Subansiri Lower, where capacity had reached 1,250 MW after the October 23, 2026 unit addition. CERC decisions on Subansiri Lower and Parbati-II tariffs, the review of the new tax treatment and the awaited order on the Jalpower Corporation Limited amalgamation remain the disclosed matters to watch next.