NHPC reported a 15% increase in power generation for the first nine months of FY’26, reaching 25,849 MUs, driven by the commissioning of the Parbati-II Power Station. Revenue for the nine months grew by 10% to Rs. 8,800 Crore. The company detailed progress on major projects like Subansiri Lower and the Chenab Basin projects, while setting a consolidated CAPEX guidance of Rs. 13,300 Crore for the current fiscal year, scaling up to Rs. 15,000 Crore next year.
Nine Months FY’26 Performance Overview
NHPC management provided an overview of the financial results for the nine months ending December 31, 2025, adopted in the Board meeting on February 4, 2026.
Generation and Revenue Highlights
- Power generation for Nine Months FY’26 was 25,849 MUs, a rise of approximately 15% over the previous year’s 22,397 MUs, primarily due to the commissioning of the Parbati-II Power Station (800 MW).
- Revenue from Operations increased by 10% to Rs. 8,800 Crore, up from Rs. 8,033 Crore.
- PAT was Rs. 2,306 Crore, a 7% increase.
- Plant Availability Factor for the nine months stood at 79.27%.
- Other Income saw a decrease of about 25%, mainly due to a reduction in the realization of Business Interruption Loss insurance claims related to the Teesta-V Power Station.
Cost Structure Changes
- Employee Cost decreased by Rs. 306 Crore to Rs. 1,096 Crore, due to a notable decrease in Employee Remuneration Pay Anomaly.
- Finance Cost decreased by Rs. 352 Crore to Rs. 849 Crore, primarily due to a drop in Interest on Arbitration and Court cases (by Rs. 894 Crore), offset by increased interest on borrowings for newly commissioned projects.
- Depreciation and Amortization Expenses rose by Rs. 456 Crore to Rs. 1,334 Crore due to assets commissioned in FY’26.
- Other Expenses increased significantly by Rs. 1,447 Crore to Rs. 2,946 Crore, largely driven by a surge in General Network Access Charges (up by Rs. 781 Crore).
Incentives and CAPEX
- Total Incentives increased to Rs. 547 Crore (from Rs. 515 Crore), driven by higher Secondary Energy generation.
- Consolidated CAPEX for the Nine Months FY’26 stood at Rs. 8,844 Crore, compared to Rs. 7,405 Crore in the corresponding period last year.
Project Pipeline and Capacity Addition
Hydroelectric Progress
The management detailed significant progress across its under-construction pipeline:
- Subansiri Lower (2000 MW): Two units commissioned, and the remaining four units are expected to be commissioned by December 2026. The total revised cost is Rs. 27,949 Crore.
- Karnisar Solar Project (300 MW): Fully commissioned.
- Dibang Multipurpose Project (2880 MW): All works are in full swing, targeting completion by 2032.
- Teesta-VI (500 MW): Achieved 71% physical progress, targeting completion by November 2028.
- Rangit-IV (120 MW): Nearing completion at 95%, expected commissioning by October/November 2026.
- Ratle Project (850 MW): Physical progress at 26%, targeting completion by November 2028.
Chenab Valley Power Projects (Subsidiary)
Three key projects are underway in the Chenab Basin:
- Pakal Dul (1000 MW): Progress at 77%, targeting commissioning by December 2026.
- Kiru HE (624 MW): Progress at 77%, targeting commissioning by December 2026 (attractive tariff of around Rs. 5.68/unit).
- Kwar HE (540 MW): Progress at 27%, targeting completion by March 2028 (tariff around Rs. 4.44/unit).
Future Pipeline and New Starts
NHPC plans to start construction on 5-6 new projects comprising around 10,000 MW capacity during 2026, including Uri-I Stage-II, Dulhasti Stage-II, Sawalkot, Subansiri Upper, Etalin, and Kamala.
On the renewable front, the company expects to commission over 1000 MW of solar power in the calendar year 2026, including the remaining allocated under the CPSU Scheme.
NHPC is also actively exploring Pumped Storage Plants (PSPs), planning to start construction on at least two projects totaling over 2000 MW this year.
Guidance and Q&A Takeaways
CAPEX Guidance
The planned CAPEX is Rs. 13,300 Crore for the current fiscal year, with an estimated spending of Rs. 15,000 Crore next year. Subsequent annual CAPEX is projected to be in the range of Rs. 12,000 to 13,000 Crore.
Capacity Addition Forecast
Total planned capacity addition from hydro projects for the next year (FY’27) is 2,744 MW.
Subansiri Lower Tariff Clarification
Regarding the Subansiri Lower Project (Levelized Tariff around Rs. 7.50/unit on Rs. 28,000 Crore CAPEX), management confirmed that 80% of the estimated revenue is being accounted for until the final tariff notification by CERC, following the same conservative approach used for Parbati-II.
Dibang Project Update
The dam tender for the Dibang Project price bid was opened on the day of the call, with the award expected within the month. The project will now reside on the NHPC balance sheet, as the Ministry of Power decided NHPC can handle it better.
Renewable PPA Outlook
While demand in the RE sector has dried down, NHPC is hopeful of signing PPAs for 2,000 to 3,000 MW in the next 2 to 3 months, following recent high engagement with the Ministry of Power.
Source: BSE
