New Delhi: State-owned hydropower major NHPC Limited reported a 35.95 percent increase in consolidated net profit to Rs 1,657.57 crore for the July–September quarter of FY2026-27, supported by higher revenue and contributions from newly commissioned hydropower capacity.
The company had posted a consolidated net profit of Rs 1,219.28 crore in the corresponding quarter of the previous financial year.
Consolidated total income increased 28.64 percent to Rs 4,669.58 crore from Rs 3,629.98 crore a year earlier, according to the company’s unaudited financial results submitted to the stock exchanges on Wednesday.
NHPC’s standalone performance was considerably stronger, with net profit rising 64.82 percent to Rs 1,525.49 crore from Rs 925.52 crore in the year-ago quarter.
Standalone revenue from operations surged nearly 51 percent to Rs 4,124.77 crore, compared with Rs 2,732.11 crore a year earlier.
Profit before tax increased 54.56 percent to Rs 1,687.18 crore, while total standalone income rose to Rs 4,328.50 crore from Rs 2,994.44 crore.
On a sequential basis, standalone net profit increased approximately 37 percent from Rs 1,113.41 crore in the April–June quarter.
A significant portion of NHPC’s revenue expansion was supported by electricity sales from its Subansiri Lower and Parbati-II hydropower projects.
According to the notes accompanying the financial results, NHPC recognised Rs 678.17 crore as provisional sales from the 2,000 MW Subansiri Lower Hydroelectric Project during the September quarter, pending tariff approval from the Central Electricity Regulatory Commission (CERC).
The company also recognised Rs 553.47 crore in provisional quarterly sales from its 800 MW Parbati-II project, subject to final tariff approval.
Together, these projects accounted for Rs 1,231.64 crore in provisional sales during the quarter, equivalent to nearly 30 percent of NHPC’s standalone revenue from operations.
The contribution highlights the growing importance of newly commissioned assets to NHPC’s earnings. However, the provisional nature of these sales also means that subsequent tariff determinations could require revenue adjustments.
NHPC commissioned the fourth 250 MW unit of Subansiri Lower during the first half of FY27, taking operational capacity at the project to 1,000 MW. A fifth 250 MW unit commenced commercial operations on October 23, increasing commissioned capacity to 1,250 MW out of the project’s planned 2,000 MW.
Despite the strong earnings growth, NHPC recognised a provision of Rs 231.30 crore against expenditure incurred on surveys and investigations for its proposed Teesta-IV hydropower project.
The expenditure had previously been classified as capital work in progress. The provision reflects uncertainties surrounding the project’s implementation and highlights the financial risks associated with hydropower development in environmentally and geologically challenging regions.
NHPC’s expansion is also adding pressure to its cost structure.
Standalone finance costs more than doubled to Rs 552.32 crore during the quarter from Rs 269.34 crore a year earlier. Depreciation, amortisation and impairment expenses increased to Rs 588.06 crore from Rs 419.81 crore.
Total standalone expenses rose 38.81 percent to Rs 2,641.32 crore, although revenue growth outpaced the increase in expenditure.
The company’s standalone debt-equity ratio increased to 1.18 as of September 30, 2026, from 1.04 a year earlier, reflecting the growing financing requirements of its capital-intensive expansion programme.
NHPC’s latest results indicate that its investments in new generating capacity are beginning to translate into stronger revenue and profitability.
However, three issues warrant attention: the substantial provisional revenue awaiting regulatory tariff approval, rising borrowing and depreciation costs, and the financial exposure associated with projects facing implementation uncertainties.
The commissioning of additional Subansiri Lower units could support revenue growth in subsequent quarters. Nevertheless, the sustainability of earnings growth will depend on timely commissioning of remaining capacity, regulatory tariff finalisation and the company’s ability to manage its expanding debt obligations.
NHPC’s board approved the unaudited results on November 4, while its joint statutory auditors issued an unmodified limited-review conclusion.
The company has scheduled an earnings conference call for November 5, when further clarity may emerge on project timelines, tariff approvals and capital expenditure requirements.
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