NHPC reported a 51.7% year-on-year (YoY) increase in consolidated net profit attributable to shareholders to Rs 1,549.09 crore in Q2 FY27, compared with Rs 1,021.44 crore in Q2 FY26. Revenue from operations rose 33.2% to Rs 4,482.55 crore for the quarter ended 30 September 2026, supported by revenue recognition from the Subansiri Lower and Parbati-II hydropower projects.
However, the results also reflected rising finance costs, higher depreciation and a Rs 231.30 crore provision related to the Teesta-IV project. NHPC's consolidated trade receivables increased substantially during the first half of FY27.
The NHPC Q2 FY27 results therefore present a combination of expanding generation capacity, stronger revenue and increasing capital requirements. Here is a detailed assessment of the financial performance, operational developments, project pipeline and factors investors should monitor.
Results announced: 4 November 2026 | Reporting period: July-September 2026 | Updated: 10 November 2026
Table of Contents
- NHPC Q2 FY27 Results: Key Highlights
- NHPC Q2 Financial Results: Consolidated Performance
- Consolidated vs Standalone Profit
- Why Did NHPC's Revenue Increase?
- EBITDA, Margins and Expenses
- Hydropower Generation and Operational Performance
- Teesta-IV Provision and Regulatory Accounting
- H1 FY27 Financial Performance
- Cash Flow, Debt and Receivables
- NHDC Subsidiary Performance
- Project Pipeline, Commissioning and Capex
- NHPC Share Price and Valuation
- NHPC vs SJVN: Peer Comparison
- Opportunities, Risks and Outlook
- Conclusion
NHPC's consolidated results showed healthy revenue growth, but several operational and financial factors influenced profitability.
-
Revenue from operations: Rs 4,482.55 crore, up 33.2% YoY.
-
Total income: Rs 4,669.58 crore, up 28.6% YoY.
-
Consolidated net profit attributable to NHPC shareholders: Rs 1,549.09 crore, up 51.7% YoY.
-
Total consolidated net profit: Rs 1,657.57 crore, up 36.0% YoY.
-
Basic earnings per share (EPS): Rs 1.54, compared with Rs 1.02 in Q2 FY26.
-
Finance costs: Rs 556.17 crore, compared with Rs 277.69 crore a year earlier.
-
Depreciation and amortisation: Rs 610.03 crore, up 38.2% YoY.
-
Provisional revenue recognition: Rs 678.17 crore from Subansiri Lower and Rs 553.47 crore from Parbati-II.
-
Teesta-IV provision: Rs 231.30 crore recognised during the quarter.
-
Debt-to-equity ratio: 1.36 times on a consolidated basis.
The main takeaway: NHPC benefited from commissioning new hydroelectric capacity, but the increase in borrowings and finance costs indicates that the earnings expansion is occurring alongside a substantial investment cycle.
/content-assets/5632b6cf7eb94ca6af1f5eba919cb1db.png)
NHPC's consolidated financial statements provide the broader picture of the company and its subsidiaries.
Quarterly financial performance
Q2 FY27 Consolidated Results
| Financial Metric |
Q2 FY27 and YoY Change |
| Revenue from operations |
₹4,482.55 Cr (+33.2% YoY) |
| Other income |
₹187.03 Cr (-29.4% YoY) |
| Total income |
₹4,669.58 Cr (+28.6% YoY) |
| Total expenses |
₹2,772.98 Cr (+34.8% YoY) |
| Profit before tax and regulatory deferral movements |
₹1,897.55 Cr (+20.7% YoY) |
| Regulatory deferral movement, net of tax |
₹296.01 Cr (+62.0% YoY) |
| Total consolidated PAT |
₹1,657.57 Cr (+36.0% YoY) |
| PAT attributable to NHPC shareholders |
₹1,549.09 Cr (+51.7% YoY) |
Q2 FY26 Consolidated Results
| Financial Metric |
Q2 FY26 |
| Revenue from operations |
₹3,365.26 Cr |
| Other income |
₹264.72 Cr |
| Total income |
₹3,629.98 Cr |
| Total expenses |
₹2,057.54 Cr |
| Profit before tax and regulatory deferral movements |
₹1,572.53 Cr |
| Regulatory deferral movement, net of tax |
₹182.74 Cr |
| Total consolidated PAT |
₹1,219.28 Cr |
| PAT attributable to NHPC shareholders |
₹1,021.44 Cr |
Source: NHPC's unaudited consolidated financial results for the quarter ended 30 September 2026. Percentages calculated from reported figures.
Revenue growth exceeded 33%
Consolidated revenue increased by Rs 1,117.29 crore over the previous year. New revenue contributions from the commissioning of Subansiri Lower and Parbati-II were important factors.
However, total income rose at a slower rate than operational revenue because other income declined from Rs 264.72 crore to Rs 187.03 crore.
This difference matters because revenue from power generation and tariff recognition is more directly connected with NHPC's core business than interest income and other non-operating sources.
Net profit growth needs careful interpretation
NHPC reported total consolidated profit of Rs 1,657.57 crore, but the share attributable to shareholders of the parent company was Rs 1,549.09 crore.
The difference was Rs 108.48 crore attributable to non-controlling shareholders of subsidiaries.
In Q2 FY26, non-controlling interests accounted for Rs 197.84 crore of profit. Their lower share of current-quarter earnings helps explain why profit attributable to NHPC shareholders grew faster than total consolidated profit.
For stock investors, Rs 1,549.09 crore is the more relevant consolidated profit figure when assessing earnings attributable to NHPC shareholders. However, Rs 1,657.57 crore is also correct when referring to the total consolidated profit of the group.
Quarter-on-quarter performance
Compared with Q1 FY27:
Q2 FY27 Performance
| Financial Metric |
Q2 FY27 and QoQ Change |
| Revenue from operations |
₹4,482.55 Cr (+17.7% QoQ) |
| Total income |
₹4,669.58 Cr (+17.9% QoQ) |
| Total consolidated PAT |
₹1,657.57 Cr (+40.7% QoQ) |
| PAT attributable to shareholders |
₹1,549.09 Cr (+41.4% QoQ) |
Q1 FY27 Performance
| Financial Metric |
Q1 FY27 |
| Revenue from operations |
₹3,808.31 Cr |
| Total income |
₹3,959.72 Cr |
| Total consolidated PAT |
₹1,178.09 Cr |
| PAT attributable to shareholders |
₹1,095.87 Cr |
Amounts in Rs crore.
The sequential improvement was substantial. Nevertheless, hydropower generation is seasonal, with rainfall and water availability influencing quarterly production. As a result, Q2 performance should not be annualised without considering seasonal patterns.
An important distinction in the NHPC Q2 results is the difference between the parent company's standalone financial performance and the consolidated performance of the wider group.
Standalone financial results
Q2 FY27 Standalone Results
| Financial Metric |
Q2 FY27 and YoY Change |
| Revenue from operations |
₹4,124.77 Cr (+51.0% YoY) |
| Total income |
₹4,328.50 Cr (+44.6% YoY) |
| Profit before tax and regulatory deferral movements |
₹1,687.18 Cr (+54.6% YoY) |
| Net profit |
₹1,525.49 Cr (+64.8% YoY) |
| EPS (Rs) |
₹1.52 (+65.2% YoY) |
Q2 FY26 Standalone Results
| Financial Metric |
Q2 FY26 |
| Revenue from operations |
₹2,732.11 Cr |
| Total income |
₹2,994.44 Cr |
| Profit before tax and regulatory deferral movements |
₹1,091.59 Cr |
| Net profit |
₹925.52 Cr |
| EPS (Rs) |
₹0.92 |
Amounts in Rs crore unless specified otherwise.
Standalone revenue increased 51.0% YoY, significantly faster than consolidated revenue growth of 33.2%.
Similarly, standalone PAT rose 64.8%, compared with the 51.7% increase in consolidated PAT attributable to NHPC shareholders.
The difference reflects the contribution and financial performance of subsidiaries, including NHDC, along with consolidation and non-controlling interest adjustments.
For investors, the standalone results show the impact of new generating assets in the parent company. Consolidated figures remain essential for understanding NHPC's overall financial obligations and business performance.
The major development was the recognition of revenue from additional commissioned hydroelectric capacity.
1. Subansiri Lower hydropower project
The Subansiri Lower project, located in Assam and Arunachal Pradesh, has a planned capacity of 2,000 MW across eight units of 250 MW each.
NHPC had commissioned four units, representing 1,000 MW, by 30 September 2026.
During Q2 FY27, the company provisionally recognised Rs 678.17 crore as sales from this project, pending the Central Electricity Regulatory Commission (CERC) 's approval of the relevant tariff.
Revenue recognised from Subansiri Lower during H1 FY27 amounted to Rs 1,252.48 crore.
The corresponding revenue recognised during Q2 and H1 FY26 was nil.
This new revenue source materially supported NHPC's year-on-year growth.
A fifth 250 MW unit was subsequently commissioned on 23 October 2026, increasing commissioned Subansiri Lower capacity to 1,250 MW after the September quarter ended.
The remaining 750 MW is an important future commissioning milestone.
2. Parbati-II hydropower project
The 800 MW Parbati-II project was commissioned during FY26.
NHPC recognised Rs 553.47 crore as provisional sales from Parbati-II during Q2 FY27, compared with Rs 217.69 crore in Q2 FY26.
The increase was Rs 335.78 crore.
For H1 FY27, provisional revenue recognised from Parbati-II reached Rs 917.89 crore, compared with Rs 648.86 crore during H1 FY26.
How much provisional revenue did these projects contribute?
| Project |
Q2 FY27 provisional sales |
| Subansiri Lower |
Rs 678.17 crore |
| Parbati-II |
Rs 553.47 crore |
| Combined |
Rs 1,231.64 crore |
These two projects accounted for provisional sales recognition equivalent to approximately 27.5% of consolidated Q2 revenue from operations.
The amounts are already included in reported revenue and should not be added again.
Importantly, provisional recognition does not mean the revenue is artificial. It reflects electricity sales accounted for under applicable tariff provisions while the final regulatory orders are pending.
However, the final CERC-approved tariffs could differ from the provisional basis. Subsequent adjustments may therefore affect future reported revenue or profitability.
This makes tariff approval a particularly important factor in assessing the sustainability of NHPC's earnings.
Although NHPC reported strong revenue growth, finance costs, depreciation and project-related expenses increased significantly.
Expense analysis
Q2 FY27 Expenses
| Expense Category |
Q2 FY27 |
| Generation expenses |
₹276.52 Cr |
| Employee benefits |
₹392.16 Cr |
| Finance costs |
₹556.17 Cr |
| Depreciation and amortisation |
₹610.03 Cr |
| Other expenses |
₹938.10 Cr |
| Total expenses |
₹2,772.98 Cr |
Q2 FY26 Expenses
| Expense Category |
Q2 FY26 |
| Generation expenses |
₹301.68 Cr |
| Employee benefits |
₹326.46 Cr |
| Finance costs |
₹277.69 Cr |
| Depreciation and amortisation |
₹441.46 Cr |
| Other expenses |
₹710.25 Cr |
| Total expenses |
₹2,057.54 Cr |
EBITDA growth and margin
Based on revenue from operations less generation expenses, employee expenses and other operating expenses, NHPC's calculated operating EBITDA was approximately:
-
Q2 FY27: Rs 2,875.77 crore.
-
Q2 FY26: Rs 2,026.87 crore.
-
YoY growth: 41.9%.
-
Calculated EBITDA margin: 64.2%, compared with 60.2% a year earlier.
Methodology: These are editorial calculations from the consolidated income statement, excluding other income, finance costs, depreciation and regulatory deferral movements. They may differ from EBITDA figures presented using other definitions.
Separately, NHPC's regulatory financial statement reports an operating margin of 51.88%, compared with 48.65% in Q2 FY26. The difference between the ratios reflects their respective definitions and should not be overlooked when comparing earnings reports.
Finance costs doubled
Finance costs rose to Rs 556.17 crore from Rs 277.69 crore in the corresponding quarter last year, an increase of approximately 100.3%.
This is an important development because NHPC is undertaking substantial capital expenditure across hydropower and renewable-energy projects.
As new assets become operational, the treatment of borrowing costs can change, with a greater portion reflected in the profit and loss account rather than capitalised during construction.
The increase in finance costs reduces the extent to which growth in operating income translates into bottom-line profit.
Depreciation increased 38.2%
Depreciation and amortisation increased from Rs 441.46 crore to Rs 610.03 crore.
This is consistent with the expansion of NHPC's operating asset base, although the exact movement also depends on project-specific accounting and asset lives.
Higher depreciation is a normal consequence of commissioning capital-intensive power projects. Investors should assess whether the additional revenue and regulated returns generated by these assets are sufficient to cover the increased costs.
Other expenses included a project-related provision
Other expenses increased from Rs 710.25 crore to Rs 938.10 crore.
The quarter included a Rs 231.30 crore provision relating to the Teesta-IV project, discussed separately below.
Therefore, a complete assessment of margins should consider both the underlying generation business and the effect of this project-specific charge.
Financial results provide only one part of NHPC's performance. Power generation, plant availability and incentive income are equally important.
Generation growth during H1 FY27
NHPC's investor presentation reported consolidated hydropower generation of 23,132 million units (MU) during H1 FY27, compared with 20,491 MU in H1 FY26.
This represents growth of approximately 12.9%.
The increase reflects contributions from the generating portfolio, including newly commissioned capacity.
Plant availability improved
NHPC's consolidated Plant Availability Factor (PAF) improved to 92.24% in Q2 FY27, compared with 78.58% in Q2 FY26.
This was an improvement of 13.66 percentage points.
PAF reflects the availability of generating capacity against applicable norms. It is not identical to the proportion of installed capacity actually used for generation.
For regulated hydropower stations, PAF is important because tariff recovery and certain incentives can depend on the availability of the generating assets.
Incentive income fell despite improved PAF
One of the notable contrasts in the quarter was the decline in incentive income.
Q2 FY27 Incentive Income
| Incentive Type |
Q2 FY27 |
| Secondary energy |
₹23.57 Cr |
| PAF incentives |
₹3.32 Cr |
| Deviation charges |
₹31.85 Cr |
| Total |
₹58.73 Cr |
Q2 FY26 Incentive Income
| Incentive Type |
Q2 FY26 |
| Secondary energy |
₹228.03 Cr |
| PAF incentives |
₹12.53 Cr |
| Deviation charges |
₹12.50 Cr |
| Total |
₹253.06 Cr |
The combined incentives and deviation charges declined by approximately 76.8% YoY.
Secondary-energy earnings declined particularly sharply. Therefore, the growth in reported revenue was not supported by a broad-based increase in every operating income component.
For future quarters, investors should monitor generation against design energy, PAF against applicable norms and the contribution of secondary energy.
Two accounting developments deserve particular attention.
Rs 231.30 crore provision for Teesta-IV
NHPC recognised a provision of Rs 231.30 crore during Q2 FY27 relating to survey and investigation expenditure previously included in capital work in progress for the Teesta-IV hydroelectric project.
The company attributed the provision to uncertainty surrounding the project's implementation.
This is significant for three reasons.
First, it demonstrates that expenditure on projects under development may not always translate into productive generating assets.
Second, the provision reduced reported quarterly earnings.
Third, it highlights the importance of regulatory approvals, environmental clearances, construction feasibility and project economics in NHPC's business.
The provision is an accounting charge against previously capitalised expenditure. It should not be confused with a fresh cash outflow of Rs 231.30 crore during the quarter.
Likewise, an investor should not simply add the full amount to reported PAT to calculate adjusted net profit without considering tax and consolidation effects.
Regulatory deferral account movement
NHPC's consolidated financial statements reported a positive movement of Rs 296.01 crore, net of tax, in regulatory deferral account balances during Q2 FY27, compared with Rs 182.74 crore a year earlier.
Regulatory deferral balances arise under accounting requirements relevant to rate-regulated activities.
These balances reflect amounts that may be recovered from, or refunded to, consumers through the regulated tariff mechanism over time.
The movement affected accounting profit but is not equivalent to immediate cash collection.
For this reason, investors should distinguish among:
-
Profit before regulatory deferral movements.
-
Profit after regulatory deferral movements.
-
Actual operating cash generated during the reporting period.
The quarter's profit before tax and regulatory deferral movements rose 20.7% YoY, whereas total consolidated PAT increased 36.0%.
This distinction provides a more complete picture of the reported earnings growth.
Tax accounting development
NHPC also disclosed that it exercised an option under Section 200(5) of the Income Tax Act, 2025, effective from tax year 2026-27.
The company stated that its income-tax expense and net deferred-tax liabilities were recognised considering the expected transition, subject to further review during FY27.
Therefore, investors should also monitor subsequent tax-related adjustments.
A half-year comparison helps assess whether the growth was confined to one quarter.
H1 FY27 Financial Results
| Financial Metric |
H1 FY27 |
| Revenue from operations |
₹8,290.86 Cr |
| Total income |
₹8,629.30 Cr |
| Total consolidated PAT |
₹2,835.66 Cr |
| PAT attributable to NHPC shareholders |
₹2,644.96 Cr |
H1 FY26 Financial Results
| Financial Metric |
H1 FY26 |
| Revenue from operations |
₹6,579.03 Cr |
| Total income |
₹7,072.74 Cr |
| Total consolidated PAT |
₹2,350.44 Cr |
| PAT attributable to NHPC shareholders |
₹2,086.46 Cr |
During the first six months of FY27:
-
Revenue from operations increased 26.0% YoY.
-
Total income increased 22.0% YoY.
-
Total consolidated PAT increased 20.6% YoY.
-
PAT attributable to NHPC shareholders increased 26.8% YoY.
The half-year results confirm that revenue growth was not restricted to the July–September quarter.
However, H1 finance costs increased from Rs 538.49 crore to Rs 1,161.93 crore, more than doubling.
The significant rise in financing costs remains a critical consideration when evaluating future earnings.
For a capital-intensive utility, reported profit must be assessed alongside cash generation, borrowing requirements and project expenditure.
Operating cash flow improved
NHPC reported the following consolidated cash-flow figures for H1 FY27:
H1 FY27 Cash Flow
| Cash Flow Category |
H1 FY27 |
| Operating cash flow |
₹3,179.16 Cr |
| Net investing cash flow |
-₹5,228.61 Cr |
| Net financing cash flow |
₹2,839.34 Cr |
H1 FY26 Cash Flow
| Cash Flow Category |
H1 FY26 |
| Operating cash flow |
₹1,583.21 Cr |
| Net investing cash flow |
-₹5,046.17 Cr |
| Net financing cash flow |
₹3,803.68 Cr |
This indicates stronger cash generation compared with the previous first half.
However, NHPC continued to spend substantially on new projects. Its cash-flow statement recorded Rs 5,685.06 crore of outflows under purchases of property, plant and equipment, investment property and related capital expenditure categories.
This amount is not directly interchangeable with the company's management-defined capex target, but it demonstrates the scale of investment during the period.
Borrowings and debt-to-equity ratio
At 30 September 2026:
-
Consolidated long-term borrowings stood at Rs 50,519.93 crore.
-
Reported paid-up debt capital stood at Rs 59,425.30 crore.
-
Equity attributable to NHPC shareholders was Rs 43,740.96 crore.
-
Consolidated debt-to-equity was 1.36 times, compared with 1.31 times at 31 March 2026.
The debt-capital figure includes the borrowing and lease categories specified in NHPC's regulatory filing. It should not be confused with long-term borrowings alone.
The increase in debt reflects the substantial funding required for the company's project pipeline.
An important investor question is whether newly commissioned projects can generate sufficiently strong operating cash flow to offset the increased financing burden over time.
Cash and bank balances
NHPC reported approximately Rs 4,644.63 crore in consolidated cash and bank balances at 30 September 2026, comprising cash equivalents and other bank balances.
This compared with approximately Rs 3,651.04 crore at the end of March 2026.
The increase provides some liquidity support, but it does not eliminate the need to assess upcoming project payments, debt servicing and working capital.
Trade receivables increased significantly
Trade receivables increased from Rs 2,629.40 crore at 31 March 2026 to Rs 4,283.37 crore at 30 September 2026.
This represents an increase of approximately 62.9%.
NHPC's investor presentation provided further details:
-
Receivables at 30 June 2026 were approximately Rs 4,354 crore, indicating a modest sequential reduction by September.
-
September receivables included approximately Rs 1,573 crore of unbilled debtors.
-
Amounts outstanding for more than 45 days were approximately Rs 290 crore, compared with Rs 242 crore at 31 March 2026.
The data presents a mixed picture. Total receivables increased substantially from March, while the balance declined slightly from June.
Investors should monitor whether the commissioning of new projects leads to higher and faster cash collections, particularly after tariff orders are finalised.
NHDC, a subsidiary in which NHPC holds approximately 51.08%, reported weaker results during Q2 FY27.
NHDC Q2 FY27 Results
| Metric |
Q2 FY27 |
| Electricity generation |
1,365 MU |
| Revenue from operations |
₹365.18 Cr |
| Profit after tax |
₹225.15 Cr |
NHDC Q2 FY26 Results
| Metric |
Q2 FY26 |
| Electricity generation |
3,309 MU |
| Revenue from operations |
₹640.09 Cr |
| Profit after tax |
₹407.94 Cr |
NHDC's generation declined 58.8% YoY, while revenue fell 43.0% and net profit declined 44.8%.
This weakness affected the consolidated group even as the parent company's results benefited from new generation capacity.
It also helps explain the lower share of consolidated profit attributable to non-controlling interests.
The subsidiary's performance demonstrates why investors should assess NHPC's different operating assets individually rather than treating the company as a uniform collection of power stations.
NHPC's future growth is closely linked to its ability to commission hydropower projects within revised schedules and cost estimates.
Installed capacity and projects under development
According to the company's November 2026 investor presentation, NHPC had:
| Project status |
Capacity |
| Operational capacity |
9,583 MW |
| Projects under construction |
8,954 MW |
| Projects awaiting clearances and approvals |
9,387 MW |
| Projects under survey and investigation |
19,820 MW |
The operational portfolio included 9,021 MW of hydropower capacity and approximately 562 MW of solar and wind capacity across 31 power stations.
The November operational figure includes commissioning after the September quarter-end.
Importantly, projects awaiting clearances or undergoing investigation are not committed operating capacity. They represent potential future development opportunities, subject to approvals, financing and execution.
Major upcoming hydropower projects
| Project |
Capacity and Commissioning |
| Rangit-IV |
120 MW (Q3 FY27) |
| Kiru |
624 MW (Q4 FY27) |
| Remaining Subansiri Lower units |
750 MW (Q1 FY28) |
| Pakal Dul |
1,000 MW (Q1 FY28) |
| Kwar |
540 MW (Q1 FY29) |
| Ratle |
850 MW (Q3 FY29) |
| Teesta-VI |
500 MW (Q2 FY30) |
| Dibang |
2,880 MW (Q4 FY32) |
These are indicative schedules disclosed by NHPC, not guaranteed completion dates. Some units or project components may be commissioned in stages.
Subansiri Lower is a major near-term catalyst
The 2,000 MW Subansiri Lower project is particularly important because it has already started generating revenue.
Its total anticipated project cost was approximately Rs 30,071.97 crore, according to the investor presentation, against expenditure of approximately Rs 26,935.98 crore up to September 2026.
The presentation also records a substantially lower original investment approval from December 2002. However, the original and revised figures reflect different price levels and time periods, so a straightforward percentage comparison would not fully capture the effects of inflation, scope changes and project delays.
The key questions are whether the remaining units can be commissioned on schedule, whether tariffs are finalised as expected and how the project's regulated returns translate into earnings and cash flow.
FY27 capital expenditure target
NHPC disclosed a consolidated capex target of Rs 15,000 crore for FY27, compared with actual consolidated capex of Rs 13,689 crore in FY26.
This represents an increase of approximately 9.6% over the previous year's actual expenditure.
The large capex programme is intended to support the development of generating capacity, but it also creates financing requirements before projects begin contributing their full expected revenues.
Other operational developments
NHPC stated that restoration work at the Teesta-V power station had been completed, with commercial operations resuming in July 2026.
The company also highlighted approval for the 1,720 MW Kamala hydroelectric project and an agreement concerning the proposed 3,097 MW Etalin project.
These developments broaden NHPC's longer-term pipeline, but projects in earlier development stages should not be treated as near-term earnings contributors.
NHPC shares closed at Rs 80.39 on the NSE on 9 November 2026, the latest verified exchange closing price used in this analysis.
At that price, the NSE reported a market capitalisation of approximately Rs 80,752 crore.
The price was recorded after the 4 November results announcement. However, a single subsequent closing price does not establish how much of the movement was caused by the results rather than broader market conditions.
What do the valuations indicate?
Using the verified 9 November closing price:
-
Historical FY26 P/E: Approximately 21.4 times, calculated using FY26 consolidated EPS of Rs 3.75.
-
Price-to-book value: Approximately 1.85 times, using consolidated equity attributable to NHPC shareholders at 30 September 2026.
-
Historical dividend yield: Approximately 2.0%, using the total FY26 dividend of Rs 1.61 per share.
These are indicative calculations, not forward valuation estimates. The P/E uses FY26 full-year EPS rather than trailing 12-month or forecast FY27 earnings.
NHPC's future valuation will depend on how new project earnings, regulatory approvals, debt levels and cash generation evolve.
Dividend and government shareholding
NHPC's total dividend for FY26 amounted to Rs 1.61 per share, including interim and final dividends.
The Q2 FY27 financial results did not announce a new interim dividend for the current financial year.
The Government of India held approximately 61.39% of NHPC's equity as at 30 September 2026.
Government ownership is relevant to the company's strategic importance and public-sector role, but it does not remove construction, financial or market risks.
SJVN is a relevant listed peer because both companies operate in the Indian power-generation sector and have exposure to hydropower development.
However, SJVN's portfolio also includes other power-generation technologies, so direct profitability comparisons require caution.
Q2 FY27 financial comparison
| Consolidated metric |
NHPC |
SJVN |
| Revenue from operations |
Rs 4,482.55 crore |
Rs 2,244.32 crore |
| Total net profit |
Rs 1,657.57 crore |
Rs 657.72 crore |
| Profit attributable to parent shareholders |
Rs 1,549.09 crore |
Rs 657.39 crore |
| Debt-to-equity ratio |
1.36x |
2.25x |
Sources: NHPC and SJVN official Q2 FY27 consolidated financial disclosures.
NHPC generated approximately twice SJVN's quarterly revenue and recorded higher consolidated profit in absolute terms.
NHPC also reported a lower debt-to-equity ratio on the disclosed measures.
However, SJVN's quarterly revenue increased sharply from Rs 1,032.40 crore a year earlier to Rs 2,244.32 crore, reflecting changes in its operating asset mix.
The companies' different generation technologies, commissioning schedules, financing structures and tariff arrangements mean that the higher growth rate or margin of either business should not be interpreted as superior investment performance without further analysis.
For a meaningful comparison, investors should consider return on capital employed, debt servicing, project costs, commissioning progress and cash-flow conversion over several financial years.
What supports NHPC's growth outlook?
1. Commissioning of new generating capacity
Subansiri Lower and Parbati-II have already begun contributing revenue. Commissioning additional units could increase the operating asset base and regulated earnings.
2. Large project pipeline
NHPC's 8,954 MW construction pipeline offers potential for capacity expansion over several years.
3. Hydropower's role in the electricity system
Hydropower provides renewable electricity and can support system flexibility, depending on plant design and operating conditions. This makes it strategically relevant as India's electricity mix evolves.
4. Improved plant availability
The improvement in Q2 PAF suggests stronger availability across the generating portfolio compared with the corresponding quarter last year.
5. Recovery in cash generation
Operating cash flow improved significantly in H1 FY27. Sustaining that improvement would help NHPC support its investment programme.
What are the major risks?
1. Project delays and cost escalation
Large hydroelectric projects can face geological, environmental, construction and land-related challenges. Delays can postpone revenue generation while financing costs continue to accumulate.
2. Higher debt and interest costs
Finance costs more than doubled YoY in Q2 FY27. Continued increases could constrain profitability if new projects do not ramp up as expected.
3. Regulatory tariff uncertainty
Subansiri Lower and Parbati-II revenues currently include provisional amounts pending final CERC approvals. Any revisions may affect subsequent reported results.
4. Hydrology and seasonality
Generation depends partly on water availability and seasonal conditions. Strong monsoon-quarter earnings may not be representative of every quarter.
5. Receivables and working capital
Higher receivables can delay cash conversion, particularly when provisional billing and tariff adjustments are involved.
6. Capital expenditure effectiveness
A large construction pipeline can create shareholder value only if completed assets produce adequate returns relative to their final cost and financing burden.
What should investors track in Q3 FY27?
The next quarterly results should be evaluated against a focused set of operating and financial indicators:
| Key indicator |
Why it matters |
| Subansiri Lower commissioning |
Determines new revenue-generating capacity |
| Kiru and Rangit-IV progress |
Tests near-term project execution |
| CERC tariff orders |
Clarifies provisional revenue and future recovery |
| Finance costs |
Measures the impact of debt and new operating assets |
| Receivables and cash collections |
Indicates earnings-to-cash conversion |
| NHDC generation |
Shows whether subsidiary performance is recovering |
| Teesta-related developments |
Indicates remaining project and impairment risks |
| Capex and borrowing growth |
Helps assess funding requirements and returns |
The most important question is whether revenue from newly commissioned plants can grow faster than the combined burden of financing costs, depreciation and project-related charges.
The NHPC Q2 FY27 results analysis shows meaningful progress in expanding the company's operating asset base. Revenue rose 33.2% YoY, while consolidated profit attributable to shareholders increased 51.7%.
The commissioning of Subansiri Lower and Parbati-II was an important development, with new capacity beginning to contribute to financial performance. Improved plant availability and stronger half-year operating cash flow were additional positives.
However, the quarter was not without concerns. Finance costs doubled, depreciation increased, incentive income declined and the company recognised a Rs 231.30 crore provision related to Teesta-IV. Rising borrowings and receivables also require attention.
For investors, the central issue is no longer simply whether NHPC can add generating capacity. It is whether the company can complete projects on time, secure appropriate tariffs, convert earnings into cash and generate satisfactory returns on its growing capital base.
The next phase of NHPC's performance will be determined as much by project execution and financial discipline as by revenue growth.
FAQs on NHPC Q2 FY27 Results
1. What were NHPC Q2 FY27 results?
NHPC reported consolidated revenue from operations of Rs 4,482.55 crore, up 33.2% YoY, and net profit attributable to shareholders of Rs 1,549.09 crore, up 51.7% YoY, for the quarter ended 30 September 2026. The results were approved on 4 November 2026.
2. Why did NHPC's net profit increase in Q2 FY27?
Profit growth was supported by higher operating revenue, including contributions from Subansiri Lower and Parbati-II, and positive regulatory deferral movements. However, finance costs, depreciation and the Teesta-IV provision partly offset the improvement.
3. What was NHPC's Q2 FY27 revenue?
NHPC's consolidated revenue from operations was Rs 4,482.55 crore in Q2 FY27, compared with Rs 3,365.26 crore in Q2 FY26. This represents growth of 33.2%.
4. Why are two different NHPC Q2 profit figures reported?
Rs 1,657.57 crore represents total consolidated profit, including non-controlling interests. Rs 1,549.09 crore represents the portion attributable to NHPC shareholders. The latter increased 51.7% YoY, while total consolidated profit increased 36.0%.
5. What is the outlook for NHPC after its Q2 FY27 results?
The outlook depends on further commissioning of Subansiri Lower and other hydropower projects, finalisation of tariffs, cash collections and control over financing costs. The construction pipeline provides growth potential, but project execution and rising capital requirements remain major risks.
Disclaimer: This article is intended for informational and educational purposes only and does not constitute investment advice. Q2 FY27 results are unaudited and subject to limited review. Project commissioning schedules and management targets are forward-looking and may change.