Detailed Narrative
FY25 Financial Performance and Key Drivers
NHPC reported a 7% increase in FY25 revenue from operations, reaching ₹8,994 crores, compared to ₹8,397 crores in the previous year. However, Profit After Tax (PAT) for FY25 declined by 17% to ₹3,084 crores from ₹3,722 crores. This decline was primarily driven by an 8.8% reduction in generation to 19,862 million units and a 4% drop in Plant Availability Factor to 73.94%, largely due to the complete shutdown of Teesta-V Power Station. Additionally, employee benefit expenses rose significantly by ₹354 crores due to pay anomaly arrears.
Q4 FY25 Performance and One-off Impacts
Q4 FY25 demonstrated a strong rebound, with revenue from operations increasing by 25% to ₹2,059 crores and PAT growing by 29% to ₹894 crores. This quarterly performance was significantly influenced by a ₹337 crore reversal of water cess in Himachal Pradesh and Sikkim, alongside an increase in capacity charges. Finance costs in Q4 were negative ₹30 crores, benefiting from a ₹110 crore reversal of interest on arbitration cases that were capitalized during the quarter.
Major Project Commissioning and Progress
A significant achievement for NHPC was the full commercial operation of all four units of the 800 MW Parbati-II Hydro Electric Project in April 2025, making it the company's largest operational hydro station. The company also commissioned 107 MW of solar capacity from its 300 MW Bikaner project. The 2000 MW Subansiri Lower Hydro Electric Project has reached 96% physical completion, with 3 units expected to be commissioned very shortly (by June 2025) and 5 units in the current financial year, projected to generate approximately ₹4,500 crores in annual revenue upon full commissioning.
Extensive Project Pipeline and Diversification Efforts
NHPC is actively advancing a substantial project pipeline, including the 2880 MW Dibang Multipurpose Project, estimated at ₹31,876 crores with a scheduled completion by February 2032. The company is also progressing on several projects under Chenab Valley Power Projects Limited, totaling over 2000 MW. Diversification into solar energy continues with the award of a 200 MW project in Khavda, Gujarat, costing ₹822 crores, expected to be commissioned by March 2026. Furthermore, NHPC is exploring numerous Pumped Storage Projects across various states, with DPRs under preparation for projects like Indira Sagar Omkareshwar (640 MW).
Capital Allocation and Shareholder Returns
For FY25, NHPC incurred a consolidated CAPEX of ₹11,596 crores, close to its target of ₹11,762 crores. The Board recommended a final dividend of 5.10% (51 paisa per share), bringing the total dividend for FY25 to 19.10% (₹1.91 per share). The company's total regulated equity is projected to reach approximately ₹18,000 crores in the current financial year, incorporating the capitalization of the Parbati-II project.
Challenges in Teesta Basin and Recovery Outlook
The flash floods in the Teesta Basin in October 2023 led to the complete shutdown of the Teesta-V Power Station, resulting in an estimated PBT loss of approximately ₹400 crores from the Teesta-V, TLDP-III, and TLDP-IV projects. Restoration works at Teesta-V are progressing well and are anticipated to be completed by January 2026, aiming to restore the lost generation capacity and profitability from the region.
Strategic Expansion in Indus River Basin
In light of developments concerning the Indus Water Treaty, NHPC is strategically accelerating new projects in the Indus River basin. Tenders for civil works for Uri-I Stage-II (240 MW) and Dulhasti Stage-II (260 MW) are slated to be floated by the end of May 2025. Additionally, approvals for the 1856 MW Sawalkot Project are progressing rapidly, with tenders expected to be floated soon, signaling a significant expansion in this region.