Detailed Narrative
Q4 & FY26 Financial Performance Overview
NHPC reported a strong financial performance for Q4 and the full fiscal year 2026. Revenue from Operations for FY26 stood at ₹11,615 crores, marking a 12% increase year-on-year from ₹10,380 crores. Profit After Tax (PAT) for FY26 surged by 25% to ₹3,766 crores, compared to ₹3,007 crores in the previous year. For Q4 FY26, PAT saw an even more significant jump of 71% to ₹1,460 crores from ₹854 crores in Q4 FY25. This growth was primarily attributed to higher generation from newly commissioned power stations.
Operational Highlights and Generation
The company's power stations achieved a generation of 29,619 million units in FY26, a 16% increase from 25,548 million units in the corresponding previous period. This was largely driven by the commissioning of Parbati-II Power Station, part commissioning of Subansiri Lower Project, and Karnisar Solar Power Station. However, the Plant Availability Factor (PAF) for FY26 decreased to 74.75% from 78.87% in the previous year, mainly due to shutdowns for maintenance and repair works in Dulhasti, Chamera-III, and TLDP-IV power stations. Teesta-V Power Station, which had no revenue contribution in FY26, is expected to resume generation by June'26.
Project Development and Commissioning Progress
NHPC made significant strides in project development, commissioning four units (1,000 MW) of the Subansiri Lower Project, with the remaining four units expected by March'27. Investment approvals were secured for Uri-I Stage-II (240 MW) and Dulhasti Stage-II (260 MW) HE projects, both slated for completion by November'29. The Kamala HE Project (1,720 MW) received investment approval, and major contracts for the 2,880 MW Dibang Multipurpose Project have been awarded, targeting completion by February'32. Progress is also well underway for Teesta-VI (500 MW) and Rangit-IV (120 MW), with commissioning expected by September'29 and November'26, respectively.
Future Growth and Pipeline
The company aims to bring five hydro projects (Uri-I Stage-II, Dulhasti Stage-II, Etalin, Sawalkot, and Kamala) and one Pumped Storage Project (Indira Sagar-Omkareshwar of 640 MW) to the construction stage during the current financial year. By the end of FY27, NHPC anticipates its hydro regulated equity to reach ₹30,672 crores, driven by the commissioning of 2,994 MW of hydro assets and 1,190 MW of solar assets. Additionally, 700 MW of solar capacity under the CPSU Scheme and 200 MW of Grid Connected Solar PV projects in Gujarat are expected to be commissioned by December'26.
Capital Allocation and Shareholder Returns
Capital expenditure during FY26 amounted to ₹13,689 crores, an increase from ₹11,596 crores in the previous year. The Board of Directors recommended a final dividend of 2.10% (21 paise per equity share), in addition to the interim dividend of 14% (₹1.40 per equity share), bringing the total dividend for FY25-26 to 16.10% (₹1.61 per equity share). The merger of JPCL with NHPC is in process, with the second motion application filed with the Ministry of Corporate Affairs.
Regulatory and Tariff Updates
NHPC is currently billing Parbati-II at 75% based on an interim tariff notification from CERC, with the final tariff order expected by June 30th. For Subansiri Lower, the company is awaiting an interim tariff notification from CERC, after which billing will commence. Management noted an under-recovery of approximately ₹300 crores for Parbati-II and ₹150 crores for Subansiri Lower based on filed tariff petitions. The company confirmed that CERC regulations allow for the pass-through of construction cost increases that are beyond management's control.