NHPC Q3 FY26 Performance Update: Profitability Under Pressure Amid Structural Shifts

Revenue from Operations ₹2,220 Cr ₹2,286 Cr ▼ 2.9% EBITDA ₹210 Cr ₹1,014 Cr ▼ 79.2% Operating Margin 9.5% 44.4% ▼ 3,490 bps Net Profit ₹219 Cr ₹231 Cr ▼ 5.2% Analysis of Margin Compression The dramatic 79% slump in EBITDA and subsequent margin collapse to 9.5% can be attributed to several critical factors: Surge in Other Expenses: Other expenses ballooned 3.2x to ₹1,537 crore. One-off Regulatory Charge: A significant expenditure of ₹781 crore was recognized due to the early commissioning of the Subansiri Lower transmission system. Project Specifics: Profitability was hindered by a low Project Affected Families (PAF) rate of 59% at Parbati II, while the Teesta V plant remains under repair. Tax Burden: Total tax expenses rose sharply to ₹573.2 crore, up from ₹104.3 crore in the previous year. Strategic Realignments and Dividends NHPC is undergoing a notable shift in its corporate and joint-venture strategy: MoU Cancellation: The Board has terminated its agreement with GEDCOL for floating solar projects in Odisha, indicating a pivot in its renewable execution strategy. PTC India Exit: Following Ministry of Power directives, NHPC is withdrawing as a promoter of PTC India and removing its nominee director. Shareholder Returns: Despite the earnings miss, the Board declared an interim dividend of 14% (₹1.40 per share), with a record date of February 10, 2026. Investor Note: While standalone generation grew by 31% to 3.5 BU, the stock remains under pressure, having declined roughly 5.8% over the past month. Investors should monitor the progress of repair works at Teesta V and the stabilization of margins post-one-off regulatory adjustments.