NHPC’s Growth Reset

NHPC is entering a stronger phase, but the story is not risk-free for shareholders. The company’s FY26 numbers show clear improvement, with revenue from operations at ₹11,615 crore, total income at ₹12,686 crore, and consolidated PAT at ₹4,220 crore; PAT attributable to NHPC stood at ₹3,766 crore. The biggest positive is execution. NHPC’s installed capacity reached 9,333 MW in May 2026, including 8,771 MW hydro and 562 MW renewable energy, while projects under construction total 9,204 MW and projects under clearance add another 10,263 MW. This is the kind of pipeline that can support a multi-year growth cycle if commissioning stays on schedule. The company also said Subansiri Lower saw four 250 MW units commissioned and that the remaining four units are expected in Q4 FY26-27, which could materially lift generation and earnings. The balance sheet is large but manageable for a utility-scale business. Net worth rose to ₹41,437 crore, cash and bank balances were ₹3,651 crore, and long-term borrowings stood at ₹46,174 crore, showing that NHPC is funding a heavy capex phase while keeping liquidity intact. The company also has visibility on future capacity addition, with capex rising to ₹13,689 crore in FY26 and a target of ₹15,000 crore for FY27. If these projects get commissioned on time, shareholder value can improve through higher earnings, better asset base utilization, and steadier dividends. The downside is that growth is still execution-dependent and debt-heavy. NHPC’s debt-equity ratio is 1.31 on a consolidated basis, and a meaningful part of reported profitability is influenced by regulated income and project timing, so near-term earnings can look uneven. The stock can therefore be beneficial for long-term investors who want a PSU utility with a visible pipeline and dividend support, but it can be frustrating for those expecting fast rerating without operational delivery.