NHPC

Q1FY27 Results: New Capacity Drives Growth Amid Hydro Risks

delivered a better-than-expected Q1FY27, reporting a 31% year-on-year surge in consolidated EBITDA to ₹2,352 crore. Total revenue rose 18% to ₹3,808 crore, primarily propelled by new project additions and reduced operating expenses. Core Hydropower Under Pressure: A delayed monsoon caused lower reservoir water levels, weighing down core operations. Total generation grew 8% to 9.5 billion units; however, excluding newly commissioned capacity, overall power generation fell by 7%, while core revenue growth remained virtually flat at 0.6%. First Major Capacity Expansion in Years: The company commissioned 0.25 GW of capacity during Q1, bringing total additions since early FY26 to 1.8 GW—marking its first significant expansion since 2018. An additional 2.7 GW is targeted for completion by the end of FY27. Favorable Seasonal Tailwinds: Earnings are expected to accelerate further in Q2FY27—traditionally NHPC’s strongest quarter—due to reviving monsoon rains and the resumption of the flood-damaged Teesta-V plant in July after a prolonged shutdown. Diversification and Rising Capital Expenditure: NHPC is expanding its portfolio beyond traditional hydro, currently operating 0.6 GW of solar capacity with 1.2 GW under construction, alongside plans for 18 GW in pumped-storage projects. To support growth, FY27 capital expenditure has been raised to ₹15,000 crore. Valuation and Key Risks: Following a 6% government stake sale, foreign portfolio ownership increased to 12.29%. Shares trade at roughly 13x 1-year forward EBITDA, above historical averages. Future valuation depends heavily on project execution, as risks like landslides and floods frequently cause operational delays.