NHPC Ltd Q1 FY27 Earnings Analysis

- NHPC expects significant capacity addition of 2,994 MW hydro assets in FY’27, including 1,250 MW from Subansiri (balance 1,000 MW), 120 MW Rangit-IV, 1,000 MW Pakal Dul, and 624 MW Kiru. - Additionally, 1,190 MW of solar assets are planned to be commissioned in the current fiscal. - Subansiri Lower is expected to generate 5,000 to 5,500 million units annually going forward (against 506 million units generated last fiscal). - The company is targeting commissioning of five hydropower projects into construction stage this fiscal, including Uri-I Stage-II, Dulhasti Stage-II, Etalin, Sawalkot, and Kamala. - Generation volumes grew 16% in FY’26, with PAF around 80% excluding Teesta-V. - NHPC aims to maintain steady generation despite challenges, supported by snow-fed plants somewhat resilient to monsoon variability. - Revenue growth will be driven by higher generation from new projects and commissioning of additional capacities.

- NHPC expects strong capacity additions in FY’27 with 2,994 MW of hydro and 1,190 MW of solar assets coming online, potentially boosting revenues and profits. - Regulated equity is projected to increase from Rs. 18,309 Crore to Rs. 30,672 Crore by end of FY’27, supporting higher future earnings. - Despite some under-recoveries (~Rs. 450 Crore combined from Parbati-II and Subansiri Lower in FY’26), cost overruns and tariff adjustments are regulated by CERC, which allows pass-through of costs, ensuring margin protection. - With most power stations snow-fed, generation is expected to remain stable, mitigating risks from weak monsoons. - Profit after tax increased by 25% in FY’26, showing growth momentum. - Expected improvement from commissioning of remaining units (e.g., Subansiri Lower) and resumption of Teesta-V operations by June 2026. - Overall, NHPC has a positive outlook for earnings and EPS growth driven by capacity addition, regulatory support, and stable generation.

- NHPC is progressing with key under-construction hydro projects like Pakal Dul (1,000 MW, 80% progress), Kiru (624 MW, 82% progress), Kwar (540 MW, 33% progress), Ratle (850 MW, 29% progress), and Teesta-VI (500 MW, 72% progress). - Estimated costs include Pakal Dul (Rs. 12,728 Crore), Kiru (Rs. 5,409 Crore), Kwar (Rs. 4,526 Crore), Ratle (Rs. 5,282 Crore), and Teesta-VI (Rs. 9,167 Crore). - NHPC plans to start construction of Indira Sagar-Omkareshwar Pumped Storage Project (640 MW) in FY’27 and aims to bring five hydro projects into the construction stage this fiscal, including Etalin, Sawalkot, Kamala, Uri-I Stage-II, and Dulhasti Stage-II. - Kamala HE Project (1,720 MW) in Arunachal Pradesh approved with investment of Rs. 26,070 Crore; JV formation and clearances in progress. - Solar projects under CPSU Scheme (1,000 MW capacity) are underway with staggered commissioning through FY’26-27. - NHPC is exploring development of 18 GW Pumped Storage Projects across several states. - All project cost escalations are regulated and passed on as per CERC norms.

- The transcript on page 26 of NHPC Limited's May 18, 2026 call does not explicitly mention any current or future fundraising plans through debt or equity. - However, on page 25 and surrounding pages, there is discussion regarding capital costs, cost escalations, and project commissioning, indicating ongoing capital expenditure. - It is noted that cost overruns in hydropower projects are inherent and generally allowed by CERC regulations, implying potential financing needs. - No direct mention of fresh debt or equity issuance plans is found in the provided pages. - The company is focused on commissioning multiple projects and managing cost escalations, which may indirectly imply requirement for funds, but no explicit fundraising announcement is present. Thus, based on the content from the transcript, no explicit information on new fundraising through debt or equity was disclosed during this call.

- NHPC is targeting to bring five hydro projects into the construction stage in the current fiscal year. - Two projects, Uri-I Stage-II and Dulhasti Stage-II, have already been awarded. - Three more projects likely to move to the construction stage this fiscal are Etalin, Sawalkot, and Kamala. - Subansiri Upper project is expected to advance next year, not in the current fiscal. - No recent tendering in renewable segments but around 23 GW capacity tendered earlier, with approximately 7 GW already signed via PPAs. - Omkareshwar-Indira Sagar PSP project (640 MW) is the fastest moving PSP project planned for construction start in the current fiscal. - No major cost escalation or timeline delays reported for upcoming projects like Pakal Dul, Kiru, and Kwar. This reflects NHPC's active order pipeline focused on hydro projects, PSPs, and some renewable capacity, with construction phases staggered across current and next fiscal years.