NHPC Ltd Q4 FY26 Earnings Analysis

Future Growth Expectations for NHPC Limited: - Power generation up by 15% in 9 months FY'26 due to commissioning of Parbati-II (800 MW) and increased generation from Parbati-III. - Capacity addition planned: ~2,100 MW by March 2026 and 2,744 MW hydro capacity in FY'27. - Solar capacity under construction: 1,190 MW, expected to be mostly commissioned by FY'27 end. - Pipeline projects of ~10,000 MW planned to start in 2026, including Uri-I Stage-II, Dulhasti Stage-II, Sawalkot, Subansiri Upper, Etalin, Kamala. - Pumped Storage Plants (PSPs): Planning to start construction of at least two projects (~2,000 MW) in 2026. - Expect better revenue results with signing of 2,000–3,000 MW PPAs in renewable energy sector in next 2-3 months. - Estimated generation cost for new PSPs: Rs. 4.50/unit; pumped storage cost around Rs. 7.00/unit. - Overall optimistic about strong growth in hydro, solar, pump storage, and renewable energy sectors.

- NHPC expects a bright future with strong project completions and expansions in hydro, pump storage, and renewable energy sectors. - Plans to start 5-6 new hydro projects in 2026, totaling around 10,000 MW capacity. - Solar capacity addition of over 1,000 MW anticipated in calendar year 2026. - Pumped Storage Plants (PSPs) construction to begin on at least two projects, adding around 2,000 MW during 2026. - Projects under DPR show attractive generation cost (~Rs. 4.50 per unit) and total cost (~Rs. 7 per unit), making them financially viable. - Revenue recognition for new projects like Parbati-II and Subansiri currently conservative (80% recognized), expected to improve with tariff clearances. - Capacity additions of 2,744 MW hydro planned for FY'27 with further renewable additions. - Management assures improved results and better performance in the full year FY'26 and beyond.

- FY'26 CAPEX plan: Rs. 13,300 Crore; Nine Months FY'26 CAPEX already Rs. 8,844 Crore - FY'27 CAPEX plan: Rs. 15,000 Crore; thereafter average annual CAPEX Rs. 12,000-13,000 Crore - Planning to start 5-6 hydro projects in 2026 totaling ~10,000 MW capacity (e.g., Uri-I Stage-II, Dulhasti Stage-II, Sawalkot, Subansiri Upper, Etalin, Kamala) - Solar capacity under construction: 1,190 MW, expected to be mostly commissioned by FY'27 end - Exploring pumped storage plants (PSPs) across states like Andhra Pradesh, Odisha, Madhya Pradesh, Maharashtra, etc. DPRs ongoing - Construction planned to start on at least two PSPs (approx. 2,000 MW) in calendar year 2026 - Focus on inorganic and organic growth in hydro, pump storage, and renewable energy sectors

- There is no explicit mention of current or planned fundraising through equity or debt in the provided sections of the NHPC Limited Q3 FY26 earnings call transcript. - However, NHPC plans significant CAPEX: Rs. 13,300 Crore for FY'26 and Rs. 15,000 Crore for FY'27, with average annual CAPEX around Rs. 12,000-13,000 Crore thereafter. - NHPC is undertaking multiple large hydro, solar, and pumped storage projects, implying potential need for capital which could include debt or equity, though specifics are not disclosed. - The company is focused on project completion and expansion but has not detailed financing sources or new fundraising plans in this transcript. - Management did not address any queries regarding new fundraising during the Q&A session. In summary, no direct information on fundraising through debt or equity is provided as of this call.

- Dibang Multipurpose Project (2880 MW): All major contracts awarded except one, which is expected to be awarded in February 2026. - Ratle Hydroelectric Project (850 MW): Physical progress 26%, with dam concreting started; targeted completion by November 2028. - Chenab Valley Power Projects (Subsidiary): - Pakal Dul (1000 MW): 77% progress, expected commissioning December 2026. - Kiru (624 MW): 77% progress, targeted completion December 2026. - Kwar (540 MW): 27% progress, targeted completion March 2028. - Pending tender for Dibang dam package: price bids opened and contract expected to be awarded by end of February 2026. - Pump Storage Projects under DPR stage include projects like Omkareshwar (640 MW), Savitri PSP, Kalu PSP, and Masinta (1000 MW) with total capacity pipeline around 5500-6000 MW; plan to start at least two projects (~2000 MW) during calendar year 2026.