New Delhi: State-owned hydropower company NHPC Limited reported a 35.95% year-on-year increase in consolidated net profit to Rs 1,657.57 crore in the second quarter of the financial year 2026-27 (Q2 FY27), compared with Rs 1,219.28 crore in the corresponding quarter of the previous financial year.
The growth was supported by higher revenue and contributions from newly commissioned hydropower capacity. According to the unaudited financial results submitted to the stock exchanges on November 4, 2026, NHPC’s consolidated total income increased 28.64% to Rs 4,669.58 crore during the quarter, against Rs 3,629.98 crore in Q2 FY26.
The company’s standalone financial performance was even stronger, with net profit increasing nearly 65% year-on-year, supported by higher operating revenue and electricity sales from its major hydropower projects.
NHPC Q2 FY27 Financial Results: Key Highlights
NHPC recorded growth across its major financial indicators during the September quarter. The key figures for Q2 FY27 compared with Q2 FY26 are as follows:
- Consolidated Net Profit: Rs 1,657.57 crore, up 35.95% from Rs 1,219.28 crore in Q2 FY26.
- Consolidated Total Income: Rs 4,669.58 crore, up 28.64% from Rs 3,629.98 crore.
- Standalone Net Profit: Rs 1,525.49 crore, up 64.82% from Rs 925.52 crore.
- Standalone Revenue from Operations: Rs 4,124.77 crore, up 50.97% from Rs 2,732.11 crore.
- Standalone Finance Costs: Rs 552.32 crore, up 105.07% from Rs 269.34 crore.
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NHPC Standalone Net Profit Jumps 64.82% in Q2 FY27
NHPC’s standalone performance showed significant improvement during the July-September quarter. Standalone net profit surged 64.82% to Rs 1,525.49 crore, compared with Rs 925.52 crore in the year-ago period.
Standalone revenue from operations increased 50.97% to Rs 4,124.77 crore from Rs 2,732.11 crore in Q2 FY26.
Profit before tax (PBT) rose 54.56% to Rs 1,687.18 crore, while total standalone income increased to Rs 4,328.50 crore from Rs 2,994.44 crore in the corresponding quarter last year.
On a sequential basis, standalone net profit grew approximately 37% compared with Rs 1,113.41 crore reported in the April-June quarter of FY27.
Subansiri Lower and Parbati-II Projects Contribute Rs 1,231 Crore
The revenue growth during the quarter was significantly supported by electricity sales from NHPC’s Subansiri Lower and Parbati-II hydropower projects.
According to the notes accompanying the financial results, NHPC recognised Rs 678.17 crore as provisional sales from the 2,000 MW Subansiri Lower Hydroelectric Project during the September quarter. These sales are pending tariff approval from the Central Electricity Regulatory Commission (CERC).
Similarly, the company recognised Rs 553.47 crore in provisional quarterly sales from its 800 MW Parbati-II hydropower project, subject to final tariff approval.
Together, the two projects contributed Rs 1,231.64 crore in provisional sales during Q2 FY27, accounting for nearly 30% of NHPC’s standalone revenue from operations.
The contribution highlights the growing role of newly commissioned hydropower assets in the company’s revenue growth. However, the finalisation of tariffs by the regulator remains important, as subsequent tariff determinations could lead to revenue adjustments.
Subansiri Lower Project Capacity Expansion Continues
NHPC has also made progress in commissioning additional generating capacity at the Subansiri Lower Hydroelectric Project.
The company commissioned the fourth 250 MW unit during the first half of FY27, taking the project’s operational capacity to 1,000 MW.
Subsequently, the fifth 250 MW unit commenced commercial operations on October 23, 2026. With this addition, the commissioned capacity increased to 1,250 MW out of the project’s planned 2,000 MW.
The commissioning of additional units is expected to strengthen NHPC’s power generation capacity and support revenue growth in the coming quarters.
NHPC Makes Rs 231 Crore Provision for Teesta-IV Project
Despite the strong growth in quarterly earnings, NHPC recognised a provision of Rs 231.30 crore against expenditure incurred on surveys and investigations for its proposed Teesta-IV hydropower project.
The expenditure had earlier been classified as capital work in progress. However, uncertainties surrounding the project’s implementation prompted the company to recognise the provision.
The development highlights the financial risks associated with hydropower projects, particularly those involving challenging environmental and geological conditions.
Finance Costs More Than Double, Debt-Equity Ratio Rises
NHPC’s growing investment in hydropower capacity is also increasing its financing and operating costs.
Standalone finance costs more than doubled to Rs 552.32 crore in Q2 FY27, compared with Rs 269.34 crore in the corresponding quarter of the previous year.
Depreciation, amortisation and impairment expenses also increased to Rs 588.06 crore from Rs 419.81 crore.
As a result, total standalone expenses rose 38.81% year-on-year to Rs 2,641.32 crore. However, the increase in revenue outpaced the growth in expenses during the quarter.
The company’s standalone debt-equity ratio increased to 1.18 as of September 30, 2026, compared with 1.04 a year earlier, reflecting higher financing requirements associated with its capital-intensive expansion programme.
NHPC Q2 FY27 Outlook: Tariff Approvals and Project Execution Key
NHPC’s Q2 FY27 results indicate that investments in new hydropower capacity are beginning to contribute significantly to revenue and profitability.
However, the company’s future earnings performance will depend on several factors, including regulatory tariff approvals for Subansiri Lower and Parbati-II, timely commissioning of the remaining Subansiri Lower capacity and effective management of rising borrowing costs.
The Rs 231.30 crore provision for the Teesta-IV project also highlights the potential financial impact of delays and uncertainties in large hydropower developments.
The commissioning of additional generating units could support revenue growth in the coming quarters. However, the sustainability of earnings growth will depend on project execution, tariff finalisation and the management of debt obligations.
NHPC’s board approved the unaudited financial results on November 4, 2026. The company’s joint statutory auditors issued an unmodified limited-review conclusion.
NHPC has also scheduled an earnings conference call for November 5, 2026, to discuss its quarterly performance, project timelines, tariff approvals and capital expenditure requirements.
About NHPC Limited
NHPC Limited is a Government of India enterprise under the Ministry of Power and one of the country’s leading hydropower development organisations. The company is engaged in the planning, development, construction and operation of hydropower projects, along with other renewable energy initiatives. It plays an important role in strengthening India’s power generation capacity and supporting the country’s clean energy transition.
