NHPC Ltd delivered a better-than-expected June quarter (Q1FY27), with consolidated Ebitda rising 31% year-on-year to ₹2,352 crore, aided by recently commissioned capacity and lower operating costs. Revenue increased 18% to ₹3,808 crore, driven by higher power generation.
The headline numbers, however, masked the pressure on core business from lower water levels in reservoirs following a delayed monsoon. Total power generation rose 8% year-on-year to 9.5 billion units in Q1, but excluding newly commissioned projects, generation declined about 7%. Revenue growth, excluding the contribution from new capacity, was just 0.6%.
The new projects mark NHPC's first capacity additions in about seven years, with the previous commissioning dating back to 2018.
NHPC commissioned 0.25 GW of capacity in Q1FY27, taking total additions since the start of FY26 to 1.8 GW, signalling improved execution momentum. Another 2.7 GW is expected by the end of FY27.
Earnings should receive a boost in the seasonally stronger second quarter, helped by the revival of the monsoon and the resumption of operations at the Teesta-V unit in July. The plant had remained shut since October 2023 after sustaining damage in flash floods. In FY26, the September quarter contributed (Q2) about 40% of NHPC's annual power generation.
NHPC has also been diversifying into shorter-gestation solar projects and commissioned its first large project in October. It has a current capacity of 0.6GW, and has another 1.2GW under construction. Separately, it has signed MoUs to develop around 18 GW of pumped-storage hydropower capacity across multiple states, although these are long gestation projects. Its FY27 capital expenditure target stands at ₹15,000 crore, up from ₹13,700 crore in FY26, which exceeded the company's initial guidance.
Shares have gained about 10% since 2 June, when the Centre sold a 6% stake, reducing its holding to 61.4%. Foreign portfolio investor ownership rose to 12.29% at the end of Q1FY27 from 10.34% at the end of Q4FY26.
The stock trades at an enterprise value of nearly 13x one-year forward Ebitda estimates, according to Bloomberg consensus, above its long-term average multiple. Investors will be watching whether NHPC can deliver its commissioning pipeline on schedule, as hydropower projects remain vulnerable to delays from operational challenges such as landslides and flooding.