NHPC Ltd Q2FY26 – The Hydropower Giant That Generates Power, Patience, and Punchlines
When you run 7,000+ MW of hydro, it’s not just electricity you generate — it’s also government paperwork, delayed clearances, and the occasional river-level anxiety attack.
1. At a Glance
NHPC Ltd — India’s very own mountain-stream-powered PSU saga — has just dropped its Q2FY26 results, and as usual, the financials are wetter than a monsoon report. The stock, sitting at ₹82.8 as of November 6, 2025, represents an ₹83,282 crore market cap hydropower behemoth that has been keeping lights on and babus employed since forever.
The quarter saw sales of ₹2,732 crore, up 7.17% YoY, and PAT of ₹926 crore, up 3.06% YoY. Not electrifying growth, but hey — steady power is the name of the game. Operating profit margin remained a comfortable 56%, because when water flows freely from the Himalayas, EBITDA flows too.
With a P/E of 26.3, dividend yield of 2.31%, and ROE of 8.4%, NHPC trades like a PSU that has discovered yoga: calm, balanced, occasionally slow-moving. Debt stands at ₹39,489 crore, and the company’s hydropower capacity has reached 7,233 MW — around 15% of India’s total hydro generation.
Meanwhile, the Government of India, which still owns 67.4% of this Navratna, recently pocketed some cash by offloading a 3.55% stake through an Offer for Sale. Because even the government likes a bit of liquidity before elections.
2. Introduction
Picture a river. Now imagine that river being slowed down, dammed, redirected, and monetised — welcome to the world of NHPC Ltd. Born as India’s hydroelectric poster child, NHPC has since diversified into solar, wind, pumped storage, and paperwork that could dam a river by itself.
But don’t be fooled by the serene Himalayan backdrops. NHPC’s business is a balancing act — between rainfall and regulation, between monsoon timing and ministerial timing. When you run 28 power stations across 15 states and 2 UTs, you don’t just manage water — you manage chaos.
FY25 and FY26 so far have been about transition. On one hand, NHPC’s old warhorses — Subansiri, Parbati, and Dulhasti — keep the turbines spinning. On the other, the company has been quietly sneaking into solar and pumped storage projects worth ₹50,000 crore (thanks to an MoU with Rajasthan’s government).
And just when you thought bureaucracy couldn’t move fast, NHPC announced the commissioning of its 300 MW Bikaner Solar Project in October 2025. Imagine that — sunlight from Rajasthan powering a PSU’s quarterly report glow.
So, what’s next for this state-run hydro samurai? Let’s dive into the details — hold your breath, because there’s a lot of water (and balance sheets) ahead.
3. Business Model – WTF Do They Even Do?
At its core, NHPC is a hydroelectric power generation company. That means it traps rivers in dams, converts falling water into electricity, and sells it to state utilities — who then pay late, complain about tariffs, and send back love letters marked “Pending”.
The company’s main revenue stream comes from generation and sale of bulk power. It also provides project management and consultancy services for hydro projects and trades power when it gets bored.
Its hydro portfolio is mammoth: 28 operational plants across the subcontinent, churning out 6,971 MW of hydro capacity and another 262 MW in solar and wind. Think of it as India’s renewable turtle — slow, steady, but annoyingly consistent.
Key segments:
Hydropower (core) – Contributes roughly 90% of operating revenue.
Renewables – The rising child of the family, expected to scale with solar and battery storage.
Consultancy/Contracts – A side hustle that pays for the office snacks.
Under construction? A modest 16 hydro and solar projects totaling 10,804 MW. Awaiting clearance? Another 4,112 MW. Under investigation? 4 more projects of 4,215 MW. Basically, NHPC has more MW on paper than India has monsoon clouds.
4. Financials Overview
Let’s decode the Q2FY26 power numbers — because in PSU land, every crore has a backstory.
Metric
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue (₹ Cr)
2,732
2,549
2,977
7.17%
-8.23%
EBITDA (₹ Cr)
1,518
1,431
1,646
6.08%
-7.77%
PAT (₹ Cr)
926
898
1,072
3.06%
-13.63%
EPS (₹)
0.92
0.89
1.07
3.37%
-14.02%
Annualised EPS: ₹3.68 → P/E ~22.5x at ₹82.8 per share.
Commentary: NHPC’s quarterly rhythm is like a river — high in monsoon, low in winter. Revenue rose 7% YoY, thanks to better generation, but slipped sequentially as seasonal hydro output normalised. PAT growth of 3% YoY shows the same story — steady, not spectacular.
The 56% EBITDA margin shows PSU-level efficiency — where depreciation and interest flow like waterfalls, but power still prints profits.
5. Valuation Discussion – Fair Value Range
Let’s calculate NHPC’s fair value range using the three
