NHPC Ltd Q3 Results: Net Profit Falls 53% to ₹231 Cr, Dividend Declared

NHPC Ltd Q3 Results: Net Profit Falls 53% to ₹231 Cr, Dividend Declared

NHPC Ltd: Business and Industry Overview 

NHPC Ltd, formerly known as National Hydroelectric Power Corporation, is India’s leading hydropower company and a key player in the renewable energy sector. Established in 1975, NHPC is a Government of India enterprise under the Ministry of Power, responsible for planning, promoting, and developing hydroelectric power projects across the country. Over the years, the company has diversified into other renewable energy segments, including solar and wind power, aligning with India’s vision of achieving carbon neutrality and increasing the share of green energy in the overall power mix. NHPC is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) and has a strong presence across various states, particularly in regions with abundant hydro resources such as the Himalayas and the Northeastern states. The Indian power sector is witnessing a major transition, with a growing emphasis on renewable energy sources to reduce dependence on fossil fuels. The government has set ambitious targets for renewable energy generation, including achieving 500 GW of non-fossil fuel capacity by 2030, of which a significant portion is expected to come from hydropower. Hydropower remains a crucial component of India’s energy mix due to its ability to provide baseload power, grid stability, and energy storage through pumped storage plants. However, the sector faces challenges such as lengthy environmental clearances, displacement issues, and geological risks. Despite these challenges, NHPC continues to expand its portfolio, driven by policy support, favourable tariffs, and growing demand for sustainable energy solutions. 

Latest Stock News 

NHPC has declared an interim dividend of 14% on each stock with a face value of ₹10, translating into a payout of ₹1.40 per share. The company has also set February 13 as the record date for the dividend payment, as per an exchange filing. The announcement was made after market hours, with NHPC’s shares closing at ₹77.43 on the BSE, down by ₹0.22 or 0.28%. In addition to its financial performance, NHPC has signed a Memorandum of Understanding (MoU) with the Bihar government to invest ₹5,500 crore in solar energy and green hydrogen initiatives. The company plans to develop a 1,000 MW solar power project along with a green hydrogen mobility pilot project in Bihar, as announced during the Bihar Business Connect 2024 summit. As one of India’s leading renewable energy producers, NHPC currently operates 7 GW of hydropower capacity, with an additional 9.3 GW under construction. In Bihar, NHPC intends to establish a small solar power plant dedicated to producing green hydrogen, which will be used to fuel passenger buses. Green hydrogen, a sustainable energy source with zero carbon emissions, is generated through electrolysis powered by renewable energy. NHPC will finance hydrogen-powered buses and transfer them to the state government, furthering its commitment to promoting clean energy and sustainability in the region. 

Business Segments 

• Hydropower Generation: Hydropower generation is NHPC’s core business, accounting for the majority of its revenue. The company currently operates an installed capacity of over 7,097 MW across multiple states, with projects ranging from run-of-the-river schemes to large reservoir-based hydro plants. NHPC plays a critical role in stabilizing the national grid by providing flexible power supply, which complements the intermittent nature of solar and wind energy. The company’s hydropower plants not only generate electricity but also contribute to flood control, irrigation, and water conservation 

• Renewable Energy: The Company has commissioned several solar power projects across India and is actively participating in government-led solar tenders to expand its capacity. NHPC has also entered into joint ventures with state governments and private players to develop large-scale solar parks. In 2024, NHPC secured multiple solar power projects under the Renewable Energy Implementation Scheme, further solidifying its presence in the non-hydro renewable segment. 

• Power Trading & Consultancy Services: NHPC is actively involved in power trading, supplying electricity generated from its projects to various state electricity boards and distribution companies through long-term power purchase agreements (PPAs). The company benefits from favourable tariff structures and a cost-plus model, which ensures stable cash flows. 

• Pumped Storage & Energy Storage Solutions: NHPC is developing pumped storage projects that function as large-scale batteries. These plants store excess energy by pumping water to higher altitudes during periods of low demand and release it to generate electricity when demand peaks. The company has identified multiple sites across India for pumped storage development, positioning itself as a key player in the emerging energy storage market. 

Subsidiary Information 

• Loktak Downstream Hydroelectric Corporation Limited: Loktak Downstream Hydroelectric Corporation Limited is a subsidiary of NHPC responsible for developing the 66 MW Loktak Downstream Hydroelectric Project in Manipur. This project aims to utilize the water released from the existing Loktak Power Station to generate additional electricity, enhancing energy availability in the Northeastern region. 

• NHDC Limited: NHDC Limited is a joint venture between NHPC (51% stake) and the Government of Madhya Pradesh (49%), focusing on hydropower development in Madhya Pradesh. The company operates the Indira Sagar Hydroelectric Project (1,000 MW) and the Omkareshwar Hydroelectric Project (520 MW), which are vital for power supply in central India. NHDC plays a crucial role in supporting regional energy security and grid stability. 

• Bundelkhand Saur Urja Limited: Bundelkhand Saur Urja Limited is a special-purpose vehicle (SPV) set up by NHPC and the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) to develop solar energy projects in Uttar Pradesh. BSUL focuses on setting up large-scale solar parks in the Bundelkhand region to enhance solar power generation capacity and support India’s renewable energy transition. 

• NHPC Renewable Energy Limited: NHPC Renewable Energy Limited is a wholly-owned subsidiary focused on expanding NHPC’s footprint in the renewable energy sector. The subsidiary is actively developing solar and wind power projects across India, with a strong emphasis on hybrid energy solutions. NREL plays a key role in NHPC’s long-term strategy to diversify beyond hydropower and contribute to India’s renewable energy targets. 

• Tata Power Trading Company Ltd. (TPTCL): This subsidiary is involved in power trading and energy management solutions. TPTCL facilitates the sale and purchase of power across different regions, optimizing supply-demand balance and ensuring efficient utilization of generation capacity. It plays a crucial role in providing open access solutions to industries and commercial enterprises. 

Q3 FY25 Earnings 

• Revenue of ₹2287 crore in Q3 FY25 up by 11.3% YoY from ₹2056 crore in Q3 FY24.  

• EBITDA of ₹1021 crore in this quarter at a margin of 45% compared to 37% in Q3 FY24. 

• Profit of ₹330 crore in this quarter compared to a ₹623 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr	Q3 FY24	Q3 FY25	FY23	FY24
Revenue	2056	2287	10607	9632
Expenses	1303	1265	4423	4825
EBITDA	752	1021	6184	4807
OPM	37%	45%	58%	50%
Other Income	587	365	743	2029
Net Profit	623	330	4261	4028
NPM	30.3%	14.4%	40.2%	41.9%
EPS	0.48	0.23	3.9	3.6