NHPC Limited Earnings Summary — Q4 FY2026
NHPC Reports Strong Quarterly Profit Growth Amidst Sharp Margin Compression
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹3,808 Cr is 18.5% higher year-on-year.
- Revenue has compounded at 36.6% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹1,096 Cr is 2.9% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 36.5% annualised across the period.
- Operating margin stands at 61.8% in Q1 FY2027.
- Operating margin expanded by 570 bps year-on-year.
- Over the last two years operating margin has expanded by 202 bps.
- PBT margin is 40.8%.
- Expense growth of 3.1% remained below revenue growth of 18.5%.
- Operating profit of ₹2,352 Cr is 30.6% higher year-on-year.
- Operating leverage continues to improve.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 76/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 3,808 | 2,816 | 2,221 | 3,365 | 3,214 | 2,347 | 2,287 | 3,052 | 2,694 | 1,887 |
| Expenses | Improving | 1,456 | 2,179 | 2,009 | 1,338 | 1,412 | 1,142 | 1,272 | 1,247 | 1,085 | 735 |
| Operating Profit | Volatile | 2,352 | 637 | 212 | 2,027 | 1,802 | 1,205 | 1,015 | 1,805 | 1,609 | 1,152 |
| Operating Margin | Volatile | 61.8% | 22.6% | 9.5% | 60.2% | 56.1% | 51.3% | 44.4% | 59.1% | 59.7% | 61.0% |
| Other Income | Volatile | 407 | 306 | 1,449 | 448 | 413 | 265 | 365 | 454 | 431 | 623 |
| Interest | Volatile | 606 | 574 | 310 | 278 | 261 | -12 | 649 | 308 | 244 | 365 |
| Depreciation | Improving | 600 | 642 | 457 | 441 | 436 | 315 | 297 | 285 | 296 | 299 |
| Profit Before Tax | Volatile | 1,554 | -274 | 894 | 1,755 | 1,518 | 1,167 | 434 | 1,666 | 1,500 | 1,111 |
| Tax | Volatile | 376 | -1,823 | 573 | 536 | 387 | 247 | 104 | 605 | 399 | 506 |
| Net Profit | Volatile | 1,096 | 1,460 | 219 | 1,021 | 1,065 | 854 | 231 | 900 | 1,022 | 544 |
| Net Margin | Volatile | 28.8% | 51.9% | 9.9% | 30.4% | 33.1% | 36.4% | 10.1% | 29.5% | 37.9% | 28.8% |
Key Takeaways
- Quarterly net profit surged to ₹1,549 Cr, heavily supported by a significant tax adjustment/credit rather than operating strength.
- Revenue grew nearly 20% YoY, but expenses nearly doubled from ₹1,142 Cr to ₹2,179 Cr in the same period.
- Operating Profit Margin (OPM) collapsed to 23% from the previous year's 51%, indicating severe cost pressures or one-off operational charges.
- The balance sheet shows a sharp spike in borrowings to ₹52,327 Cr, reflecting high capital intensity for ongoing hydro projects.
- Depreciation and interest costs have scaled significantly (₹642 Cr and ₹574 Cr respectively), suggesting project commissioning or capitalization shifts.
- Interest expenses rose more than five-fold compared to the prior year's adjusted interest figure.
Management Guidance
Management is focused on maintaining its Navratna PSU status while transitioning into a multi-source renewable player with a 3,000+ MW pipeline in Arunachal Pradesh.
Sentiment Shift
Stable
While net profit is inflated by tax credits, the operational margin compression and rising debt levels counter-balance the top-line growth.
Outlook
The outlook remains steady yet constrained by long gestation cycles for hydro assets and a significant increase in capital expenditure which is currently straining the balance sheet and free cash flows.
From the Annual Report (Key Quotes)
“NHPC plays a critical role in India's energy transition, specifically in providing balancing power for the grid.”
“The transition to a multi-source renewable player is underway through a pipeline of 3,000+ MW projects.”
“Management has successfully managed to keep debtor days within a reasonable range despite the financial health of state DISCOMs.”
Official Quarterly Documents
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This summary is AI-generated from NHPC Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.