NHPC reports ₹3,766 cr profit as project restarts approach
Management expects tariff orders for Parbati-II and Subansiri Lower by mid-2027, while Teesta-V prepares for a 2026 return.
What's new
- Parbati-II tariff order expected by June 30, potentially yielding ₹300 cr.
- Teesta-V to resume generation by June 2026, restoring ₹400-500 cr in annual revenue.
- Subansiri Lower has commissioned four of eight units; full capacity targeted for March 2027.
Why this matters
NHPC depends on resolving regulatory and operational bottlenecks to sustain earnings. The pending tariff orders are the primary test for the company's bottom line.
What we're watching
- The June 30 deadline for the Parbati-II final tariff order.
- Progress on the remaining four units at the Subansiri Lower project.
- Actual generation levels at Teesta-V following its planned June 2026 restart.
The full read
NHPC is working to clear a backlog of revenue and operational capacity. The company reported a 25% rise in FY26 net profit to ₹3,766 crore, though this figure includes a one-time deferred tax benefit. The real story lies in the pipeline of pending revenue. Management expects a final tariff order for Parbati-II by June 30, which could yield ₹300 crore. The return of Teesta-V in June 2026 promises to restore ₹400-500 crore in annual revenue. The 2,000 MW Subansiri Lower project is also gaining ground with four of its eight units now commissioned. The company expects the remaining units to be online by March 2027, with an interim tariff order for the project anticipated within six months. The path to higher earnings is clear. Regulatory and construction timelines are the next test.
Questions answered
- What is the status of the Subansiri Lower project?
- Four of the eight units are commissioned. Management expects the remaining units to be operational by March 2027.
- How much revenue is tied to the Parbati-II tariff order?
- The company expects the final tariff order by June 30, which could yield approximately ₹300 crore in under-recognised revenue.
- When will Teesta-V contribute to revenue again?
- Generation is set to resume by June 2026. This is expected to restore an annual revenue opportunity of ₹400-500 crore.
- What drove the 25% profit growth in FY26?
- The company reported a full-year net profit of ₹3,766 crore. This performance was supported by a one-time deferred tax benefit.