The company reported a consolidated net profit of ₹1,095.87 crore for the quarter ended June 30, 2026, compared with ₹1,065.02 crore in the corresponding period last year, marking a 2.9% year-on-year increase.
While the growth in profit was modest, the company’s operating performance showed a stronger improvement during the quarter. Consolidated revenue from operations increased 18.5% year-on-year to ₹3,808.31 crore from ₹3,213.77 crore in the year-ago period.
Revenue growth indicates that the company generated higher income from its core power generation operations during the quarter. For a hydropower producer, revenue performance is closely linked to factors such as electricity generation, availability of water resources, operational efficiency of plants and demand from power distribution companies.
Operating profitability improves sharply
NHPC’s operating performance strengthened significantly during the quarter, with earnings before interest, tax, depreciation and amortisation (EBITDA) rising 30.6% year-on-year to ₹2,352.19 crore from ₹1,801.51 crore.
The growth in EBITDA was substantially higher than revenue growth, resulting in an expansion in operating margins. EBITDA margin increased to 61.8% during the quarter from 56.1% a year earlier.
In simple terms, the margin expansion means NHPC retained a larger share of every rupee earned from operations as operating profit compared with the same period last year.
The improvement in operating profitability suggests that the company benefited from stronger operating leverage during the quarter. Hydropower projects typically involve high upfront capital investments, but once operational, the cost structure allows companies to generate relatively stable operating margins as power generation scales up.
However, the final profit growth remained limited compared with EBITDA growth due to expenses below the operating level, including factors such as depreciation, finance costs and other charges that impact the bottom line.
Hydropower gains importance in India’s energy transition
NHPC’s performance comes at a time when hydropower continues to play an important role in India’s renewable energy strategy.
While solar and wind power capacity has expanded rapidly, these sources depend on weather conditions and cannot always provide electricity on demand. Hydropower plants, because of their ability to generate power based on water availability and operational requirements, provide flexibility to the electricity grid.
This makes hydroelectric capacity important as India adds more renewable energy sources and seeks to maintain grid stability.
NHPC operates multiple hydroelectric power projects across different states and has been involved in developing large-scale hydropower capacity in the country. The company’s business performance is influenced by project execution, regulatory approvals, water availability and power generation levels.
Focus on expanding clean energy capacity
The company has been working on expanding its generation capacity through new hydropower projects and exploring opportunities in related areas.
Apart from conventional hydropower, pumped storage projects have emerged as an area of focus for the power sector. Such projects can store energy and help balance fluctuations from renewable sources, particularly as the share of solar and wind power increases.
For NHPC, expansion plans and execution timelines remain key factors that will determine future growth. Large infrastructure projects typically require significant investment and long execution periods before contributing meaningfully to earnings.
The company did not provide additional operational commentary along with the quarterly results.
Stock movement
Shares of NHPC ended Tuesday’s session 1.46% higher at ₹80.41 apiece on the National Stock Exchange (NSE), ahead of the earnings announcement.
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