The Mini Ratna PSU, operating under state control, has attracted investor interest through its goal of building 22 GW of hydropower capacity by FY34. The corporate strategy demonstrates the company’s commitment to building clean energy facilities while helping India reach its future renewable energy targets.
Price Action
NHPC Ltd shares saw a maximum change of Rs. 84.90 per share on Friday, before settling at Rs. 83.49 each after the market closed. The market saw a slight price decline, resulting in shares closing at Rs. 83.49 per share. Over the last five-year period, the stock produced more than 320 percent in profit gains.
What Happened
NHPC directs its long-term business development through substantial investments in hydropower, PSPs, and other green energy projects. During FY34, the business plans to increase its hydropower capacity from 7.3 GW to 22 GW. NHPC is pursuing the development of approximately 20 GW of pumped-storage projects through partnerships with state entities backed by the government.
The PSP capacity expansion projects require an investment of about Rs. 84,000 crores from NHPC, according to Chairman and Managing Director Raj Kumar Chaudhary. At the same time, the overall financial outlay reaches nearly Rs. 1.2 trillion. Specific projects being developed by NHPC align with India’s clean energy requirements and will firmly establish the company as a major player in the renewable energy sector.
The upcoming move by NHPC includes preparing to list its subsidiary, NHPC Renewable Energy Ltd, for FY27. The company plans to initiate an IPO for its renewable energy subsidiary once it reaches substantial scale in its green energy operations, to enhance its sustainable energy initiatives and increase its investor following.
Current Capacity
The power plant operator, NHPC, operates 7,097.2 MW of renewable facilities across 25 power stations nationwide, with 1,520 MW from its subsidiary plants.
The company established strategic targets to increase its capacity to reach 23 GW by 2032 and more than 50 GW by 2047. Late in 2026-27, NHPC aims to reach an installed capacity of 14,561.2 MW, having established 7,417 MW from hydroelectric and solar facilities.
During FY26, NHPC plans to invest Rs. 8,000 crore in capital projects to support the construction of 1,620 MW of hydroelectric facilities and 1,490 MW of solar facilities.
Joint Ventures and Projects
NHPC joined forces with the Andhra Pradesh government to establish pumped storage projects (PSPs) under ANGEL (APGENCO NHPC Green Energy Company) as a joint enterprise. The collaboration comprises two PSPs with a total capacity of 2 GW, including the Yaganti 1 GW project and the 800 MW Rajupalem project. All combined pumped storage projects have an estimated capacity to generate 6-8 GW of electricity.
The project development of the 750 MW Kuppa Pumped Hydro Storage Project in Chhota Udaipur by Gujarat Power Corporation Limited and NHPC, through an MoU, is expected to roll out investments in 2024/25, starting at Rs. 4,000 crore.
Financial Performance
Q3 FY25 financial data at NHPC Ltd shows an 11 percent increase in revenue, reaching Rs. 2,287 crore, compared to Rs. 2,056 crore reported in the same quarter last year. During this period, Profit After Tax (PAT) declined by 47 percent to Rs. 330 crore, compared with Rs. 623 crore the previous year.
