NHPC Ltd H1FY27 Results (NSE: NHPC)
Signal: Margin expansion
The read
H1FY27 marks a margin inflection: standalone operating margin expanded to 48.92% from 42.63% while revenue grew 34.2% to ₹7661.81 crore, but the trajectory remains exposed to a 121.0% surge in finance costs and pending CERC tariff approvals for ₹1252.48 crore of provisional half-year sales.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹7,661.81 Cr | +34.2% | N/A |
| Net profit | ₹2,638.9 Cr | +32.1% | |
| EPS | ₹2.63 | +32.2% | |
| EBIT margin | 48.92% |
P&L walk
The consolidated financial-statement face is not included in the supplied filing text; consolidated figures cannot be verified from this extract.
Segments
NHPC reports a single operating segment because electricity generation is the principal business activity; the momentum is therefore at the project level, with 1000 MW of Subansiri Lower and 800 MW of Parbati-II commissioned capacity contributing to revenue.
Key positives
- Revenue from operations rose 34.2% to ₹7661.81 crore, materially above the 12.02% three-year sales CAGR in the company context.
- Operating margin expanded 630bps to 48.92% from 42.63%, helped by generation expenses falling 6.8% while revenue grew 34.2%.
- Operating cash flow more than doubled to ₹2985.21 crore from ₹1233.25 crore, providing stronger cash conversion than the year-ago half year.
- Subansiri Lower reached 1000 MW commissioned capacity and Parbati-II contributed after commissioning of its 800 MW project.
Key concerns
- Finance costs rose 121.0% to ₹1154.33 crore, materially outpacing revenue growth of 34.2% and reducing interest service coverage to 4.21x from 5.38x.
- PAT growth of 32.1% slightly lagged revenue growth of 34.2%, indicating that higher financing and depreciation costs absorbed part of the operating benefit.
- Revenue includes ₹1252.48 crore of provisional Subansiri Lower sales and ₹917.89 crore of provisional Parbati-II sales pending CERC tariff approval.
Research and educational content only. Not investment advice.