NHPC Ltd Q1 FY27 Results (NSE: NHPC)
Signal: Margin expansion
The read
Revenue and EBITDA margin grew strongly on new hydro project billings, but PAT growth was held to 2.9% by a 132% surge in finance costs and a 34% drop in other income. The operating margin trajectory is positive, but elevated leverage and interest burden remain concerns.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,808.31 Cr | 18.5% | 35.3% |
| EBIT | ₹1,903.95 Cr | 19.4% | |
| Net profit | ₹1,095.87 Cr | 2.9% | |
| EPS | ₹1.09 | 2.8% | |
| EBIT margin | 65.7% |
P&L walk
Revenue growth driven by provisional recognition from Subansiri and Parbati-II projects; EBITDA margin expanded on lower generation expenses as % of revenue; finance costs surged 132% YoY due to debt for capex, capping PAT growth at 2.9%.
Key positives
- EBITDA margin expanded 250bps YoY to 65.7% as generation expenses grew only 2.8% vs revenue 18.5%.
- Successful commissioning of 250 MW unit at Subansiri Lower (now 1000 MW out of 2000 MW) and 800 MW Parbati-II adds to future revenue base.
- Revenue grew 18.5% YoY partly due to provisional billing of ₹574 Cr from Subansiri and ₹364 Cr from Parbati-II.
Key concerns
- Finance costs more than doubled YoY (₹260.8 Cr → ₹605.8 Cr) due to debt-funded capex, compressing PBT growth.
- Other income dropped 33.9% YoY, reducing total income growth.
- Net profit margin contracted 427bps YoY to 30.93% despite EBITDA margin expansion.
Research and educational content only. Not investment advice.