NHPC Q4 Results Review: ICICI Securities Downgrades To 'Sell' On Recent Stock Run-Up

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ICICI Securities Report

NHPC Ltd. has reported a steady result in Q4 FY25 – standalone revenue grew 15% YoY to Rs 21 billion, Ebitda grew 4% YoY to Rs 9.4 billion while adjusted PAT, at Rs 8 billion, grew 14% YoY. Growth was mainly due to a reversal of water charges in the base quarter. Plant availability for FY25 stood at 73.9% vs 77.6% in FY24; the lower availability was due to damage to Teesta-V power station due to flash floods in H1 FY25.

Teesta-V is still inoperative and NHPC expects it to resume operations in Q4 FY26. Meanwhile, the under-recovery thereon (estimated at Rs 4 billion annually) shall impact earnings for the next three–four quarters.

NHPC has commissioned all four units of Parbati II (800 MW) and 107 MW of solar capacity in April 2025.

Subansiri (2000MW) is expected to be commissioned in phases by Q1 FY27. We downgrade the stock to Sell, from Hold, given the recent run in the stock price, with a revised target price of Rs 72 (Rs 76 earlier).

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