NHPC Q1 FY27 Results Analysis: EBITDA Margin Expands 572bps, Finance Costs Surge 132%

NHPC Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 3,808.31 Cr (+18.50% YoY) and PAT growth of +2.90% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 18.5% YoY driven by new hydro capacity from Subansiri and Parbati-II; EBITDA margin expanded 572bps to 61.80%. However, finance costs surged 132% YoY limiting PAT growth to 2.9%. Continuing capacity ramp-up is a positive catalyst, but elevated leverage at 1.32x D/E is a watch item.

Key Investment Insights

Key Positives

• Revenue grew 18.5% YoY to Rs.3,808 Cr, driven by new hydro capacity
• EBITDA margin expanded 572bps to 61.80% due to high margin from new projects
• Subansiri Lower and Parbati-II contributed Rs.938.73 Cr (24.6% of revenue) vs near-zero last year
• Teesta-V (510 MW) resumed generation in July 2026, post-quarter, adding future revenue

Risk Factors

• Finance costs surged 132.3% YoY to Rs.605.76 Cr, compressing PBT despite revenue growth
• PAT attributable to owners grew only 2.9% YoY as higher costs offset revenue gains
• Debt/Equity ratio worsened to 1.32x from 1.09x a year ago, limiting balance sheet headroom
• Depreciation rose 37.6% YoY as new assets were capitalized, further pressuring earnings