Earnings Call Transcript - XNSE:NHPC 2026-11-05

Operator

Ladies and gentlemen, good day and welcome to NHPC Ltd. Q2FI27 Earnings Conference Call hosted by Alara Securities India Private Ltd. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call? Please signal an operator by pressing star then zero on touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Tupesh NK from Ilara Securities, India Private Limited. Thank you, and over to you, sir.

Tupesh NK, Head of Investor Relations

Yeah, good morning, everyone. On behalf of Ilara Securities, we welcome you all for the Q2FI 27 conference call of NHPC. I take this opportunity to welcome the management of NHPC represented by Shri Bhupendra Gupta, Chairman and Managing Director, Shri Sanjay Kumar Singh, Director Projects, Shri Mahesh Kumar Sharma, Director Finance, Shri Paresh Arsikla Tanpara, Director Personal. We will begin the call with the brief overview by the management followed by Q&A session. I will now hand out the call to Mr. Bhupendra Gupta, sir, for his opening remarks. Over to you, sir.

Bhupendra Gupta, Chairman

Thank you. Thank you, Mr. Bupesh. Good morning to all. As you are aware, the NHBC board has adopted the half yearly financial results for the period ended 30th of September 26th in its meeting held on 4th of November. And the same has already been communicated to the exchanges. By now, I hope that all of you would have got the chance to go through the quarterly as well as the half yearly set of numbers. So, first of all, I will just touch upon major highlights, and then detailed analysis of the results shall be discussed by our Director of Finance, Siri Mahesh Kumar Sharma. Brief highlights, if you see the consolidated financial results and important updates arise under, during the half-year FY27, Our power stations have achieved generation of 23,741 million units, as against 20,866 million units, generated in corresponding period of the previous year, which is higher by 14%, or 2875 million units. This is mainly due to part commissioning of Subhanshari lower project. which is now stands at 1250 megawatt commission, and then increase in generation of Parvati 2, Parvati 3, and Karnisar solar power station, and also the increase is due to exemption of the commercial operation of Tista 5 power station. Our PEF for half-year F by 27 stands at 86.67% against the corresponding previous period PEF of 81.10%. which is about 6% higher. This is mainly due to part commissioning of subhansiri lower and increase of PAF for Parvati 2 and exemption of the commercial operation of 3-5 power station. During the half-year FY27, company has earned revenue from operation Rs. 8,291 crore as against 6,579 crore in the corresponding previous period, which is about 26% higher. During half-year F by 27, the company has earned PAT of 2,645 crore. As against 2,086 crore, there is an increase of 27%. In respect of our anniversary lower project, which is 2,000 MW, we have already commissioned 5 units of 250 MW, that is totaling to 1,250 MW out of 8 units. And the latest one was successful commissioning of unit 5, which we achieved on 23rd of October 2026. Further, we are targeting to commission two more units of this subhanceri during the financial year, and the remaining one unit is expected to be commissioned by June 27. So with this, our subhanceri will become the biggest hydro project in India. The anticipated cost of the project is 30,072 crore, and already we have incurred around 26,900 crore till September 26, which is 90% of anticipated cost, and we don't anticipate any further increase in the cost. In respect of Divang multiple projects, all major contracts have been already awarded, and we have already shared that we have achieved the crucial Nala diversion, significant stride towards ensuring all-weather road, access to project site, and work is going in a full-fledged manner. The estimated cost of this project is 31,876 crore, which includes grant of 6,716 crore for flood moderation and enabling infra, out of which we have already spent 5,504 crore till September 26. And as per our schedule, the completion of the project is February 32, and we are 100% sure that we will achieve this date without any fail. In respect of Tista 6, 500 MW, the work is progressing well, and the only hurdle which we are facing there is the tunnel only, but we are sure that whatever the timeline we have now kept for completion of this project will achieve that, because the 74% progress has already been achieved. The estimated cost of this project is 9,167 crore, out of which 5,650 crore has already been spent till September, that is 62% of the estimated cost. The expected commissioning of the project is September 29. In respect of OD-1 stage 2, which is 240 MW of HEP, we started the work at site this year only, and the civil contract of the project was awarded in March 26, and the tender for the HM and electromechanical works are in progress. The estimated cost of this project is 2,709 crore, out of which we have already incurred expenditure of 33 crore till September, and the scheduled completion of the project is November 29. In the same line, Dholasthi stage 2 HEP 260 MW, this was also awarded in March 26, and the work is in full swing in here also, and we have spent around 120 crore till September, against the estimated cost of 2994 crore. In this case also, this dual completion of this project is also November 29, and I am 100% sure that both the projects, this UDI 1 stage 2 and Dholasthi stage 2, will be commissioned within the scheduled time. JAL Power Corporation Limited, Rangith 4 HEP, 120 MW, is also progressing well. Here we have already achieved 98% of the progress, and the boxing of all the three units have been completed. The estimated cost of this project is 2057 crore, out of which we have already incurred expenditure of 1916 crore, till September. The project is expected to be commissioned by December 26, as we have initiated the job of this reservoir filling, and I am sure that whatever date we have kept now, we will be able to start the wet commissioning and commission the plant as scheduled. The merger of JPCL with NHBC. is in process, and second motion application has already been filed with the Ministry of Corporate Affairs. NHBC through its subsidiary CBPL Chinab Valley Power Budget Limited is executing three budgets in Chinab basin in UT of J&K. The construction work of Pakal tool HCP, which is 1000 MW, is progressing well. The daylighting of the HRT of the project was achieved on 10th of June 26, which means that we have all completed the water control system, and overall the progress is 89%. This estimated cost of the project is 12,728 crore, out of which we have already incurred 10,183 till September. The project is expected to be commissioned fully by June 27, though we are targeting the commissioning of two units by March 27, and planning to start the reservoir filling in the end of December. In respect of Kiru HCP, which is 624 MW, overall 92 project progress has been achieved. And against the total estimated cost of 5409, we have spent 4105 till September 26, which is 76% of the estimated cost. And in this case also, we will be starting the reservoir filling from this month only, and we are targeting the commissioning of all the units by March 27, which means this period will be ready for the full generation from the next financial year. Kawar is another project which is being done by CBPL, 540 MW. Here also the work is progressing as per schedule. 42% physical progress has been achieved and against the total estimated cost of 4,526, we have incurred 2,700 crore till September. And project is scheduled to be commissioned by May 28. So, this is also, as of now, this rate is also on its scheduled, this path, and I am 100% sure, considering the present status, and the date also, we will commission this by the scheduled date, that is May 28. In respect of Rathalei HEP, which is 850 MW, it is again in the UT of J&K. The work is progressing well. Overall, 33% progress has been achieved, and the estimated cost is 5,282, and we have spent 1,749 till September 26. The major activity of this particular budget, which is one of the major activities, which is the dam concreting, so I am happy to inform you that we have started this dam concreting from the 2nd of November this month only, and with this now activities now in process, we are sure that we will achieve the targeted completion of this budget by November 28th. Another project is the Tishtha 5 power station which got damaged due to the October 23 flash flood which was due to the gloff in the Tishtha basin. The restoration of this project was completed and the power station has started the commercial operation again from July 26. We have already shared the Cabinet Committee on Economic Affairs has approved investment of 26,070 crore. For construction of Kamle LCP, this is 1720 MW in Arunachal State in April 26. The project is to be implemented through JV between NHBC and Government of Arunachal, and the formation of subsidiaries is in process, and further environment and forest clearances are also in process for the project, and we are expecting these clearances this month only, and we are targeting to start the physical work at site during this financial year. Apart from above, the under construction project, NHBC is actively pursuing to start works of Savalcoat, 1800 MW, for which the PIB has already been completed, and we are expecting the CCA approval very soon. Subhansari Appar, this is still in nascent stage, it is not in very advanced stage, and Italian, this is in very very advanced stage, we have got all the clearances, we are already doing the tendering, and hopefully we will get the cabinet approval, maybe within two months, and then we can start the work for this budget also physically at site, during this financial year, and this will be the biggest hydro budget in the India, after our Diwan, which is 2882 megawatt, and this is 302. Thank you. In respect of 1000 MW capacity, solar power budget allotted under CPSU scheme. We have already commissioned 300 MW budget in Bikaner. Further, 100 MW in Andhra Pradesh and 600 MW Gujarat are expected to be commissioned by January 27 and November 27 respectively. There is some issue of connectivity. That's why these budgets are getting delayed. Otherwise, we would have completed some of the budgets, I think, very early, but connectivity issues are there, which all the solar budgets are facing. So this is the reason why these dates are going to November 27. Our other under-construction solar projects, like 40 MW solar power projects in Ganjav, Odisha, and 150 MW floating solar projects in Kerala, are also expected to be completed by March 27. Further, two projects of 200 MW each grid-connected solar photovoltaic power projects, which are located in Gujarat State Lake City Corporation Ltd. RE Park at Khovda, are expected to be commissioned by December 26 and September 27, respectively. NNPC is exploring to dwell pump storage projects in the state of Maharashtra, Odisha, MP, Gujarat, then Andhra, and currently we have 18 gigawatt PHP which are in the DPR oblique PFR stage. And we are sure that some of the projects for which the DPR is in advanced stage, we are in the talks with the state government for their facilitation as well as for the PPN and all that, and we are hopeful that next year at least two of the PSP's physical work will start at site. Another PSP project, which is Indira Sagar-Ungkarishwar PSP, because Indira Sagar-Ungkarishwar, both the reserve are with us, NHBC, we have a JV with the government of MP, so we are planning one PSP of 640 MW, for which the tending process has already been initiated, and we are sure that this project will have a physical, this work. During this financial year also, we are hopeful to start during this financial year. So this is all from my side and the brief about our highlights of the company and the jobs which we are doing. And so I will request my Director of Finance, Mr. Mahesh Kumar Sharmaji, to discuss the financial results in detail with all of you. Thank you so much.

Mahesh Kumar Sharma, Other

Thank you, sir. Good morning to all. Detailed highlights of the concentrated financial results. And important updates on the company are as under. During half-year FY27, our power stations have achieved generation of 23741 million units as against 20866 million units generated in the corresponding period of the previous year, which is higher by about 14% or 2875 MUs. During second quarter FY27, our power stations have achieved generation of 13935 million units, as against 11870 million units generated in the corresponding period of the previous year, which is higher by about 70% or 2065 billion units. Our PAF for half-year FY27 stands at 86.67% against the corresponding previous period PAF of 81.10%, which is about 6% higher. Our PF for second quarter FY27 stands at 92.24% against the corresponding previous period PF of 78.58% which is about 14% higher. For half-year FY27, company has earned revenue from operation of Rs. 8291 crore as against Rs. 6579 crore in the corresponding previous period, which is about 26% higher or by Rs. 1712 crore. The increase in revenue mainly due to higher generation on account of part-commissioning of Subansi lower project, increase in generation of Palti to power station, and resumption of commercial operation of Pista 5 power station. During Q2 FY27, company has earned revenue from operation of Rs. 4482 crore as against Rs. 3365 crore in the corresponding previous period which is about 33% higher or by Rs. 1117 crore. The increase in revenue is mainly due to higher generational account of reasons I have just shared. Other income for half-year F527 is of the order of Rs. 338 crore in comparison to Rs. 494 crore during the corresponding previous period which is about 31% lower or by Rs. 156 crore. This is mainly due to income from insurance claim in the corresponding previous period. Other income for Q2 FY27 is of the order of Rs. 187 crore in comparison to Rs. 265 crore during the corresponding previous period, which is about 29% lower or Rs. 78 crore. This is mainly due to income from insurance claim in the corresponding previous period. During half-year F527, the generation expenses have come down from Rs. 592 crore to Rs. 552 crore, means by Rs. 40 crore, which is due to lower water cess on account of lower generation in the power station situated in UT of J&K, and no water cess on account of Uttarakhand in view of verdict of Honourable High Court of Uttarakhand in favour of NHPC. During Q2 FY27, the generation expenses have come down from Rs 302 crore to Rs 277 crore, means by Rs 25 crore, which is again due to lower water sales on account of regions I have just shared. During half-year FY27, the employee benefit expenses have gone up from Rs. 750 crore to Rs. 793 crore, means by Rs. 43 crore, which is mainly due to part-commissioning of Subhansalwar project, as expenses related to the part-commissioned projects are now being charged to P&L. During Q2 FY27, the employee benefit expenses have gone up from Rs. 326 crore to Rs. 392 crore, means by Rs. 66 crore, which is mainly due to part-commissioning of sovereign silver project by Rs. 19 crore, and increase on account of promotion, DA, and other factors by Rs. 47 crore. During half-year FY27, there has been increase in the finance cost from Rs. 539 crore to Rs. 1160 crore, means by Rs. 623 crore, which is mainly due to increase on account of interest on loan related to Subhansi lower project charge to P&L since its part commissioning. During Q2 FY27, there has been increase in the finance cost from Rs. 278 crore to Rs. 556 crore, means by Rs. 278 crore, which is again mainly due to increase on account of interest on loan related to subvency loan project charged to P&L since its part commissioning. During half-year FY27, the depreciation and amortization expenses have gone up from Rs.877 crores to Rs.1,210 crores, means by Rs.333 crores, which is mainly due to part-commissioning of Subhansri Lower Project. During Q2 FY27, the depreciation and amortization expenses have gone up from Rs. 441 crore to Rs. 610 crore, means by Rs. 169 crore, which is again mainly due to part-commissioning of suban-silver project. During half-year FY27, other expenses have gone up from Rs. 1409 crore to Rs. 1717 crore, means by Rs. 308 crore. This is mainly due to the increase in expenses related to Subhansi lower project by Rs. 207 crore, and provision related to Thista 4 project of Rs. 231 crore, which is offset by decrease in insurance premium of other power stations by Rs. 92 crore. During Q2 FY27, other expenses have gone up from Rs.710 crore to Rs.938 crore, means by Rs.228 crore. This is mainly due to the increase in expenses related to Subansi Lord project by Rs.92 crore and provision related to Tishtha for project of Rs.231 crore, which is offset by decrease in insurance premium of other power stations by Rs.52 crore. During half-year FY27, tax expenses have come down from Rs. 923 crore to Rs. 912 crore, which is almost flat. During Q2 FY27, tax expenses have been on the similar line as previous year period, which is Rs. 536 crore. During half-year FY27, we have earned path of Rs. 2645 crore as against Rs. 2086 crore of corresponding previous period, which is up by Rs. 559 crore or 27% aprox. And the reason for decreased increase in the line items we have just discussed. During Q2 FY27, we have earned part of Rs. 1549 crore as against Rs. 1021 crore of corresponding previous period, which is up by Rs. 528 crore or 52% approx. And the reasons for decrease the oblique increase in the client items we have just discussed. During half-year FY27, the incentive positions are as under. Secondary energy has decreased by 174 crores, that is a decrease of 75%. PA-based incentives have decreased by 10 crores, that is a change of 77%. Division charges have increased by 22 crores, that is a change of 105%. So, total incentives in the first half-year FY27 is 103 crore as against in the corresponding previous period, 265 crore that is a decrease of 162 crore and in percentage terms it is 47%. During Q2 FY27, the incentives for its position are as under. Secondary energy has decreased by 204 crore, i.e. 89% decrease. PA-based incentives have decreased by 10 crore, i.e. 77% decrease. Division charges have increased by 20 crore, i.e. 167% increase. So, total incentive position as of Q2 FY27 is 59 crore as against Rs.253 crore in the corresponding previous period. CapEx during H1 FY26 is Rs.5232 crore as against Rs.5683 crore in the corresponding period of previous year on consolidated basis. The company has paid final dividend at the rate of 2.10% that is 21 paisa per equity share for the financial aid 2526 in the month of September 26, which is in addition to interim dividend at the rate of 14% that is Rs. 1.40 per equity share, resulting in total dividend at the rate of 16.10% that is Rs. 61 paisa per equity share on the face value of paid up equity share of Rs. 10 each. Other major highlights of the company. On the realization front, NHPC has received Rs. 5126 crore from the beneficiaries against sale of energy during half-year FY27 as compared to Rs. 4764 crore in the corresponding period of previous year. Trade receivables as on 30th September 26 stands as Rs. 4283 crore as against Rs. 2630 crore as on 31st March 26. This includes Rs. 1573 crore as unbilled debtors as on 30th September 25 as against Rs. 18867 crore as on 31st March 26. The net receivables out of total reported trade receivables as on 30th September 26 are as under. Reported trade receivables 4283 crores. Less unbilled debtors 1573 crores. Billed receivables netting after netting off is 2710 crores. Less debtors dues which have been converted to installments as per CRC tariff orders and other orders 817 crores. Net amount due 1893 crores and dues more than 45 days 290 crores. This is all from my side. Now the forum is open for Q&A. Thank you.

Operator

Thank you.

Mahesh Kumar Sharma, Other

Now we begin the question and answer session.

Operator

Anyone who wishes to ask a question may press star and 1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question is assembled. We have first question from the line of Mohit Kumar from ICSI Securities. Please go ahead. Mr. Mohit Kumar, your line is unmuted. Please respond. As there is no response from the Mohit Kumar, we can move to the next question. We have next question from the line of Mr. Ragmi Pandey from Ilara Capital. Please go ahead.

Ragini Pandey, Analyst — Ilara Capital

Yeah, am I audible?

Operator

Yes, ma'am, you are.

Ragini Pandey, Analyst — Ilara Capital

Yeah, so my first question is on Parbati 2. So when is the final tariff order expected? And there was an unrecognized revenue of around, there was an unrecognized income of about 400 crore for Parbati 2. Is there any update on that? And once the final tariff is approved, what can be the expected revenue EBITDA impact from this project?

Mahesh Kumar Sharma, Other

Thank you. Yeah, Ragini, good morning. Basically, regarding Parvati, if you look at the numbers which you are referring to, the reported number of Parvati so far, we have been recognizing revenue at 80%, right? So, the 20% balance revenue which has not been recognized is 500 crore, first thing. Okay. So at normal level, since the Parvati 2 800 megawatt is having design energy of 3125 million units and the tariff would be around 8.5 rupees. So total AFC or you know the revenue which we can say expecting from Parvati 2 is 2400 crore. And since Parvati 2 is having a regulated equity of 4000 crore, because the capital cost of the project is 13600 crore. So if you take 30% of the capital cost, 4000 crore approx is the regulated equity. And if you take 17% return on that, then the expected PAD comes around 680 crore. But one thing I must add that this 17% is the core ROE, baseline ROE. On top of it, NHPC has been, you know, gaining this incentives also to the extent of 4 to 5%. So whatever number you want to take as an incentive, you know, financial model, that is your comfort. But 17% return on regulated equity is giving 680 crore kind of path to. So far, EBITDA is concerned. Normally, our EBITDA is to the extent of 60 to 65 percent. So, if top line is 2,400 crore, accordingly, the EBITDA can be calculated 60 to 65 percent. The other question you asked, Rajini, was regarding your status of the petition, Paruthi 2.

Ragini Pandey, Analyst — Ilara Capital

Yes, yes.

Mahesh Kumar Sharma, Other

The next hearing of AVG2 has been fixed on 11th of November, this month only, and we hope that this will be the final hearing, and thereafter order will be reserved, and thereafter we will be expecting the order as soon as the CRC issues the order, but this time we are expecting that this will be the final hearing of AVG2.

Ragini Pandey, Analyst — Ilara Capital

Yeah, quite clear, sir. Thank you. A similar question on Subhansari. So, what is the status of tariff petition? Have we filed a petition for all the eight units or the petition will be filed progressively as the remaining units will be commissioned? And any under-recovery from Subhansari, any unrecognized revenue from this project?

Mahesh Kumar Sharma, Other

Yeah, as far as Subhan Sri petition is concerned, we have already filed the petition for all the units. Basically, when we filed the tariff petition, we take, like when we filed two units were there, so we filed the petition for two units, and for the other units, we filed on projected basis. Now, as the units are getting commissioned, we are updating those tariff petitions one by one. So, now, we have already updated tariff petitions in respect of four units. Fifth unit, which we have commissioned, tariff petitions is being updated in that regard. And as far as hearing of this is concerned, the hearing has been over and the order is now reserved for interim tariff. So, we are expecting the interim tariff very soon in respect of Subhan Sri Lover project. And as already stated earlier this thing, we are booking revenue at the rate of 18% of the tariff protection which we have filed. As for the numbers are concerned, in case you want to have more details, we can discuss on that. Yeah, so regarding Suvansiri, if you look at the capital cost of the project, it is 30,000 crore. And so far we have commissioned 5 units of Suvansiri. So total capitalized cost in our books is around 23,000, 24,000 crore, right? Now, regarding tariff is also around, levelized tariff is around 8 rupees. And on yearly basis, we are expecting AFC of 5,500 crore from Subhansari on full commissioning basis. So since last unit of Subhansari is, you know, splitting over in next financial year, so the full impact of Subhansari would be in FI, largely in FI 27, 28, and then 28, 29 onwards, you will be having full top line. Then, you know, the expected PAT also. Now, the regulated equity of Swansea considering 30% of the capital cost is around 9,000 crore. And 9,000 crore regulated equity, again, if you consider 17% core ROE, and on top of it, some secondary energy and PF incentive to the extent of 4 to 5%, then certainly 1,500 crore, 1,600 crore kind of PAT we are expecting from Swansea.

Ragini Pandey, Analyst — Ilara Capital

Yeah, thank you. My next question is on T-Star 5. So, it has resumed operations in this quarter, and there was an under-recovery of around 500 crore. So, has that under-recovery reduced now?

Mahesh Kumar Sharma, Other

Yeah, so in TISTA 5, we started, you know, the commercial operation with in fact from July 2026. So in this Q2, TISTA 5 have generated 859 million units, you know, and the top line we have from TISTA 5 is around 150, 160 crores. And if you strike off all expenses, then the PBT contributed by TISTA 5 is 100 crores, more precisely 99 crores.

Ragini Pandey, Analyst — Ilara Capital

Okay, and last question, can you tell me the adjusted part for this quarter?

Mahesh Kumar Sharma, Other

Yeah, so as we have shared in our, you know, talking points that only one provision we have made in this Q2, which is 231 crore regarding TISTA-4. So if you add back this 231 crore entirely to the reported pad, you will arrive at the adjusted pad. That is the only one adjustment you have to make in adjusted pad. And which is around, if you calculate that adjusted pass, that will be 90% higher than the corresponding quarter. Against the 65% which we have shared. On a standalone basis, I'm telling you.

Ragini Pandey, Analyst — Ilara Capital

Okay. Thank you, sir. I'll join my team.

Operator

Thank you. We have next question from the line of Mohit Kumar from ICI Securities. Please go ahead, sir.

Mohit Kumar, Analyst — ICSA Securities

Yeah. Good morning, sir. And thanks for the opportunity. Can you just please reiterate that adjusted pad? Do you have to add 231 crore to 1549 crore, which you reported? That means your adjusted pad will be closer to around 1,200 crore. Is that the right understanding?

Mahesh Kumar Sharma, Other

Absolutely.

Mohit Kumar, Analyst — ICSA Securities

Understood. My second question is, can you please help us in understanding the profit contribution of the voluntary in H1? And is it producing much more than the design energy, which is helping us in reporting a better profitability?

Mahesh Kumar Sharma, Other

Yeah, so, Mohit, basically, if you look at the commissioning of new projects, that too, when we do unit-wise commissioning of any project, the water ability for the fewer units commissioned is basically higher than the normal water ability for those units. Getting my point? So it is not design energy which is relevant now. It is basically the potential to generate out of the commissioned units because water ability is higher and our fewer units is able to generate more than the design energy. So that is the reason Swansuri lower has generated around 300 million units higher than the proportionate design energy of four units. That is the reason this 300 million units is adding incremental PAD. So once he has added 132 crore kind of profit in Q2 and almost, you know, 140 crore kind of profit in H1. So this is basically higher than the expected normal profit of 4 units at normalized level when all 8 units of the projects would be commissioned. Is that clear?

Kayur, Analyst — PNB MetLife

Yes, sir. But what are the profit contributions of Suvantari in Q in this quarter?

Mahesh Kumar Sharma, Other

132 crore. PBT levels, all contribution by this power station, we are selling on PBT basis because the tax is paid on corporate level.

Mohit Kumar, Analyst — ICSA Securities

Understood. Can we just read your memory at what percentage of the cost you are booking the revenue for Suvantari and poverty, is it 85% or 90%?

Mahesh Kumar Sharma, Other

Eighty percent.

Mohit Kumar, Analyst — ICSA Securities

Eighty percent? Oh, that's okay. Understood, understood. My second question is on the, which are the projects you are looking to award in the next 80 months, and have you completed the award for the bank for all the packages?

Bhupendra Gupta, Chairman

Regarding this Devang Mohit, actually we have awarded the major contracts, only small contracts of HM, hydromechanical, because that is, we always award as per the requirement at the site. So some one or two package of hydromechanical which is pending to be awarded, that is not a delay, that is as per the requirement at the site, we will award. As far as other projects are concerned, We have got the CC approval for Kamle, that is in Arunachal, and the bidding process is already on. So we are only waiting for the approval of EC and FC and then also the land acquisition, which is under process. And we are hoping that by the end of this financial year, we will have all the clarency with us, and after that we will be in a position to award, because we are parallelly running the tending process to avoid any further delay. Then Saval Code is there, the PIB has already happened, and now we are just preparing ourselves for the CC approval. And if we get the CC approval by December, we are not sure yet because that is not in our hand. Ultimately, government has to give the approval. So then by the end of this financial year, we will be able to award the two packages, which are the major packages of this Saval Code. So we will be able to award that also. So these are the two, and then Italian is there. Italian, we have got all the approvals. The PIB process has already been initiated by Government of India, and there again we are hoping that within next two to three months. We can get the CCA approval. If that happens, then again, we have already run the rendering process in parallel. So by the end of this March, we may be able to award one or two packages, which always remains in a critical path if we award accordingly. And then we will be able to start the work of Italian also with 3097 megawatt hydrophilic again in Arganachal. These are the pipeline as of now, and I told in my remarks also that we have certain projects in PSPs, which are the basically pump storage projects. There also we have one project, which is where we have got all the approvals, and only thing is that we are just waiting for one final nod from the government, and then we will be able to complete the tending process of these projects in MP. And that can also be started next year. And two more PSPs are there for which the DPR is under-processed, one in Odisha, one is in Maharashtra. So that also we are targeting for a lot of the packages, which are the major packages of civil works during the next calendar year.

Mohit Kumar, Analyst — ICSA Securities

My last question, given the fact that we're building so many hydropower plants in the northeast, The evacuation will be a challenge. So, are we speaking to the stakeholders to ensure that three of the HVDC lines comes on time?

Bhupendra Gupta, Chairman

If you see that transmission line is the responsibility of the CTU, that is, so for these all the hydrojets which are planned in Arunachal, long back the entire master plan for the transmission system was finalized. Because these power plants are, you know, that pending for so many years. These were with the private developers. And since the last 20 years, then these were handed over to the CPSUs for fast implementation two years back only. So, master plan is ready, and based on our, like, timelines of commissioning, like for Divang, already the power grid, because now these are not, like, compulsorily constructed by the power grid. We have a tariff-based competitive bidding in the transmission line, which is run by the PFC and REC, and so they always do that processing depending upon the commissioning dates of the respective hydroprojets, because otherwise there is a very heavy penalty on the generator if the transmission line comes and the generating station doesn't commission in time. So, this all master plan is ready. So, there is no problem in evacuation of power from these power plants, which are planned in the Arunachan.

Mohit Kumar, Analyst — ICSA Securities

Understood, sir. Thank you and all the best, sir. Thank you.

Bhupendra Gupta, Chairman

Thank you so much. Thank you.

Operator

Thank you. We have next question from the line of Kshan C. Sagar from Univet Corporate Research Private Imtate. Please go ahead.

Kushan C. Sagar, Analyst — Univet Corporate Research Private Limited

Am I audible?

Operator

Yes, sir, you're audible.

Kushan C. Sagar, Analyst — Univet Corporate Research Private Limited

Yeah. Good morning, sir. And just one question, most of my questions have been answered. Just one question is on the Italian project. Under the direction of the power ministry, the Italian project was transferred from SJVN to NHVC. For which a concentration of around 800 crores was to be paid by NHPC. So, has that amount been paid or is it still pending?

Bhupendra Gupta, Chairman

No, that amount is not paid yet. It will be paid once this PIV happens for the Italian. So that I told already that PIV is expected any time now. Already the process has been initiated by the Government of India, the Ministry of Power basically. So, once the PIB, we get the PIB approval, then we will be in a position to give the money to SGVNAL. But principally, it is already decided and it is approved by both the boards of SGVNAL as well as by the NHBC board.

Kushan C. Sagar, Analyst — Univet Corporate Research Private Limited

Yeah. The second question was on the NHPC green energy, the solar projects, will they be hyped off or what is the strategy for that? Because the reason for asking is the amount involved in the solar energy, solar projects is quite small in comparison to the hydro projects. That's why I was asking this question.

Bhupendra Gupta, Chairman

No, actually, you know that all the PSUs started this RE business because of the reason to diversify from the one business, which is a major business like NDPC thermals, and they diversify into the RE. Similarly, for hydro also, because at certain stage, there were some issues with the hydro projects allotment and all that, so everyone diversified, and we are bullish on the RE sector also for the future. We are not going to do anything till commissioning as of now, and after commissioning we will see what to do, but we will be, in fact, in discussion with the various states, they are interested to have some fruiting solar or the solar budgets, or solar plus BES, in fact, not only the solar as vanilla. So they are in discussion with us to join hand with them for JV and do the projects in their state. As you know that due to interstate transmission charging, now they are not interested into the sari projects in the other states. So they are in touch with us to have a JV and construct the solar plant or also the wind projects also in their state. So, we are planning to expand, in fact, our RE in the future, and if you see as of now, that 1190 megawatt capacity is under construction, and this will be 100% completed next year, as I told, because these commissioning has been delayed due to the availability of the connectivity. Otherwise, we would have completed maybe faster. And in PM Suryajar also, we have certain states with us and some central government ministry buildings. So there also the work that is picked up now, and there also whatever capacity we have allocated, we will try to complete that also within the timeline which we have targeted now.

Kushan C. Sagar, Analyst — Univet Corporate Research Private Limited

Okay, and so what is the projected plan for the solar energy in terms of megawatts? What is the capacity which you are envisaging?

Bhupendra Gupta, Chairman

Yeah, megawatt, I will be very candid with you because as you know, there is a certain issue with the... Connectivity, issues with the evacuation, issues with the plain vanilla, solar. As now in daytime, we have excess power, especially during the summer period, also in the winter, we will see this year what is the position. The problem now, we have shortfall in the peaking hours, that is in the evening as well as in the morning also. So now the strategy is being changed by every developer, every state, and because as you know that we are also a renewable energy implementing agency. And we have tundered out in NHPC around 20,000 MW of the bids. And out of that, even 23,000, in fact, 120 MW, we have awarded 73 budgets. And PPA has been signed only for 9,000 MW. So, and also we are expecting that around 5,000, 7,070 MW will also be signed, totaling to around 15,000. So, around 5000 MW capacity is there, which may not be tied up. So, reason is again I told you, because as per the resource adequacy plan of the various states, So, they are slightly reluctant as of now to commit for 25 years for a particular set of power, because it can be solar, it can be solar. So, they are not clear yet. Earlier, they were having a very clear-cut adequacy plan, but we have seen in the past one year, the energy requirement, energy pattern has changed drastically in all the states. So, now we are in, in fact, discussion with many states for a, like, combination of various powers. We are trying to change the configuration of these powers also where we have awarded the projects through ARIA. And so, that's why we are also in, like, within company, we are discussing that what type of power, what type of configuration we should have in the renewable energy which can be sold in the long term. So, it's a slightly energy transition period for everyone as of now. So, it's under discussion within the company and with the other stakeholders that how we should plan for a long-term sale of the power. We don't want to consult the projects, and then we are not having any PPA. That we don't want to do. That will be unnecessary dent on my finances.

Kushan C. Sagar, Analyst — Univet Corporate Research Private Limited

Yeah, okay. Thanks a lot, sir. That answers my question. Thanks a lot.

Operator

Thank you, sir. We have next question from the line of Mr. Avneet Anand from PNB Paribas. Please go ahead.

Avneet Anand, Analyst — PNB Paribas

Yeah. Just to understand, between last year to Q and this year, three units that would have added to the profitability. Subhansari, Paribas 2 and Thijda Paribas. Subhan, sir, you guys mentioned 132.0 is the PBT for the quarter. Can you just mention the same numbers for Parvati 2 and Pista 5?

Mahesh Kumar Sharma, Other

Sure. Avinit, so, very interestingly, last year Parvati 2 was having a loss of 164 crore, and this quarter Parvati has given 215 crore PBT. So, in a way, Parvati 2 is the power station of this quarter who has contributed on a YOY basis 380 crore. Okay, and since Parvati 2 was performing very well, the Parvati 3 has also added 80 crore PBT. So, altogether 460 crore incremental PBT is coming from Parvati 2 and Parvati 3 only, you know. So, that is very point you have raised for the benefits of the all audience. Suvansri, we have already shared 130 crore, 460 crore is coming from Parvati 2 and Parvati 3, and 100 crore we have already shared for Tishta 5 as well. So, this is how 4 power stations have contributed, majorly in incremental PVT.

Avneet Anand, Analyst — PNB Paribas

And for the full year, Parvati 2, we ended up what amount?

Mahesh Kumar Sharma, Other

H1, 240, because 23 was the Q1 PBT, and 215 is the Q2.

Avneet Anand, Analyst — PNB Paribas

So, almost 240. So, let's assume Parvati 2 for FY26 as a whole, what was the profit or loss that we incurred?

Mahesh Kumar Sharma, Other

Yeah, last year you are referring to 149 crore.

Avneet Anand, Analyst — PNB Paribas

Okay, that's at PBT level.

Operator

Thank you. We take the next question from the line of Kyoor from PNB MetLife. Please go ahead. Mr. Cure, you're lying here.

Kayur, Analyst — PNB MetLife

Am I audible?

Operator

Yes, sir, you're audible.

Kayur, Analyst — PNB MetLife

Yeah. Thank you. Thank you for the opportunity. So I have two questions. Firstly, trying to understand on the receivable side. So I understand that versus the FY year-end number, the receivables position has spikes. So can you help us understand what's driving this? Is it attributable to Subhansari and Parvati?

Operator

Some color on that?

Operator

Partition, please note, measurement line has been reconnected now. Yeah, Avinit. Sir, Mr. Kayur is on the queue right now.

Kayur, Analyst — PNB MetLife

Sir, should I repeat the question? I'm not sure if you were able to hear my question. It was on the receivable side. I'm trying to understand what is running.

Bhupendra Gupta, Chairman

You may repeat, please.

Kayur, Analyst — PNB MetLife

So, sir, just wanted to understand from a receivables position perspective. If I look at the year-end number, it was closer to 2,500 crores. It's come up for 4,300 crores fall pass. So, what's driving this, and when do we expect this to normalize?

Mahesh Kumar Sharma, Other

Yeah, so see, these receivable numbers which we have shared with you is basically as of 30th September, 2026. And if you look at today's number, I mean, yesterday, what receivables we had, the total receivable was 159 crore only, and more than 45 days, it was only 6 crore. So it is not that, you know, if you look at one particular number, that is not going to be realized. Since our average debtor turnover days is only 51 days only, so all receivables are coming absolutely in time and there is no issue from the receivable fronts.

Kayur, Analyst — PNB MetLife

Sorry, can I confirm? You said, sir, I mean, currently it is 159 crores only?

Mahesh Kumar Sharma, Other

1159 crores is the total receivable as on 3rd October, and out of this 1159, only 6 crores is more than 45 days.

Kayur, Analyst — PNB MetLife

Understood, understood, sir. This was attributable to Subhansari and Parvati.

Mahesh Kumar Sharma, Other

See, Parvati 2, we have already received interim petition. So 75% billing is being done. For Suvansari lower, all revenue is going to unbill debtors only. So that is entirely different accounting treatment for that. That comes under contract assets, which is not included in this reported receivables of 4,300 crore, which we have shared in our conference call.

Mahesh Kumar Sharma, Other

Let me clarify the position. Basically, earlier dues was a big problem. After this electricity late payments, such as rules have been introduced in 23, these dues are all very streamlined. So as on date, we have to see that out of the billed amount, how much amount is due for more than 45 days. And that too, after 75-day regulation says, that rule says that you have to, powerfully regulated, the beneficiaries cannot approach the exchanges. So many stringent conditions have been put on as per the rules. So as of now, our billed position, after billing, the recovery position is very good, no issues, because most of the dues are cleared within 45 days, and more than 45 days, that too, by 75th day, all the dues are cleared. So beyond 75 days, we don't have a single penny pending. So on that account, I can confirm you that just after this LPS rules which government has introduced, this financial discipline has been there in the whole sector, and right now we don't face any issue on account of recovery of dues. Absolutely.

Kayur, Analyst — PNB MetLife

Understood, sir. This is very helpful. So my second question was on the leverage side. So I understand it is currently looking optically sort of elevated. So if we were to just look at some high level numbers, the debt number is closer to 59,000 crores. And if I look at the last 12 months EBITDA, this is closer to 7,000 crores. So, I understand this is partly because of the fact that a lot of our projects are currently under construction. But sir, how should I think about operational debt out of this entire 59,000 crores? Just trying to look at, yeah.

Mahesh Kumar Sharma, Other

Yeah, so you have rightly said our group label debt is 59,000 crore. That is fine. But if you look at the distribution of this 59,000 crore between the operational project and under construction project, right? So in operational project, we have deployed 29,000 crore and balanced 20,000 crore in construction project. In NHPC, if you want to calculate the EBITDA, currently, we have rightly said that our EBITDA is around 6,000 to 7,000 crore, but post-commissioning of this Subhansari, Lower, Full Year Basis, Pakaldur, etc., our EBITDA is also going to reach at 10,000 crore, right? Now, The debt servicing, if you are trying to, you know, get the debt servicing, then you should not consider the debt deployed in construction projects as a debt servicing burden on operational projects. Since we are not into project financing, we are entirely into balance sheet financing. So, we are servicing the debt component deployed in operational project only from the operating cash we are, you know, churning from the operational project. For construction project, whatever debt is deployed, that is basically getting refinanced. If any, because in balance financing, you know that the debt repayment also starts. So that burden is not coming on the operating cash flow of the operating station. That is entirely bifurcated. So you need not to worry about the debt level. At console level also, if you look at the debt equity or debt EBITDA, it is very much in control. And moreover, going forward, a lot of commissioning is happening. So that is adding to your EBITDA as well. As we have shared that this year we are going to commission, you know, 1,744 MW, 500 MW from Subhansari, then 624 MW from Kiru, 120 MW from Rangit, then next year also Pakal Dul is coming, 250 MW Subhansari is coming, 1,000 MW Pakal Dul is coming, then after that 1,390 MW is coming, and then 1,000 MW is coming. So, next four years, a lot of capacity addition is happening, you know, and that is leading to your EBITDA, to your top line, to your bottom line, everywhere. So, nothing to worry from that perspective.

Kayur, Analyst — PNB MetLife

Yeah. So, immediately, I think, like you mentioned, it could be incremental EBITDA would be driven by Pakaldul, Kiru, and Rangit, which we are expecting to come online in FY28, is it? So, the generate EBITDA, just including the visibility that we have on these, that should be closer to 10,000 crores?

Mahesh Kumar Sharma, Other

Absolutely.

Kayur, Analyst — PNB MetLife

Okay, so this is very helpful. And so last question from my side, again, from a CAPEX perspective, how should we think about next two, three years perspective?

Mahesh Kumar Sharma, Other

So last year, our capex target was 13,000 crores and we had achieved 13,700 crores. This year also we have capex target of 14,300 crores and till now we have already achieved 6,500 crores. So we are very much hopeful that because you know the I mean the capex better capex utilization is happening in second half of the financial year. So, we are very much hopeful that this level of 14,300 crore is available during the current financial year also. And next year onward, on an average, you can consider 14,000 to 15,000 crore kind of capex, you know, on console level.

Kayur, Analyst — PNB MetLife

Understood. And so do we require any fresh equity to fund these capex or would the internal accruals suffice?

Mahesh Kumar Sharma, Other

No. So, if you look at, you know, the cash which we are generating from our operation, for example, if I give you example of FI 2728. By FI 2728, we are targeting to generate PAT level of 6,000, 6,400 crore, right? If you take a conservative number of 6,000 crore only, we will have depreciation also to the extent of 3,000 to 3,500 crore. So total cash would be likely to be generated to the extent of 10,000 crore, for example. So if you have operating cash of 10,000 crore, you have obligation of dividend payment and you have obligation of repayment of debt, right? These two obligations you have before deploying anything into CapEx. On an average, we pay 4% of net worth as dividend. So if you consider 42,000 crore kind of net worth and going forward, if you consider 45,000 crore of net worth, the 4% of the same is roughly 1,800 crore, right? So, 1008 crore is allocation for dividend payment. Repayment of debt is also to the extent of 2008 crore to 3000 crore. So, meaning thereby, the 5000 crore kind of utilization is going to the buckets allocated for dividend and repayment of debt. Still, you will have 4000 crore approx or higher than that cash available for what you call this capex requirement. If you look at the next 10 years of CAPEX projection of NHPC, we have 11,000 crore kind of CAPEX for next 10 years, wherein the requirement of equity is 40,000 crore. So, on an average, 4,000 crore yearly equity is required from NHPC side, you know. So, that is, I mean, our internal resources is sufficiently taking care of any equity requirement from the CAPEX perspective.

Kayur, Analyst — PNB MetLife

Right, sir. No, this is super helpful, sir. Thanks, thanks for explaining all this in detail. Thank you.

Operator

Thank you. We have next question from the line of Avineet Anand from PNB Paribas. Please go ahead.

Avneet Anand, Analyst — PNB Paribas

I think some of the questions got cut because of the line. So, I was just asking Parvati 2 for last year, which is F26. What was the profit we made?

Mahesh Kumar Sharma, Other

So, I think, Avnit, the call was cut. 149 crore was the loss by Parvati 2 in the previous fiscal year.

Avneet Anand, Analyst — PNB Paribas

And if you can just, on Tista 5 wasn't operational last year, right?

Mahesh Kumar Sharma, Other

So, Tista 5 was not operational.

Avneet Anand, Analyst — PNB Paribas

Yeah, so what this year, what based on the current and what could be the profitability numbers for 3 star 5s?

Mahesh Kumar Sharma, Other

For the rest of the periods of financial years? Yes. So H2 you are referring to?

Avneet Anand, Analyst — PNB Paribas

Yeah.

Mahesh Kumar Sharma, Other

Basically, you see, typically, 70% generation, if you take average of last 5 years, the actual numbers I am sharing with you, 70% generation happens in H1 and 30% in H2, right? In case of Tista 5 also, the kind of 859 million units generation we have shared in Q2. The similar number of generation we are expecting in H2 also. Though it is very difficult to assess or estimate the generation in hydropower projects. But yes, based on the trend we can share with you that similar kind of generation we can expect in Q3 and Q4 also. And similar kind of profit in H2 also to the extent of 100 crore, 150 crore or you can expect. Because Q1 was, you know, missed. In this fiscal, we missed the Q1 from TISTA 5 generation. So, you have to now 9 months only. And the peak period is only Q2. Q3 and Q4 is the lean period. So, that much you can expect.

Avneet Anand, Analyst — PNB Paribas

And last one is PSP that we are doing for NHDC one, right? So, I mean, in terms of project cost and tariff and all these will be totally regulated, right?

Bhupendra Gupta, Chairman

As of now, yes, it will be regulated because this is a JV with the government of MP. So we are in process of signing the power purchase agreement with the government of MP, which is still under discussion, not finalized. But yes, it will be regulated.

Avneet Anand, Analyst — PNB Paribas

And any current, what could be the purchase cost and related tariff?

Bhupendra Gupta, Chairman

The cost is around 5300 ground. 5,000? 5,200 crore is the cost.

Avneet Anand, Analyst — PNB Paribas

And what tariff this could entail?

Bhupendra Gupta, Chairman

Tariff will be less than 5. 4.9 exactly, well, as of now, what we have estimated.

Avneet Anand, Analyst — PNB Paribas

Okay, okay. Thanks, sir. Those were my questions.

Bhupendra Gupta, Chairman

Thank you.

Operator

Thank you. Ladies and gentlemen, due to time constraint, that was the last question. I now hand a conference over to Mr. Rupesh Nk for closing comments. Over to you, sir.

Tupesh NK, Head of Investor Relations

Yeah, we thank NHPC management for giving us an opportunity to host this call. We also thank all the investors and the analysts for joining this call.

Bhupendra Gupta, Chairman

Thank you so much. Thank you, everyone. Thank you so much. Have a good day. Thank you, participants.

Operator

On view above, Ilara Securities India Private Limited. That concludes this conference. Thank you for joining us, and you may not display clients. Thank you.