NHPC Limited (NHPC) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to NHPC Limited Q4F526 Earnings Conference Call hosted by Elara Securities India Private Limited. 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 sign an operator by pressing star, then zero on a touch-tone phone. Please note that this conference is being recorded. I now have a conference over to Mr. Rupesh Senkhe from Ilara Securities, India Private Limited. Thank you, and over to you, sir.

Good afternoon, everyone. On behalf of Ilara Securities, we welcome you all for the Q4FI26 conference call of NHPC. I take this opportunity to welcome the management of NHPC, represented by Mr. Sanjay Kumar Singh, Director of Projects, Mr. Suprakash Adhikari, Director of Technicals. Mr. Mahesh Kumar Sharma, Director of Finance. So, we will begin the call with a brief overview by the management, followed by Q&A. I will now hand over the call to Mr. Sanjay Kumar Singh, Director of Projects, for his opening remarks. Over to you, sir.

Good afternoon, friends. The NHBC board has adopted annual financial results for the period ended 31 March 26 in its meeting held on 15 May 26, and the same has already been communicated to the exchanges. By now, I hope you all would have gone, got chance to go through the quarterly and yearly set of numbers. First, I will touch upon major highlights. of the financial results and the detailed growth plan. Further, detailed analysis of the results shall be shared by our Director of Finance, Shri Mahesh Kumar Sharmaji. Brief highlights of the consolidated financial results and important updates on the company are as under. During FY26, our power stations have achieved generation of 29,619 million units as against 25,548 million units generated in corresponding period of the previous year, which is higher by about 16% or 4,071 million units. This is mainly due to the commissioning of Parvati 2 power station, and subsequent increase in generation of Parvati 3 power station, commissioning of Karnisar solar power station, part commissioning of Subhansari lower project, increase in generation of UDI 1 power station, and power stations of NHDC. Our path for Financial Year 26 stands at 74.75% against the corresponding previous period PAF of 78.87%, which is about 4% lower. This is mainly due to shutdown for some period in Dolasti, Chimera 3, TLDP 4 power station on account of MIV repair works, restoration of sailbeams, and repair of radial gates, etc. During financial year 26, company has earned revenue from operations of Rs. 11,615 crores as against Rs. 10,380 crores in the corresponding previous period, which is about 12% higher. During financial year 26, company has earned pet of Rs. 3,766 crore as against Rs. 3,007 crore of corresponding period which is 25% higher. I am very pleased and proud to share that we have commissioned 4 units of Subhansiri Lower Project, 250 MW each, out of total 8 units. Remaining four units are expected to be commissioned one by one till March 27. The anticipated cost of the project is Rs 30,072 crore and we have incurred Rs 26,092 crore till March 26. Investment approval for implementation of URI 1 Stage 2 HE project of 240 MW and Dholasthi Stage 2 HE project of 260 MW in UT of Jammu and Kashmir at an estimated cost of Rupees 2,709 crore and Rupees 2,994 crore respectively at completion level has been accorded by NHBC Board on 20th February 26th. Further, an implementation agreement has been signed between NHBC Ltd. and Jammu and Kashmir State Power Development Corporation Ltd. on 27th March 26th for development of these projects. Civil contracts for these projects have also been awarded in March 26 and scheduled completion of both the projects is November 29. Cabinet Committee on Economic Affairs has approved investment of Rs. 26,070 crore for construction of Kamala HE project of capacity 1,720 MW in Arunachal Pradesh on 8 April 26. The project will be implemented through a joint venture company between NHPC Ltd. and the government of Arnachal Pradesh. The formation of subsidiary is in progress. Further, environment and forest clearances are also in process for the project. In respect of Damang multi-purpose project of 2880 MW, all major contracts have been awarded. Including the dam package of Rs 14,446 crore, which has recently been awarded in the month of April 26th. We have already shared that we have achieved the crucial Nala Diversion, a significant stride towards ensuring all weather road access to the project site, and the work is going on in full-fledged manner. The estimated cost of the project is appeased. 31,876 crore, which includes grant of Rs. 6,716 crore for flood moderation and enabling infrastructure works, out of which we have already incurred Rs. 4,504 crore till March 26, and the scheduled The full completion of the project is February 32. In respect of Pista 680 projects, Of 500 MW capacity, the work is progressing well at site. Overall, 72% physical progress of the project has been achieved. The estimated cost of the project is Rs. 9,167 crore, out of which we have already incurred expenditure of Rs. 5,231 crore till March 26. The expected commissioning schedule of the project is September 29. Gel power or pressure limited is Rangit 4 HE project of 20 MW is also progressing well. Overall 96% physical progress of the project has been achieved. Boxing off of all 3 units have been completed. The project is expected to be commissioned by November 26. Next, estimate call. The cost of the project is Rs. 1889 crore, out of which we have already incurred expenditure of Rs. 1792 crore till March 26th. Further, we are in process of merger of JPCL with NHPC, and second motion applicable has already been filed with the Ministry of Corporate Affairs. In respect of roughly HE project of 850 MW in UT of J&K, the work is progressing well at the project side. Overall, 29% physical progress of the project has been achieved. The estimated cost of the project is Rs. 5,282 crore, and we have incurred expenditure of Rs. 1,538 crore till March 26. The project is expected to be commissioned by November 28th. Presently, NHPC, through its subsidiary, CPPL is executing three projects in Chenow, that is in UT of JNK. Construction of Parkal Dulachi project of 1000 MW is progressing well. Overall, 80% physical progress of the project has been achieved. The estimated cost of the project is Rs. 12,728 crore, out of which we have incurred expenditure of Rs. 9,141 crore till March 26. The project is expected to be commissioned by 4th quarter of Financial Year 27. In respect of Kiru HE project of 624 MW, overall 82% physical progress of the project has been achieved. We have incurred expenditure of Rs.3637 crore till March 26. Out of the estimated cost of Rs 5,409 crores, and estimated commissioning of the project is fourth quarter of financial year 27. In respect of QAR achieved project of 540 MW, the work is progressing well at site. Overall, 33% physical progress of the project has been achieved. The estimated cost of the project is Rs. 4526. Out of which we have incurred expenditure of Rs 1,708 crore till March 26 and the project is scheduled to be commissioned by March 28. The restoration work of Tista 5 power station is under progress and it is expected that the power station will start generation in June 26. Apart from above, under construction projects, NHPC is also actively pursuing to start works of projects such as Savalcoat of 1856 MW, Subansiri Yapper of 1605 MW, and Italian of 3097 MW, which are at different stages of clearance. In respect of 1,000 MW capacity, solar power projects allotted under CPSU scheme tends to, we have already commissioned 3,300 MW projects in Dikaner, Rajthan. Further, 100 MW projects in Andhra Pradesh and 600 MW projects in Gujarat are expected to be commissioned by June 26 and December 26 respectively. Our other construction solar projects like 40 MW solar power projects in Ganjam, Urissa, and 50 MW floating solar projects in Kerala are expected to be completed by October 26th and March 27th, respectively. For the two projects of 200 MW grid-connected solar, photovoltaic power projects located in Gujarat, State Electricity Board Corporation Limited, RE Park at Khawla, Gujarat are expected to be commissioned by June 26th and December 26th, respectively. NHPC is exploring to develop pumped storage projects in the state of Maharashtra, Odisha, Madhya Pradesh, Gujarat, Chhattisgarh, Rajasthan, and Andhra Pradesh. Currently, we have 18 GW PSPs which are at DPR-oblick PFR stage. Thank you, Father. We are expecting to start construction of Indra Zagar Omkar Eswar PSP of 640 MW in the current financial year. This is all from my side. Now, I request Director of Finance, Shri Mahesh Sharmaji, to discuss financial results in detail. Thank you.

Good afternoon, friends. I am going to share with you detailed quarterly and annual set of numbers for detailed analysis. The NXPC board has adopted annual financial results for the period ended 31 March 26 in its meeting held on 15 May 26 and the same has already been communicated to exchanges. Detailed highlights of the consolidated financial results and important updates on the company are as under. During F526, our power stations have achieved generation of 29619 million units as against 25548 million units generated in corresponding period of the previous year, which is higher by about 16% or 4071 million units. During 4th quarter F526, our power stations have achieved generation of 3770 million units as against 3150 million units generated in corresponding period of the previous year, which is higher by about 20% or 620 million units. Our TAF for FY26 stands at 74.75% against the corresponding previous period. PAF of 78.87%, which is about 4% lower. Our PAF for 4th quarter F526 stands at 62.47% against the corresponding previous period PAF of 66.84% which is about 4% lower. For F526, company has earned revenue from operations of Rs. 116.15 crore as against Rs. 1038 crore in the corresponding previous period which is about 12% higher or by Rs. 1235 crore. The increase in revenue is mainly due to higher generation on account of commissioning of Pavrati 2 power station, part commissioning of Subansri lower project, and commissioning of Karnisar solar power station. During Q4 F526, company has earned revenue from operations of Rs. 2816 crore as against Rs. 2347 crore in the corresponding previous period, which is about 20% higher or by Rs. 469 crore. The increase in revenue is mainly due to higher generation on account of newly commissioned power stations. Other income for FY26 is of the order of rupees 107 crore. In comparison to Rs. 1235 crore during the corresponding previous period which is about 13% lower or by Rs. 164 crore. This is mainly due to decrease in realization of business interruption loss against insurance claim by Rs. 466 crore when related to Tishtha 5 power station. Current period is nil and previous period Rs. 466 crore. This decrease is offset by increase in income from insurance claim by Rs. 3 to 1 crore mainly in respect of Tishita 5 power station Rs. 254 crore and Paruti 2 power station Rs. 1 to 1 crore. Other income for Q4F526 is of the order of Rs 305 crore in comparison to Rs 211 crore during the corresponding previous period, which is about 45% higher or Rs 94 crore. This is mainly due to increase in income from insurance claim by Rs 69 crore, mainly related to Tista 5 power station and increase in dividend income by Rs 32 crore. During FY26, the generation expenses are bound up from Rs. 799 crore to Rs. 8 to 1 crore, i.e. by Rs. 22 crore, which is due to higher water size on account of higher generation in power stations situated in GNK and Uttarakhand. During Q4 F5 26, the generation expenses have gone up from Rs. 98 crore to Rs. 103 crore, that is by Rs. 5 crore, which is due to higher water sales on account of higher generation in power stations situated in JNK and Uttarakhand. During FY26, the employee benefits expense has come down from Rs. 1823 crore to Rs. 1498 crore, i.e. by Rs. 3 to 5 crore, which is mainly due to decrease in employee remuneration pay anomaly by Rs. 383 crore, which is offset by increase due to increment DA and other factors. During Q4F526, The employee benefit expenses have come down from Rs 421 crore to Rs 402 crore that is by Rs 19 crore showing marginal decrease. During FY26, there has been increase in the finance cost from Rs. 1189 crore to Rs. 1423 crore, i.e. by Rs. 234 crore, which is mainly due to increase in interest on bonds, term loans, ATC, by Rs. 877 crore related to Paruti 2, Subansi Lower and Condixer Solar Power Station charged to P&L since their commissioning, which is offset by decrease in interest on arbitration and court cases by Rs. 677 crore. During Q4 FY26, there has been increase in the finance costs from negative Rs. 12 crore to Rs. 574 crore, i.e. by Rs. 586 crore, which is mainly due to increase in interest on bonds. Term loan CTC by Rs. 359 crore, mainly related to power 32, subansi lower, and condition solar power station charge to profit and loss, since their commissioning. Increase interest on arbitration court cases by Rs.110 crore and interest to beneficiary by Rs.108 crore. During FY26, The depreciation, amortization, and impairment expenses have gone up from Rs. 1193 crore to Rs. 1976 crore, i.e. by Rs. 783 crore, which is mainly due to depreciation and amortization in respect of power stations commissioned during financial year 25-26. During Q4F526, the depreciation, amortization, and impairment expenses have gone up from Rs.315 crore to Rs.642 crore, i.e. by Rs.327 crore, which is mainly due to depreciation and amortization in respect of power station commission during financial year 2526. During FY26, other expenses have gone up from Rs.2122 crore to Rs.4060 crore, means by Rs.1938 crore, mainly due to increase in general network access charges by Rs.822 crore, increase in insurance expense by Rs.476 crore, increase in losses out of insurance claims by Rs.225 crore, increase in provision by Rs.168 crore, and increase in R&M expenses by Rs.111 crore, etc. During Q4F526, other expenses have gone up from Rs. 623 crore, Rs. 1115 crore, i.e. by Rs. 492 crore, which is mainly due to the increase in provision by Rs. 173 crore, increase in insurance expense by Rs. 154 crore, increase in losses out of insurance claim by Rs. 66 crore, increase in R&M expense by Rs. 40 crore, etc. During FY26, tax expenses have come down from Rs. 1355 crore to negative Rs. 327 crore, i.e. by Rs. 1682 crore due to deferred tax adjustment and recognition of MAT credit. During Q4 FY26, tax expenses have come down from Rs. 247 crore to negative Rs. 1823 crore, i.e. by Rs. 2070 crore due to deferred tax adjustment and recognition of MAT credit. During F526, we have earned profit after tax of Rs. 3766 crore as against Rs. 3007 crore of corresponding previous period, which is up by Rs. 759 crore or 25% aprox. And the reasons for decrease or increase in the line items we have just discussed. During Q4F526, we have earned profit after tax of Rs. 1460 crore as against Rs. 854 crore of corresponding previous period, which is up by Rs. 606 crore or 71% aprox, and the reasons for decrease, oblique increase in the line items we have just discussed. During F526, the incentives positions are as under. F526, secondary energy, 570 crore. PA-based incentive, 297 crore. Deviation charges, 46 crore. Total, 913 crore. And in the corresponding F525, secondary energy was 545 crore. PA-based incentive, 269 crore. Deviation, 51 crore. Total, 865 crore. During Q4, F526, the incentives position are as under. Q4, F526. Secondary Energy 109 crore, PA-based incentives 245 crore, deviation charges 12 crore, total 366 crore. Corresponding Q4-FI25, the position was Secondary Energy 124 crore, PA-based incentives 217 crore, deviation charges 9 crore, total 350 crore. CAPEX during FY26 is Rs.13689 crore as against Rs.11596 crore in the corresponding period of previous year on consolidated basis. The Board of Directors has recommended the payment of final dividend at the rate of 210% i.e. 21% per equity share 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. 1.61 per equity share on the face value of paid-up equity share of Rs. 10 each for the financial year 25-26. Other major highlights of the company. On realization front, NHPC has received Rs. 10499 crore from the beneficiaries against sale of energy during FY26 as compared to Rs. 9943 crore in the corresponding period of previous year. Trade receivables as on 31 March 26 stands at Rs. 2630 crore as against Rs. 2573 crore as on 31 March 25. This includes Rs. 1887 crore as unbilled debtors as on 31 March 26 as against Rs. 1587 crore as on 31 March 25. The net receivables out of total reported trade receivables as on 31 March 26 are as under. Reported trade receivables 2630 crores and less unbilled debtors 1887 crores, billed receivables 743 crores, less debtors dues converted into installments under electricity late payments such as dues and other orders 39 crores, net amount due 704 crores, dues more than 45 days 242 crores. This is all from my side. Now the forum is open for Q&A. Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone 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 queue assembles. We have the first question from the line of Mohit Kumar from ICC Securities. Please go ahead.

Good afternoon, sir, and thanks for the opportunity. My first question is, sir, is it possible to share the adjusted pad for the quarter? And what was the profit in Suwanstri and Pavati 2 in Q4 and the fiscal?

Yeah, you have seen the reported PAT. So, if you want to reach the adjusted PAT, as D.F. Sir has shared with you, that there was one of tax adjustments in DTL, because we all know that we have opted for the lower tax regime of 25% under section 115BAA, as the MAC credit facility is going to be discontinued FY27 onwards, right? So, we have opted for 25% of tax regime, and therefore, whatever deferred tax liability we had created at higher rate, that needs to be restricted at 25%. So, they are impacting around 1156 crore, which we have already reported or shown under note number 8 or upper financial result. So, net impact of this DTL adjustment, deferred tax liability adjustment, comes around 900 crores. So, if you reduce 900 crores from the reported path, you will arrive at adjusted path. That is the one adjustment you have to carry out in our reported path, vis-a-vis our adjusted path.

Understood. That proof of standalone also comes all also, right?

Of course, of course.

Now, what is the profit in Suwanstri and Pavati 2 in Q4 in the fiscal? We understand that the payoff is lower, right, for the Suwanstri and Pavati 2. And what is the status of petition of those two assets?

So far, the profitability of Parvati 2 and SLP is concerned. We have earned 104 crore of profit from Parvati 2 in Q4 and 487 crore of profit from SLP in Q4. On yearly basis, Parvati 2 has given lots of 150 crore, whereas on yearly basis, SLP has given total profit of 495 crore.

Suwan-3, right, sir? Suwan-3. Suwan-3, yeah. Profit, okay, understood. So why the last question, why the Pauvati-3, it seems to have been shut for last few quarter, last few months? Is there any particular reason?

Yeah, actually some maintenance is going on there, and these units are likely to be resumed very soon.

Understood, sir. Already resume. Already resume. Okay, understood, sir. Thank you and all the best, sir. Thank you. I'll come back in the queue. Thank you.

Thank you. We have next question from the line of NKMittal from SBI Mutual Fund. Please go ahead.

Thank you. Just a follow-up on the previous question, actually. So, you said that Parbati reported a profit in fourth quarter versus a loss for the full year. What's leading to the profit improvement?

Yeah, so basically, you know, at the end of the financial year, we compute the shortfall of energy, which we are supposed to recover. So, in Parvati 2, we have shortfall of energy to the extent of 200 crores. So, that has been, you know, booked under revenue. That is the reason Parvati 2 has given, you know, the profit of 104 crores in Q4.

Okay, and what is the busing page at which we are billing?

So we have already started billing of Parvati 2 based on the notification of CRC, the interim tariff notification. So 75% billing we are already doing there.

And in case of Subhansri?

Subhansri, we are waiting for the interim tariff notification of CRC and we will be starting it once we get the interim tariff notification of Subhansri lower.

Okay. But currently, then, till the time the interim has come in, what is the billing looking like?

No, no. Billing we cannot book. We have been booking our revenue based on the 80% of the total expected AFC in Swansri Lower and Parvati to both. But billing we can start only after getting interim tariff order from CRC.

Understood. Understood. So now the billing for Parvati is 75. And just on the tariff reduction, I know the hearing for Parvati has been delayed. When do we see the tariff reduction come through for both Subhansali and Parvati?

Yeah, Anike, we are just, we have the next hearing date of Parvati 2 on 25th of this month only. So there we are expecting that the orders will be reserved and the final hearing has already been taken place. So information has already been provided. So hopefully on 25th of May this month, this tarry petition hearing will be complete and the order will be reserved. And we will be expecting the final orders in a month or so, by the end of this quarter.

And Subhansri, we have done the tariff filing.

Yes, Subhansri, we have already filed the tariff petition, and we are expecting interim tariff order first. Thereafter, there will be a hearing for provisional order, like in case of Parvati, who first interim order was issued by CRC, wherein after that we have been able to bill at the end of 75% of the filed tariff. Similarly, in the case of Subhan Sri Lohar, CRC will be issuing this interim order first, and thereafter, we are expecting in another six months or so after this interim tariff is issued by CRC in respect of Subhan Sri Lohar.

And just to understand, so let's say if you were to bill at 75% of revenue, what's the under-recovery on profits that comes through? What is the expected profit?

See, the point is that Mr. Sroo just said that we are booking the revenue at 80% of the tariff filed with the CRC because as per our best estimate in any case, we are not booking, taking a conservative approach, we are booking at the rate of 80% of the revenue and 75% is just for the billing part. Once this order is there, and in case our expectation is not less than 80%, in case there is a higher probability, in that case, we will book the difference, and along with interest, the total billing will be done at that point of time after the order is issued.

So, Panika, just to reply your question, so far we have booked 1320 crore of revenue in Parvati 2 at 80% of the AFD. If you gross up this 1320, you will arrive at somewhere 1600 odd crore. So, there is an under recovery of 300 crore. If you look at the filed tariff petition of Parvati 2, so 300 crore kind of under-recoveries in Parvati 2. And similarly, if you calculate the total AFC of Suvansri lower also, there also we have 150 crore kind of under-recoveries. So altogether, Parvati 2 and Suvansri lower 450 crore of revenue has not been booked in our book of accounts. If you look at the tariff petition filed in respect of these two projects.

And just on T-Star 5, just to recollect what's been the impact of T-Star 5 this year, and just to clarify, there's no insurance coverage over here anymore. When do we expect that project to restart as well?

Yeah, so there is no, I mean, no revenue, only expenditure has been there in TISTA-5, so there is nothing top-line contribution from TISTA-5, but going forward, we are very much sure that June onwards, we are going to have operation to get resumed in respect of TISTA-5, so June onwards, you can see some top-line activity in TISTA-5 also.

In a moment.

End of June.

And the under-recovery full year would have been how much in TISTA 5?

So, in respect of TISTA 5, we have total AFC of around 500 crore. So, if you exclude the tax element, it would be around 400 crore.

And just a clarification, this 150 crore of under-recovery in Subhansu is for how many units?

Three units.

Good. I got that. I'll come back for any further questions. Thank you.

Thank you. We have the next question from the line of Murtita from Kotec. Please go ahead.

Yeah, a lot of my questions were related to Parvati 2 and Savanchali, but just to understand this correctly, when, you know, you talk about the 1600 crore revenue for Parvati 2, is it reasonable then to say that that 150 crore loss, which you have for 26, would have been about a 150 crore profit? Is that the right way to think of it? Exactly.

Exactly. You have explained very correctly.

Okay. And just to understand on this fourth quarter where you talked about booking the additional revenue because of the shortfall in generation, but does that still come within? So is it fair to say that in your reported financials for Parvati 2, for instance, you accounted 1320 crore of revenue or is it slightly more because of that additional 200 crore that you talked about?

That includes 200 as well.

1320 includes 200 as well.

Of course.

Okay. Okay. Thank you.

Thank you. We have next question from the line of Rangie Pandey from Ilara Capital. Please go ahead.

I have a question on PSP. So, from which year you can see the commissioning of your PSP projects, and what will be the realization for this plant and the CAPEX for these projects?

So, I mean, we have not started any construction of PSP project. So, it is very early to say about realization everything because our, the, you can say that the fastest running project in the ambit of this PSP project is Onkar Eswar Indra Sagar 640 megawatt project. So, there we are expecting to start construction activities during the current fiscal. And once we get all those, everything in place and we start construction activities, we will have better clarity about the relation, their tariff and everything. So, give us some time to share more facts about this Unkaraiswar and Indira Sagar.

Yeah, and as a REIA, are you seeing any slowdown in your renewable tendering this year? And there was a backlog of around 40 gigawatt in PPA signings, so any improvement on that?

Yeah, so we have not done any tendering in last recent past. So whatever tendering we had made, we have already awarded around 23 gigawatt kind of capacity out of which 13 gigawatt kind of likely PPA and PSA signing. We are hoping out of which 7 gigawatt aprox we have already signed. So going forward, we will again have more clarity in days to come or months to come in respect of RIA projects also.

Okay, and on the generation front, are you expecting any slowdown in generation given this is an El Nino year and there are expectations of slower monsoon, of a weaker monsoon this year?

No, no. So, as you are aware, you have been tracking NSPC for years. Most of our power stations are snow-fed. So, certainly good monsoon will be helping us for better generation, but our generation currently also it is going fairly well. So, nothing to worry from the generation perspective.

And just one last thing on your, I want to know the normative PF of your plants.

Yeah, so consolidated it is 82%, normative it is 80%.

Okay, and for this year, the overall PLF was less than 80%, right?

Yeah, so there are two things. If you look at the actual PAF with TISTA 5, it is certainly lower 75%, but if you exclude TISTA 5, it is 80%. So TISTA 5 has not contributed anything during the last fiscal as well as the corresponding fiscal. So in both the fiscal, if you exclude You will get 80% kind of PEF. But if you include this type, certainly it is 75%.

Yeah, okay. Thank you.

Thank you. We have next question from the line of Rhea Mehta from Equitize Investment. Please go ahead.

Thank you so much for giving me the opportunity. So, my first question is in terms of what will be your equity value for next year and until FI20, if you could just help me for the next couple of years.

So, you are, I think, you are talking about regulated equity? Yeah, so current regulated equity including Parvati 2 is 18,300. Right, 18,300 crore. Now, in next financial year, If you consider the capacity addition, we are having capacity addition from 1250 MW of Suvansari, out of which 250 MW we have already commissioned. So, value of 1000 MW would be coming from Suvansari, then we have 120 MW Rangit 4, then 1000 MW of Pakaldol, 624 MW of Kiru. So, all these hydro assets, we are going to commission 2,994 megawatt in fiscal FY27. Apart from that, we have 1190 megawatt of solar assets also, which are going to be commissioned in the current fiscal. So, altogether, if you look at the hydro-regulated equity by end of FY27, it would be 30,627 crore.

Okay. Got it. Thank you.

Hello. Yeah, yeah, please.

Yeah. So, my second question in terms of what kind of cost increase are we seeing, and do we have a methodology that we can pass on the cost, or this will just increase my regulated income? Construction cost.

Yes, sure. As far as this increase in construction cost is concerned, being a... Basically, CRC, this being a cost plus, everything is allowed by CRC. Once it's out of our control, beyond our control, things are all passed on. So there is no such concern as far as this is concerned. But yes, we are definitely, we are having checks and balances regarding how the cost can be kept in check. And we just ensure that just because of certain reasons beyond our control, like geological surprises, sometimes there are design changes and other events happen in the project side. So definitely there are some increase. But in any case, all those increases taken care of as per the regulations, whatsoever cost, beyond our control, that is definitely allowed by. The CRC, so we don't have any issues on that front.

Okay, and what is the reason for a negative regulated income for this quarter?

Yeah, you were talking about regulatory deferral account?

Yeah, regulated income.

Yeah, so that is basically as we have discussed in our opening remark, there has been reversal of 1156 crore of DTL in the line item of deferred tax liability. So similar kind of reversal we have to make under rate regulated asset also. So that has been reflected under regulated deferral account. So their impact is there basically.

OK, got it.

We have disclosed in note number 8 of our financial results. So that will, yeah, that is taking care of this concern.

Right. And what will the maximum volume can we say from the number of unit per sector for the next year?

Please come again. Please be a little bit louder. We are not able to hear you out loud and clear.

Yes, with the Sibansuri, all the three units functioning, and Parati also coming in, and Antista 5, what is the kind of volume number which you will see for the next year, if you could help us?

Yeah, so as of now, four units have already been commissioned. The design energy of this project is 7,421 million units, and going forward, more four units are coming in phased manner. So, if you look at the expected generation of Suvansri lower, we are expecting somewhere 5,000 million units to 5,500 million units of generation from Suvansri lower. No connection?

This is incremental for FY27, right?

Yeah. This is the expected generation from Swansree lower, not incremental. Because we have seen generation of 506 million units in Swansree lower during the last 6 months.

Got it. Thank you so much, Janshya so much.

Thank you. We have next question from the line now. Akash Mehta from Kenra HSBC Live. Please go ahead.

Hi, sir. Thanks for taking my question. So first question is on, can you just help us again with the timeline in terms of the CRC tariffs that you have mentioned for Parpati and for Subhansari both? And if everything goes well, from when can we see this, I mean, the recognition of revenue at 100% for both of them?

Yeah, Akash, as I already explained, PAUTI2 petition is in the final stage of fearing, and we are expecting orders from CRC by the end of this quarter. By 30th of June.

So, once the order comes, after that, you said that you will take some, I mean, around a few months after which you can recognize it or immediately from the quarter?

No, no, no. As far as recognition is concerned, in case the order comes within quarter, then we will definitely account for the differential revenue along with interest component also, because interest is allowed from the date of COD. In that case, we will be doing, completely billing part will be over, and we will be recognizing the revenue in this quarter itself, if the order comes. So, as far as recognition is concerned, there is no deferral.

And similarly for Subhansri, you said after 5-6 months, we could expect...

Subhansri, we have already filed the petition for our interim tariff. So first, we are just waiting how much interim tariff CRC is going to allow us. And thereafter, in subsequent hearings, we are expecting it just an expectation. Like in case of Parvati 2, after interim, we are expecting that within 3-4 months. But in case of Subhansri, we are taking, because this is an old, very old project. So, we expect that not more than six months CRC will take to issue the final orders. In that case, we'll be having a fair idea of where we are going landing in terms of revenue. As of now, we are booking 80% of the revenue of the AFC tariff petitions which we have filed.

And this Subhansri will be for the entire capacity, right?

Yeah, basically, Subhansri, like we have filed for three units which were commissioned, and as the units add on, we will be filing supplementary tariff petitions with CRC. We will keep on updating. So, CRC will be allowing us on a projected basis also, but once all the units are complete, the final petition will be filed at that point of time. But in that case, this CRC will be allowing us interim tariff for billing purpose also.

Okay, so for the three units, maybe something good, if the final order comes through, then you can start recognizing it for Subhansari, right? Okay, and just the second question is on, are there anything else in terms of the future projects? I mean, Pakalol or Kiru or any other project where you're seeing post-escalation where something similar could kind of happen?

Yeah, so Basi Aka's cost escalation in hydro projects are very inherent. You cannot rule out. Even though if there is no time overrun, there will be cost overrun. Because, you know, when we award at a particular price level, that award cost is not free. That is basically at a particular price level. So, if you are going forward with that award for 4, 5, 6 years, you have to pay the price variation. So cost overrun is very inherent in any hydropower project, right? Now if any time overrun is there, that can also lead to cost overrun. So that varies project to project. So it is not necessary that every project will have their time overrun. There are many projects which we have commissioned in past ahead of schedule also. So it is not that every project will see its time overrun. So it depends, you know, and accordingly based on the factor as we have discussed, the CRC beyond the control of the management, within the control of the management, two broad factors are there based on which CRC allows the cost overrun.

Sure, so that's helpful. So, any of the future projects are facing material changes in cost, or it's not that much?

It is, I mean, not material, because projects like Pakal Dool, Kiru, Kabad, these projects are doing pretty well, and whatever timeline we have shared with you, we are going to commission these projects by that timeline. So, nothing extraordinary you will find there.

Okay, that's quite helpful. Thanks a lot.

Thank you. We have next question from the line-up. Mohit Kumar from ICIC Securities. Please go ahead.

Yeah, thank you. Thank you for the opportunity once again. My first question, what led to profit for Zubansri in the quarter? Given that the PAF and generation is lower in the quarter, and also they are booking at lower tariff, right? Have you booked any shortfall in generation in Swansuri also?

No. So, Mohit, we need to understand that, you know, whatever AFC of any project we file, that is basically based on the capital cost of the project. If we are going to CRC with the original cost of the project without any deduction, right, and then whatever expected AFC is there from that particular project, the cost, the, I mean, Whatever generation we have, I mean, 506 million units of generation we have from Suvansri in the last fiscal. So their income has been booked corresponding to the capital cost of these units which we have commissioned. Right. So if you are taking the entire capital cost of those units, for example, if we have commissioned three units of Suvansri, their corresponding capital cost is coming around 20,000 odd crore. Now, if you take tariff based on 20,000 crore of capital cost and if you multiply the number of units generated, then certainly this is the top line and apart from that whatever actual expenditure has been there, after that you are going to have profit. If any cut is there in the top line and expenditures are coming 100%, then only you will look at some losses and everything. But if revenue and expenditure both are compatible to each other in line with the AFC component, why any loss would come?

This is my question, because you are looking at a much lower tariff, that's the reason I'm asking whether…

No, no, so we have not taken any much lower tariff, the only thing we have done is 80% of the AFC, and there, you know, if you gross it up, then 150 crore of under-recovery we have seen in Swansea lower, which we have discussed. Understood.

My second question, why is thoughtfall in generation as we booked in Parvati 2? Are we going to argue for lower design energy for the power plant?

No, it is too early to argue for the lower design energy. Parvati had seen only one year, and that too you have seen that some cloud bus issue and everything had incurred there in Parvati too in the early, I mean just one year back, early monsoon. So for challenging the what you call design energy, you have to wait for at least three years.

Then how can you book this shortfall in generation? Is it allowed in the NDC in the regulation? Yeah, it is allowed.

It is allowed.

Yeah, basically, sort of regulation allows us, in case we are not able to achieve design energy, and the reasons for non-achievement are beyond our control. In that case, CRC regulation allows us even to bill. So in that case, after this order is there, 75%, we are having order of interim tariff of 75%, we are going to bill that, we are going to bill that too at the rate of 75% of the tariff. So, this is as per regulation, what we are doing. So, yeah, there is no issue. We are going to build and get it from beneficiaries.

Now, why is the TISTA Lower Dam, TISTA Lower Dam 3, and TISTA Lower Dam Power Project 4, TLDP 3 and TLDP 4 is hash?

If you remember October 23 events where we got heavy damages in Chista 5, these flash floods had impacted our TLDP 3 and TLDP 4 projects also. So a lot of silt issues are there which we are trying to remove. We are trying to come out of this issue. Last year also we had carried out some, you know, process to remove the silt and all, but again it has accumulated. So that issues we are now basically facing with and hopefully we will be able to come out of these issues within three months, I believe.

One more question. Which are the power plants you're likely to tender in this fiscal? Is it possible to give some, my question is the Savalcoat, Kamla, Swansea, Upper, Italian, all these four will get tender out this fiscal or do you think two will be the fiscal and two next fiscal?

Yeah, we are also thinking from the same line, and hopefully we are able to do it.

Yeah, actually we have a target to bring five projects of hydro, bring into construction Thank you. Two have already been awarded, then OD1 stage 2, and this Dulasti stage 2, and three more projects like Italian, and then Savalcoat, and then Kamla. These three are also likely to be bringing into the construction stage during this financial year. And one more PSP also we are targeting to bring into the construction stage, that is Indra Sagar and Omka Reshwar.

Any update on Subhansiri Appar, sir?

Subhansiri Appar, we may not be going this year. Next year, we may be going for that.

Understood, sir. Understood, sir. Thank you, Ambassador. Thank you. Thank you, Vazhari.

Thank you. We have next question from the line of Murtaza from Kotech. Please go ahead.

I just wanted to, just to reconfirm, you know, when you talked about Parbati 2 doing a full-year profit of 150 crore, isn't that very less against the regulated equity and project costs of Parbati 2, like taking 150 crore as the normalized profit? That's number one. Number two on Subhansiri low up. So, when you talked about that 80% revenue, given that you only part commission the capacity, you are well within the 80% and therefore you are booking the whole revenue for these early units. Is that understanding correct?

Yeah. So, let me take your question first for Parvati 2. So, Parvati 2, as we have shared, that the revenue which we have recognized to Parvati 2 is 1320 crore, right? Now, if you take the... The entire generation, I mean, the design energy of Parvati 2 is 325 million units, whereas we have actually generated 1642 million units in FY26. So if your generation is not there, you have not been able to book the entire revenue, expected revenue of Parvati 2. That is the reason you have not achieved the expected patch level of Parvati 2. It is clear? Now, coming back to the generation. Yes, yes. So, we have shared earlier also that in Parvati 2, there was some cloudburst issue in somewhere June or July last year, I believe. So, that has basically, I mean, stopped the expected generation of Parvati 2. No, absolutely. So now Subhansari Lower, if I take your question for Subhansari Lower, also we have shared that 80% of the revenue we have recognized, that is around 613 crore only. Right. So, total revenue against the 506 million units is 613 crore only. That is 80% of the expected AFC. If you gross it up, you will find 150 crore under-recovering so much lower also. You know?

Okay. Okay.

I think this is the apprehension to that.

It's two things. One is the actual generation is still much lower than the design energy. Therefore, the revenue is low. And then it's at 80% of that, so even lower.

Ladies and gentlemen, due to time constraint, that was the last question. I now hand the conference over to Mr. Rupesh and Khay for closing comments.

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

Thanks. On behalf of NHPC, I would like to convey my thanks. Thank you so much, all the investors. Thank you.

Ladies and gentlemen, on behalf of LRA Securities, India Private Limited, that concludes this conference. Thank you for joining us, and you may not disconnect the lines. Thank you.