NHPC margin rebounds to 61.76%, but higher finance costs cap profit growth
Revenue rose 35.26% sequentially while expenses fell 10.09%, driving a 19.28-point margin recovery; results were filed after market close.
Filed 04 Aug 2026, 20:14 IST · after market close · NHPC Ltd (NHPC)
Key takeaways
- Consolidated operating margin rose 5.70 percentage points YoY to 61.76% as revenue grew 18.50% while expenses increased 3.11%.
- Net profit grew only 4.15% YoY to Rs 1,178.09 cr as interest expense rose 132.27% and depreciation increased 37.61%.
- NHPC's 61.76% operating margin was 24.74 percentage points above the 37.02% median for 16 Utilities peers that have reported.
Price around the results
Sequential recovery lifts operating performance
Q1FY27 consolidated revenue grew 18.50% YoY and 35.26% sequentially, while expenses rose only 3.11% YoY and fell 10.09% sequentially. That operating leverage lifted margin by 5.70 percentage points YoY and 19.28 percentage points from Q4FY26. Operating margin has now improved for two consecutive quarters, from 9.53% in Q3FY26 to 42.48% in Q4FY26 and 61.76% in Q1FY27.
Finance costs offset much of the operating gain
Interest expense rose 132.27% YoY to Rs 605.76 cr and was up 5.48% sequentially, while depreciation increased 37.61% YoY to Rs 599.65 cr. As a result, profit before tax fell 2.63% YoY despite a 30.57% increase in operating profit, limiting net-profit growth to 4.15%. Other income declined 33.54% YoY and accounted for 11.74% of pre-tax profit, while the tax rate was broadly unchanged at 28.91%.
Margin remains well above the Utilities peer median
NHPC's 61.76% operating margin was 24.74 percentage points above the 37.02% median among 16 Utilities peers reporting the same quarter. The comparison is supportive of NHPC's operating margin, although the sharp movement across recent quarters shows that quarterly profitability has been volatile.
Market reaction is still pending
The consolidated results were filed after market close, so there is no post-result market move to assess yet. Across the last eight results, the stock rose after four and fell after four, with a median absolute move of 1.63%; the recent six moves ranged from -1.65% to +1.94%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,808 cr | ₹2,816 cr | +35.26% | +18.50% |
| Other income | ₹153 cr | ₹306 cr | -50.09% | -33.54% |
| Expenses | ₹1,456 cr | ₹1,620 cr | -10.09% | +3.11% |
| Operating profit | ₹2,352 cr | ₹1,196 cr | +96.68% | +30.57% |
| Operating margin (%) | 61.76% | 42.48% | — | — |
| Interest | ₹606 cr | ₹574 cr | +5.48% | +132.27% |
| Depreciation | ₹600 cr | ₹642 cr | -6.60% | +37.61% |
| Profit before tax | ₹1,299 cr | ₹285 cr | +355.22% | -2.63% |
| Tax | ₹376 cr | ₹-1,823 cr | — | -2.98% |
| Net profit | ₹1,178 cr | ₹1,549 cr | -23.97% | +4.15% |
| EPS (₹) | ₹1.09 | ₹1.45 | -24.83% | +2.83% |
Operating margin of 61.76% compares with a Utilities sector median of 37.02% across 16 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 61.76% after two consecutive quarters of expansion.
- Whether interest expense moderates from Rs 605.76 cr after its 132.27% YoY increase.
- Whether other income remains around its 11.74% share of pre-tax profit.