Ladies and gentlemen, good day and welcome to NHPC Limited Q2 FY 2027 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 signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rupesh Sankhe from Elara Securities India Private Limited. Thank you, and over to you, sir.
Yeah, good morning, everyone. On behalf of Elara Securities, we welcome you all for the Q2 FY 2027 conference call of NHPC. I take this opportunity to welcome the management of NHPC represented by Shri Bhupender Gupta, Chairman and Managing Director, Shri Sanjay Kumar Singh, Director (Projects), Shri Mahesh Kumar Sharma, Director (Finance), Shri Paresh Rasiklal Ranpara, Director (Personnel). We will begin the call with a brief overview by the management followed by Q&A session. I will now hand over the call to Mr. Bhupender Gupta sir for his opening remarks. Over to you, sir.
Thank you, Mr. Rupesh. Good morning to all. As you are aware, the NHPC Board has adopted the half-yearly financial results for the period ended 30th of September 2026 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. 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, Shri Mahesh Kumar Sharma. Brief highlights, if you see the consolidated financial results and important updates are as under.
During the half year FY 2027, 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 2,875 million units. This is mainly due to part commissioning of Subansiri Lower Project, which is now stands at 1,250 MW commissioned, and then increase in generation of Parbati-II, Parbati-III, and Karnisar Solar Power Station. Also, the increase is due to resumption of the commercial operation of Teesta-V Power Station. Our PAF for half year FY 2027 stands at 86.67% against the corresponding previous period PAF of 81.10%, which is about 6% higher. This is mainly due to part commissioning of Subansiri Lower and increase of PAF for Parbati-II and resumption of the commercial operation of Teesta-V Power Station.
During the half year FY 2027, company has earned revenue from operation INR 8,291 crore as against INR 6,579 crore in the corresponding previous period, which is about 26% higher. During half year FY 2027, company has earned PAT of INR 2,645 crore as against INR 2,086 crore, there is an increase of 27%. In respect of our this Subansiri Lower Project, which is 2,000 MW, we have already commissioned units of 250 MW, five units of 250 MW, that is totaling to 1,250 MW out of eight units. The latest one was successful commissioning of unit five, which we achieved on 23rd of October 2026. Further, we are targeting commission two more units of this Subansiri during the financial year, and the remaining one unit is expected to be commissioned by June 2027. With this, our this Subansiri will become the biggest hydro project in India.
The anticipated cost of the project is INR 30,072 crore, and already we have incurred around INR 26,900 crore till September 2026, which is 90% of anticipated cost, and we don't anticipate any further increase in the cost. In respect of the Dibang Multipurpose Project, all major contracts have been already awarded, and we have already shared that we have achieved the crucial nalla 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 INR 31,876 crore, which include grant of INR 6,716 crore for flood moderation and enabling infra, out of which we have already spent INR 5,504 crore till September 2026. As per our schedule, the completion of the project is February 2032, and we are 100% sure that we will achieve this date without any fail.
In respect of Teesta-VI, 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, we'll achieve that because 74% progress has already been achieved. The estimated cost of this project is INR 9,167 crore, and out of which INR 5,650 crore has already been spent till September, that is 62% of the estimated cost. The expected commissioning of the project is September 2029. In respect of Uri-I Stage-II, 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 2026, and the tender for the HM and electromechanical works are in progress.
The estimated cost of this project is INR 2,709 crore, out of which we have already incurred expenditure of INR 33 crore till September, and the scheduled completion of the project is November 2029. In the same line, Dulhasti Stage-II HEP, 260 MW, this was also awarded in March 2026, and the work is in full swing in here also. We have spent around INR 122 crore till September against the estimated cost of INR 2,994 crore. In this case also, this dual completion of this project is also November 2029, and I am 100% sure that both the projects, this Uri-I Stage-II and Dulhasti Stage-II, will be commissioned within the scheduled time. Jalpower Corporation Limited, Rangit-IV 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 INR 2,057 crore, out of which we have already incurred expenditure of INR 1,916 crore till September. The project is expected to be commissioned by December 2026, as we have initiated the job of this reservoir filling. I' m 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 NHPC is in process, and second motion application has already been filed with the Ministry of Corporate Affairs. NHPC, through its subsidiary, CVPPL, Chenab Valley Power Project Limited, is executing three projects in Chenab Basin in U.T. of J&K. The construction work of Pakal Dul HEP, which is 1,000 MW, is progressing well.
The daylighting of the HRT of the project was achieved on 10th of June 2026, which means that we have all completed the water conduction system, and overall the progress is 89%. This estimated cost of the project is INR 12,728 crore, out of which we have already incurred INR 10,183 crore till September. The project is expected to be commissioned fully by June 2027, though we are targeting the commissioning of two units by March 2027 and planning to start the reservoir filling in the end of December. In respect of Kiru HEP, which is 624 MW, overall 92% progress has been achieved, and against the total estimated cost of INR 5,409 crore, we have spent INR 4,105 crore till September 2026, which is 76% of the estimated cost.
In this case also, we will be starting the reservoir filling from this month only. We are targeting the commissioning of all the units by March 2027, which means this project will be ready for the full generation from the next financial year. Kwar is another project which is being done by CVPPL, 540 MW. Here also, the work is progressing as per schedule. 42% physical progress has been achieved, and against the total estimated cost of INR 4,526 crore, we have incurred INR 2,079 crore till September. Project is scheduled to be commissioned by May 2028. So, this is also, as of now, this project is also on its scheduled path. I' m 100% sure, considering the present status, we will commission this by the scheduled date, that is May 2028.
In respect of Ratle HEP, which is 850 MW, it is again in the U.T. of J&K. The work is progressing well. Overall, 33% progress has been achieved, and the estimated cost is INR 5,282 crore. We have spent INR 1,749 crore till September 2026. The major activity of this particular project, which is one of the major activity, which is the dam concreting. I' m happy to inform you that we have started the dam concreting from the 2nd of November this month only. With this now activities now in process, we are sure that we will achieve the targeted completion of this project by November 2028. Another project, this Teesta-V Power Station, which got damaged due to the October 2023 flash flood, which was due to the GLOF in the Teesta basin.
The restoration of this project was completed, and the power station has started the commercial operation again from July 2026. We have already shared the Cabinet Committee on Economic Affairs has approved investment of INR 26,070 crore for construction of Kamle HEP, which is 1,720 MW in Arunachal State in April 2026. The project is to be implemented through JV between NHPC and Government of Arunachal, and the formation of subsidiary is in process. 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, NHPC is actively pursuing to start works of Sawalkot, 1,800 MW, for which the PIB has already been completed, and we are expecting the CCEA approval very soon.
Subansiri Upper, this is still in nascent stage. It is not in very advanced stage. Etalin, 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 project also physically at site during this financial year. This will be the biggest hydro project in the India after our Dibang, which is 2,882 MW, and this is 3,097 MW. In respect of 1,000 MW capacity, solar power project allotted under CPSU scheme, we have already commissioned 300 MW project in Bikaner. Further, 100 MW in Andhra Pradesh and 600 MW Gujarat are expected to be commissioned by January 2027 and November 2027 respectively. There is some issue of connectivity, that's why these projects are getting delayed.
Otherwise, we would have completed some of the projects, I think, very early. But connectivity issues are there, which all the solar projects are facing. So, this is the reason why these dates are going to November 2027. Our other under construction solar projects like 40 MW solar power project in Ganjam, Odisha, and one 50 MW floating solar project in Kerala are also expected to be completed by March 2027. Further, two projects of 200 MW each grid-connected solar photovoltaic power projects, which are located in Gujarat State Electricity Corporation Limited RE Park at Khavda, are expected to be commissioned by December 2026 and September 2027 respectively. NHPC is exploring to develop pump storage projects in the state of Maharashtra, Odisha, M.P., Gujarat, then Andhra. Currently, we have 18 GW PSPs, which are in the DPR/PFR stage.
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 PPA and all that. We are hopeful that next year, at least two of the PSPs physical work will start at site. Another PSP project, which is Indira Sagar, Omkareshwar PSP. Indira Sagar, Omkareshwar, both the reservoir with us, NHPC, and we have a JV with the Government of M.P. So, we are planning one PSP of 640 MW for which the tendering process has already been initiated. We are sure that this project will have a physical work commencement during this financial year also. We are hopeful to start during this financial year.
This is all from my side and the brief about our highlights of the company and the jobs which we are doing. I will request my Director of Finance, Mr. Mahesh Kumar Sharma, to discuss the financial results in detail with all of you. Thank you so much.
Thank you, sir. Good morning to all. Detailed highlights of the consolidated financial results and important updates on the company are as under. During half year FY 2027, our power stations have achieved generation of 23,741 million units as against 20,866 million units generated in the corresponding period of the previous year, which is higher by about 14% or 2,875 MUs. During second quarter FY 2027, our power stations have achieved generation of 13,935 million units as against 11,870 million units generated in the corresponding period of the previous year, which is higher by about 17% or 2,065 million units. Our PAF for half year FY 2027 stands at 86.67% against the corresponding previous period PAF of 81.10%, which is about 6% higher. Our PAF for second quarter FY 2027 stands at 92.24% against the corresponding previous period PAF of 78.58%, which is about 14% higher.
For half year FY 2027, company has earned revenue from operation of INR 8,291 crore as against INR 6,579 crore in the corresponding previous period, which is about 26% higher or by INR 1,712 crore. The increase in revenue is mainly due to higher generation on account of part commissioning of Subansiri Lower Project, increase in generation of Parbati-II Power Station, and resumption of commercial operation of Teesta-V Power Station. During Q2 FY 2027, company has earned revenue from operation of INR 4,482 crore as against INR 3,365 crore in the corresponding previous period, which is about 33% higher or by INR 1,117 crore. The increase in revenue is mainly due to higher generation on account of reasons I have just shared.
Other income for half year FY 2027 is of the order of INR 338 crore in comparison to INR 494 crore during the corresponding previous year, which is about 31% lower or by INR 156 crore. This is mainly due to income from insurance claim in the corresponding previous period. Other income for Q2 FY 2027 is of the order of INR 187 crore in comparison to INR 265 crore during the corresponding previous period, which is about 29% lower or INR 78 crore. This is mainly due to income from insurance claim in the corresponding previous period.
During half year FY 2027, the generation expenses have come down from INR 592 crore to INR 552 crore, means by INR 40 crore, which is due to lower water cess on account of lower generation in the power stations situated in U.T. of J&K and no water cess also situated in Uttarakhand in view of verdict of Honorable High Court of Uttarakhand in favor of NHPC. During Q2 FY 2027, the generation expenses have come down from INR 302 crore to INR 277 crore, means by INR 25 crore, which is again due to lower water cess on account of reasons I have just shared.
During half year FY 2027, the employee benefit expenses has gone up from INR 750 crore to INR 793 crore, means by INR 43 crore, which is mainly due to part commissioning of Subansiri Lower Project, as the expenses related to the part commission projects are now being charged to P&L. During Q2 FY 2027, the employee benefit expenses has gone up from INR 326 crore to INR 392 crore, means by INR 66 crore, which is mainly due to part commissioning of Subansiri Lower Project by INR 19 crore and increase on account of promotion, DA and other factors by INR 47 crore.
During half year FY 2027, there has been increase in the finance cost from INR 539 crore to INR 1,162 crore, means by INR 623 crore, which is mainly due to increase on account of interest on loan related to Subansiri Lower Project charged to P&L since its part commissioning. During Q2 FY 2027, there has been increase in the finance cost from INR 278 crore to INR 556 crore, means by INR 278 crore, which is again mainly due to increase on account of interest on loan related to Subansiri Lower Project charged to P&L since its part commissioning. During half year FY 2027, the depreciation and amortization expenses have gone up from INR 877 crore to INR 1,210 crore, means by INR 333 crore, which is mainly due to part commissioning of Subansiri Lower Project.
During Q2 FY 2027, the depreciation and amortization expenses have gone up from INR 441 crore to INR 610 crore, means by INR 169 crore, which is again mainly due to part commissioning of Subansiri Lower Project. During half year FY 2027, other expenses have gone up from INR 1,409 crore to INR 1,717 crore, means by INR 308 crore. This is mainly due to the increase in expenses related to Subansiri Lower Project by INR 207 crore and provision related to Teesta IV Project of INR 231 crore, which is offset by decrease in insurance premium of other power stations by INR 92 crore. During Q2 FY 2027, other expenses have gone up from INR 710 crore to INR 938 crore, means by INR 228 crore.
This is mainly due to the increase in expenses related to Subansiri Lower Project by INR 92 crore and provision related to Teesta-IV Project of INR 231 crore, which is offset by decrease in insurance premium of other power stations by INR 52 crore. During half year FY 2027, tax expenses have come down from INR 926 crore to INR 912 crore, which is almost flat. During Q2 FY 2027, tax expenses have been on the similar line as previous year period, which is INR 536 crore. During half year FY 2027, we have earned PAT of INR 2,645 crore as against INR 2,086 crore of corresponding previous period, which is up by INR 559 crore or 27% approx. The reason for increase in the line items we have just discussed.
During Q2 FY 2027, we have earned PAT of INR 1,549 crore as against INR 1,021 crore of corresponding previous period, which is up by INR 528 crore or 52% approx. The reason for increase in the line items we have just discussed. During half year FY 2027, the incentives positions are as under. Secondary energy has decreased by INR 174 crore, that is a decrease of 75%. PAF-based incentives have decreased by INR 10 crore, that is a change of 77%.
Deviation charges have increased by INR 22 crore, that is a change of 105%. So total incentives in the first half year FY 2027 is INR 103 crore as against in the corresponding previous period INR 265 crore, that is a decrease of INR 162 crore, and in percentage terms it is 47%. During Q2 FY 2027, the incentives position are as under. Secondary energy has decreased by INR 204 crore, that is 89% decrease.
PAF-based incentives have decreased by INR 10 crore, that is 77% decrease. Deviation charges have increased by INR 20 crore, that is 167% increase. So total incentive position as of Q2 FY 2027 is INR 59 crore as against INR 253 crore in the corresponding previous period. CapEx during H1 FY 2026 is INR 5,232 crore as against INR 5,683 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 INR 0.21 per equity share for the financial year 2025-2026 in the month of September 2026, which is in addition to interim dividend at the rate of 14%, that is INR 1.40 per equity share, resulting in total dividend at the rate of 16.10%, that is INR 1.61 per equity share on the face value of paid-up equity share of INR 10 each.
Other major highlights of the company are as under. On realization front, NHPC has received INR 5,126 crore from the beneficiaries against sale of energy during half year FY 2027 as compared to INR 4,764 crore in the corresponding period of previous year. Trade receivables as on 30th September 2026 stands as INR 4,283 crore as against INR 2,630 crore as on 31st March 2026. This includes INR 1,573 crore as unbilled debtors as on 30th September 2025 as against INR 1,887 crore as on 31st March 2026. The net receivables out of total reported trade receivables as on 30th September 2026 are as under.
Reported trade receivables INR 4,283 crore, less unbilled debtors INR 1,573 crore, billed receivables after netting off is INR 2,710 crore, less debtors dues which have been converted to installments as per CERC tariff orders and other orders INR 817 crore, net amount due INR 1,893 crore and dues more than 45 days INR 290 crore. This is all from my side. Now the forum is open for Q&A. Thank you.
Thank you. Now begin the question-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. 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 first question from the line of Mohit Kumar from ICICI Securities. Please go ahead. Mr. Mohit Kumar, your line is unmuted. Please respond. As there is no response from Mohit Kumar, we can move to the next question. We have next question from the line of Ms. Ragini Pande from Elara Capital. Please go ahead.
Yeah, am I audible?
Yes, ma'am, you're audible .
Yeah, yeah. So my first question is on Parbati-II. So when is the final tariff order expected? There was an unrecognized revenue of around. There was an unrecognized income of about INR 400 crore for Parbati-II. Is there any update on that? Once the final tariff is approved, what can be the expected revenue and EBITDA impact from this project?
Tell it.
Yeah, Ragini, good morning. Basically, regarding Parbati-II, if you look at the numbers which you are referring to, the reported number of Parbati so far, we have been recognizing revenue at 80%. The 20% balance revenue, which has not been recognized, is INR 500 crore, first thing. Okay? At normal level, since the Parbati-II 800 MW is having design energy of 3,125 million units and the tariff would be around INR 8.5 . So total AFC or the revenue which we can say expecting from Parbati-II is INR 2,400 crore. Since Parbati-II is having regulated equity of INR 4,000 crore, because the capital cost of the project is INR 13,600 crore. If you take 30% of the capital cost, INR 4,000 crore approx is the regulated equity. If you take 17% return on that, then the expected PAT comes around INR 680 crore.
But one thing I must add that this 17% is the core ROE, baseline ROE. On top of it, NHPC has been gaining these incentives also to the extent of 4%-5%. So whatever number you want to take as an incentive in the financial model, that is your comfort. But 17% return on regulated equity is giving INR 680 crore kind of PAT to this Parbati-II. So far EBITDA is concerned, normally our EBITDA is to the extent of 60%-65%. So if top line is INR 2,400 crore, accordingly the EBITDA can be calculated 60%-65%.
Yeah, quite clear, sir.
The other question you asked, Ragini, was regarding your status of the petition, Parbati-II, no?
Yes, yes.
Yes. The next hearing of Parbati-II has been fixed on 11th of November, this month only. We hope that this will be the final hearing, and thereafter order will be reserved. Thereafter we will be expecting the order very soon, as soon as the CERC issues the order. This time we are expecting that this will be the final hearing of Parbati-II.
Yeah, quite clear, sir. Thank you. A similar question on Subansiri. 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? Any under-recovery from Subansiri, any unrecognized revenue from this project?
Yeah, as far as Subansiri petition is concerned, we have already filed the petition for all the units. Basically, when we file the tariff petition, we take. 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 petition is being updated in that regard. 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 Subansiri Lower Project.
As already stated, we already stated earlier this thing, we are booking revenue at the rate of 80% of the tariff petition which we have filed. As far the numbers are concerned, in case you want to have more details, we can discuss on that.
Yeah, regarding Subansiri, if you look at the capital cost of the project, it is INR 30,000 crore. So far, we have commissioned five units of Subansiri. So total capitalized cost in our books is around INR 23,000, INR 24,000 crore, right? Regarding tariff, it's also around, the levelized tariff is around INR 8. On yearly basis, we are expecting AFC of INR 5,500 crore from Subansiri on full commissioning basis. Since last unit of Subansiri is spilling over in next financial year, the full impact of Subansiri would be largely in FY 2027, 2028, and then FY 2028, 2029 onwards, you will be having full top line, then the expected PAT also. The regulated equity of Subansiri, considering 30% of the capital cost, it is around INR 9,000 crore.
INR 9,000 crore regulated equity, again, if you consider 17% core ROE, and on top of it, some secondary energy and PAF incentive to the extent of 4%-5%. Then certainly INR 1,500 crore, INR 1,600 crore kind of PAT we are expecting from Subansiri.
Yeah, thank you. My next question is on Teesta-V. So, it has resumed operations in this quarter, and there was an under-recovery of around INR 500 crore. Has that under-recovery reduced now?
Yeah, so in Teesta-V, we started the commercial operation with effect from July 2026. So, in this Q2, Teesta-V has generated 859 million units, you know. The top line we have from Teesta-V is around INR 150, INR 160 crore. If you strike off all expenses, then the PBT contributed by Teesta-V is INR 100 crore, more precisely INR 99 crore.
Okay. Last question, can you tell me the adjusted PAT for this quarter?
Yeah, so as we have shared in our talking points that only one provision we have made in this Q2, which is INR 231 crore regarding Teesta-IV. So, if you add back this INR 231 crore entirely to the reported PAT, you will arrive at the adjusted PAT. That is the only one adjustment you have to make in adjusted PAT. And which is around, if you calculate that adjusted PAT, so that will be 90% higher than the corresponding quarter, against the 65% which we have shared. On a standalone basis, I'm telling you.
Okay. Thank you, sir. I'll join back with you.
Sure.
Thank you. We have next question from the line of Mohit Kumar from ICICI Securities. Please go ahead, sir.
Yeah, good morning, sir. Thanks for the opportunity. Can you just please reiterate that adjusted PAT? Do we have to add INR 231 crore to INR 1,549 crore, which you reported? That means your adjusted PAT will be closer to around INR 1,700 crore. Is that the right understanding?
Absolutely.
Understood. My second question is, can you please help us in understanding the profit contribution of Subansiri in H1? Is it producing much more than the design energy which you have been because, which is helping us in reporting a better profitability?
Yeah, Mohit, basically, if you look at the commissioning of new projects, that too when we do unit-wise commissioning of any project, the water availability for the fewer units commissioned is basically higher than the normal water availability for those units. Getting my point?
It is not design energy which is relevant now. It is basically the potential to generate out of the commissioned units because water availability is higher and our fewer units is able to generate more than the design energy. That is the reason Subansiri Lower has generated around 300 million units higher than the proportionate design energy of four units. That is the reason-
Oh, yeah. Mm-hmm.
This 300 million units is adding incremental PAT. Subansiri has added INR 132 crore kind of profit in Q2 and almost INR 140 crore kind of profit in H1. This is basically higher than the expected normal profit of four units at normalized level when all eight units of the projects would be commissioned. Is that clear?
Yes, sir. But what was the profit contribution of Subansiri in this quarter?
INR 132 crore.
At the-
PBT level.
Understood.
All contribution by this power station, we are selling on PBT basis because the tax is paid on corporate level.
Understood. Can you just refresh your memory at what percentage of the cost you are booking the revenue for Subansiri and Parbati? Is it 85% or 90%?
80%. It's 80%.
80%.
Yes.
Oh, that's okay. Understood. My second question is on the, which are the projects you are looking to award in the next 18 months? Have you completed the award for Dibang for all the packages?
Regarding this Dibang, Mohit, actually we have awarded the major contracts. Only small contracts of HM, hydro-mechanical, because that is, we always award as per the requirement at the site. So, some one or two package of hydro-mechanical which is pending to be awarded, that is not a delay. That is as per the requirement of the site, we will award. As far as other projects are concerned, we have got the CCEA approval for Kamle, that is in Arunachal, and the bidding process is already on. We are only waiting for the approval of EC and FC, and then also the land acquisition, which is under process.
We are hoping that by the end of this financial year, we will have all the clearances with us, and after that, we will be in a position to award because we are parallelly running the tendering process to avoid any further delay. Sawalkot is there. The PIB has already happened, and now we are just preparing ourselves for the CCEA approval. If we get the CCEA approval by December, we are not sure yet because that is not in our hand. Ultimately, government has to give the approval. By the end of this financial year, we will be able to award the two packages, which are the major packages of this Sawalkot. We will be able to award that also. These are the two, and then Etalin is there. Etalin, we have got all the approvals.
The PIB process has already been initiated by Government of India. There again, we are hoping that within next two to three months, we can get the CCEA approval. If that happens, then again, we have already run the tendering 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, so we award accordingly. Then we will be able to start the work of Etalin also, with the 3,097 MW hydro project again in Arunachal. These are in pipeline as of now. I told in my this remarks also that we have certain projects in PSPs, which are basically pump storage projects.
There also, we have one project which is where we have got all the approvals. Only thing is that we are just waiting for one final nod from the government. Then we will be able to complete the tendering process of these projects in M.P., at Indira Sagar Omkareshwar PSP. That can also be started next year. Two more PSPs are there for which the DPRs are under process, one in Odisha, one is in Maharashtra. So that also we are targeting for award of the packages, which are the major packages of civil works during the next calendar year.
Understood. My last question, sir, on the given the fact that building so many hydropower plants in the Northeast, the evacuation will be a challenge. So, are we speaking to the stakeholders to ensure that few of the HVDC lines comes on time?
If you see that transmission line is the responsibility of the CTU, that is the-
Correct.
So, for these all the hydro projects which are planned in Arunachal, long back the entire master plan for the transmission system was finalized. Because these power plants are, you know, pending for so many years. These were with the private developers and since last 20 years, then they were handed over to the CPSUs for fast implementation two years back only. Master plan is ready and based on our timelines of commissioning, like for Dibang, already the Power Grid, because now these are not 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 hydro projects, because otherwise there is a very heavy penalty on the generator if the transmission lines comes and 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 Arunachal.
Understood, sir. Thank you and all the best, sir. Thank you.
Thank you so much. Thank you.
Thank you. We have next question from the line of Prashant Kshirsagar from Unived Corporate Research Private Limited. Please go ahead.
Am I audible?
Yes, sir, you're audible.
Good morning, sir. Just one question. Most of my questions have been answered, but just one question is on the Etalin project. Under the direction of the Power Ministry, the Etalin project was transferred from SJVN to NHPC, for which a consideration of around INR 800 crore was to be paid by NHPC. Has that amount been paid or is it still pending, sir?
No, that amount is not paid yet. It will be paid once this PIB happens for the Etalin. That I told already that PIB is expected anytime now. Already the process has been initiated by Government of India and Ministry of Power basically. Once we get the PIB approval, then we will be in a position to give the money to SJVN. But principally, it is already decided and it is approved by both the boards of SJVN as well as by the NHPC Board.
Yeah. The second question was on the NHPC green energy, the solar projects, will they be hived off or what is the strategy for that? Because the reason for asking is the amount involved in the solar projects is quite small in comparison to the hydro projects. That's why I was asking this question.
No, actually, you know that all the CPSUs started this RE business because of the reason to diversify from the one business, which is a major business like NTPC, thermal, then 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 RE sector also for the future. We are not going to do anything till commissioning as of now. 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 floating solar or the solar projects or solar plus BESS, 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 charges, now they are not interested into this RE projects in other states. So they are in touch with us to have a JV and construct the solar plant or solar plus BESS 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 1,190 MW 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 Surya Ghar also, we have certain states with us and some central government ministry buildings.
So there also the work has 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.
Okay. What is the projected plan for the solar energy in terms of megawatts? What is the capacity which you are envisaging?
Yeah. Megawatt, I will be very candid with you because as you know, there are certain issues 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 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. We have tendered out in NHPC around 20,000 MW of the bids. Out of that, even 23,120 MW, we have awarded 73 projects. PPA has been signed only for 9,000 MW.
Also, we are expecting that around 5,000, 7,070 MW will also be signed, totaling to around 15,000. So around 5,000 MW capacity is there which may not be tied up. The reason is again I told you, because as per the resource adequacy plan of the various states, so they are slightly like reluctant as of now to commit for 25 years for a particular set of power. Because it can be solar, it can be solar wind-based, 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 fact, in discussion with many states for a combination of various powers.
We are trying to change the configuration of these powers also where we have awarded the projects through REIA. So that's why we are also, like within company, we are discussing 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 is a slightly energy transition period for everyone as of now. So it's under discussion within the company and with the other stakeholders, how we should plan for a long-term sale of the power. We don't want to construct the projects and then we are not having any PPA. That we do not want to do. That will be unnecessary dent on my finances.
Yeah. Okay. Thanks a lot, sir. That answers my question. Thanks a lot.
Thank you, sir. We have next question from the line of Mr. Abhineet Anand from BNP Paribas. Please go ahead.
Yeah. Just to understand between last year Q2 and this year, the three units that would have added to the profitability, Subansiri, Parbati-II, and Teesta-V. Subansiri, you guys mentioned INR 132 crore is the PBT for the quarter. Can you just mention the same numbers for Parbati-II and Teesta-V?
Sure, Abhineet. So, very interestingly, last year Parbati-II was having a loss of INR 164 crore, and this quarter Parbati has given INR 215 crore PBT. So in a way, Parbati-II is the power station of this quarter who has contributed on a YoY basis, INR 380 crore. Okay? And since Parbati-II was performing very well, Parbati-III has also added INR 80 crore PBT. So altogether, INR 460 crore incremental PBT is coming from Parbati-II and Parbati-III only. So that is very point you have raised for the benefits of the all audience. Subansiri, we have already shared INR 130 crore. INR 460 crore is coming from Parbati-II and Parbati-III, and INR 100 crore we have already shared for Teesta-V as well. So this is how four power stations has contributed majorly in incremental PBT.
And for the full year, Parbati-II, we ended up what amount?
Actually INR 240, because INR 23 was the Q1 PBT and INR 215 is the Q2. So almost INR 240.
I am saying, let us assume Parbati-II for FY 2026 as a whole.
Yeah.
What was the profit or loss that we incurred?
Yeah. Last year you are referring to, INR 149 crore.
Okay. That's at PBT level.
Thank you. We take the next question from the line of Kayur from PNB MetLife. Please go ahead. Mr. Kayur, your line is- Yes.
Yeah. Am I audible?
Yes, sir, you're audible.
Yeah, thank you. Thank you for the opportunity. Sir, I have two questions. Firstly, trying to understand on the receivable side. I understand that versus the FY year-end number, the receivables position has spiked. Sir, can you help us understand what's driving this? Is it attributable to Subansiri and Parbati? Some color on that? Hello?
Pardon, please wait. We disconnect and reconnect the management line. Please wait. Pardon, please note your management line has been reconnected now.
Yeah, Abhineet.
Sir, Mr. Kayur is on the queue right now. Ask your question.
Okay.
Sir, should I repeat the question? I am not sure if you were able to hear my question. It was on the receivable side. I am trying to understand what is driving that.
You may repeat, please.
Yeah. Sir, just wanted to understand from a receivables position perspective, if I look at the year-end number, which was closer to INR 2,500 crore, it has come up INR 4,300 crore ballpark. So, what is driving this, and when do we expect this to normalize?
Yeah. See, these receivable numbers which we have shared with you is basically as of 30th September 2026. If you look at today's number, I mean, yesterday, what receivables we had, the total receivable was INR 159 crore only, and more than 45 days, it was only INR 6 crore. So it is not that 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.
Sorry, can I confirm? You said, sir, that currently it is INR 159 crore only?
INR 1,159 crore is the total receivable as on 3rd November, sorry. Out of this INR 1,159, only INR 6 crore is more than 45 days.
Understood, sir. This is helpful. But this was only attributable to Subansiri and Parbati?
Parbati-II, we have already received interim petition, so 75% billing is being done. For Subansiri Lower, all revenue is going to unbilled debtors only. That is entirely different accounting treatment for that. That comes under contract assets, which is not included in this reported receivables of INR 4,300 crore, which we have shared in our conference call.
Let me clarify the position. Basically, earlier dues was a big problem. After this Electricity Late Payment Surcharge Rules, have been introduced in 2023, these dues are all very streamlined. 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, the rule says that you have to, the power revenue regulated, the beneficiaries cannot approve the exchanges. So many stringent conditions have been put on as per the rules. 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.
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 recoverability of dues.
Absolutely.
Understood, sir. This is very helpful. My second question was on the leverage side. Sir, I understand it is currently looking optically sort of elevated. If we were to just look at some high-level numbers, the debt number is closer to INR 59,000 crore. And if I look at the last 12 months EBITDA, this is closer to INR 7,000 crore. 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 INR 59,000 crore? Just trying to look at.
Yes. So you have rightly said our group level debt is INR 59,000 crore. That is fine. But if you look at the distribution of this INR 59,000 crore between the operational project and under construction project, right? So in operational project, we have deployed INR 29,000 crore and balance INR 20,000 crore in construction project. In NHPC, if you want to calculate the EBITDA, currently you have rightly said that our EBITDA is around INR 6,000 crore-INR 7,000 crore. But post-commissioning of this Subansiri Lower full year basis, Pakal Dul, et cetera, our EBITDA is also going to reach at INR 10,000 crore, right?
Now, the debt servicing, if you are trying to gauge the debt servicing, then you should not consider the debt deployed in construction projects as a debt servicing burden on operational project. Since we are not into project financing, we are entirely into balance sheet financing. We are servicing the debt component deployed in operational project only from the operating cash we are churning from the operational project. For construction project, whatever debt is employed, that is basically getting refinanced, because in balance sheet 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 consol level also, if you look at the debt equity or debt EBITDA, it is very much in control.
Moreover, going forward, 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 1,744 MW, 500 MW from Subansiri, then 624 MW from Kiru, 120 MW from Rangit. Then next year also Pakal Dul is coming, 250 MW, Subansiri 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, lot of capacity addition is happening, and that is leading to your EBITDA, to your top line, to your bottom line, everywhere. So, nothing to worry from that perspective.
Yeah. So, sir, immediately, I think, like you mentioned, it could be incremental EBITDA would be driven by Pakal Dul, Kiru, and Rangit, which we are expecting to come online in FY 2028, is it?
Yes.
So, the generated EBITDA, just including the visibility that we have on these, that should be closer to INR 10,000 crore?
Absolutely.
Okay, sir. This is very helpful. Last question from my side. Again, from a CapEx perspective, how should we think about next two, three years perspective?
Yeah, so last year also-
Are you guiding the number?
If you look at, our CapEx target was INR 13,000 crore, and we had achieved INR 13,700 crore numbers. This year also, we have CapEx target of INR 14,300 crore, and till now, we have already achieved INR 6,500 crore. We are very much hopeful that, because the better CapEx utilization is happening in second half of the financial year. We are very much hopeful that this level of INR 14,300 crore is achievable during the current financial year also. Next year onward, on an average, you can consider INR 14,000 crore-INR 15,000 crore kind of CapEx, on consol level.
Understood. Sir, do we require any fresh equity to fund these CapEx, or would the internal accruals suffice?
No. If you look at the cash which we are generating from our operation, for example, if I give you example of FY 2027, 2028. By FY 2027, 2028, we are targeting to generate PAT level of INR 6,000 crore, INR 6,400 crore, right? If you take conservative number of INR 6,000 crore only, we will have depreciation also to the extent of INR 3,000 crore-INR 3,500 crore. So, total cash would be likely to be generated to the extent of INR 10,000 crore, for example. If you have operating cash of INR 10,000 crore, you have obligation of dividend payment, and you have obligation of repayment of debt, right? These two obligation you have before deploying anything into CapEx. On an average, we pay 4% of net worth as dividend.
If you consider INR 42,000 crore kind of net worth, and going forward, if you consider INR 45,000 crore of net worth, the 4% of the same is roughly INR 1,800 crore. INR 1,800 crore is allocation for dividend payment. Repayment of debt is also to the extent of INR 2,800 crore-INR 3,000 crore. Meaning thereby, the INR 5,000 crore kind of utilization is going to the buckets allocated for dividend and repayment of debt. Still, you will have INR 4,000 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 INR 1 lakh 11,000 crore kind of CapEx for next 10 years, wherein the requirement of equity is INR 40,000 crore. On an average, INR 4,000 crore yearly equity is required from NHPC side.
Our internal resources is sufficiently taking care of any equity requirement from the CapEx perspective.
Right, sir. No, this is super helpful, sir. Thanks for explaining all this in detail. Thank you.
Sure.
Thank you. We have next question from the line of Abhineet Anand from BNP Paribas. Please go ahead.
Yeah, I think some of the questions got cut because of the line. I was just asking Parbati-II for last year, which is FY 2026, what was the profit we made?
I think, Abhineet, the call was cut. INR 149 crore was the loss by Parbati-II in previous fiscal year.
And if you can just, Teesta-V wasn't operational last year, right?
Yes.
So-
Teesta-V was not operational.
Yeah, so this year, based on the current year, what could be the profitability numbers for Teesta-V?
For rest of the periods of financial year?
Yes.
H2 you are referring to?
Yeah.
Yeah. Basically, you see, typically 70% generation, if you take average of last five years, the actual numbers I am sharing with you, 70% generation happens in H1 and 30% in H2, right? In case of Teesta-V 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 INR 100 crore, INR 150 crore odd, you can expect. Because Q1 was missed in this fiscal, we missed the Q1 from Teesta-V generation.
You have to now nine months only, and the peak period is only Q2, Q3. Q4 is the lean period. That much you can expect.
Last one, this PSP that we are doing for NHDC one, right? I mean, in terms of project cost and tariff and all this will be totally regulated, right?
As of now, yes, it will be regulated because this is JV with the Government of M.P. We are in process of signing the power purchase agreement with the Government of M.P., which is still under discussion, not finalized. But yes, it will be regulated.
Any color on what could be the project cost and related tariff?
INR 5,300 crore.
Cost is around INR 5,000.
INR 5,300 crore.
INR 5,000?
INR 5,200.
INR 5,200 crore is the cost.
And what tariff this could entail?
Tariff will be less than INR 5. INR 4.9 exactly, well, as of now, what we have estimated.
Okay. Thanks, sir. Those are my questions.
Thank you.
Thank you. Ladies and gentlemen, due to time constraint, that was the last question. I now hand the conference over to Mr. Rupesh Sankhe for closing comments. Over to you, sir.
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.
Thank you so much.
Thank you, everyone. Thank you so much. Have a good day.
Thank you, participants. On behalf of Elara Securities India Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect lines. Thank you.