NHPC shares jumped 2.23% today, ending at ₹85.39 on the NSE. The power PSU remains a part of the NIFTY MIDCAP 150 index, attracting steady investor attention despite recent ups and downs in performance.
But let’s look beyond the ticker. Numbers tell one story. People ask another: “If profits are high, why does this still feel… underwhelming?”
NHPC: Powering Profits, But Slipping on Growth?
Quarterly earnings show a strange pattern. Revenue hit ₹3,051.93 crore in Sep 2024—its highest in five quarters. But by Dec 2024, it fell sharply to ₹2,286.76 crore. Net profit also dropped to ₹328.94 crore, down from ₹1,068.93 crore just one quarter earlier. That’s a 69% dip.
For a government-owned hydropower giant, these are not tiny stumbles. They raise a bigger question: is NHPC’s growth story starting to stall?
What Should Investors Really Look At?
Let’s break it down:
- EPS (Earnings Per Share) hit 1.02 in Jun 2024.
- By Dec 2024, it was down to 0.23.
That’s not a blip. That’s a slowdown.
Annual data gives a slightly steadier picture. NHPC clocked ₹9,632.16 crore revenue in FY24, a mild dip from FY23. Still, its net profit stood strong at ₹4,023.61 crore—almost flat year-on-year. Solid? Yes. Surging? Not really.
Debt, Assets, and a Big Liability Shadow
The balance sheet shows total liabilities up to ₹93,295 crore in Mar 2024, from ₹86,087 crore a year earlier. Fixed assets grew too—but so did contingent liabilities, now a whopping ₹67,926 crore.
This isn’t a red flag, but it’s definitely orange. When liabilities balloon faster than revenues, long-term risk creeps in. Slowly. Silently.
The Curious Case of “Other Income”
Here’s the part most people miss:
NHPC’s “other income” in Dec 2023 was ₹494 crore—nearly 25% of its total sales that quarter.
That means NHPC’s financials are propped up by sources beyond core operations—interest, dividends, or asset sales. It’s like a cricketer scoring more off extras than actual shots. Impressive? Maybe. Sustainable? Hmm.
So, Is NHPC a Buy?
It depends. If you’re into long-term bets with steady dividend income (₹1.90 per share), NHPC still has appeal. Its book value per share is ₹43.70. Debt-to-equity stands at a manageable 0.84.
But if you’re hoping for rapid capital growth or tech-style returns? This may not be your thrill ride.
There’s power in hydropower. But NHPC’s recent numbers show the current isn’t always smooth.
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