NHPC (NSE:NHPC) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to NHPC Limited q two FY twenty seven earnings conference call hosted by Elara Securities India Private Limited. As a reminder, all participants lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to mister Rupesh Nk from Vilara Securities India Private Limited. Thank you, and over to you, sir. Yeah. Good morning, everyone. On behalf of Vilara Securities, we welcome you all for the q two FY twenty seven conference call of NHPC.

0:47 I take this opportunity to welcome the management of NHPC represented by Sri Bupinder Gupta, Chairman and Managing Director Sri Sanjay Kumar Singh, Director, Projects Ashri Mahesh Kumar Sharma, director finance Sri Parish Sri Krasiklara Tanpara, director personnel. We will begin the call with a brief overview by the management followed by q and a session. I will now hand over the call to mister Upendar Gupta, sir, for his opening remarks. Over to you sir. Thank you. Thank you, Mr. Bupesh. Good morning to all. As you are aware, NHPC Board has adopted the half yearly financial results for the period ended 09/30/2026 in its meeting held on November 4. And the same has already been communicated to the exchanges.

1:35 By now, I hope that all of you would have got the chance to go through the quarterly as well as the half yearly set of numbers. So first of all, I will just touch upon major highlights and then detailed analysis of the results shall be discussed by our Director of Finance, Siri Mahesh Kumar Sharma. Brief highlights, if you see the consolidated financial results and important updates are as under. During the half year FY 2027, our power stations have achieved generation of 23,741 units as against twenty thousand eight and sixty six million units generated in corresponding period of the previous year, which is higher by 14% or 2,075 units. This is mainly due to part commissioning of Subanshri lower project, which now stands at twelve fifty megawatt commissioned and then increase in generation of Parvati-two, Parvati-three and Karneser Solar Power Station.

2:32 And also the increase is due to resumption of the commercial operation of these five power stations. Our path for half year FY 2027 stands at 86.67% against the corresponding previous period path of 81.10%, which is about 6% higher. This is mainly due to part commissioning also once it is lower and increase of PAP for Parvati II and resumption of the commercial operation of feedstock five 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 'twenty seven, company has earned PAT of INR2645 crore as against INR286 crore that there is an increase of 27%.

3:28 In respect of our this supervisory lower project, which is 2,000 megawatt, we have already commissioned units of two fifty megawatt, five units of two fifty megawatt that is totaling to twelve fifty megawatt out of eight units. And the latest one was successful commissioning of Unit five, which we achieved on 10/23/2026. Further, we are targeting to commission two more units of this facility during the financial year and the remaining one unit is expected to be commissioned by June 27. So with this, our Vansri will become the biggest hydro project in India. The anticipated cost of the project is INR3072 crore and already we have incurred around INR26900 crore till September 26, which is 90% of anticipated cost. And we don't anticipate any further increase in the cost.

4:22 In respect of the one multiple project, all major contracts have been already awarded and we have already shared that we have achieved the crucial Nala diversion, significant stride towards ensuring all weather road access to project site and work is going in a full fledged manner. The estimated cost of this project is INR 31,876 crore, which include grant of INR6716 crore for flood moderation and enabling infra out of which we have already spent INR554 crore till September 26. And as per our schedule, the completion of the project is February thirty two and we are 100% sure that we will achieve this date without any fear. In respect of Ista six five hundred megawatt, the work is progressing well and the only hurdle which we are facing there is a tunnel only, but we are sure that whatever the timeline we have now kept for completion of this project, we'll achieve that because the 74% progress has already been achieved.

5:26 The estimated cost of this project is INR9167 crore out of which INR5650 crore has already been spent in September, that is 62% of the estimated cost. The expected commissioning of the project is September 29. In respect of OD1 Stage two, which is two forty megawatt of HEB, we started the work at site this year only and the civil contract of the project was awarded in March 26 and the tender for the and electromechanical works are in progress. The estimated cost of this project is INR2709 crores out of which we have already incurred expenditure of INR33 crores till September and the scheduled completion of the project is November 29.

6:13 In the same line, Dulastis Stage II HCP two sixty megawatt, this was also awarded in March 26 and the work is in full swing in here also. And we have spent around INR122 crore till September against the estimated cost of INR2994 crore. In this case also, this dual completion of this project is also No. 29. And I'm 100% sure that both the projects, this Udi-one Stage two and Rusty Stage two will be commissioned within the scheduled time. Gel Power Corporation Limited, Rangit four HEP, 120 megawatt 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 INR2057 crore, out of which we have already incurred expenditure of INR1916 crore till September.

7:06 The project is expected to be commissioned by December 26 as we have initiated the job of this reservoir filling. And 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 JBCL with NHPC is in process and second motion application has already been filed with the Ministry of Corporate Affairs. NHPC through its subsidiary CVPL Chena Valley Power Project Limited excluding three projects in Chena Basin in UT of JNK. The construction work of Pakal Dhul HEP with 1,000 megawatt is producing well. The daylighting of the HRT of the project was achieved on 06/10/2026, which means that we have all completed the water condensing system.

7:54 And overall, the progress is 89%. This estimated cost of the project is 12,728 crore, out of which we have already incurred 10,183 till September. The project is expected to be commissioned fully by June 27, though we are targeting the commissioning of two units by March 27 and planning to start the reservoir filling in the end of December. In respect of Kiru HCP, which is six twenty four megawatts, overall 92% has been achieved. And again, total estimated cost of $5,409 we have spent $4,105 till September 26, which is 76% of the estimated cost. And in this case also, we will be starting the reservoir filling from this month only and we are targeting the commissioning of all the units by March 27, which means this period will be ready for the full generation from the next financial year.

8:57 Kawar is another project which is being done by CBPL five forty megawatt. Here also the work is progressing as per schedule. 42% physical progress has been achieved and against the total estimated cost of INR4526 crores, we have incurred INR2700 crores till September. And project is scheduled to be commissioned by May 28. So this is also as of now, this split is also on its scheduled, this part. And I'm 100% sure, considering the present status and the also, we will commission this by the scheduled date, that is May 28. In respect of Rapple HEP, which is eight fifty megawatt, it is again in the UT of JNK. The work is progressing well. Overall, 33% progress has been achieved. And the estimated cost is $5,282 and we have spent $17.49 dollars till September 26.

10:00 The major activity of this particular bidder, which is one of the major activity, which is the dam grating. So I'm happy to inform you that we have started the damped grating from the November 2 this month only. And with this, now activities now in process. We are sure that we will achieve the targeted completion of this period by November 28. Another project is Tissa V Power Station, which got damaged due to the October 23 flash flood, which was due to the cough in the Tista Basin. The restoration of this project was completed and the power station has started the commercial operation again from July 26. We have already shared the Cabinet Committee on Economic Affairs has approved investment of INR2670 crore for construction of Kamle HEP, which is seventeen twenty megawatt in Arunachal state in April 26.

11:02 The project is to be implemented through JV between NHPC and Government of Arunachal and the formation of subsidiaries in process. And further, environment and forest clearances are also in process for the project, and we are expecting these clearances this month only, and we are targeting to start the physical work at site during this financial year. Apart from above the under construction project, NHPC is actively pursuing to start works of Saval Court, 1,800 megawatt, for which the PIV has already been completed, and we are expecting the CCA approval very soon. Subansari Upper, this is still in essence stage. It is not in very advanced stage. And Italian, this is in very, very advanced stage. We have got all the clearances. We are already doing the tendering. And hopefully, we will get the cabinet approval maybe within two months, and then we can start the work for this project also physically at site during this financial year.

12:04 And this will be the biggest hydro project in India after our Divang, which is 2,882 megawatt and this is 3,097 megawatt. In respect of 1,000 megawatt capacity, solar power project allotted under CPS2 scheme, we have already commissioned 300 megawatt project in Bikaner. Further, 100 megawatt in Andhra Pradesh and 600 megawatt Gujarat are expected to be commissioned by January 27 and November 27, 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 are the dates are going to November 27. Our other under construction solar projects like 40 megawatt solar power project in Ganjam, Odisha and 150 megawatt floating solar project in Kaila are also expected to be completed by March 27.

13:00 Further, two projects of 200 megawatt each grid connected solar photovoltaic power bridges, which are located in Gujarat State Electric Corporation Limited, RE Park at Khawada are expected to be commissioned by December 26 and September 27 respectively. NHPC is exploring to drill pump storage plants in the state of Maharashtra, Odisha, MP, Gujarat, then Andhra. And currently, we have 18 gigawatt PSP, which are in the DPR or PFR stage. And we are sure that some of the projects for which the DPR is in advanced stage, we are in the talks with the state government for their facilitation as well as for the PPs and all that. And we are hopeful that next year at least two of the PSPs physical work will start at site.

13:52 Another PSP project, which is Indra Saga, Roong Karishwar PSP. Indra Saga and Roong Karishwar both the reservoir with us NHPC and we have a JV with the government of MP. So we are planning one PSP of six forty megawatt for which the tendering process has already been initiated and we are sure that this project will have a physical work commencement during this financial year also. Are hopeful to start during this financial year. So this is all from my side and the brief about our highlights of the company and the jobs which we are doing. And so I will request my Director of Finance, Mr. Mahesh Kumar Sharmaji to discuss the financial results in detail with all of you.

14:39 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 units as against 20,866 units generated in the corresponding period of the previous year, which is higher by about 14% or 2,875 mUs. During second quarter FY twenty twenty seven, our power stations have achieved generation of thirteen thousand nine thirty five million units as against 11,870 units generated in the corresponding period of the previous year, which is higher by about 17% or 2,065 units. Our PAF for half year FY twenty twenty seven stands at 86.67% against the corresponding previous period PAF of 81.10%, which is about 6% higher.

15:35 Our PAF for second quarter FY twenty seventeen stands at 92.24 against the corresponding previous period PAF of 78.58%, which is about 14% higher. For half year FY twenty twenty seven, company has earned revenue from operation of INR8291 crore as against INR6579 crore in the corresponding previous period, which is about 26% higher or by Rs. $17.12 crore. The increase in revenue is mainly due to higher generation on account of part commissioning of Subansi lower project, increase in generation of Palti to power station and resumption of commercial operation of Tissa V Power Station. During Q2 FY twenty twenty seven, company has earned revenue from operation of Rs. 4,004 and 82 crore as against Rs. $3,003.65 crore in the corresponding previous period, which is about 33% higher or by INR $11.17 crore. The increase in revenue is mainly due to higher generation account of reasons I have just shared.

16:39 Other income for half year FY twenty twenty seven is of the order of INR C38 crore in comparison to INR494 crore during the corresponding previous year, which is about 31% lower or by INR156 crore. This is mainly due to income from insurance claim in the corresponding previous period. Other income for Q2 FY twenty twenty seven is of the order of INR187 crore in comparison to INR265 crore during the corresponding previous period, which is about 29% lower or INR78 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 $5.92 crore to INR $5.52 crore, means by INR 40 crore, which is due to lower water sales on account of lower generation in the power station situated in UT of JNK and no water testing costs associated in Uttarakhand in view of verdict of Underwood High Court of Uttarakhand in favor of NHPC.

17:38 During Q2 FY twenty twenty seven, the generation expenses have come down from INR302 crore INR277 crore means by INR25 crore, which is again due to lower water sales on account of reasons I have just shared. During half year FY 2027, the employee benefit expenses has gone up from INR750 crore to INR793 crore means by Rs. 43 crore, which is mainly due to part commissioning of Subansiluvar project as expenses related to the part commissioning projects are now being charged to P and L. During Q2 FY twenty seven, the employee benefit expenses has gone up from Rs. $3.26 crore to Rs. $3.92 crore means by Rs. 66 crore, which is mainly due to part commissioning of Subansalur project by Rs. 19 crore and increase on account of promotion, DA and other factors by Rs.

18:29 47 crore. During half year FY 2027, there has an increase in the finance cost from INR539 crore to INR116 crore, means by INR623 crore, which is mainly due to increase on account of interest on loan related to Subanshi lower project charged to P and L since its part commissioning. During Q2 FY twenty twenty seven, there has been increase in the finance cost from INR $2.78 crore to INR $5.56 crore means by Rs. $2.78 crore, which is again mainly due to increase on account of interest on loan related to suvency lower project charged to P and L Synthes part commissioning. During half year FY 2027, the depreciation and amortization expenses have gone up from INR877 crore to INR1210 crores, means by INR333 crore, which is mainly due to part commissioning of Subansi lower project.

19:21 During Q2 FY twenty seven, the depreciation and amortization expenses have gone up from Rs. $4.41 crore to Rs. $6.10 crore means by Rs. 169 crore, which is again mainly due to part commissioning of Subansilver project. During half year FY 2027, other expenses have gone up from Rs. $140.09 crore to Rs. $17.17 crore means by Rs. $30.08 crore. This is mainly due to the increase in expenses related to Subansi lower project by Rs. $20.07 crore and provision related to TISTA IV project of Rs. $2.31 crore, which is offset by decrease in insurance premium of other power stations by Rs. 92 crore. During Q2 FY twenty twenty seven, other expenses have gone up from INR $7.10 crore to INR $9.38 crore means by INR $2.28 crore. This is mainly due to the increase in expenses related to Subansi Lord project by INR ninety two crore and provision related to TISTAFR project of INR $2.31 crore, which is offset by decrease in insurance premium of other power stations by Rs. 52 crore.

20:25 During half year FY 2027, tax expenses have come down from Rs. $9.26 crore to Rs. $9.12 crore, which is almost flat. During Q2 FY twenty twenty seven, tax expenses have been on the similar line as previous year period, which is INR536 crore. During half year FY 2027, we have earned PAT of INR2645 crore as against INR2086 crore of corresponding previous period, which is up by Rs. $5.59 crore or 27% approx, and the reason for decrease of increase in the line items we have just discussed. During Q2 FY twenty twenty seven, we have earned TAT of Rs. $15.49 crore as against Rs. $10.21 crore of corresponding previous period, which is up by Rs. $5.28 crore or 52% approx, and the reason for decreased public increase in that line items we have just discussed.

21:19 During half year FY 2027, the incentive positions are as under. Secondary energy has decreased by INR174 crores, that is a decrease of 75%. PA based incentives have decreased by INR10 crores, that is a change of 77%. Division charges have increased by INR22 crores, that is a change of 105%. So total incentives in the first half year FY twenty twenty seven is INR103 crore as against in the corresponding previous period, INR265 crore, that is a decrease of INR162 crore and in percentage terms it is 47%. During Q2 FY twenty twenty seven, the incentives for its position are as under. Secondary energy has decreased by INR204 crore, that is 89% decrease. PA based incentives have decreased by INR10 crore, that is 27% decrease. Deviation charges have increased by INR20 crore, that is 167% increase.

22:14 So total incentive provision as of Q2 FY twenty twenty seven is INR59 crore as against INR253 crore in the corresponding previous period. CapEx during H1 FY twenty twenty six is Rs. $5,002.32 crore as against Rs. 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 INR0.21 per equity share for the financial year twenty five point two six in the month of September 26, which is in addition to interim dividend at the rate of 14% that is INR1.40 per equity share resulting in total dividend at the rate of 16.10% that is Rs. 61 pass up per equity share on the face value of paid up equity share of Rs. 10 each.

23:03 Other major highlights of the company are as under. On realization front, NHPC has received Rs. $5,001.20 crore from the beneficiaries against sale of energy during half year FY 2027 as compared to INR4764 crore in the corresponding period of previous year. Trade receivables as on 09/30/2026 stands at $4,002.83 crore as against Rs. 2,630 crore as on 03/31/2026. This includes Rs. $15.73 crore as unbilled letters as on 09/30/2025 as against Rs. $18.87 crore as on 03/31/2026. The net receivables out of total reported trade receivables as on 09/30/2026 are as under. Reported trade receivables 4,002 and 83 crore less unbilled debtors $15.73 crore billed receivables netting after netting of is 2,007 and 10 crore, less debtors dues which have been converted to installments as per CRC tariff orders and other orders $8.17 crores, net amount due INR1893 crores and dues more than forty five days, INR290 crores. This is all from my side. Now the forum is open for Q and A.

24:14 Thank you. Thank you. We have first question from the line of Mohit Kumar from ICHI Securities. Please go ahead. Mister Mohit Kumar, your line is unmuted. Please respond.

25:09 As there is no response from the Mohit Kumar, we can move to the next question. We have next question from the line of mister Ranjit Pandey from Elara Capital. Please go ahead. Yeah. Am I audible? Yes, ma'am. Are Yes. So my first question is on Parbati II. So when is the final tariff order expected? And there was unrecognized revenue of around there was unrecognized income of about INR 400 crore for Parbati II. Is there any update on that? And once the final tariff is approved, what can be the expected revenue EBITDA impact from this project? Lalitin? Yeah, Raghun, good morning.

25:57 Basically regarding Parvati II, if you look at the numbers which you are referring to, the reported number of Parvati so far, we have been recognizing revenue at 80%, right. So the 20% balance revenue which has not been recognized is INR500 crore, first thing, okay. So at normal level, since the Parvati II 800 megawatt is having design energy of INR2225 million units and the tariff would be around INR8.5. So total AFC or the revenue which we can say expecting from Parvati II is INR2400 crores. And since Parvati II is having regulated equity of INR4000 crores because the capital cost of the project is INR13600 crores. So if you take 30% of the capital cost, INR4000 crores approx is the regulated equity.

26:50 And if you take 17% return on that, then the expected PAT comes around INR680 crore. But one thing I must add that this 17% is the core ROE, baseline ROE. On top of it, NHPC has been gaining this incentives also to the extent of 4% to 5%. So whatever number you want to take as an incentive in your financial model, that is your comfort. But 17% return on regulated equity is giving INR680 crore kind of PAT2, this Parvati II. So far EBITDA is concerned, normally our EBITDA is to the extent of 60% to 65%. So if top line is INR2400 crores, accordingly the EBITDA can be calculated 60 to 65%. SRINIVASAN quite The other question you asked Rajini was regarding your status of the petition, Parvati Tuna?

27:44 Yes, yes. Yes. That the final the hearing the next hearing of Pauwati two has been fixed on November 11, this month only. And we hope that this will be the final hearing and thereafter order will be reserved and thereafter we'll be expecting the order very soon as soon as the CRC issues the order. But this time we're expecting that this will be the final hearing of Abzito. Yes, Quite clear, sir. A similar question on Subansiri. So what is the status of tariff petition? Have we filed a petition for all the eight units? Or the petition will be filed progressively as the remaining units are being will be commissioned? And any under recovery from Subansiri, any unrecognized revenue from this project?

28:33 Yeah. As far as Subansiri petition is concerned, we have already filed the petition for all the units. Basically, when we filed the tariff petition, we take like when we filed two units were there, so we filed the petition for two units and for the other units, filed on projected basis. Now as the units are getting commissioned, we are updating those tariff partitions one by one. So now we have already updated tariff partitions in respect of four units, fifth unit which we have commissioned, tariff partition is being updated in that regard. And as far as hearing of this is concerned, the hearing has been over and the order is now reserved for interim tariff. So we are expecting the interim tariff very soon in respect of Subansea lower project. And as already stated, we already stated earlier this thing, we are booking VENKATAKRISHNAN:] revenue at the rate of 18% of the tariff protection which we have filed. As far the numbers are concerned, in case you want to have more details, we can discuss on that. Yeah. So regarding Suvansiri, if you look at the capital cost of the project, it is INR30000 crore.

29:34 And so far, we have commissioned five units of Subanseri. So total capitalized cost in our books is around INR23000 INR24000 crores, right. Now regarding tariff is also around a levelized tariff is around INR8 crores. And on a yearly basis, we are expecting the AFC of INR5500 crores from Suwansri on full commissioning basis. So since last unit of Suwansri is know, is playing over in net financial year. So the full impact of Suwansri would be in FY largely in FY 2027, 2028 and then twenty twenty eight, twenty nine onwards you will be having full top line then the expected PAT also. Now the regulated equity of SuwanSri considering 30% of the capital cost, it is around INR9000 crore. And INR9000 crore regulated equity, again, if you consider 17% core ROE and on top of it, secondary NHPC incentive to the extent of 4% to 5%, then certainly INR 1,500 crore, 1,600 crore kind of pad we are expecting from Swansea.

30:41 Yes. Thank you. My next question is on K STA-five. So it has resumed operations in this quarter, and there was an under recovery of around INR 500 crores. So has that under recovery reduced now? Yes. So in Testa 5, we started the commercial operation with effect from July 2026. So, in this Q2, Testa five has generated eight fifty nine million units. And the top line we have from Testa five is around INR150 crores, INR160 crores. And if you strike off all expenses, then the PBT contributed by Testa five is INR100 crores, more precisely INR99 crores. Okay.

31:27 And last question, can you tell me the adjusted part for this quarter? Yes. So as we have shared in our talking points that only one provision we have made in this Q2, which is INR $2.31 crore regarding this stuff for. So if you add back this INR231 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 pad, 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. Sure. Thank you.

32:14 We have next question from the line of Mohit Kumar from ICIC Securities. Please go ahead, sir. Yeah. Good morning, sir. Thanks for the opportunity. Can you just please reiterate that adjusted PAT? Is it it do you have to add INR $2.31 crore to INR $15.49 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 understanding the profit contribution for the one three in H1? And and is it producing much more than the design energy, which you're using with us, which is helping us in reporting a better profitability?

33:06 Yes. So Mohit, basically, if you look at the commissioning of new projects, that too when we do unit wise commissioning of any project, the water ability for the fewer units commissioned is basically higher than the normal water ability for those units. Getting my point? So it is not design energy, which is relevant now. It is basically the potential to generate out of the commission unit because water ability is higher and our fewer unit is able to generate more than the design energy. So that is the reason Suansri lower has generated around 300,000,000 units higher than the proportionate design energy of four units. Is the reason this 300,000,000 units is adding incremental pad. So Suansri has added INR132 crore kind of profit in Q2 and almost INR140 crore kind of profit in H1.

34:06 So this is basically higher than the expected normal profit of four unit at normalized level when all eight unit of the projects would be commissioned. Is that clear? Sir. But what are the profit contributions, INR13 million in Q in this quarter? INR130 million. PBT levels, all contribution by this project power station, we are selling on PBT basis because the tax is paid on corporate level. Understood. Can you just read through your memory, at what percentage of the cost you are booking the revenue for Suvans three and Parvati? Is it 85% or 90%? 8080%. 80%. Oh, that's okay. Understood. Understood. My second question is on the the... Which are the projects you're looking to award in the next eighteen months? And have you completed the award for the bank for all the packages?

35:03 Regarding this, one, Mohit, actually, we have awarded the major contracts, only small contracts of 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 side we will award. As far as other projects are concerned, we have got the CC approval for Kamle that is in Arunachal and the bidding process is already on. So we are only waiting for the approval of EC and FC and then also the land acquisition which is under process. And we are hoping that by the end of this financial year we will have all the 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.

35:51 Then several court is there, the PIB has already happened and now we are just preparing ourselves for the CC approval. And if we get the CC approval by December, we are not sure yet because that is not in our hand. Ultimately, government has to give the approval. So then by the end of this financial year, we will be able to award the two packages, which are the major packages of this Savagur. So we will be able to award that also. So these are the two. And then, is there. Italian, we have got all the approvals. The PIV process has already been initiated by Government of India. And there again, we are hoping that within next two to three months, we can get the CC approval. If that happens, then again, we have already run the pending 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.

36:46 And then we will be able to start the work of Italian also with 3,097 megawatt hydro project again in our nutshell. So these are in pipeline as of now. And I told in my remarks also that we have certain projects in PSPs, which are basically pumped storage projects. There also, we have one project, which is where we have got all the approvals. And only the thing is that we are just waiting for one final nod from the government, and then we will be able to complete the tendering process of these projects in MP, Rindrasagar, Umkharishpur PSP, and that can also be started next year. And two more PSPs are there for which the DPRs are under process, one in Odisha, one in Maharashtra.

37:35 So that also we are targeting for award of the packages, which are the major packages of civil works during the next calendar year. And just 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 are we are we in speaking to the the stakeholders to ensure that few of the HVDC lines comes on time? If you if you see that transmission line is the responsibility of the CTO, that is the... So for these, all the hydrogrillages, which are planned in Arunachal, long back, the entire master plan for the downstream system was finalized.

38:22 Because these power plants are you know that pending for so many years, these were with the private developers and since last twenty years, then they were handed over to the CPSUs for fast implementation two years back only. So master plan is ready and based on our like timelines of commissioning like for Divang already the power grid because now these are not like compulsory 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 line 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 plant sorry, power from these power plants, which are planned in the Arunachal.

39:25 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 Sri Sagar from UniWet Corporate Research Private Limited. Please go ahead. Am I audible? Yes, sir. You're audible. Yeah. Good morning, sir. And just one question. Most of my questions have been answered. Just one question is on the Italian project. The... Under the direction of the power ministry, the Italian project was transferred from h... JVN to for which a consideration of around 800 crores was to be paid by NHPC.

40:13 So has that amount been paid, or is it still pending? No. That amount is not paid yet. It is... Will be paid once this PIV happens for the Italian. So that I told already that PIV is expected anytime now. Already the process has been initiated by the government of India, the Ministry of Power basically. So once the PIV we get the PIV approval, then we will be in a position to give the money to SGMN. But principally, is already decided and it is approved by both the Boards of as well as by the NHPC board. Yeah. The second question was on the NHPC green energy. The solar projects, will they be hyped off, or what is the strategy for that? Because the the reason for asking is the amount involved in the solar energy toy... Solar projects is quite small in comparison to the hydro projects. That's why I was asking this question.

41:17 No. Actually, you know that all the PSUs and started this RE business because of the reason to diversify diversify from the one business, which is a major business like NHPC's 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 until commissioning as of now. And after commissioning, we will see what to do. But we will be, in fact, in discussion with the various states, they are interested to have some floating solar or the solar projects or solar plus best, in fact, not only the solar as Vanilla.

42:06 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 the these Hari projects in other states. So they are in touch with us to have a JV and construct the solar plant or solar plus 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 eleven ninety megawatt capacity is under construction and this will be 100% completed next year. As I told, because these commissioning has been delayed due to the availability of the connectivity. Otherwise, we would have completed maybe faster. And in PM Surreyja also, we have certain states with us and some central government ministry buildings. So there also the work that 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.

43:09 Okay. And so what is the projected plan for the solar energy mega... In terms of megawatts? What is what is the capacity which you are in this energy? Yeah. Megawatt, I will be very candid with you because as you know, there is a certain issue with the connectivity, issue with the evacuation, issue with the plain vanilla solar. As now in daytime, we have excess power, especially during the summer period. Also in the winter, we will see this year what is the position. The problem now, we have shortfall in the peaking hours, that is in the evening as well as in the morning also. So now the strategy is being changed by the every dweller, every state and because as you know that we are also a renewable energy implementation.

43:55 And we have turned it out in NHPC around 20,000 megawatt of the bids. And out of that even 23,000 in fact 120 megawatt we have awarded 73 projects. And PPA has been signed only for 9,000 megawatt. And also we are expecting that around 5,000, 7,070 megawatt will also be signed, totaling to around 15,000. So around 5,000 megawatt capacity there, which may not be tied up. So reason is, again, I told you, because as per the resource adequacy plan of the various states, so they slightly like reluctant as of now to commit for twenty five years for a particular set of power, because it can be solar, it can be solar 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.

44:50 So now we are in, in fact, discussion with many states for a like a combination of various powers. We are trying to change the configuration of these powers also where we have awarded the projects through ARIA. And so that's why we are also in like within company, we are discussing that what type of power, what type of configuration we should have in the renewable energy which can be sold in the long term. So it's a slightly energy transition period for everyone as of now. So it's under discussion within the company and within with the other stakeholders that 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 don't want to do. That will be unnecessarily dent on my finances.

45:38 Yes. Okay. Thanks a lot, sir. That that answers my questions. Thanks, sir. Okay. Thank you, sir. We have next question from the line of Mr. Amit Anand from BNP Paribas. Please go ahead. Yes. Just to understand between last year, 2Q, and this year, there are three units that would have added to the profitability. So once you have two and five. Subansari, you guys mentioned INR 132 crore is the PBT for the quarter. Can you just mention the same numbers for Parvati two and Thista five? Sure. I mean, it's so very interestingly, last year Parvati II was having a loss of INR164 crore and this quarter Parvati has given INR215 crore PBT.

46:29 So in a way Parvati II is the power station of this quarter who has contributed on Y o Y basis, INR380 crore, okay. And since Parvati II was performing very well, the Parvati III has also added INR80 crore PBT. So altogether $4.60 crore incremental PBT is coming from Parvati II and Parvati III only. So that is very point you have raised for the benefits of the all audience. So one, three we have already shared 130 crore, $4.60 crore is coming from Parvati two and Parvati three and 100 crore we have already shared for TISTA five as well. So this is how four power stations has contributed majorly in incremental PBT.

47:20 And for the full year, Parvati two, we ended up what amount? H one two forty because 23 was the q one PBT and 215 is the q two. So almost $2.40 Let's million assume Parvati two for FY 'twenty six as a whole, what was the profit or loss that we incurred? Yes. Last year, you are referring to INR149 crore. Okay. That's at PBT level. Thank you. We take the next question from the line of from PNB MetLife. Please go ahead. Mister, your line is... Yes. Yeah. Am I audible?

48:14 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. So I understand that versus the FY your end number, the receivable's position has spiked. So can you help us understand what's driving this? Is it attributable to Subansiri and Parvati? Some some color on that. Part two. Partition, please note, management line has been reconnected now. Yeah.. Sir. Is on... He's in... He's on the queue right now asking question. Okay. Sir, should I repeat the question? I'm not sure if you were able to hear my question. It was on the receivable side. I'm trying to understand what what is driving. Yeah. You may repeat, please.

49:08 Yes. So just wanted to understand from a receivables position perspective, if I look at the year end number, it was closer to INR 2,500 crores. It's come up of INR 2,300 crores fall past. So what's driving this? And when do we expect this to normalize? Yeah. So see, these receivable numbers which we have shared with you is basically as of 09/30/2026. And if you look at today's number, I mean yesterday what receivables we had, the total receivable was INR159 crore only and more than forty five days it was only INR6 crore. So it is not that if you look at one particular number that is not going to be realized.

49:55 Since our average data turnover days is only fifty one days only, so all receivables are coming absolutely in time, and there is no issue from the receivable fronts. Sorry, can I confirm? So you said, sir, that I mean, currently, it is INR 159 crores only? $11.59 crore is the total receivable as on October 3... No more. Sorry. And out of this $11.59, only 6 crore is more than forty five days. Understood. Understood, sir. This this is helpful. But this was But was it attributable to Subansari and Parvati?

50:43 Parvati two See, Parvati two, we have already received, you know, interim interim petition. So 75% billing is being done. For Suvansri lower, all revenue is going to unbilled letters only. So that is entirely different accounting treatment for that. That comes under contract assets, which is not included in this reported receivables of INR4300 crores, which we have shared in our conference call. Let me clarify the position. Basically, earlier dues was a big problem after this electricity late payments such as rules have been introduced in 2023. These dues are all very streamlined. So as on date, we will have to see that out of the build amount, how much amount is due for more than forty five days.

51:31 And that too after seventy five day regulation says that rule says that you have to the power of the regulated beneficiaries cannot approach the exchanges. So many stringent conditions have been put on as per the rules. So as of now, our build position after building the recovery position is very good, no issues because most of the dues are cleared within forty five days and more than forty five days that too by seventy fifth day all the dues are cleared. So beyond seventy five days, we don't have a single penny pending. So on that account, I can confirm you that just after this LPS rules, the government has introduced, this financial discipline has been there in the whole sector. And right right now, we don't face any issue on account of recoverability of dues.

52:18 Absolutely. Understood, sir. This is very helpful. So my second question was on the leverage side. So sir, I understand it is currently looking optically sort of elevated. So if we were to just look at some high level numbers, the debt number is closer to INR 59,000 crores. And if I look at the last twelve months EBITDA, this is closer to INR 7,000 crores. So I understand this is partly because of the fact that a lot of our projects are currently under construction. But, sir, how should I think about operational debt out of this entire INR 59,000 crores? Just trying to look at it. Yeah. Yeah. So you have rightly said our group level debt is INR 59,000 crores. That is fine. But if you look at the distribution of this INR59000 crores between the operational project and under construction project, right. So in operational project, we have deployed INR29000 crores and balance INR20000 crores in construction project.

53:21 In NHPC, if you want to calculate the EBITDA, currently you have rightly said that our EBITDA is around INR6000 to INR7000 crores, but post commissioning of this Suvansri lower full year basis, Pakaldule etcetera, our EBITDA is also going to reach at 10,000 crores, right. Now, the debt servicing, if you're trying to you know, get the debt servicing, then you should not consider the debt deployed in construction projects as a debt servicing burden on operational projects. Since we are not into project financing, we are entirely into balance sheet financing. So we are servicing the debt component deployed in operational project only from the operating cash we are churning from the operational project.

54:11 For construction project, whatever debt is implied, that is basically getting refinanced if any because the imbalances financing you know that the debt repayment also starts. So that burden is not coming on the operating cash flow of the operating station. That is entirely bifurcated. So you need not to worry about the debt level. At console level also, if you look at the debt equity or debt EBITDA, it is very much in control. And moreover, the 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 seventeen forty four megawatt, 500 megawatts from Suwansri, then six twenty four from Kiru, 120 from Rangit, then next year also Pakal Dhul is coming two fifty megawatts, Suvansri is coming 1,000 megawatts if Pakal Dhul is coming, then after that thirteen ninety megawatt is coming and then 1,000 megawatt 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.

55:24 So nothing to worry from that perspective. Yes. So sir, immediately I think like you mentioned, it would be incremental EBITDA would be driven by Pakaldu, Kiru, and Rangit, which we are expecting to come online in FY twenty eight, is it? So the run rate EBITDA, just including the the visibility that we have on these, that should be closer to 10,000 crores? Absolutely. So this is this is very helpful. And so last question from my side, again, from a CapEx perspective, how should we think about next two, three years perspective? Yes. So last year also, if you look at, our CapEx target was INR 13,000 crores, and we had achieved INR 13,700 crores numbers.

56:13 This year also we have CapEx target of 14,300 crore and till now we have already achieved 6,500 crore. So, we are very much hopeful that because you know I mean the CapEx, better CapEx utilization is happening in second half of the financial year. So we are very much hopeful that this level of INR14300 crores is achievable during the current financial year also. And next year onwards on an average you can consider 14,000 to 15,000 crore kind of CapEx on console level. Understood. And sir, do we require any fresh equity to fund these CapEx? Or would the internal accruals suffice? No. So if you look at the cash which we are generating from our operation, for example, if I give you example of FY 'twenty seven, 'twenty eight. By FY twenty seventwenty eight we are targeting to generate PAT level of INR6000 crores, INR6400 crores, right.

57:15 If you take the number of INR6000 crores only, we will have depreciation also to the extent of INR 3,000 to INR 3,500 crore. So total cash would be likely to be generated to the extent of INR 10,000 crore for example. So 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. Two obligations you have before deploying anything into CapEx. On an average, we pay 4% of net worth as dividend. So, if you consider INR42000 crore kind of net worth and going forward, if you consider 45,000 crore of net worth, the 4% of the same is roughly 1,800 crore, right. So, crore is allocation for dividend payment.

58:05 Repayment of debt is also to the extent of INR 2,008 crore to INR 3,000 crores. So meaning thereby the INR 5,000 crores kind of utilization is going to the buckets allocated for dividend and repayment of debt. Still you will have INR 4 crores approx or higher than that cash available for what you call this CapEx requirement. You look at the next ten years of CapEx projection of NHPC, we have INR11000 crore kind of CapEx for next ten years, wherein the requirement of equity is INR 40,000 crore. So on an average INR 4,000 crore yearly equity is required from NHPC side. So that is I mean our internal resources is sufficiently taking care of any equity requirement from the CapEx perspective.

58:55 Right. 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 Ab Init Anand from PNB Paribas. Please go ahead. Yeah. I think some of the questions got cut because of the line. So I was just asking Parvati to for last year, which is f twenty six. What was the profit we made? So I think I mean, it was... The call was cut. $1.49 crore was the loss by Parvati tool in next... Previous fiscal year. And if you can just on Tista five wasn't operational last year. Right? Yes. So And Tista five wasn't operational.

59:42 Yeah. So what... This year, what... Based on the current year, what could be the profitability numbers for Taster VIII? For the rest of the periods of financial year? Yes. So X2 you are referring to. 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 Vista V also the kind of eight fifty nine 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, 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 INR100 crore, INR150 crore or you can expect.

1:00:49 Because Q1 was missed in this fiscal, we missed the Q1 from this the five generation. So you have to now nine months only And the peak period is only Q2, Q3 and Q4 is the lean period. So that much you can expect. And last one, this PSP that we are doing for NHPC one, right? So Yeah. 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 MP. So we are in process of signing the power purchase agreement with the government of MP, which is still under discussion, not finalized. So... But, yes, it will be regulated.

1:01:36 And any any color on what could be the project cost and related tariff? 5,300 crore. INR 5,200 crore is the cost. And what tariff this could entail? That will be less than $5.4.9 exactly, well, as of now, what we have assumed. Okay. 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 Nk for closing comments. Over to you, sir. Yes. We thank NHPC management for giving us an opportunity to host this call. We also thank all the investors and analysts for joining this call.

1:02:33 Thank you so much. Thank you, everyone. Thank you so much. Have a good day. Thank you, participants. On behalf Elara Securities India Private Limited, That concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.