Hold NHPC: target of Rs 76: ICICI Securities

HOLD

ICICI Securities's research report on NHPC

NHPC has reported a subdued result in Q3FY25 – standalone revenue slipped 15% YoY to INR 15bn, EBITDA shrunk 14% YoY to INR 4.3bn while reported PAT, at INR 2.7bn, tumbled 50% YoY impacted by two one-offs. However, adj. PAT came in at INR 5.8bn (+12% YoY). Teesta-V power station is still non-operational and is expected to resume operations towards the end of FY26. Meanwhile, the under-recovery thereon (estimated at INR 4-5bn annually) shall have a bearing on earnings for next 4–5 quarters. NHPC is expected to commission Parbati II and Subansiri projects over the next 12 months, adding ~INR 110bn in regulated equity.

Outlook

We upgrade the stock to HOLD, from Reduce, as we roll forward our target price to FY27E, at INR 76/share (INR 75/share earlier).

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