NHPC reported its earnings for the second quarter of FY25 on Thursday after markets closed.

What Happened: The hydropower firm reported a net profit of ₹908.97 crore for the July to September period, which reflects a 41% year-on-year fall compared with ₹1,545.85 crore a year ago. In the previous quarter, the firm had reported a profit after tax of ₹1,028.60 crore.

Revenue from operations climbed 4.1% to ₹3,051.93 crore crore compared to ₹2,931.26 crore reported in the same quarter a year ago. In Q1, the company’s operational revenue stood at ₹2,694 crore.

Antique Broking expected the public sector stock's consolidated revenue to reach ₹3,077.8 crore in the quarter and saw net profit declining to around ₹1,214.5 crore.

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In October, the company informed that the total monetary loss inflicted due to the Sikkim landslide’s effect on its 510 megawatt Teesta-V Power Station was around ₹327.67 crore. NHPC stated that the power station is currently non-operational and undergoing restoration following the flash floods in October 2023.

In August, a massive landslide in Singtam, Sikkim, caused significant damage to the Teesta Dam's power station, leaving the infrastructure in ruins, reduced to a mound of debris.

Earlier last month, Ventura initiated coverage on the public sector firm with a “buy” rating and a 24-month price target of ₹176, suggesting nearly a 100% upside from the stock’s then market price.

Ventura emphasised the strong growth potential of NHPC, driven by increased government support for hydroelectric power and improved economics from the cost-plus Return on Equity (RoE) model. The research note also highlighted that NHPC is India's only fully “green” public sector power generation company, with a hydropower capacity of 7 gigawatts, accounting for 15% of the country's total hydropower production.

Price Action: NHPC shares closed flat at ₹84.50 on Thursday.

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