Yeah. Good afternoon, everyone.

On behalf of Elara Securities, we welcome you all for the Q4 FY '26 conference call of NHPC. I take this opportunity to welcome the management of NHPC represented by Mr.

Sanjay Kumar Singh, Director (Projects); Mr. Suprakash Adhikari, Director (Technical); and Mr.

Mahesh Kumar Sharma, Director (Finance). We will begin the call with a brief overview by the management, followed by Q&A.

I will now hand over the call to Mr. Sanjay Kumar Singh, Director (Projects), for his opening remarks.

Over to you, sir.

Good afternoon, friends. NHPC Board has adopted annual financial results for the period ended 31st March '26 in its meeting held on 15th May '26, and the same has already been communicated to the exchanges.

By now, I hope you all would have got chance to go through the quarterly and yearly set of numbers. First, I will touch upon major highlights of the financial results and the detailed growth plan.

Further detailed analysis of the results shall be shared by our Director (Finance), Shri Mahesh Kumar Sharma ji. Brief highlights of the consolidated financial results and important update on the company are as under.

During FY '26, our power stations have achieved generation of 29,619 million units as against 25,548 million units generated in corresponding period of the previous year, which is higher by about 16% or 4,071 million units. This is mainly due to the commissioning of Parbati-II Power Station and subsequent increase in generation of Parbati-III Power Station, commissioning of Karnisar Solar Power Station, part commissioning of Subansiri Lower project, increase in generation of Uri-I Power Station, and power stations of NHDC.

Our PAF for financial year '26 stands at 74.75% against the corresponding previous period PAF of 78.87%, which is about 4% lower. This is mainly due to shut down for some period in Dulhasti, Chamera-III, TLDP-IV Power Station on account of MIV repair works, restoration of sailwings, and repair of radial gates, etcetera.

During financial year '26, company has earned revenue from operations of ₹11,615 crore as against ₹10,380 crore in the corresponding previous period, which is about 12% higher. During financial year '26, company has earned PAT of ₹3,766 crore as against ₹3,007 crore of corresponding period, which is 25% higher.

I am very pleased and proud to share that we have commissioned four units of Subansiri Lower project, 250 megawatt each out of total eight units. Remaining four units are expected to be commissioned one by one till March '27.

The anticipated cost of the project is ₹30,072 crore, and we have incurred ₹26,092 crore till March '26. Investment approval for implementation of Uri-I Stage-II HE Project of 240 megawatt and Dulhasti Stage-II HE Project of 260 megawatt in UT of Jammu and Kashmir at an estimated cost of ₹2,709 crore and ₹2,994 crore respectively at completion level has been accorded by NHPC Board on 20th February '26.

Further, an implementation agreement has been signed between NHPC Limited and Jammu and Kashmir State Power Development Corporation Limited on 27 March '26 for development of these projects. Civil contracts for these projects have also been awarded in March '26, and schedule completion of both the projects is November '29.

Cabinet Committee on Economic Affairs has approved investment of ₹26,070 crore for construction of Kamala HE Project of capacity 1,720 megawatt in Arunachal Pradesh on 8th April '26. The project will be implemented through a joint venture company between NHPC Limited and the Government of Arunachal Pradesh.

The formation of subsidiary is in progress. Further, environment and forest clearances are also in-process for the project.

In respect of Dibang Multipurpose Project of 2,880 megawatt, all major contracts have been awarded including the dam package of ₹14,446 crore, which has recently been awarded in the month of April '26. We have already shared that we have achieved the crucial nala diversion, a significant stride towards ensuring all-weather road access to the project site, and the work is going on in full-fledged manner.

The estimated cost of the project is ₹31,876 crore, which includes grant of ₹6,716 crore for flood moderation and enabling infrastructure works, out of which we have already incurred ₹4,504 crore till March '26, and the schedule completion of the project is February '32. In respect of Teesta-VI HE Project of 500 megawatt capacity, the work is progressing well at site.

Overall, 72% physical progress of the project has been achieved. The estimated cost of the project is ₹9,167 crore, out of which we have already incurred expenditure of ₹5,231 crore till March '26.

The expected commissioning schedule of the project is September '29. Jalpower Corporation Limited is Rangit-IV HE Project of 120 megawatt is also progressing well.

Overall, 96% physical progress of the project has been achieved. Boxing of all three units have been completed.

The project is expected to be commissioned by November '26. The estimated cost of the project is ₹1,889 crore, out of which we have already incurred expenditure of ₹1,792 crore till March '26.

Further, we are in process of merger of JPCL with NHPC, and second motion applicable has already been filed with the Ministry of Corporate Affairs. In respect of Ratle HE Project of 850 megawatt in UT of J&K, the work is progressing well at the project site.

Overall, 29% physical progress of the project has been achieved. The estimated cost of the project is ₹5,282 crore, and we have incurred expenditure of ₹1,538 crore till March '26.

The project is expected to be commissioned by November '28. Presently, NHPC, through its subsidiary CVPPPL, is executing three projects in Chenab basin in UT of J&K.

Construction of Pakal Dul HE Project of 1,000 megawatt is progressing well. Overall, 80% 80% physical progress of the project has been achieved.

The estimated cost of the project is ₹12,728 crore, out of which we have incurred expenditure of ₹9,141 crore till March '26. The project is expected to be commissioned by fourth quarter of financial year '27.

In respect of Kiru HE Project of 624 megawatt, overall, 82% physical progress of the project has been achieved. We have incurred expenditure of ₹3,637 crore till March 20 '26 out of the estimated cost of ₹5,409 crore, and estimated commissioning of the project is fourth quarter of financial year '27.

In respect of Kwar HE Project of 540 megawatt, the work is progressing well at site. Overall, 33% physical progress of the project has been achieved.

The estimated cost of the project is ₹4,526 crore, out of which we have incurred expenditure of ₹1,708 crore till March '26, and the project is scheduled to be commissioned by March '28. The restoration work of Teesta-V Power Station is under progress, and it is expected that the power station will start generation in June '26.

Apart from above under construction projects, NHPC is also actively pursuing to start works of projects such as Sawalkot of 1,856 megawatt, Subansiri of 60 Subansiri Upper of 1,605 megawatt, and Etalin of 3,097 megawatt, which are at different stages of clearances. In respect of 1,000 megawatt capacity solar power projects allotted under CPSU Scheme Tranche-II, we have already commissioned 30 300 megawatt project in Bikaner, Rajasthan.

Further, 100 megawatt project in Andhra Pradesh and 600 megawatt project in Gujarat are expected to be commissioned by June '26 and December '26, respectively. Our other construction solar projects like 40 megawatt solar power project in Ganjam, Odisha and 50 megawatt floating solar project in Kerala are expected to be completed by October '26 and March '27, respectively.

Further, two projects of 200 megawatt grid connected solar photovoltaic power projects located in Gujarat State Electricity Board Corporations Limited RE park at Khavda, Gujarat are expected to be commissioned by June '26 and December '26, respectively. NHPC is exploring to develop pumped storage projects in the state of Maharashtra, Odisha, Madhya Pradesh, Gujarat, Chhattisgarh, Rajasthan, and Andhra Pradesh.

Currently, we have 18 gigawatt PSPs which are at DPR/PFR stage. Further, we are expecting to start construction of Indira Sagar, Omkareshwar PSP of 640 megawatt in the current financial year.

This is all from my side. Now, I request Director (Finance), Shri Mahesh Sharma ji, to discuss financial results in detail.

Thank you.

Good afternoon, friends. I am going to share with you detailed quarterly and annual set of numbers and the detailed analysis.

The NHPC Board has adopted annual financial results for the period ended 31st March '26 in its meeting held on 15th May '26, and the same has already been communicated to exchanges. Detailed highlights of the consolidated financial results and important updates on the company are as under.

During FY '26, our power stations have achieved generation of 29,619 million units as against 25,548 million units generated in corresponding period of the previous year, which is higher by about 16% or 4,071 million units. During fourth quarter FY '26, our power stations have achieved generation of 3,770 million units as against 3,150 million units generated in corresponding period of the previous year, which is higher by about 20% or 620 million units.

Our PAF for FY '26 stands at 74.75% against the corresponding previous period PAF of 78.87%, which is about 4% lower. Our PAF for fourth quarter FY '26 stands at 62.47% against the corresponding previous period PAF of 66.84%, which is about 4% lower.

For FY '26, company has earned revenue from operations of ₹11,615 crore as against ₹10,380 crore in the corresponding previous period, which is about 12% higher or by ₹1,235 crore. The increase in revenue is mainly due to higher generation on account of commissioning of Parbati-II Power Station, part commissioning of Subansiri Lower project, and commissioning of Karnisar Solar Power Station.

During Q4 FY '26, company has earned revenue from operations of ₹2,816 crore as against ₹2,347 crore in the corresponding previous period, which is about 20% higher or by ₹469 crore. The increase in revenue is mainly due to higher generation on account of newly commissioned power stations.

Other income for FY '26 is of the order of ₹1,071 crore in comparison to ₹1,235 crore during the corresponding previous period, which is about 13% lower or by ₹164 crore. This is mainly due to decrease in realization of business interruption loss against insurance claim by ₹466 crore mainly related to Teesta-V Power Station, current period is nil and previous period ₹466 crore.

This decrease is offset by increase in income from insurance claim by ₹321 crore, mainly in respect of Teesta-V Power Station, ₹254 crore, and Parbati-II Power Station, ₹121 crore. Other income for Q4 FY '26 is of the order of ₹305 crore in comparison to ₹211 crore during the corresponding previous period, which is about 45% higher or ₹94 crore.

This is mainly due to increase in income from insurance claim by ₹69 crore, mainly related to Teesta-V Power Station, and increase in dividend income by ₹32 crore. During FY '26, the generation expenses have gone up from ₹799 crore to ₹821 crore, that is by ₹22 crore, which is due to higher water cess on account of higher generation in power stations situated in J&K and Uttarakhand.

During Q4 FY '26, the generation expenses have gone up from ₹98 crore to ₹103 crore, that is by ₹5 crore, which is due to higher water cess on account of higher generation in power stations situated in J&K and Uttarakhand. During FY '26, the employee benefits expense has come down from ₹1,823 crore to ₹1,498 crore, that is by ₹325 crore, which is mainly due to decrease in employee remuneration pay anomaly by ₹383 crore, which is offset by increase due to increment, DA, and other factors.

During Q4 FY '26, the employee benefit expenses has come down from ₹421 crore to ₹402 crore, that is by ₹19 crore, showing marginal decrease. During FY '26, there has been increase in the finance cost from ₹1,189 crore to ₹1,423 crore, that is by ₹234 crore, which is mainly due to increase in interest on bonds, term loans, etcetera by ₹877 crore related to Parbati-II, Subansiri Lower, and Karnisar Solar Power Station charged to P&L since their commissioning, which is offset by decrease in interest on arbitration and court cases by ₹677 crore.

During Q4 FY '26, there has been increase in the finance cost from negative ₹12 crore to ₹574 crore, that is by ₹586 crore, which is mainly due to increase in interest on bonds, term loans, etcetera by ₹359 crore, mainly related to Parbati-II, Subansiri Lower, and Karnisar Solar Power Station charged to profit and loss since their commissioning; increase in interest on arbitration, court cases by ₹110 crore; and interest to beneficiary by ₹108 crore. During FY '26, the depreciation, amortization, and impairment expenses have gone up from ₹1,193 crore to ₹1,976 crore, that is by ₹783 crore, which is mainly due to depreciation and amortization in respect of power stations commissioned during financial year '25-'26.

During Q4 FY '26, the depreciation, amortization, and impairment expenses have gone up from ₹315 crore to ₹642 crore, that is by ₹327 crore, which is mainly due to depreciation and amortization in respect of power station commissioned during financial year '25-'26. During FY '26, other expenses have gone up from ₹2,122 crore to ₹4,060 crore, means by ₹1,938 crore, mainly due to increase in general network access charges by ₹822 crore, increase in insurance expense by ₹476 crore, increase in losses out of insurance claims by ₹225 crore, increase in provision by ₹168 crore, and increase in R&M expenses by ₹111 crore, etcetera.

During Q4 FY '26, other expenses have gone up from ₹623 crore to ₹1,115 crore, that is by ₹492 crore, which is mainly due to the increase in provision by ₹173 crore, increase in insurance expense by ₹154 crore, increase in losses out of insurance claim by ₹66 crore, increase in R&M expense by ₹40 crore, etcetera. During FY '26, tax expenses have come down from ₹1,355 crore to negative ₹327 crore, that is by ₹1,682 crore due to deferred tax adjustment and recognition of MAT credit.

During Q4 FY '26, tax expenses have come down from ₹247 crore to negative ₹1,823 crore, that is by ₹2,070 crore due to deferred tax adjustment and recognition of MAT credit. During FY '26, we have earned profit after tax of ₹3,766 crore as against ₹3,007 crore of corresponding previous period, which is up by ₹759 crore or 25% approx, and the reasons for decrease/increase in the line items we have just discussed.

During Q4 FY '26, we have earned profit after tax of ₹1,460 crore as against ₹854 crore of corresponding previous period, which is up by ₹606 crore or 71% approx, and the reasons for decrease/increase in the line items we have just discussed. During FY '26, the incentives positions are as under: FY '26, secondary energy ₹570 crore, PAF based incentive ₹297 crore, deviation charges ₹46 crore, total ₹913 crore; and in the corresponding FY '25, secondary energy was ₹545 crore, PAF based incentive ₹269 crore, deviation ₹51 crore, total ₹865 crore.

During Q4 FY '26, the incentives position are as under: Q4 FY '26, secondary energy ₹109 crore, PAF based incentives ₹245 crores, deviation charges ₹12 crores, total ₹366 crore; corresponding Q4 FY '25, the position was secondary energy ₹124 crores, PAF based incentive ₹217 crore, deviation charges ₹9 crore, total ₹350 crore. CAPEX during FY '26 is ₹13,689 crore as against ₹11,596 crore in the corresponding period of previous year on consolidated basis.

The Board of Directors has recommended the payment of final dividend at the rate of 2.10% that is 21 paise per equity share in addition to interim dividend at the rate of 14% that is ₹1.40 per equity share, resulting in total dividend at the rate of 16.10% that is ₹1.61 per equity share on the face value of paid up equity shares of ₹10 each for the financial year '25-'26. Other major highlights of the company: on realization front, NHPC has received ₹10,499 crore from the beneficiaries against sale of energy during FY '26 as compared to ₹9,943 crore in the corresponding period of previous year.

Trade receivables as on 31st March '26 stands at ₹2,630 crore as against ₹2,573 crore as on 31st March '25. This includes ₹1,887 crore as unbilled debtors as on 31st March '26 as against ₹1,587 crore as on 31st March '25.

The net receivables out of total reported trade receivables as on 31st March '26 are as under: reported trade receivables ₹2,630 crore and less unbilled debtors ₹1,887 crores, billed receivables ₹743 crores, less debtors dues converted into installments under Electricity (Late Payment Surcharge) Rules and other orders ₹39 crore, net amount due ₹704 crore, dues more than 45 days ₹242 crores. This is all from my side.

Now the forum is open for Q&A. Thank you.

Yeah. Good afternoon, sir, and thanks for the opportunity.

My first question, sir, is it possible to share the adjusted PAT for the quarter? What was the profit in Subansiri and Parbati-II in Q4 and the fiscal?

Mohit. You have seen the reported PAT, if you want to reach at adjusted PAT, as DF sir has shared with you that there was one-off tax adjustment in DTL because we all know that we have opted for the lower tax regime of 25% under Section 115BAA as MAT credit facility is going to be discontinued FY '27 onwards, right?

We have opted for 25% of tax regime, and therefore whatever deferred tax liability we had created at higher rate, that needs to be restricted at 25%. Their impact is around 1,156 crore, which we have already reported or shown under note number eight of our financial results.

Net impact of this DTL adjustment, deferred tax liability adjustment, comes around ₹900 crore. If you reduce ₹900 crore from the reported PAT, you will arrive at adjusted PAT.

That is the one adjustment you have to carry out in our reported PAT vis-a-vis our adjusted PAT.

Understood. That's true for stand-alone also, consol also, right?

Of course.

Yes, sir. Sir, what is the profit in Subansiri and Parbati-II in Q4 and the fiscal?

We understand that the PAF was lower, right, for the Subansiri and Parbati-II. What is the status of petition of those two assets, yeah?

Yeah. Far the profitability of Parbati-II and SLP is concerned, we have earned ₹104 crore of profit from Parbati-II in Q4 and ₹487 crore of profit from SLP in Q4.

On yearly basis, Parbati-II has given a loss of ₹150 crore, whereas on yearly basis basis, SLP has given total profit of ₹495 crore.

Subansiri, right, sir? Subansiri,

yeah.

Yeah. Profit.

Okay. Understood.

Sir, why why the last question is, why the Parbati-III, it seemed to have been shut for last few quarter last few months? Is there any particular reason?

Yeah. Actually, some maintenance is going on there, and these units are likely to be resumed very soon.

Understood, sir. Already resumed?

Already resumed.

Okay. Understood, sir.

Thank you, and all the best, sir. Thank you.

I'll come back in the queue. Thank you.

Yes. Thank you.

Just a follow-up on the previous question, actually. You said that Parbati reported a profit in fourth quarter versus a loss for the full year.

What's leading to the profit improvement?

Yeah. Basically, at the end of the financial year, we compute the shortfall of energy which we are supposed to recover.

In Parbati-II, we have shortfall of energy to the extent of ₹200 crore. That has been booked under revenue.

That is the reason Parbati-II has given the profit of ₹104 crore in Q4.

Okay. What is the percentage at which we're billing Parbati now?

Parbati and Subansiri?

We have already started billing of Parbati-II based on the notification of CERC, the interim tariff notification. So 75% billing we are already doing there.

In case of Subansiri?

Subansiri, we are waiting for the interim tariff notification of CERC, and we'll be starting it once we get the interim tariff notification of Subansiri Lower.

Okay. Currently then, till the time the interim is coming, what is the billing looking like?

Because you've booked profit Billing we cannot do. We have been booking our revenue based on the 80% of the total expected AFC in Subansiri Lower and Parbati-II both.

Billing we can start only after getting interim tariff order from CERC.

Understood. Now the billing for Parbati is 75.

Just on the tariff adoption, I know the hearing for Parbati has been delayed. When do we see the set of tariff adoption come through for both Subansiri and Parbati?

Aniket. We have the next hearing date of Parbati-II on 25th of this month only.

There we are expecting that the order should be reserved, and the final hearing has already been taken place. Information has already been provided.

Hopefully on 25th of May this month, this tariff petition hearing will be complete, and the order will be reserved. We will be expecting the final orders in a month or so.

By the end of this quarter.

Subansiri, we've done the tariff filing?

Yes, Subansiri, we have already filed the tariff petition, and we are expecting interim tariff order first. Thereafter, there will be a hearing for provisional order, like in case of Parbati-II, first interim order was issued by CERC where after that, we have been able to bill at the rate of 75% of the filed tariff.

Similarly, in case of Subansiri Lower,

CERC will be issuing this interim order first, and thereafter, we are expecting in another six months or so after this interim tariff is issued by CERC in respect of Subansiri Lower.

All right. Just to understand, let's say if you were to bill at 75% of revenue, what's the under-recovery on profits that comes through?

What is the expected profit? See,

the point is that, as just Mr. Saroj has said, that we are booking the revenue at 80% of the tariff filed with the CERC because as per our best estimate, in any case, taking a conservative approach, we are booking at the rate of 80% of the revenue.

And 75% is just for the billing part. Once this order is there, and in case our expectation is not less than 80%, in case there is a higher profitability, in that case, we'll book the difference, and along with interest, the total billing will be done at that point of time after the order is issued.

Aniket, just to reply your question. See, so far, we have booked ₹1,320 crore of revenue in Parbati-II at 80% of the AFC.

If you gross up this 1,320, you will arrive at somewhere 16 odd ₹1,600 odd crore. There is a under-recovery of ₹300 crore if you look at the filed tariff petition of Parbati-II.

So ₹300 crore kind of under-recoveries in Parbati-II, and similarly, if you calculate the total AFC of Subansiri Lower also, there also, we have ₹150 crore kind of under-recovery. All together, Parbati-II and Subansiri Lower, ₹450 crore of revenue has not been booked in our book of accounts if you look at the tariff petition filed in respect of these two projects.

Understood. Fairly clear.

Just on Teesta-V, just to recollect, what's been the impact of Teesta-V this year? Just to clarify, there's no insurance coverage over here anymore.

When do we expect that project to restart as well? Yeah.

There is no revenue, only expenditure has been there in Teesta-V. There is nothing top-line contribution from Teesta-V, but going forward, we are very much sure that June onwards, we are going to have operation to get resumed in respect of Teesta-V.

June onwards, you can see some top-line activity in Teesta-V also.

Okay. Understood.

End of June.

The under-recovery full year would have been how much in Teesta-V?

In respect of Teesta-V, we have total AFC of around ₹500 crore. If you exclude the tax element, it would be around ₹400 crore.

Just a clarification, this ₹150 crore of under-recovery in Subansiri is for how many units?

Three units. Okay.

Got that. I'll come back for any further questions.

Thank you.

Hi, sir. A lot of my questions were related to Parbati-II and Subansiri, but just to understand this correctly, when you talk about the ₹1,600 crore revenue for Parbati-II, is it reasonable then to say that that ₹150 crore loss which you have for '26 would have been about a ₹150 crore profit?

Is that the right way to think of it, or there is anything else?

Exactly. You have explained very correctly.

Okay. Just to understand on this fourth quarter where you talked about booking the additional revenue because of the shortfall in generation.

Is it fair to say that in your reported financials for Parbati-II, for instance, you accounted ₹1,320 crore of revenue, or is it slightly more because of that additional ₹200 crore that you talked about?

That includes 200 as well.

1,320 includes 200 as well.

Of course.

Okay. Thank you.

Yeah. I have a question on PSP.

From which year we can see the commissioning of your PSP projects? What would be the realization for these plant?

The CAPEX for these projects?

Yeah. Ragini, we have not started any construction of PSP project, it is very early to say about realization, everything, because you can say that the fastest running project in the ambit of this PSP project is Omkareshwar, Indira Sagar 640 megawatt project.

There, we are expecting to start construction activities during the current fiscal. Once we get everything in place and we start construction activities, we will have better clarity about the realization, their tariff, and everything.

Give us some time to share more facts about this Omkareshwar and Indira Sagar.

Yeah. As a REIA, are you seeing any slowdown in your renewable tendering this year?

There was a backlog of around 40 gigawatt in PPA signing, any improvement on that?

Yeah. We have not done any tendering in recent past.

Whatever tendering we had made, we have already awarded around 23 gigawatt kind of capacity, out of which 13 gigawatt kind of likely PPA and PSA signing we are hoping, out of which 7 gigawatt approx we have already signed. Going forward, we will again have more clarity in days to come or months to come in respect of REIA projects also.

Okay. On the generation front, are you expecting any slowdown in generation given this is a El Nino year, and there are expectation of slower monsoon or of a weaker monsoon this year?

No, no. As you are aware, you have been tracking NHPC for years, most of our power station are snow-fed.

Certainly good monsoon will be helping us for better generation, but our generation currently also it is going fairly well. Nothing to worry from the generation perspective.

Just one last thing, I want to know the normative PAF of your plants.

Yeah. Consolidated, it is 82%; normative, it is 80%.

Okay. For this year, the overall PLF was less than 70% 80%, right?

Yeah.

There are two things. If you look at the actual PAF with Teesta-V, it is certainly lower, 75%, but if you exclude Teesta-V, it is 80%.

Teesta-V has not contributed anything during the fiscal, last fiscal, as well as the corresponding fiscal. In both the fiscal, if you exclude Teesta-V, you will get 80% kind of PAF.

If you include Teesta-V, certainly it is 75%.

Yeah. Okay.

Thank you.

Thank you so much for giving me the opportunity. My first question is in terms of what will be our equity value for next year and or till FY '30 if you could just help me for the next couple of years?

Yeah. I think you are talking about regulated equity?

Yeah.

Yeah. Current regulated equity, including Parbati-II, is ₹18,300 right?

₹18,300 crore. Now in next financial year, if you consider the capacity addition, we are having capacity addition from 1,250 megawatt of Subansiri, out of which 250 megawatt we have already commissioned, balance 1,000 megawatt would be coming from Subansiri; then we have 120 megawatt Rangit-IV, then 1,000 megawatt of Pakal Dul, 624 megawatt of Kiru.

All these hydro assets we are going to commission 2,994 megawatt in fiscal FY '27. Apart from that, we have 1,190 megawatt of solar assets also, which are going to be commissioned in the current fiscal.

All together, if you look at the hydro regulated equity by end of FY '27, it would be ₹30,627 crore.

Okay. All right.

Thank you.

Hello?

Yeah. Please.

Yeah. My second question is in terms of what kind of cost increase are we seeing, and do we have a methodology where we can pass on the cost, or this will just increase my regulated income?

Construction cost.

Sure.

As far as this increase in construction cost is concerned, this being a cost plus, everything is allowed by CERC. Once it's out of our control, beyond our control, things are all passed on.

There is no such concern as far as this is concerned. Yes, we are definitely having checks and balances regarding how the cost can be kept in check.

We just ensure that just because of certain reasons beyond our control like geological surprises, sometimes there are design changes and other events happen in the project site. Definitely there are some increase, but in any case, all those increase are taken care of as per the regulations.

Whatsoever cost beyond our control, that is definitely allowed by CERC. We don't have any issues on that front.

Okay. What is the reason for a negative regulated income for this quarter?

Yeah. You are talking about regulatory deferral account?

Yeah. Regulated income, right.

Yeah. That is basically, as we have discussed in our opening remarks, there has been reversal of ₹1,156 crore of DTL in the line item of deferred tax liability.

Similar kind of reversal we have to make under rate regulated asset also. That has been reflected under regulatory deferral account.

Their impact is there basically.

Okay. Got it.

This we have disclosed in note number eight of our financial results. That is taking care of this concern.

Right. What will be the maximum volume growth can we see in terms of just from the number of unit perspective for the next year?

Please come again. Please be little bit louder.

We are not able to hear you out loud and clear.

Yes. With the Subansiri, all the three units functioning and Parbati also coming in and Teesta-V, what is the kind of volume which we can see for the next year if you could help us?

Yeah. As of now, four units have already been commissioned.

The design energy of this project is 7,421 million units, and going forward, more four units are coming in phased manner. If you look at the expected generation of Subansiri Lower, we are expecting somewhere 5,000 million units to 5,500 million units of generation from Subansiri Lower.

Am I correct?

This is incremental for FY '27, right?

Yeah. This is the expected generation from Subansiri Lower, not incremental, because incremental we have seen generation of 506 million units in Subansiri Lower during the last fiscal.

Got it. Thank you so much.

That's it from my side.

Yeah.

Hi, sir. Thanks for taking my question.

First question is on, sir, can you just help us again with the timeline in terms of the CERC tariffs that you have mentioned for Parbati and for Subansiri both? If everything goes well, from when can we see the recognition of revenue at 100% for both of them?

Akash. As I already explained, Parbati-II petition is in the final stage of hearing, and we are expecting orders from CERC by the end of this quarter.

By 30th of June.

Once the order comes, after that, you said that you will take around few months after which you can recognize it, or immediately from that quarter?

No, no. Not at all.

Because as far as recognition is concerned, in case the order comes within quarter, then we will definitely account for the differential revenue along with interest component also. Because interest is allowed from the date of COD.

In that case, billing part will be over, and we will be recognizing the revenue in this quarter itself if the order comes. As far as recognition is concerned, there is no deferral.

Sure. Similarly for Subansiri, you said around after 5 to 6 months.

We could expect

Subansiri, we have already filed the petition for our interim tariff. First we are just waiting how much interim tariff CERC is going to allow us.

Thereafter in subsequent hearings, we are expecting, it's just an expectation, like in case of Parbati-II after interim, we are expecting that within three to four months, but in case of Subansiri, because this is an old, very old project, we expect that not more than six months CERC will take to issue the final orders. In that case, we'll be having a fair idea of where we are landing in terms of revenue.

As of now, we are booking 80% 80% of the revenue of the AFC tariff petition which we have filed.

This Subansiri, it will be for the entire capacity, right?

Basically. Subansiri, like we have filed for three units which were commissioned, and as the unit adds on, we will be filing supplementary tariff petitions with CERC.

We'll keep on updating. On projected basis, yeah, CERC will be allowing us on projected basis also.

Once all the units are complete, the final petition will be filed at that point of time. In that case, this CERC will be allowing us interim tariff for billing purpose also.

Okay. For the three units

maybe something

could take for the final order comes through,

then

you can start recognizing it for Subansiri, right?

Yes. Sure.

Okay. Just the second question, are there anything else in terms of future projects other, Pakal Dul, or Kiru, or any other project where you are seeing cost escalation where something similar could kind of happen?

Yeah. See, Akash, cost escalation in hydro projects are very inherent.

You cannot rule out. Even though if there is no time overrun, there will be cost overrun, because when we award at a certain particular price level, that awarded cost is not fixed.

That is basically at a particular price level. If you are going forward with that award for 4, 5, 6 years, you have to pay the price variation.

Cost overrun is very inherent in any hydro power project, right? Now if any time overrun is there, that can also lead to cost overrun.

That varies project to project. It is not necessary that every project will have their time overrun.

There are many projects which we have commissioned in past ahead of schedule also. It is not that every project will see its time overrun.

It depends. Accordingly, based on the factor as we have discussed, beyond the control of the management, within the control of the management, two broad factors are there based on which CERC allows the cost overrun.

Sure, sir. That's helpful.

Sir, any of the future projects are facing material changes in cost or it's not that big?

No, no. It is not material because like project like Pakal Dul, Kiru, Kwar, these projects are doing pretty well, and whatever timeline we have shared with you, we are going to commission this project by that timeline.

Nothing extraordinary you will find there.

Okay. That's quite helpful.

Thanks a lot.

Yeah. Thank you for the opportunity once again.

My first question, what led to profit for Subansiri in the quarter given that the PAF and generation is lower in the quarter, and also the booking at lower tariff, right? Have you booked any shortfall in generation in Subansiri also?

No. Mohit, we need to understand that whatever AFC of any project we file, that is basically based on the capital cost of the project.

If we are going to CERC with the original cost of the project without any deduction, right, and then whatever expected AFC is there from that particular project, whatever generation we have, 506 million units of generation we have from Subansiri in the last fiscal, their income has been booked corresponding to the capital cost of these units which we have commissioned, right? If you are taking the entire capital cost of those units, for example, if we have commissioned three units of Subansiri, their corresponding capital cost is coming around ₹20,000 odd crore.

Now if you take tariff based on ₹20,000 crore of capital cost and if you multiply the number of units generated, then certainly this is the top-line, and apart from that, whatever actual expenditure has been there, after that, you are going to have profit. If any cut is there in the top-line and expenditure are coming 100%, then only you will look at some losses and everything.

If revenue and expenditure both are compatible to each other in line with the AFC component, why any loss would come?

Understood. My question because you are booking at a much lower tariff.

That's the reason I was asking.

No, no. We have not taken any much lower tariff.

The only thing we have done 80% of their AFC, and there, if you gross it up, then ₹150 crore of under-recovery we have seen in Subansiri Lower, which we have discussed.

Understood. My second question is why shortfall in generation has been booked in Parbati-II?

Are we going to argue for lower design energy for the power plant?

No. It is too early to argue for the lower design energy.

Parbati has seen only one year, and that too you have seen that some cloudburst issue and everything had incurred there in Parbati-II just one year back, early monsoon. For challenging the what you call design energy, you have to wait for at least three years.

Hmm. Yeah.

Sir, then

how can you book the shortfall in generation? Is it allowed in CERC under the regulations?

Yeah. It is allowed.

Mohit.

Basically, shortfall in generation regulation allows us in case we are not able to achieve design energy and the reasons for non-achievement are beyond our control. In that case, CERC regulation allows us even to bill.

In that case, after this order is there, 75% we are having order of interim tariff 75%. We are going to bill that too at the rate of 75% of the tariff filed.

This is as per regulation what we are doing.

There is no issue. We are going to bill and get it from beneficiaries.

Why is that Teesta Lower Dam-III and Teesta Lower Dam power project IV, TLDP-III and TLDP-IV has shown lower PAF in the quarter? Is there any particular reason?

Are they impacted by

Yeah. If you remember October '23 events where we got heavy damages in Teesta-V.

These flash floods had impacted our TLDP-III and TLDP-IV projects also. Lot of silt issues are there, which we are trying to come out of this issue.

Last year also, we had carried out some process to remove the silt and all, but again it has accumulated. That issues we are now basically facing with, and hopefully, we will be able to come out of these issues within three months, I believe.

Understood. Sir, one more question.

Sir, which are the power plants you're likely to tender in this fiscal? My question is, is the Sawalkot, Kamala, Subansiri Upper, Etalin, all these four will get tendered out this fiscal, or do you think two will this fiscal and two next fiscal?

We are also thinking from the same line, and hopefully we are able to do it.

Actually, we have a target to bring five projects of hydro during this bring into construction stage during this financial year. Two have already been awarded, then Uri-I Stage-II and this Dulhasti Stage-II.

Three more projects like Etalin, and then Sawalkot, and then Kamala. These three are also likely to be bring into the construction stage during this financial year.

One more PSP also we are targeting to bring into the construction stage, that is Indira Sagar and Omkareshwar. Sir,

any update on Subansiri Upper, sir?

Subansiri Upper, we may not be going this year. Next year, we may be going for that.

Understood, sir. Thank you, and best of luck, sir.

Thank you for answering.

Hi, sir. Just to reconfirm, when you talked about Parbati-II doing a full year profit of ₹150 crore, isn't that very less against the regulated equity and project cost of Parbati-II?

Taking 150 crore as the normalized profit? That's number one.

Number two on Subansiri Lower, when you talked about that 80% revenue, given that you only part commissioned the capacity, you're well within the 80%, and therefore you're booking the whole revenue for these early units? Is that understanding correct?

Yeah.

Let me take your question first for Parbati-II. Parbati-II, as we have shared, that the revenue which we have recognized to Parbati-II is ₹1,320 crore, right?

Now

the design energy of Parbati-II is 3,125 million units, whereas we have actually generated 1,642 million units in FY '26. If your generation is not there, you have not been able to book the expected revenue of Parbati-II.

That is the reason you have not achieved the expected PAT level of Parbati-II. It is clear?

Yeah.

That's almost

half the generation.

Yes. We have shared earlier also that in Parbati-II, there was some cloudburst issue in somewhere June or July last year, I believe.

That has basically stopped the expected generation of Parbati-II. Now Subansiri Lower, if I take your question for Subansiri Lower, Subansiri Lower also, we have shared that 80% of the revenue we have recognized, that is around ₹613 crore only, right?

Total revenue against the 506 million units is ₹613 crore only. That is 80% of the expected AFC.

If you gross it up, you will find ₹150 crore ka under-recovery in Subansiri Lower also?

Okay.

I think this is the appearance you had.

It's two things. One is the actual generation is still much lower than the design energy, therefore the revenue is low, and then it's at 80% of that, even lower.

Fair enough.

Exactly.

Yeah. We thank NHPC management for giving us an opportunity to host this call, and we also thank all the investors and the analysts for joining this call.

On behalf of NHPC, I would like to convey my thanks. Thank you so much, all the investors.

Thank you.