NHPC Limited (NHPC) AI Stock Analysis

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NHPC Limited

(NSE:NHPC)

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Rating:51Neutral

Price Target:INR 77.00▼(-0.58% Downside)

Action:reiterated

Date:08/18/26

The score is held back primarily by deteriorating cash flow and sharply negative free cash flow, alongside rising leverage and weakening returns. Technical indicators also lean bearish with the stock below major moving averages and negative MACD. Valuation is only moderate (P/E ~20) and the low dividend yield provides limited downside support.

Positive Factors

Integrated hydropower platformControl across project development, engineering, construction management and generation can retain more value and support execution of future capacity. It also diversifies the platform beyond reliance on third-party generation assets.

Negative Factors

Severely weak cash generationSharp deterioration in operating cash flow and deeply negative free cash flow show that reported profits are not converting reliably into cash. Persistent funding needs could constrain investment flexibility and increase execution risk.

NHPC Limited (NHPC) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 780.90B
Dividend Yield: 2.08%
Average Volume (3M): 541.75K
Price to Earnings (P/E): 20.6
Beta (1Y): 1.11
Revenue Growth: 12.02%
EPS Growth: 24.12%
Country: India
Employees: 4,634
Sector: General
Sector Strength: 55
Industry: Renewable Utilities

NHPC Limited Business Overview & Revenue Model

Company Description

NHPC Limited, an Indian enterprise established in 1975 and headquartered in Faridabad, is a prominent entity in the nation's electricity sector. Through its subsidiaries, the company's primary business involves generating and supplying power derived...

How the Company Makes Money

NHPC makes money mainly by generating electricity (predominantly from hydropower plants it owns and operates) and selling that power to buyers under power sale arrangements, typically to state distribution utilities and other eligible customers. Its...

NHPC Limited Financial Statement Overview

Summary

Profits remain solid on paper (FY2026 net margin ~24%) and revenue is relatively steady, but earnings have declined from prior peaks and financial risk has risen. Leverage increased materially (debt-to-equity up to ~1.26 in FY2026) while ROE fell (~6.7%). Most importantly, cash generation deteriorated sharply: operating cash flow fell to ~8.1B and free cash flow turned deeply negative (~-107.6B) in FY2026, indicating weak cash conversion and elevated funding/execution risk.

Income Statement

70Positive

Balance Sheet

56Neutral

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	122.10B	116.15B	103.74B	92.52B	104.79B	90.62B
Gross Profit	95.92B	73.20B	90.79B	80.39B	91.58B	78.74B
EBITDA	67.83B	63.09B	89.98B	82.16B	82.50B	71.92B
Net Income	43.56B	27.82B	30.07B	35.96B	39.03B	35.24B
Balance Sheet
Total Assets	0	1.20T	1.03T	932.95B	862.10B	772.85B
Cash, Cash Equivalents and Short-Term Investments	36.62B	36.62B	27.51B	36.35B	37.87B	17.28B
Total Debt	0	523.27B	415.74B	345.78B	315.57B	260.96B
Total Liabilities	-484.05B	716.06B	575.15B	494.03B	443.73B	396.89B
Stockholders Equity	484.05B	414.37B	396.68B	387.02B	368.99B	349.21B
Cash Flow
Free Cash Flow	-35.11B	-107.63B	-38.25B	-596.40M	-2.68B	14.57B
Operating Cash Flow	15.83B	8.09B	50.26B	69.38B	46.92B	64.72B
Investing Cash Flow	-50.46B	-100.73B	-75.50B	-59.68B	-42.46B	-49.66B
Financing Cash Flow	38.04B	103.46B	19.04B	-5.81B	-7.96B	-6.38B

NHPC Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price77.45

Price Trends

50DMA74.59Positive

100DMA76.24Positive

200DMA76.84Positive

Market Momentum

MACD0.09Negative

RSI63.45Neutral

STOCH98.12Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NHPC, the sentiment is Positive. The current price of 77.45 is above the 20-day moving average (MA) of 72.79, above the 50-day MA of 74.59, and above the 200-day MA of 76.84, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 98.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NHPC.

NHPC Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:NHPC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:ADANIGREEN	64Neutral	INR 2.13T	114.93	―	―	20.93%	-8.88%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:NTPCGREEN	54Neutral	INR 694.92B	116.11	―	―	49.22%	7.90%
IN:RTNPOWER	53Neutral	INR 34.21B	30.11	―	―	-6.49%	-3.85%
IN:NHPC	51Neutral	INR 777.99B	20.57	―	2.08%	12.02%	24.12%
IN:ACMESOLAR	50Neutral	INR 286.21B	34.60	―	0.09%	53.70%	47.08%
IN:SJVN	39Underperform	INR 210.01B	32.96	―	2.81%	98.93%	77.56%

* General Sector Average

Performance Comparison

IN:NHPC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:NHPC	NHPC Limited	77.45	-6.17	-7.38%
IN:ACMESOLAR	ACME Solar Holdings Ltd.	404.90	132.54	48.66%
IN:ADANIGREEN	Adani Green Energy Limited	1295.35	190.25	17.22%
IN:NTPCGREEN	NTPC Green Energy Limited	82.47	-20.48	-19.89%
IN:RTNPOWER	RattanIndia Power Limited	6.37	-4.49	-41.34%
IN:SJVN	SJVN Limited	53.44	-32.73	-37.99%

NHPC Limited Corporate Events

NHPC Signs Deal to Develop 3,097 MW Etalin Hydropower Project in Arunachal Pradesh

Jun 16, 2026

NHPC Limited has signed a Memorandum of Agreement with the Government of Arunachal Pradesh to implement the 3,097 MW Etalin hydropower project on the Dri and Tangon rivers in the Dibang Basin. The project will be developed as a run-of-the-river schem...

Government Trims NHPC Stake via Offer for Sale, Keeps Majority Control

Jun 5, 2026

NHPC Limited has disclosed that its promoter, the President of India acting through the Ministry of Power, has reduced its stake in the company via an offer for sale of equity shares on the National Stock Exchange of India and BSE. Following the sale...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 18, 2026

NHPC Limited AI Stock Analysis