Investment Rating - The report maintains a positive outlook on NHPC, aligning with the views of CITIC Lyon Research, indicating confidence in the company's long-term growth potential [5][8]. Core Insights - NHPC's third-quarter performance for FY2026 was impacted by tariff delays and project-related challenges, leading to a nearly 50% decline in net profit due to the lack of tariff approval for the Parbati II project [5][6]. - Despite a 16% year-on-year increase in generation (excluding new projects), NHPC's consolidated net profit declined due to fixed costs and operational challenges [6]. - The report anticipates a turning point in FY2027, with full profit recognition from the Parbati II project expected in the second half of the fiscal year [6]. Summary by Sections Company Overview - NHPC Limited is a mini Ratna I category and 'A' grade central public sector enterprise under the Ministry of Power in India, established in 1975, focusing on the efficient development of hydropower resources [11]. - NHPC operates 22 hydropower stations with a total capacity of 7GW, accounting for 15% of India's total hydropower installed capacity [11]. Project Progress - The Subansiri Lower hydropower project is expected to contribute 46% to NHPC's regulatory equity capital growth from FY2025 to FY2027, with full commissioning anticipated in the third quarter of FY2027 [7]. - The commissioning of the Teesta VI project has been delayed from the third quarter of FY2028 to the second quarter of FY2030 [7]. Growth Prospects - NHPC holds a 15% share of India's hydropower installed capacity and a 50% share in ongoing projects, positioning it for strong profit growth driven by government support for hydropower development and net-zero goals [8]. - The report highlights the potential for significant growth over the next decade, supported by large-scale projects like Parbati II and Subansiri [9].