NHPC Limited has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended 31st March 2026, pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report forms part of the company's Annual Report for FY 2025-26 and has been independently assured by JointValues ESG Services Pvt. Ltd. under the International Standard on Assurance Engagements (ISAE) 3000 (Revised). Disclosures are made on a standalone basis, covering all commissioned power stations, corporate and regional offices located in India.

Company Profile and Business Activities

NHPC Limited, incorporated in 1975 and headquartered at NHPC Office Complex, Sector-33, Faridabad, Haryana-121003, operates as a leader in the hydropower utility sector. The company's paid-up capital stands at ₹1,00,45,03,48,050. Its business activities, accounting for the majority of turnover, are detailed below:

NHPC operates 21 hydropower plants, 2 solar power projects, and 1 wind power project nationally, with offices in 23 states, 4 Union Territories, and 1 international location (Nepal). Exports contribute 0.0027% of total turnover. The company holds subsidiaries including NHDC Limited (51.08%), Chenab Valley Power Projects Limited (58.16%), Bundelkhand Saur Urja Limited (90.63%), Ratle Hydroelectric Power Corporation Limited (51.00%), Jal Power Corporation Limited (100%), NHPC Renewable Energy Limited (100%), and Loktak Downstream Hydroelectric Corporation Limited (74%), among others.

Workforce and Employee Well-Being

As at the end of FY 2025-26, NHPC's total workforce comprised 3,876 employees and 8,592 workers. The gender composition is summarised below:

The company reported 127 differently abled permanent employees and 23 differently abled workers. Well-being expenditure as a percentage of total revenue stood at 2.12% in FY 2025-26, compared to 2.04% in FY 2024-25. NHPC achieved zero fatalities for the third consecutive year, in alignment with its "Zero Accident–Zero Fatality" goal. Gross wages paid to females as a percentage of total wages stood at 9.72% in FY 2025-26.

Environmental Performance

NHPC's environmental disclosures for FY 2025-26 reflect progress in clean energy transition and resource efficiency. Key environmental metrics are presented below:

Renewable energy consumption as a share of total energy consumption increased to 79.4% from 73.7% in the previous year. The company added 1,850 MW of renewable energy capacity during the year. Scope 1 and Scope 2 emission intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) stood at 0.0000085447 MtCO2e per International Dollar in FY 2025-26, compared to 0.000010461621 MtCO2e per International Dollar in FY 2024-25. Total waste generated declined significantly to 2,395.55 MT in FY 2025-26 from 25,790.47 MT in FY 2024-25, primarily due to a reduction in construction and demolition waste. NHPC has initiated the Green Credit Program in Gujarat, with plantation activities commencing in 2024; the company will be eligible to claim Green Credits only after 2029 subject to fulfilment of prescribed criteria.

Capacity Expansion and Sustainability Targets

NHPC reported significant progress against its long-term capacity targets during FY 2025-26:

• 1,550 MW of hydro capacity added during the year, comprising 800 MW from Parbati-II and 750 MW from Subansiri Lower
• 300 MW of solar capacity added during the year
• 9,454 MW of 16 renewable energy projects (10 hydro and 6 solar) currently under construction
• Long-term targets include achieving 38,500 MW capacity by FY 2033–34 and becoming a 50,000 MW company by 2047

The company's rooftop solar installations across power stations, regional offices, and the Corporate Office contribute a total installed capacity of 4,084 kWp. NHPC is also exploring green hydrogen initiatives as part of its clean energy transition strategy.

Inclusive Procurement and CSR

NHPC's procurement from Micro and Small Enterprises (MSEs) in FY 2025-26 amounted to ₹431.14 crore, constituting 60.73% of the total eligible procurement value of ₹709.89 crore. Within this, procurement from SC/ST-owned MSEs stood at ₹38.99 crore (5.49%) and from women-owned MSEs at ₹32.65 crore (4.60%). All inputs were sourced 100% from within India. Wages paid to persons employed in rural locations constituted 51.06% of total wage cost in FY 2025-26.

CSR expenditure was directed towards aspirational districts, including ₹584.68 lakh in Baramulla (UT of Jammu & Kashmir) and ₹1,175.66 lakh in Chamba (Himachal Pradesh). CSR initiatives spanned healthcare, education, infrastructure development, skill development, and livelihood enhancement across multiple states and union territories.

Grievance Redressal and Governance

NHPC's grievance redressal mechanisms cover communities, investors, shareholders, employees, workers, customers, and value chain partners. Key complaint data for FY 2025-26 is as follows:

No cases of bribery or corruption were reported during FY 2025-26. No human rights violations were reported during the year. One complaint was filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, which was duly resolved with zero complaints upheld. The accounts payable days stood at 89.71 in FY 2025-26, compared to 81.03 in FY 2024-25. The company's CSR is applicable under Section 135 of the Companies Act, 2013, with a reported turnover of ₹1,03,28,25,16,118 and net worth of ₹3,99,72,27,68,035.

NHPC Limited reported a standalone net profit of ₹1,113.41 crore for the quarter ended June 30, 2026, rising 3.9% year-on-year (YoY) from ₹1,071.87 crore in Q1FY26. The Government of India Navratna enterprise posted consolidated net profit attributable to owners of ₹1,095.87 crore, up from ₹1,065.02 crore in the prior-year period. Revenue growth was significantly driven by increased power generation and provisional sales recognition for newly commissioned units pending Central Electricity Regulatory Commission (CERC) tariff approvals.

The Board of Directors approved the unaudited financial results on August 04, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Joint Statutory Auditors S N Dhawan & Co LLP, S. Jaykishan, and Dharam Raj & Co issued limited review reports confirming that the statements disclose required information under Regulations 33 and 52 of the SEBI (LODR) Regulations, 2015. The company also submitted statutory auditor certificates regarding listed debt securities under Regulation 54 read with Regulation 56(1)(d).

Financial Performance Highlights

Standalone revenue from operations reached ₹3,537.04 crore in Q1FY27, compared to ₹2,977.43 crore in Q1FY26. Consolidated revenue from operations stood at ₹3,808.31 crore, up from ₹3,213.77 crore in the same quarter last year. Other income declined to ₹205.27 crore standalone from ₹255.44 crore previously, while total income rose to ₹3,742.31 crore. On a consolidated basis, EBITDA expanded to ₹2,352 crore from ₹1,800 crore in Q1FY26, with the EBITDA margin improving to 61.78% from 56.07% YoY, reflecting stronger operational efficiency.

Finance costs increased to ₹602.01 crore standalone from ₹252.34 crore in Q1FY26, reflecting higher borrowing levels. Depreciation, amortization, and impairment expenses totaled ₹578.12 crore. The debt-to-equity ratio remained stable at 1.16 on a standalone basis and rose slightly to 1.32 consolidated, compared to 1.09 in Q1FY26.

What the Numbers Show

A significant portion of the revenue growth stems from provisional sales recognition rather than finalized tariffs. NHPC recognized ₹574.31 crore as provisional sales for the Subansiri Lower Project during the quarter, where one 250 MW unit was commissioned, bringing total commissioned capacity to 1,000 MW (4 out of 8 units). Additionally, ₹364.42 crore was recognized provisionally for the Parbati-II HE Project. These figures are subject to change upon CERC approval, indicating potential volatility in future revenue streams if tariff orders differ from provisional assumptions.

Operational and Regulatory Updates

The Teesta-V Power Station (510 MW) resumed commercial generation in July 2026 following restoration works after the October 2023 flash flood. Petitions for tariff fixation have been filed with the CERC for both Subansiri Lower and Parbati-II projects. Customers are currently billed based on Annual Fixed Charges (AFC) approved for the 2024-29 tariff period or applicable rates as of March 31, 2024, for stations awaiting final orders.

The company confirmed no deviation in the use of proceeds from its non-convertible securities issued via private placement on May 29, 2026, amounting to ₹2,000 crore. Statutory auditors certified that security cover for listed debt securities remains at 100% or higher, with total book value of secured assets at ₹25,477.81 crore. There were no defaults on loans or debt securities, with total financial indebtedness standing at ₹47,434.94 crore. The merger process with wholly-owned subsidiary Jalpower Corporation Limited continues, with the second motion application filed with the Ministry of Corporate Affairs on October 6, 2025, remaining pending.