NHPC Ltd , India's premier hydropower company, saw its shares climb 2% to Rs 78.80 following a significant announcement regarding its borrowing plans. The company's board has given the green light to a revised borrowing strategy, authorizing the raising of up to Rs 10,000 crore by fiscal year 2026.

Borrowing Plan Details

The approved plan allows NHPC to raise funds through various financial instruments, including:

• Bonds
• Term loans
• External commercial borrowings

These funds will be raised in multiple tranches, with the primary objective of financing both ongoing and future projects. This move signals NHPC's commitment to expanding its operations and investing in growth opportunities within the hydropower sector.

Recent Financial Performance

NHPC's latest financial results paint a picture of steady growth:

The company's consolidated profit for the quarter ended June saw a 4.2% year-on-year increase, reaching Rs 1,065.02 crore. Revenue growth was even more impressive, with a 19.3% rise to Rs 3,213.77 crore.

Stock Performance and Technical Indicators

Despite the positive news and recent financial results, NHPC's stock has faced some challenges:

• Year-to-date decline: 6%
• 12-month decline: 19%

Technical analysis reveals that the stock is currently trading below all key moving averages. The Relative Strength Index (RSI) stands at 29.5, suggesting oversold conditions. This could indicate that the stock might be due for a potential rebound, although investors should conduct thorough research and consider various factors before making investment decisions.

The approval of the substantial borrowing plan, coupled with the company's recent financial performance, may provide some optimism for investors. However, the market will likely be watching closely to see how NHPC utilizes these funds and the impact on its future growth and profitability.

NHPC Limited , India's premier hydropower company, has taken significant steps to bolster its financial position for the upcoming fiscal year. The company's board of directors has approved an updated borrowing plan and cash flow monetization strategies for the financial year 2025-26, demonstrating a proactive approach to capital management and financial planning.

Revised Borrowing Plan

The board has given the green light to a revised borrowing plan that allows NHPC to raise debt up to ₹10,000.00 crore during FY 2025-26. This substantial borrowing capacity provides the company with financial flexibility to support its operations and potential expansion plans. The approved plan includes various financial instruments:

• Secured or unsecured, redeemable, taxable, non-cumulative, non-convertible corporate bonds
• Issuance in one or more series/tranches on a private placement basis
• Option to raise term loans
• Possibility of accessing External Commercial Borrowings (ECB) in suitable tranches

This diverse range of borrowing options allows NHPC to optimize its debt structure based on market conditions and specific financial needs.

Cash Flow Monetization Strategy

In addition to the borrowing plan, the board has approved a strategy to monetize future cash flows, specifically the Return on Equity (RoE) from select power stations:

• The monetization plan targets the Chamera-III and Parbati-III Power Stations
• The strategy also leaves room for including other power station(s) if deemed beneficial
• The monetization is planned for a 10-year period
• Implementation is scheduled for a single tranche during FY 2025-26

This innovative approach to leveraging future cash flows could provide NHPC with immediate capital while maintaining long-term revenue streams from its operational assets.

Strategic Implications

The approval of these financial measures indicates NHPC's commitment to strengthening its capital structure and ensuring liquidity for future projects. By diversifying its funding sources and monetizing future cash flows, the company is positioning itself to capitalize on growth opportunities in the hydropower sector while managing its financial risks.

Investor Conference Participation

In a related development, NHPC has also announced its participation in the "Ashwamedh- Elara India Dialogue 2025" Investor Conference in Mumbai on September 4, 2025. This engagement with analysts and investors suggests the company's proactive approach to maintaining transparency and communication with the financial community.

The combination of the robust borrowing plan, strategic cash flow monetization, and investor outreach demonstrates NHPC's comprehensive approach to financial management and stakeholder relations as it prepares for the 2025-26 fiscal year.

As NHPC moves forward with these financial strategies, stakeholders will be keenly watching how the company utilizes these resources to drive growth and enhance its position in India's evolving energy landscape.