Brokerage firm CLSA has issued a 'High conviction outperform' rating on state-run NHPC Ltd. with a price target of ₹117.00 per share, indicating a potential upside of approximately 43% from the stock's Thursday closing price. The brokerage firm anticipates 2026 to be a transformative year for the hydroelectric power company.

Growth Projections and Expansion Timeline

CLSA expects significant operational and financial improvements for NHPC in the coming years. The brokerage projects the company's installed capacity to expand by 64% year-on-year, while earnings per share are estimated to grow by 90% over the FY25 to FY27 period. This growth trajectory is expected to strengthen NHPC's long-term expansion story spanning the next decade.

Three Key Growth Catalysts

The brokerage has identified three primary catalysts that could drive the stock's performance:

The third catalyst involving new project awards could potentially improve earnings and growth visibility until FY35, providing long-term revenue streams for the company.

Analyst Coverage and Market Performance

Currently, eight analysts track NHPC stock with varying recommendations. The analyst coverage breakdown shows mixed sentiment across the Street:

CLSA's ₹117.00 target represents the highest price target among analysts, while ICICI Securities maintains the lowest target at ₹72.00. NHPC shares closed Thursday's trading session at ₹82.00, down 1.98% for the day. The stock is currently trading 11% below its 52-week high of ₹92.34.

Market Positioning

The brokerage's optimistic outlook on NHPC reflects confidence in the company's project execution capabilities and the potential for significant capacity additions. The projected 64% expansion in installed capacity represents a substantial scaling of operations, while the anticipated 90% growth in earnings per share over the two-year period suggests strong profitability improvements ahead.

State-owned hydro power giant NHPC Ltd announced on January 8, 2026, that its board of directors has approved a proposal to issue unsecured bonds worth up to ₹2,000 crore through private placement. This bond issuance forms a crucial component of the company's borrowing plan for the current financial year FY 2025-26.

Bond Issuance Details

According to a regulatory filing, the board meeting held on January 8 considered and approved the proposal for the General Information Document (GID) and Key Information Document (KID) for the bond issue. The bonds will be structured as Unsecured, Redeemable, Taxable, Non-Convertible, Non-Cumulative AH-Series Bonds.

Strong Q2 FY26 Financial Performance

NHPC demonstrated robust financial performance in the July-September quarter of FY26, showcasing the company's operational strength that supports its funding initiatives.

The improved EBITDA margins from 59.10% to 60.20% reflect disciplined cost management and efficient operations across the company's portfolio.

Company Profile and Market Performance

Faridabad-based NHPC operates under the Ministry of Power and holds the distinction of being India's largest hydropower development company. The company has diversified its portfolio beyond traditional hydropower to include solar and wind energy development projects.

Shares of NHPC Ltd closed at ₹82.00 on the BSE, declining by ₹1.66 or 1.98% during the trading session. Despite the day's decline, the company's strong quarterly results and strategic funding initiatives demonstrate its commitment to growth and expansion in India's renewable energy sector.