NHPC Limited, a prominent public sector energy company, is poised for a significant stock rerating, according to a recent analysis by Elara Securities. The brokerage firm has assigned a price target of Rs 97 to NHPC shares, suggesting a substantial 24% upside from their current market price of Rs 77.71 recorded on Monday, May 19, 2026.
Subansiri Project Fuels Optimism
A primary catalyst for this optimistic outlook is the impending full commissioning of the 2,000 MW Subansiri Lower Hydroelectric Project. Located at Gerukamukh, spanning the border of Arunachal Pradesh and Assam along the Subansiri River, this mega-project is expected to significantly boost NHPC's operational capacity and revenue streams.
Diversification into Clean Energy
Elara Securities highlights NHPC's strong positioning in the clean energy sector. The company is actively diversifying its portfolio beyond traditional hydropower, venturing into solar, wind, and pumped storage projects. This strategic expansion aligns with growing global demand for renewable energy and is expected to contribute to its long-term growth and rerating potential.
NHPC plans to bring five new hydro projects under construction into operation by fiscal year 2027. This expansion is projected to scale the company's regulated equity from the current Rs 18,300 crore to Rs 30,600 crore by FY27, underpinning its robust growth trajectory.
Strong Q4 Performance and Dividend
The company reported robust financial results for the fourth quarter of fiscal year 2026. Consolidated net profit surged by 68.5% year-on-year, reaching Rs 1,549 crore, compared to Rs 919.6 crore in the same quarter last year. Revenue from operations also saw a healthy increase of 20% year-on-year, totaling Rs 2,816 crore.
In recognition of its performance, NHPC's board recommended a final dividend of Rs 0.21 per equity share for FY26, subject to shareholder approval at the upcoming Annual General Meeting.
Market Performance and Company Profile
NHPC shares have demonstrated impressive performance, tripling investor wealth over the last five years. The stock has surged by 203% in the past year alone and gained 258% over the last decade, reflecting investor confidence in its long-term prospects.
NHPC Limited is engaged primarily in the generation and bulk sale of power to various utilities. Its business activities also encompass project management, construction contracts, consultancy services, and power trading. The company operates a vast network of power stations across India, including Salal, Dulhasti, Kishanganga, and Uri-I, among others.