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NHPC to Issue Bonds Worth Rs 20 Billion on April 23
POWER & RENEWABLE ENERGY

NHPC to Issue Bonds Worth Rs 20 Billion on April 23

NHPC, a government-owned hydropower company, has revealed plans to raise up to Rs 20 billion through a private placement of bonds during the financial year 2025–26. The company's board of directors is scheduled to meet on Wednesday, April 23, 2025, to review and approve the fundraising proposal.

According to a regulatory filing, the board will specifically examine and authorize the Key Information Document (KID) related to the bond issuance. The company intends to issue unsecured, redeemable, taxable, non-convertible, and non-cumulative bonds.

These bonds will be issued in one or more tranches, based on the company’s funding needs during the current financial year. The proposed bond issue is part of NHPC’s broader borrowing strategy to fund operational costs and future growth plans for FY 2025–26.

In its latest financial update, NHPC reported a 52.5 per cent decline in net profit year-on-year, amounting to Rs 2.31 billion for the quarter ending December 31, 2024. In the same quarter of the previous fiscal year, the company posted a net profit of Rs 4.86 billion, reflecting a significant drop in profitability.

Despite the decline in profit, NHPC’s revenue from operations increased by 11.3 per cent year-on-year to Rs 22.86 billion for Q3 FY25, up from Rs 20.55 billion in Q3 FY24. The company showed an improvement in operating performance, with EBITDA rising by 35.8 per cent to Rs 10.21 billion, compared to Rs 7.52 billion in the same quarter of the previous year.

The EBITDA margin for the quarter was 44.7 per cent, a substantial increase from 36.6 per cent in the comparable quarter of the previous fiscal year. EBITDA, or earnings before interest, taxes, depreciation, and amortization, reflects NHPC’s high operational efficiency despite pressure on the bottom line.

The upcoming board meeting and the fundraising decision are expected to draw close attention from investors and market participants, as they could provide insights into the company’s funding strategy and financial priorities for the upcoming fiscal year.

News source: IIFL Capital

NHPC, a government-owned hydropower company, has revealed plans to raise up to Rs 20 billion through a private placement of bonds during the financial year 2025–26. The company's board of directors is scheduled to meet on Wednesday, April 23, 2025, to review and approve the fundraising proposal. According to a regulatory filing, the board will specifically examine and authorize the Key Information Document (KID) related to the bond issuance. The company intends to issue unsecured, redeemable, taxable, non-convertible, and non-cumulative bonds. These bonds will be issued in one or more tranches, based on the company’s funding needs during the current financial year. The proposed bond issue is part of NHPC’s broader borrowing strategy to fund operational costs and future growth plans for FY 2025–26. In its latest financial update, NHPC reported a 52.5 per cent decline in net profit year-on-year, amounting to Rs 2.31 billion for the quarter ending December 31, 2024. In the same quarter of the previous fiscal year, the company posted a net profit of Rs 4.86 billion, reflecting a significant drop in profitability. Despite the decline in profit, NHPC’s revenue from operations increased by 11.3 per cent year-on-year to Rs 22.86 billion for Q3 FY25, up from Rs 20.55 billion in Q3 FY24. The company showed an improvement in operating performance, with EBITDA rising by 35.8 per cent to Rs 10.21 billion, compared to Rs 7.52 billion in the same quarter of the previous year. The EBITDA margin for the quarter was 44.7 per cent, a substantial increase from 36.6 per cent in the comparable quarter of the previous fiscal year. EBITDA, or earnings before interest, taxes, depreciation, and amortization, reflects NHPC’s high operational efficiency despite pressure on the bottom line. The upcoming board meeting and the fundraising decision are expected to draw close attention from investors and market participants, as they could provide insights into the company’s funding strategy and financial priorities for the upcoming fiscal year. News source: IIFL Capital

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