NHPC Plans Bond Issue Worth ₹2,000 Crore on April 23

21 Apr 2025 , 10:07 AM

NHPC Limited, a government-owned hydropower company, has announced its intention to raise up to ₹2,000 crore through a private placement of bonds during the financial year 2025–26. The board of directors of NHPC is scheduled to meet on Wednesday, April 23, 2025, to consider and approve the proposal for fundraising.

According to the regulatory filing, the board will expressly examine and sanction the Key Information Document (KID) relating to the issue of bonds. The company will issue unsecured, redeemable, taxable, non-convertible, and non-cumulative bonds.

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

In its latest financial release, NHPC has reported a 52.5% decline in year-on-year net profit at ₹231 crore for the quarter ended December 31, 2024. During the same quarter last fiscal year, the company recorded a net profit of ₹486.7 crore, reflecting sharply lower profitability.

In spite of the fall in profit, the revenue from operations of NHPC increased 11.3% year-on-year to ₹2,286.8 crore for Q3 FY25 from ₹2,055.5 crore in Q3 FY24. There was improvement in the operating performance of the company, with EBITDA improving by 35.8% to ₹1,021.5 crore, up from ₹752.1 crore in the corresponding period of last year.

The EBITDA margin for the quarter under review was 44.7%, a significant jump from 36.6% in the comparable quarter of the last fiscal. EBITDA, or earnings before interest, taxes, depreciation, and amortisation, is indicative of NHPC’s high operational efficiency amid bottom-line profit pressure.

The upcoming board meeting and fundraising decision will be closely watched by investors and market participants, as it may signal the company’s funding strategy and financial priorities for the next fiscal year.