NHPC stock: Elara sees significant rerating potential, expects 24% upside 

NHPC share price: Shares of PSU energy major NHPC, which tripled investor wealth in the last five years, are set for a significant rerating potential, says Elara Securities. The rerating potential comes on the back of the full commissioning of the 2,000 MW Subansiri Lower Hydroelectric Project located at Gerukamukh on the border of Arunachal Pradesh and Assam along the Subansiri River. The brokerage has assigned a price target of Rs 97 to the NHPC stock, a 24% upside from the current market price. 

NHPC shares ended 1.17% higher at Rs 77.71 on Monday. Market cap of the firm stood at Rs 78,059 crore. The power sector stock has surged 203% in a year and gained 258% in ten years.

NHPC stock logged a turnover of Rs 12.45 crore with 16.14 lakh shares changing hands on BSE. The stock touched its record high of Rs 118.85 on July 15, 2024 and fell to its a 52-week low of Rs 48.48 on October 26, 2023.

The stock reached its 52 week high of Rs 92.30 on June 9, 2025 and fell to its 52-week low of Rs 68.66 on March 2, 2026.

According to Elara, NHPC is a strong play on clean energy. It is diversifying its portfolio with entry into solar, wind and pumped storage. 

"We retain Buy with a TP of INR 97, on 2.0x FY28E regulated equity. We cut our earnings by 3.3% and 5.3% for FY27E and FY28E respectively. WE introduce FY29E earnings," said Elara. 

NHPC plans to bring five new hydro projects under construction in FY27 and scale regulated equity from Rs 18,300 crore currently to Rs 30,600 crore by FY27. 

In Q4, NHPC reported a 68.5% year-on-year rise in consolidated net profit at Rs 1,549 crore against Rs 919.6 crore in the corresponding quarter last year. Revenue from operations rose 20% year-on-year to Rs 2,816 crore from Rs 2,347 crore.

EBITDA fell marginally by 0.7% to Rs 1,196 crore against Rs 1,205 crore in Q4 FY25, while EBITDA margin narrowed to 42.5% from 51.3% a year earlier.

The board recommended a final dividend of Rs 0.21 per equity share of face value Rs 10 each for FY26, subject to shareholder approval at the upcoming Annual General Meeting.

NHPC Limited is engaged in the generation and sale of bulk power to various power utilities. The company’s other business activities include project management / construction contracts/ consultancy assignment services and trading of power. The company’s power stations include Salal, Dulhasti, Kishanganga, Nimoo Bazgo, Chutak, Baira Siul, Tanakpur, Dhauliganga, Rangit, Loktak, Indira Saga, Chamera - I, Uri - I, Chamera - II and Omkareshwa.