The Indian hydropower industry is undergoing remarkable changes, with NHPC Limited and SJVN Limited emerging as prominent players. The recent ‘Navratna’ status being given to both entities highlights their increasing significance and potential in the energy sector.
Company Overview
NHPC is India’s premier hydroelectric power generation firm, mainly involved in generating and marketing bulk power to many power utilities. The company also engages in project management, construction contracts, consultancy services, and power trading.
SJVN or Satluj Jal Vidyut Nigam produces electricity and also offers consultancy services for hydropower projects. The company has diversified further into solar and wind power in line with international trends.
Stock Performance
NHPC has a market capitalization of Rs 82,550.10 crore and was trading at Rs 82.18, indicating a 1 percent increase from its previous close. The shares are currently at a discount of 30 percent from its 52-week high.
SJVN has a market capitalization of Rs 35,879.03 crore and was trading at Rs 91.30, indicating a 1 percent decline from its previous close. The shares are currently at a discount of 43 percent from its 52-week high.
Financial Performance
NHPC reported a 11 percent YoY increase in revenue from Rs 2,056 crore to Rs 2,287 crore in Q3 FY25. The net profits however saw a steep decline of 47 percent from Rs 623 crore to Rs 330 crore during the same period.
SJVN reported a 24 percent YoY increase in revenue from Rs 543 crore to Rs 671 crore in Q3 FY25. The net profits saw a 7 percent growth from Rs 139 crore to Rs 149 crore during the same period.
Future Outlook
NHPC currently contributes about 15 percent of India’s installed hydro-electric capacity (6,971 MW out of 46,928 MW) as of FY25. The company has planned to have a total installed capacity of more than 23 GW by 2032 and more than 50 GW installed capacity by 2047 as compared to the current 7,233 MW installed capacity through 28 power stations.
SJVN’s hydro operational capacity stands at 1,972 MW and 254.5 MW of renewable energy out of the total 2.23 GW. SJVN plans to install 12 GW of capacity over the next two years as part of its goal to reach 25 GW by 2030 and 50 GW by 2040. Additionally, it targets an annual addition of 1-1.5 GW in renewable energy capacity. The company aims to expand into emerging sectors like RTC power, green hydrogen, and green ammonia.
Navaratna Status
The Indian Government has granted the prestigious ‘Navratna’ status to NHPC Limited and SJVN Limited, both major hydropower Central Public Sector Undertakings (CPSUs). Announced by the Department of Public Enterprises under the Ministry of Finance in August 2024, this status gives them more financial and operational freedom and emphasizes their crucial role in propelling India’s energy sector.
Industry Outlook
Currently, there are 15 GW capacity of hydroelectric power projects that are under development in the country. This expansion is likely to increase India’s hydro capacity by over 50 percent from 42 GW to 67 GW by 2031-32, as stated by the Ministry of Power.
Written by Shwetha Sairam
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses ca
