NHPC Limited ($NHPC)

Ladies and gentlemen, good day, and welcome to NHPC Limited Q4 FY '26 Earnings Conference Call hosted by Elara Securities India Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand conference over to Mr. Rupesh Sankhe from Elara Securities India Private Limited. Thank you, and over to you, sir.

Yes. Good afternoon, everyone. On behalf of Elara Securities, we welcome you all for the Q4 FY '26 conference call of I take this opportunity to welcome the management of NHPC represented by Mr. Sanjay Kumar Singh, Director (Projects); Mr. Suprakash Adhikari, Director (Technical); Mr. Mahesh Kumar Sharma, Director of Finance. So we will begin the call with a brief overview by the management followed by Q&A. I will now hand over the call to Mr. Sanjay Kumar Singh, Director of Projects for his opening remarks. Over to you, sir.

Good afternoon, friends. The NHPC Board has adopted annual financial results for the period ended 31st March '26 in its meeting held on 15th May '26, and the same has already been communicated to the exchanges. By now, I hope you all would have gone -- got a chance to go through the quarterly and yearly set of numbers. First, I will touch upon major highlights of the financial results and the detailed growth plan. Further detailed analysis of the results shall be shared by our Director of Finance, Shri Mahesh Kumar Sharmaji. Brief highlights of the consolidated financial results and important update on the company are as under. During FY '26, our power stations have achieved generation of 29,619 million units as against 25,548 million units generated in corresponding period of the previous year, which is higher by about 16% or 4,071 million units. This is mainly due to the commissioning of Parvati I power station and subsequent increase in generation of Parvati II power station, commissioning of Karnisar solar power station, part commissioning of Subansri Lower project, increase in generation of O1 power station and power stations of NHPC. Our PAT for financial year '26 stands at 74.75% against the corresponding previous period PAF of 78.87%, which is about 4% lower. This is mainly due to shutdown for some period in [indiscernible] power station on account of MIV repair works, restoration of Sines and repair of radial gates, et cetera. During financial year '26, company has earned revenue from operations of INR 11,615 crores as against INR 10,380 crores in the corresponding previous period, which is about 12% higher. During financial year '26, company has earned PAT of INR 3,766 crores as against INR 3,007 crore of corresponding period, which is 25% higher. I'm very pleased and proud to share that we have commissioned 4 units of Subanshi Lower project 250 megawatt each out of total 8 units. Remaining 4 units are expected to be commissioned one by one till March '27. The anticipated cost of the project is INR 3,072 crores, and we have incurred INR 2,092 crores till March '26. Investment approval for implementation of Uri Stage 2 AE project of 240 megawatt and Dolasti Stage 2 project of 260 megawatt in UT of Jammu and Kashmir at an estimated cost of INR 2,709 crores and INR 2,994 crores, respectively, at completion level has been accorded by NHPC Board on 20th February' '26. Further, an implementation agreement has been signed between NHPC Limited and Jammu and Kashmir State Power Development Corporation Limited on 27 March '26. for development of these projects. Civil contracts for these projects have also been awarded in March '26 and scheduled completion of both the projects is November '29. Cabinet Committee on Economic Affairs has approved investment of INR 2,070 crores for construction of Kandla project of capacity 1,720 megawatts in Anachal Pradesh on 8th April '26. The project will be implemented through a joint venture company between NHPC Limited and the government of Anachal Pradesh. The formation of subsidiary is in progress. Further environment and forest clearances are also in process for the project. In respect of Dibang Multipurpose Project of 2,880 megawatt, all major contracts have been awarded, including the dam package of INR 14,446 crores, which has recently been awarded in the month of April '26. We have already shared that we have achieved the [indiscernible] diversion, a significant stride towards ensuring all weather road access to the project site and the work is going on in full-fledged manner. The estimated cost of the project is INR 31,876 crores, which includes grant of INR 6,716 counts for flood moderation and in infrastructure work. Out of which, we have already incurred INR 4,504 crore till March '26, and the scheduled completion of the project is February '32. In respect of [indiscernible] 6 IT projects of 500 capacity, the work is progressing well at site. Overall, 32% physical progress of the project has been achieved. The estimated cost of the project is [ INR 9,167 crores ], out of which we have already incurred expenditure of INR 5,231 crores till March '26. The expected commissioning schedule of the project is September '29. [ Gel ] Power Corporation Limited is [indiscernible] project of 20-megawatt is also progressing well. Overall, 96% physical progress of the project has been achieved, boxing of all 3 units have been completed. The project is expected to be commissioned by November '26. Estimated call -- the cost of the project is INR 1,889 crores, out of which we have already incurred expenditure of INR 792 crores till March '26. Further, we are in process of merger of JTCL with NHPC and second motion applicable has already been filed with the Ministry of Corporate Affairs. In respect of roughly a cheap project of 850 megawatts in UT of J&K. The work is progressing well at the project side. Overall, 29% physical progress of the project has been achieved. The estimated cost of the project is INR 5,282 crore, and we have incurred expenditure of INR 1,538 crore till March '26. The project is expected to be commissioned by November '28. Presently, NHPC through its subsidiary, CPPL is executing 3 projects in China, the [indiscernible]. Construction of [indiscernible] project of house regards progressing well. Overall, 50% physical progress of the project has been achieved. The estimated cost of the project is INR 12,728 crores, out of which we have incurred expenditure of INR 9,141 crore till March '26. The project is expected to be commissioned by fourth quarter of financial year '27. In respect of [indiscernible] project of 624 megawatts, overall, 82% physical project of the -- progress of the project has been achieved. We have incurred expenditure of INR 3,637 crores till March '26. Out of the estimated cost of INR 5,409 crores, and estimated commissioning of the project is fourth quarter of financial year '27. In respect of [indiscernible] project of 540 megawatts, the work is progressing well at site. Overall, 33% physical progress on the project has been achieved. The estimated cost of the project is received INR 4,526 crores, out of which we have incurred expenditure of fees INR 1,708 crore till March '26, and the project is scheduled to be commissioned by March '28. The restoration work of [indiscernible] power station is under program and it is affected that the power station will start generation in June '26. Apart from above under customer projects, NHPC is also actively pursuing to start works or projects such as [indiscernible] of [ 1,853-megawatt ] so [indiscernible] 1,605-megawatt and Italian of 3,097 megawatts, which are at different stages of clearance. In respect of 1,000 megawatt capacity, solar power projects allotted under CPSU scheme thanks to -- we have already commissioned 300-megawatt project in the [indiscernible]. For the 100-megawatt project in Annapolis and 600-megawatt project in [indiscernible] expected to be coming by June '26 and December '26, respectively. Our other construction solar projects like 40-megawatt solar power in [indiscernible], and 50-megawatt floating solar project in Kerala are expected to be completed by October '26 and March '27, respectively. For the 2 projects of 200-megawatt grid connected solar photovaltic, our Pujas located in Gujarat State Electricity Corporation Limited, [indiscernible] are expected to be commissioned by June '26 and December '26, respectively. NHPC is exploring to develop pumps [indiscernible] projects in the state of Maharashtra, [indiscernible]. Currently, we have 18 gigawatt DSPs, which are at DPR. We are expecting to start construction of [indiscernible] of 640 megawatts in the current financial year. This is all from my side. Now I request Director of Finance, Shri Mahesh Sharmaji to discuss financial results in detail. Thank you.

Good afternoon, friends. I'm going to share with you detailed quarterly and annual setup numbers in the detailed analysis. The NHPC Board has adopted annual financial results for the period ended 31st March '26 in its betting on [ 15 May ] accounted and the same has already been communicated to exchanges. Detailed highlights of the concentrated financial results and important updates on the company are as under. During FY '26, our power stations have achieved generation of [ 2,961 million ] units as against [ INR 25,548 million ] generated in corresponding period of the previous year, which is higher by 16% or 407 million units. During fourth quarter FY '26, our power stations have achieved generation of [ 370 million ]units as against INR 3,150 million generated in corresponding period of the previous year, which is higher by about 20% or 620 million. Our PAF for FY '26 stands at 74.75% against the corresponding previous period PAF of 78.87%, which is about 4% lower. Our PEA for fourth quarter FY '20 stands at 62.47% against the corresponding previous period PAF of 66.84%, which is about 4% lower. For FY '26, company has earned revenue from operations of [ INR 1,165 crores ] as against INR 1,038 crores in the corresponding previous period, which is about 12% higher or by INR 1,235 crores. The increase in revenue is mainly due to higher generation on account of commissioning of [indiscernible] Power Station, part commissioning of [indiscernible] Project and commissioning of Karisa solar power station. During Q4 FY '26, company has earned revenue from operations of INR 2,816 crore as against INR 234 crores in the corresponding previous period, which is about 20% higher or by INR 469 crores. The increase in revenue is mainly due to higher generation on account of newly commissioned power station. Other income for FY '26 is of the order of [ INR 107 crores ] in comparison to INR 1,235 crores during the corresponding previous period, which is about 13% lower or by INR 164 crores. This is mainly due to decrease in realization of business interruption loss against insurance claim by [ INR 466 crores ] when related to [indiscernible] power station. Current period is nil and previous period to [ INR 466 crores ]. This decrease is offset by increase in income from insurance claim by INR 3 crores to INR 1 crore, mainly in respect of fist-power station INR 254 crores and [indiscernible]. Other income for Q4 FY '26 is of the order of INR 305 crores in comparison to INR 211 crores during the corresponding previous period, which is about 45% higher INR 94 crores. This is mainly due to increase in income from insurance came by INR 69 crores, mainly related to [indiscernible] power station, an increase in dividend income or INR 32 crore. During FY '26, the generation expenses have gone up from INR 799 crores to INR 821 crores, that is by INR 22 crore, which is due to higher water [indiscernible] on account of higher generation in power stations situated in [indiscernible]. During Q4 FY '26, the generation expenses have gone up from INR 98 crores to INR 103 crores, that is [ INR 5 crores ] which is due to higher water stations account of higher generation in power stations situated in [indiscernible]. During FY '26, the employee benefits expense has come down from INR 1,823 crores to INR 1,498 crores, that is by INR 3 crores to INR 5 crores, which is mainly due to a decrease in employee remuneration pay anomaly by INR 383 crores, which is offset by increase due to increment B and other factors. During Q4 FY '26, the employee benefit expenses have come down from [ INR 41 crore ], INR 40 crore -- INR 402 crores, that is by INR 19 crores, showing marginal decrease. During FY '26, there has an increase in the finance cost from INR 1,189 crore to INR 1,423 crores, that is INR 234 crore, which is mainly due to increase in interest on bonds, term loans by INR 811 crores related to [indiscernible] and convince solar power station charged to P&L since their commissioning, which is offset by a decrease in interest on arbitration and core cash is [ INR 600 crores ]. During Q4 FY '26, there has been increase in the finance cost from negative INR 12 crore to INR 574 crores, that is by INR 586 crores, which is mainly due to increase in interest on bonds term loan by INR 359 crores, mainly related to policy [indiscernible] and conical silver power station charge to profit and loss since they are commissioning increasing interest on arbitration court cases interest by INR 108 crores. During FY '26, the depreciation amortization and impairment expenses have gone up from INR 1,193 crore to INR 1,976 crores, that is by INR 783 crores, which is mainly due to depreciation and amortization in respect to power station commissioned during financial year '25, '26. During Q4 FY '26, the depreciation, amortization and impairment expenses have gone up from INR 315 crores to INR 642 crores. That is by INR 327 crore, which is mainly due to depreciation and amortization in respect of power station commissioned during financial year '25, '26. Gearing FY '26, other expenses have gone up from INR 2,122 crores to INR 4,060 crores means by [ INR 1,938 ] crores, mainly due to increase in general network excess charges by INR 822 crores increase in insurance expense by INR 476 crores increase in losses out of insurance can by INR 225 crores, increasing provision by INR 168 crores, an increase in RM expenses by INR 1 crore, et cetera. During Q4 FY '26, other expenses have gone up from INR 623 crores, which is [ INR 1,115 crores ]. That is by INR 492 crores, which is mainly due to the increase in provision by INR 173 crore increase in insurance expense by INR 154 crore increase in losses out of insurance claim by INR 66 crores. increase in R&M exchange by INR 40 crores, et cetera. During FY '26, tax expenses have come down from INR 1,355 crores to negative INR 327 crore. That is by INR 168 crores due to deferred tax adjustment and recognition of [ MAT ] credit. During Q4 FY '26, tax expenses have come down from INR 247 crores to negative INR 1,823 crores. That is [indiscernible] due to defer tax adjustment and recognition of made. During FY '26, we have earned profit after tax of INR 3,766 crores as against INR 3,007 crores of corresponding previous period, which is up by INR 759 crores or 25% [indiscernible]. And the reason for decrease or will increase in the line items we have just discussed. During Q4 FY '26, we have earned profit after tax of INR 1,460 crores as against INR 854 crores of corresponding previous period, which is up by INR 606 crores or 71% approach, and the region for decreased -- big increase in the line items we have just discussed. During FY '26, the incentive positions are as under [indiscernible] FY '26, second energy, INR 570 crore, PA-based incentive, INR 297 crore delution charges, INR 46 crores, total INR 93 crores -- and in the corresponding FY '25, secondary energy was INR 545 crores. We have best incentive of INR 69 crores aviation INR 51 crores, total INR 865 crores. During Q4 FY '26 incentive portion are under. Q4 FY '26, secondary energy INR 109 crores, PAF best incentives to INR [indiscernible] division charges, INR 12 crores, total fee [ INR 66 crores]. Corresponding Q4 FY '25, the position was second energy, INR 124 crores. PAF incentive, INR 217 crores, division charges, INR 9 crores, total [ INR 350 crores ]. [indiscernible] FY '26 is INR 1,389 crore as against [ INR 1,196 crores ] in the corresponding period of previous year on conservated basis. The Board of Directors has recommended the payment of final dividend at the rate of [ 2,104 %. ] That is [indiscernible] per equity share in addition to interim dividend at [indiscernible] 14%, that is INR 1.40 per equity share, resulting in total dividend at the rate of 16.10%. That is INR 1.61 per equity share on the sale value of paid-up equity share of INR 10 each of the financial year '25, '26. Other major highlights of the company. On realization front, NHPC has received [ INR 10,499 ] crores from the benefits against sale of energy during FY '26 as compared to INR 9,940 crores in the corresponding period of previous year. Paid receivables as on 31st March '26 stands at INR 260 crores as against INR 2,573 crore as on 31st March '25. This includes INR 1,887 crores as unbilled raters as on 31 March '26, as against [ INR 1,587 ] crores as on 31st March '25. The net receivables out of total reported trade receivables as on 31st March '26 RI vendors. Reported trade recals INR 260 crores and less unbilled rated INR 1,887 crores, billed receivables INR 743 crores less debtors due converted into installments under legit late payment surcharge rules and other orders, INR 39 crores, net amount due INR 704 crores due more than [indiscernible]. This is all from my side. Now the forum is open for Q&A. Thank you.

[Operator Instructions] We have first question from the line of Mohit Kumar from ICICI Securities.

My first question, sir, is it possible to share the adjusted PAT for the quarter? And what was the profit in Savant and part in Q4 and the fiscal?

Yes. You have seen our reputed PAT. So if you want to react suggested Pat, as DFS has shared with you, that there was a one-off tax adjustment in detail because we all know that we have updated for the lower tax resume of 25% under [indiscernible] as [ MAC ] credit facility is going to be discontinued FY '27 onwards, right? So we have opted for 25% of tax regime. And therefore, whatever deferred tax liability, we had set at higher rate that needs to be restricted at 5%. So they're impacting around INR 1,156 crores, which we have already reported or so and the note #8 or upper financial results. So net impact of this detailed adjustment, deferred tax liability adjustment comes to around INR 900 crores. So if you reduced INR 900 crore from the reported PAT, you will arrive at adjusted that. That is the one adjustment you have to carry out in our reported patties our adjusted PAT.

Understood. That's proof of standalone also consoles, right?

Of course, of course.

Yes. Sir, what is the profit in [indiscernible] and Part 2 in Q4 in the fiscal? We understand that the [indiscernible]. And what is the state of competition of those 2 assets, yes?

Yes. So far, the profitability of [indiscernible] and SLP is concerned, we have all INR 104 crores of profit from INR 552 in Q4 and INR 487 crores of profit from S&P in Q4. On a yearly basis, [indiscernible] has given a loss of INR 150 crores, whereas on yearly basis, that is SLP has given total profit of INR 495 crores.

213, right, sir?

213, yes. Yes.

Profit. Okay. Understood. Last question, why the power, it seems to have been shut for last few quarters, last few months? Is there any particular reason?

Yes. Actually some maintenance is going on there and -- but these units are likely to be resumed very soon.

We have next question from the line of Aniket Mittal from SBI Mutual Fund.

Just a follow-up on the previous question. So you said that [ Parbati ] reported a profit in fourth quarter is a loss for the full year. What's leading to the profit improvement?

Yes. So basically, at the end of the financial year, we compute the shortfall of energy, which we are supposed to recover. So in [indiscernible], we have shortfall of synergy to the extent of INR 200 crores. So that has been booked under revenue. That is the reason [indiscernible] has given the profit of INR 104 crores in Q4.

Okay. And what is the percentage [indiscernible]?

So we have already started building off [indiscernible] based on the notification of at the interim tariff notification. So 75% billing we are already doing there.

And in case of [indiscernible]?

[indiscernible], we are waiting for the interim tariff notification of CRC and will be starting it once we get the tariff notification -- interim tariff notification of [indiscernible] lower.

Okay. But currently in the time on has come, what is looking at because [indiscernible].

See, we have been booking our revenue based on the 80% of the total expected AFC in [indiscernible], both. But billing, we can start only after getting interim tariff order from [indiscernible].

Understood. Understood. So now the billing for [indiscernible] is 75. And just on the tariff reduction, I know the earning for [indiscernible] been being delayed. When do you see any step of that reduction come through both on in [indiscernible]?

Yes. Like, we are just -- we have the next hearing date of [indiscernible] on 25th of this month only. So there, we are expecting that the orders would be reserved and the final hearing has already been taken place. So information has already provided. So hopefully, on 25th of May, this month, this [indiscernible] the hearing will be complete and the order will be reserved. And we'll be expecting the final orders in a month or so by the end of this quarter.

And so one thing we've done the tariff filing?

Yes. [indiscernible] one, we have already filed a tariff petition, and we are expecting interim tariff quarter first. Thereafter, there will be hearing for provisional order like in case of [indiscernible] first interim order was issued by CRC, where after that, we have been able to build a set of 75% of the file tariff. Similar in the case of solvency lower, CR will be issuing this interim order first. And thereafter, we are expecting another 6 months or so after this interim tariff is issued by CRC in respect of [indiscernible].

Got it. And just to understand, sir, let's say, if you were to bring at 75% of revenue, what's the under recovery on profits that so what is the expected refer?

See, the point is that just -- Mr. [ Shao ] has said, that we are booking the revenue at 80% of the tariff filed with the CRC because as per our best estimate in any case, we are not booking taking a conservative growth. We are booking a bit of 80% of the revenue and 75% is just for the billing part. Once this order is there and in case our expectation is not less than 80% in case there is a higher probity. In that case, we'll book the difference. And along with interest, the total billing will be done at that point of time after the order is issued. So just to reply your question, so far, we have booked INR 1,320 crores of revenue in [indiscernible] at 80% of the AFC. If you gross up this INR 1,320 , you will arrive at somewhere INR 1,600-odd crores. So there is under recovery of INR 300 crores. If you look at the 5 tariff expectation of [indiscernible], so INR 300 crores kind of under recoveries in [indiscernible]. And similarly, if you calculate the total of lower also. There also, we have INR 150 crores kind of under recovery. So altogether, [indiscernible] INR 450 crores of revenue has not been booked in our book of accounts. If you look at the tariff petition filed in respect of these 2 projects.

Fairly clear. And just on P5. So just one what's been the impact of [indiscernible] this year? And to clarify, there's no the coverage when do you expect the project to the restart as well?

Yes. So there is no -- I mean, no revenue on the expenditure has been there in it. So there is nothing top line contribution from [indiscernible]. But going forward, we are very much sure that June onwards, we are going to have operation to get reviewed in the sector this to. So June onwards, you can some top line activity in [indiscernible] also. End of June.

[indiscernible] year would have been how much in [indiscernible]?

So in respect of this top 5, we have total AFC of around INR 500 crores. So if you exclude the tax element, it would be around INR 400 crores.

And just a clarification, this [indiscernible] for how many units?

3 units.

We have a next question from the line of [indiscernible] from Kotak.

A lot of my questions were related to [indiscernible], but just to understand this correctly, when you talk about the INR 1,600 crore revenue per part. Is it reasonable then to say that, that INR 150 crores loss, which you have for '26 would have been about INR 150 crore profit. Is that the right way to think of it for the [indiscernible]

Exactly, you have explained very correctly.

Okay. And just to understand on this fourth quarter, where you talked about booking the additional revenue because of the shortfall in generation. But does that still come within? So is it fair to say that in your reported financials for [indiscernible], for instance, you accounted INR 1,320 crores of revenue? Or is it slightly more because of that additional INR 200 crores that you talked about?

So that includes 200 as well.

We have next question from the line of Ragini Pande from Elara Capital.

[indiscernible] commissioning of your PSP projects. And what is the realization for what we be the realization for these plants and the CapEx for these projects?

Yes. So I mean, we have not started any construction of PSP to date. So it is very early to say about realization everything because our -- you can say that the fastest running project in the ambit of PSP project is on [indiscernible] 640-megawatt project. So there, we are expecting [indiscernible] part construction activities during the current fiscal. And once we get all those everything in place, and we are activities, we will have better clarity about the realization of their tariff and leverage thing. So give us some time to share more factor about this current [indiscernible].

Yes. And as a -- are you seeing any slowdown in your renewable tendering this year? And also a backlog of around 40 gigawatt in PPA finance. So any improvement on that?

Yes. So we have not done any tendering. In last recent past, so whatever tendering we had made, we have already awarded around 23 gigawatt kind of capacity out of which 13 gigawatt kind of likely PPA and PSA signing. We are hoping out of this 7 gigawatt props we have already signed. So going forward, we'll again have more clarity in this to come out months to come in respect of a projects also.

Okay. And on the generation front, are you expecting any slowdown in generation given this is a year and the expectation of slower monsoon of weaker monsoon this year?

No, no. So as you are aware, you have been tracking NHPC for years, most of our power stations are slow fed. So certainly, good monsoon will be helping us for better generation. But our generation currently also, it is going fairly well. So nothing to worry from the generation perspective.

And just 1 last thing on your -- I want to know the notes of your plans.

Yes. So consolidated, it is 82%. Normally, which is 80%.

Okay. And so this year, the overall PLF was less than 80%, right? So...

Yes. So there are 2 things. look at the actual PF, which this [indiscernible], it is certainly lower 75%. But if you exclude [indiscernible], it is 80%. So have not contributed anything during the fiscal last fiscal as well as the corresponding fiscal. So in both the fiscal, if you exclude the top, you will get 80% kind of PF. But if you include this to, certainly, it is 75%.

We have next question from the line of [indiscernible] from Equitas Investments.

First question is in terms of what is your value for next year in the help for the next couple of years?

So you are -- I think you are talking about regulated equity?

Yes.

Yes. So current regulated equity, including [indiscernible] is 18,300, right, INR 18,300 crores. Now in next financial year, if you consider the capacity addition, we are having cap city addition from 125 megawatt of [indiscernible] of which 250 megawatt, we have already commissioned. So a megawatt would be coming from [indiscernible], then we have 120 megawatts and than 1,000 megawatt of [indiscernible], 624-megawatt of Q. So all these hydro assets, we are going to commission 2,994 megawatt in fiscal -- FY '27. Apart from that, we have megawatt of solar states also, which are going to be commissioned in the current fiscal. So altogether, if you look at the hydro-related equity by end of FY '27, it would be INR 30,627 crores.

Okay. Yes, yes, please. Second question in terms of what sort of cost increase are you seeing? And do we have a metrology begin as on the quarter this will just increase by regulated income? Contraction cost.

Yes, sure. As far as this increase in construction cost is concerned, in basically CRC is in a cost plus everything is allowed by since it's out of our loan power control in all passed on. So there is no such concern as far as this is concerned. But yes, we are definitely -- we are having checks and balances regarding how the costs can be kept in check. And we just ensure that just because of certain regions, beyond our control like geological surprises, sometimes there are design changes and other events happen in the project side. definitely, there are some increase. But in any case, all those increases taken care of as per regulations, whatever costs beyond our control, that is definitely allowed by CRC. So we don't have any issues on that front.

Okay. And what is the reason for negative related income for this quarter?

Yes. Were you talking about regulatory deferral account?

Yes, regulated income, yes.

So that is very scaly as we have discussed in our opening remarks, then has been a reverse of INR 1,156 crores. of DTL in the line item of deferred tax liability. So similar kinds of reversal, we have to make under rate regulated asset also. So that has been reflected under the regulated defer account. So that their impact is there, basically. And if we are disclosing Note #8 of our financial results. So that will -- that is taking care of this concern.

Right. And what the maximum volume growth can [Technical Difficulty] for the next year?

Please come again. please, the -- we are not able to hear you well loud and clear.

Yes. [indiscernible] on the next functioning and at also [indiscernible]. What is the kind of volume which number which you see for next year [indiscernible]?

Yes. So as of now, 4 units have already been commissioned. The design energy of this project is 7,421 million units. And going forward, more 4 units are coming in phased manner. So if you look at the expected generation of [indiscernible] lower, we are expecting somewhere 5,000 million units to 5,500 million units of generation for [indiscernible].

This is proven for FY '27, right?

Yes. This is an expected generation from [indiscernible], not incremental. [indiscernible] have seen generation of 506 million units is [indiscernible] we lower during the last.

We have next question from the line of Akash Mehta from [ Kendra HSBC Life ].

So first question is on -- can you just help us again with the time line in terms of the CERC tariff that you have mentioned for the part but -- and for [indiscernible] both. And if everything goes well, veteran, when can we see this -- I mean, the recognition of revenue at 100% for both of them?

Yes, Akash, as I already spent, out to petition is in the final stage of sharing, and we are expecting orders from CRC by the end of this quarter.

On your order forms after that, you said that you will take some -- I mean around a few months after which you can recognize it or immediately, it's on the quarter?

As far as recognition is concerned, in case the within quarters, then we will definitely account for the differential revenue along with interest component also because intracell from the date of COD. In that case, we'll be doing really completely will be billing part will be over. And we will be recognizing the revenue in this quarter itself, the order comes. So as far as the commission is concerned, there is no different.

So similarly for sale, you said around [indiscernible] months, and you would expect [indiscernible].

So [indiscernible], we have already filed the petition for our interim tariff. So first, we are just waiting how much interim tariff CRC is going to allow us. And thereafter, in subsequent hearings, we are expecting just an expectation, like in case of parity after interim, we are expecting that within 3 to 4 months, but in case of [indiscernible], we are taking because this is an old, very old project. So we expect that not more than 6 months, CRC will take to issue the final orders. In that case, we'll be having a fair idea of where we are going -- landing in terms of revenue. As of now, we are getting 80% of the revenue of the AFC tariff pition, which we have filed.

And this [indiscernible], it will be for the entire capacity, right, that whatever.

Yes. Basically, yes, Subant3, like we have filed for 3 units, which were commissioned. And as the units adds on, we will be filing supplementary tariff petitions with CRC. We'll keep on updating. CRC will be allowing us on a projected basis also. But once all the units are complete, the final petition will be filed at that point of time. But in that case, this CRC will be allowing us interim tariff for billing purpose also.

Okay. For the 3 units, maybe something could the final order comes through, then you can start recognizing it for [indiscernible], right?

Yes.

Okay. And just the second question is on -- are there anything else in terms of the future projects other, I mean, Paralol or Kiru or any other projects where you are seeing cost escalation where something similar could kind of happen?

Yes. So see, cost escalation in hydro projects are very inherent. You cannot rule out even though if there is no time overrun, there will be cost overrun because when we award at a particular price level, that award cost is not freezed. That is basically at a particular price level. So if you are going forward with that award for 4, 5, 6 years, you have to pay the price variation. So cost overrun is very inherent in any hydropower project, right? Now if any time overrun is there, that can also lead to cost overrun. So that varies project to project. So it is not necessarily that every project will have their time overrun. There are many projects which we have commissioned in past ahead of schedule also. So it is not that every project will see its time overrun. So it depends. And accordingly, based on the factor as we have discussed, the CRC beyond the control of the management within the control of the management, 2 broad factors are there based on which CRC allows the cost overrun.

Sure, sir. That's helpful. So any of the future projects are facing they are facing material changes in cost or it's not?

No, it is -- I mean, not material because like a project like [indiscernible], these projects are doing pretty well. And whatever time line we have shared with you, we are going to commission these projects by that time line. So nothing extraordinary you will find there.

We have next question from the line of Mohit Kumar from ICICI Securities.

My first question, what led to profit for [indiscernible] in the quarter. Given that the path and generation is lower in the quarter and also your booking at lower tariff, right? Have you booked any shortfall in generation in [indiscernible] also?

No. So Mohit, we need to understand that whatever AFC of any project we file, that is basically based on the capital cost of the project. If we are going to CRC with the original cost of the project without any deduction, right? And then whatever expected AFC is there from that particular project the cost-- I mean, whatever generation we have -- I mean, 506 million units of generation we have from [indiscernible] in the last fiscal. So their income has been booked corresponding to the capital cost of these units, which we have commissioned, right? So if you are taking the entire capital cost of those units, for example, if we have commissioned 3 units of [indiscernible] their corresponding capital cost is coming around INR 20,000-odd crores. Now if you take tariffs based on INR 20,000 crores of capital cost and multiply the number of units generated, then certainly, this is the top line. And apart from that, whatever actual expenditure has been there after that you are going to have profit if any cut is there in the top line and expenditures are coming 100%, then only you will look at some losses and everything. But if revenue and expenditure both are comparable to each other in line with the AMC components, why any loss would come?

My question, we're looking at a much lower tariff. That's the reason I'm asking whether...

No, no. No, we have not taken any much lower tariff. The only thing we have done 80% of the AFC and there if you gross it up, then INR 150 crores of under recovery, we have seen [indiscernible] lower, which we have discussed.

Understood. My second one, why shortfall in generation has been booked in parity? Are we going to argue for lower design energy for the power plant?

It is too early to argue for the lower design energy. Parvati has seen only 1 year. And that too, you have seen that some cloud burst issue and everything had incurred there in Parvati I in the early -- I mean, just 1 year back, early monsoon. So for challenging the -- what you call design energy, you have to wait for at least 3 years.

Yes. Then how can you book the shortfall in generation? Is it allowed and then the regulation?

Yes. It is allowed. It is allowed.

Yes. Basically, shortfall in generation regulation allows us -- in case we are not able to achieve design energy and the reasons for nonachievement are beyond our control. In that case, CRC regulation allows us even to bill. So in that case, after this order is there, 75%, we are having order of interim tariff of 75%, we are going to build that -- we are going to build that too at the rate of 75% of the tariff filed. So this is as per regulation, what we are doing. So yes, there is no issue. We are going to from beneficiaries. Why is that Distaler dam 3 and Distal lower dam 4, TLDP 3 and TLP has shown lower PAT in the quarter. Is there a particular reason? Are they impacted by that?

Yes. If you remember, October '23 events where we got heavy damages in Tista 5, these flash floods had impacted our TLDP3 and TLP-4 projects also. So a lot of field issues are there, which we are trying to remove -- we are trying to come out of this issue. Last year also, we had carried out some process to remove the field and all. But again, it has accumulated. So that issues we are now basically facing with. And hopefully, we'll be able to come out of these issues within 3 months, I believe.

One more question, sir, which are the power plants you're likely to tender in this fiscal? Is it possible to give -- so my question is the [indiscernible], all these 4 will get tendered out this fiscal? Or do you think 2 next fiscal?

Yes, we are also thinking from the line. And hopefully, we are able to do it. Actually, we have a target to bring 5 projects of hydro during this bring into construction here during this financial is there, 2 have already been awarded, then [indiscernible] and the last stage 2. And 3 more projects like Italian and then Savalcort and then [indiscernible]. These 3 are also likely to be bring into the construction stage during this financial year. And one more PSP also we are targeting to bring into the constant -- that is [indiscernible].

Any update on Subansiri Upper, sir?

Subansiri Upper, we may not be going this year. Next year, we may be going for that.

We have next question from the line of [ Murtuza ] from Kotak.

I just wanted to reconfirm, when you talked about Parvati II doing a full year profit of INR 150 crores, isn't that very less against the regulated equity and project cost of Parvati I, like taking INR 150 crores as a normalized profit? That's number one. N umber two, on Subansiri Lower. So when you talked about that 80% revenue, given that you only part commissioned the capacity, you're well within the 80% and therefore, you're booking the whole revenue for these early units. Is that understanding correct?

Yes. So let me take your question first from [indiscernible]. So Palmetto, as we have shared that the revenue, which we have recognized to pivot to is INR 1,320 crores, right? Now if you take the entire generation, I mean the design energy of [indiscernible] is 3,125 million units, whereas we have actually generated 1,642 million units in FY '26. So if your generation is not there, you have not been able to book the entire revenue expected [indiscernible], that is the reason we have not achieved the expected back level of Parvati. It is clear -- now coming back to...

[indiscernible] half generation.

Yes, yes. So we have shared earlier also that in [indiscernible], there was some cloud burst issue in somewhere June or July last year, I believe. So that has basically, I mean, stop the expected generation of Palmetto. Now Yes. So now Suansri Lower, if you -- if I take your question for Suansri Lower, Svansi Lower also, we have shared that 80% of the revenue we have recognized that is around INR 613 crores only, right? So total revenue against the 506 million units is INR 613 crores only. That is 80% of the expected AFC. If you gross it up, you will find INR 150 crores under recovery in Sansi Lower also. I think this is a...

It's 2 things. One is the actual generation is still much lower than the decline energy. Therefore, the revenue is low, and then it's at 80% of that, so even lower.

Exactly.

Ladies and gentlemen, due to time constraint, that was the last question. I now hand the conference over to Mr. Rupesh Sankhe for closing comments.

We thank NHPC management for giving us an opportunity to host this call. And we also thank all the investors and the analysts for joining this call.

On behalf of NHPC, I would like to convey my thanks. Thank you so much, all the investors. Thank you.

Ladies and gentlemen, on behalf of Elara Securities India Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.