NHPC Limited (NSE: NHPC), India’s largest hydroelectric power producer and a Navratna PSU, has become a favorite among long-term investors eyeing the renewable energy boom. With the Indian government pushing toward 500 GW of renewable capacity by 2030, NHPC is well-positioned to benefit from the transition to clean, sustainable, and affordable power.
As of October 2025, NHPC trades around ₹86–₹87 per share, with a market capitalization of about ₹86,000 crore and a P/E ratio near 26. The stock has delivered over 300% returns in the past five years, fueled by investor confidence in India’s green energy future.
Let’s explore NHPC’s fundamentals, performance history, and detailed share price forecasts up to 2050.
About the Company
Founded in 1975, NHPC Limited (National Hydroelectric Power Corporation) is a state-owned enterprise under the Ministry of Power, Government of India. The company specializes in the generation, transmission, and sale of hydroelectric power, while also expanding into solar and wind energy projects.
Key Business Segments
- Hydropower Generation – Core business; total installed capacity of 7,071 MW.
- Solar & Wind Power – New ventures, including the 300 MW Karnisar Solar Project.
- Power Trading & Consultancy – Technical expertise and project management services.
- Cross-Border Projects – Developing hydro infrastructure in Nepal and Bhutan.
With India’s ambitious renewable targets, NHPC is diversifying beyond hydroelectricity into a comprehensive clean energy portfolio.
Fundamental Analysis
Revenue & Profit Trends
| Fiscal Year | Revenue (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|
| FY21 | 9,772 | 3,245 |
| FY22 | 10,458 | 3,538 |
| FY23 | 10,930 | 3,834 |
| FY24 | 11,326 | 4,025 |
| FY25E | 12,100+ | 4,400+ |
Despite slow top-line growth (0.73% CAGR over 5 years), profits have improved steadily, supported by cost efficiency and stable tariff structures.
Valuation Metrics
| Metric | FY25 Value | Remarks |
|---|---|---|
| P/E Ratio | ~26x | Reasonable for a PSU with steady earnings |
| ROE | ~9% | Improving with new projects |
| EPS (TTM) | ₹3.3 | Expected to rise as projects commission |
| Dividend Yield | ~2.2% | Consistent dividend-paying company |
NHPC offers low volatility, moderate valuation, and consistent dividend payouts — making it attractive for conservative investors.
Balance Sheet Strength
- Total Assets (FY24): ₹1.05 lakh crore
- Net Worth: ₹44,600 crore
- Debt-to-Equity Ratio: 0.67 (Moderate and improving)
- Cash Flow: Positive from operations; manageable capex cycle
NHPC maintains a strong financial foundation, supported by government guarantees and long-term power purchase agreements (PPAs).
Shareholding Pattern (as of 2025)
| Category | Shareholding |
|---|---|
| Promoter (Government of India) | 67.4% |
| FIIs | 8.8% |
| DIIs | 10.6% |
| Retail & Others | 13.2% |
The high promoter holding and increasing institutional participation underscore NHPC’s credibility and long-term potential.
Past Stock Performance
| Period | Price (₹) | Return |
|---|---|---|
| 1 Year | 70 → 87 | +24% |
| 3 Years | 31 → 87 | +180% |
| 5 Years | 22 → 87 | +295% |
| 10 Years | 20 → 87 | +335% |
NHPC has outperformed the Nifty Energy Index in recent years, proving its resilience as India’s renewable momentum accelerates.
NHPC Share Price Target 2025–2050
| Year | Minimum | Average | Maximum |
|---|---|---|---|
| 2025 | ₹72 | ₹120 | ₹260 |
| 2026 | ₹110 | ₹180 | ₹300 |
| 2030 | ₹160 | ₹400 | ₹799 |
| 2040 | ₹450 | ₹1,200 | ₹1,800 |
| 2050 | ₹736 | ₹2,800 | ₹4,000 |
NHPC Share Price Target & Prediction 2025–2050
- 2025: Short-term upside driven by project completions like the 300 MW Karnisar Solar Project, higher hydro output, and stable PPAs.
- 2026: Solar capacity expansion begins contributing to revenues; EPS growth projected around 30–35%.
- 2030: NHPC benefits from India’s 500 GW renewable target, with multiple hydro and solar projects operational.
- 2040: Technological advancements and cross-border collaborations push NHPC’s capacity beyond 15 GW.
- 2050: NHPC evolves into a multi-energy leader, integrating hydro, solar, and green hydrogen under one sustainable platform.
Growth Drivers
- Government Push for Renewables: India’s 500 GW renewable energy goal by 2030 ensures long-term demand.
- Hydropower Expansion: NHPC’s pipeline of 4,291 MW in advanced construction stages.
- Solar & Wind Diversification: Entry into hybrid projects boosts growth beyond traditional hydro.
- Stable Power Demand: Rising electrification and urbanization in India.
- Strong Dividend History: Consistent payouts enhance investor trust.
- Cross-Border Collaborations: Projects in Nepal and Bhutan offer new revenue streams.
Expert Views
| Source / Analyst | Outlook | Target |
|---|---|---|
| Moneycontrol | Positive | ₹110 (2025) |
| TradingView | Moderate Buy | ₹92–₹117 (2025) |
| WalletInvestor | Conservative | ₹185 (2030) |
| CoinJagat | Bullish | ₹3,200–₹4,000 (2050) |
| SharePriceTarget.info | Cautious | ₹736–₹1,056 (2050) |
Most analysts agree NHPC is undervalued in the long term, given its strong project pipeline and low-risk PSU status.
Risks & Challenges
- Project Delays: Environmental clearances and land acquisition can delay new capacity.
- Hydro Dependency: Climate variability affects power generation.
- Competition: Private sector and foreign firms in solar/wind energy.
- Low ROE: Despite profits, returns remain moderate compared to peers.
- Regulatory Risks: Government pricing and PPA changes can impact revenue.
Investment Suitability
NHPC suits long-term, conservative investors seeking stable dividends and exposure to India’s clean energy growth.
It may not deliver explosive short-term returns like private solar companies, but its low debt, consistent profitability, and government backing make it a reliable compounder over the next few decades.
FAQs
What will be NHPC’s share price in 2030?
By 2030, NHPC’s share price is expected to be in the range of ₹160 to ₹799, depending on capacity growth and renewable adoption.
Can NHPC reach ₹500 by 2028?
While ₹500 seems optimistic for 2028, it’s achievable by early 2030s if EPS growth sustains above 30% CAGR.
Is NHPC a good stock for long-term investment?
Yes, NHPC is a safe long-term PSU investment for investors seeking stable growth, dividends, and participation in India’s renewable energy mission.
Conclusion
NHPC stands at the forefront of India’s green transformation, with a strong hydro base and growing solar capacity.
While short-term returns may be modest, its strategic importance, financial stability, and renewable leadership make it a compelling long-term investment opportunity.
As India accelerates toward carbon neutrality, NHPC’s diversified clean energy strategy could make it a multi-bagger by 2040–2050, rewarding patient investors who believe in sustainable growth.
In Summary
| Parameter | Details |
|---|---|
| Current Price (Oct 2025) | ₹86–₹87 |
| 1-Year Target (2026) | ₹180 |
| Analyst Consensus | Bullish for long term |
| Outlook | Renewable-led growth with steady dividends |
