NHPC Limited and SJVN Limited, two major players in India's hydropower sector, are making significant strides in renewable energy. As of April 1, 2025, NHPC has successfully commenced the commercial operation of its Parbati-II hydroelectric project, which includes three operational units of 200 MW each. This project, located in the Parbati valley, is designed to harness the hydroelectric potential of the lower reaches of the Parbati River through a run-of-the-river scheme.
According to a regulatory filing, the commercial operation for Units 1, 2, and 3 of the Parbati-II project was declared effective from midnight on April 1, 2025. The fourth unit's trial run and commercial operation date will be announced later. The Parbati Hydroelectric Project (Stage-II) involves diverting the river through a Concrete Gravity Dam at Pulga village, complemented by a 31.52 km long Head Race Tunnel leading to the power house situated in Suind village.
In addition to the hydroelectric project, NHPC has also made progress with its solar energy initiatives. The company announced on March 31, 2025, that its 300 MW solar power project in Bikaner has been successfully connected to the Inter-State Transmission System (ISTS) and has started injecting 31 MW of power into the grid. The full commercial declaration for the project, which will be rolled out in phases, is expected soon, with the entire 300 MW solar project anticipated to be fully commissioned by August 31, 2025.
Despite these advancements, NHPC's stock has faced challenges. Over the past year, NHPC's shares fell by 8.36%, underperforming its sector by 8.3%. However, the stock has shown impressive growth over the last three years, offering returns of 195%. NHPC, a Mini-Ratna Category-I Enterprise of the Government of India, is recognized as one of the country's largest organizations dedicated to hydro power development, focused on generating clean and sustainable energy.
NHPC's market capitalization stands at Rs 82,550.10 crore, with shares trading at Rs 82.18, reflecting a 1% increase from the previous close. Nevertheless, the shares are currently at a 30% discount from their 52-week high.
Meanwhile, SJVN Limited, another key player in the hydropower industry, has also been making headlines. SJVN has a market capitalization of Rs 35,879.03 crore and was trading at Rs 91.30, indicating a 1% decline from its previous close. The shares are at a 43% discount from their 52-week high. SJVN has diversified its operations beyond hydroelectric power into solar and wind energy, aligning with global trends in renewable energy.
Financially, NHPC reported an 11% year-on-year increase in revenue, rising from Rs 2,056 crore to Rs 2,287 crore in the third quarter of FY25. However, the company's net profits took a significant hit, declining by 47% from Rs 623 crore to Rs 330 crore during the same period. In contrast, SJVN reported a 24% year-on-year increase in revenue, growing from Rs 543 crore to Rs 671 crore, while its net profits increased by 7%, from Rs 139 crore to Rs 149 crore.
Looking ahead, NHPC is aiming to expand its operational capacity significantly. Currently, the company contributes about 15% of India’s installed hydroelectric capacity, amounting to 6,971 MW out of a total of 46,928 MW as of FY25. NHPC has ambitious plans to exceed 23 GW of installed capacity by 2032 and over 50 GW by 2047, compared to its current capacity of 7,233 MW through 28 power stations.
SJVN, on the other hand, has set its sights on installing 12 GW of capacity over the next two years, aiming for a total of 25 GW by 2030 and 50 GW by 2040. The company also plans to add 1-1.5 GW annually in renewable energy capacity and expand into emerging sectors such as round-the-clock (RTC) power, green hydrogen, and green ammonia.
In a significant recognition of their contributions to the energy sector, both NHPC and SJVN were granted the prestigious ‘Navratna’ status by the Indian Government in August 2024. This status enhances their financial and operational autonomy and underscores their vital role in advancing India's energy landscape.
The Indian hydropower industry is poised for growth, with approximately 15 GW of hydroelectric power projects currently under development. This expansion is expected to increase India’s hydro capacity by over 50%, from 42 GW to 67 GW by 2031-32, as stated by the Ministry of Power.
As NHPC and SJVN continue to innovate and expand their capabilities, they are not only contributing to India's energy goals but also positioning themselves as leaders in the global shift towards renewable energy.
