Shares of NHPC Ltd. climbed as much as 6% on November 5, 2026, after global brokerage CLSA reaffirmed its 'High Conviction Outperform' rating for the power company. CLSA maintained its target price of Rs 117, citing significant earnings growth prospects for the state-owned hydroelectric giant.
The stock reached a high of Rs 83.49, up from its previous close of Rs 78.45, reflecting a robust investor response to the positive outlook. CLSA's confidence stems from NHPC's strong September-quarter performance and a clear pipeline of future growth opportunities.
Strong Q2 Performance Drives Optimism
CLSA highlighted NHPC's impressive second-quarter results for the fiscal year, with recurring profit after tax (PAT) soaring 74% year-on-year to Rs 1,780 crore. The brokerage noted that NHPC successfully navigated challenging El Niño conditions during this period, leveraging new capacity additions and the restart of key hydroelectric projects.
Key contributors to this sharp improvement in earnings included the turnaround of the Parbati II and Parbati III hydroelectric projects, alongside the restart of Teesta V. These operational successes underscore the company's ability to manage environmental factors and optimize its asset base.
Future Catalysts and Long-Term Growth
CLSA anticipates further positive developments for NHPC, identifying 14 potential catalysts over the next year. These include the commissioning of the sixth and seventh 250-MW units at the Subansiri Lower hydroelectric project, the continued restart of Teesta V, and the broader rollout of gigawatt-scale hydro projects that will support longer-term growth.
Looking ahead, CLSA projects NHPC's renewable energy earnings to achieve an impressive 90% compound annual growth rate (CAGR) between FY26 and FY30. This forecast significantly outpaces the 31% growth observed over the preceding five years. The brokerage also expects the company's earnings per share to double and its return on equity to expand by 810 basis points over the FY26-FY29 period, reinforcing its 'High Conviction Outperform' rating and suggesting a decade-long growth opportunity for NHPC.