NHPC shares rise over 2% as company receives Rs 250 crore insurance payout

Shares of NHPC Ltd, India’s largest hydropower company, surged over 2% on January 3 to ₹83.95 after the company announced receiving a second installment of ₹250 crore under its Mega Insurance Policy. This payment is part of the insurance claim for the business interruption (BI) loss caused by the flash flood at its Teesta-V Power Station (510 MW) on October 4, 2023.

Key Updates:

• Insurance Payout Details: NHPC confirmed receiving ₹250 crore as part of the on-account gross payment for the BI loss due to the flash flood at the Teesta-V Power Station.
• Background: In October 2023, a severe flash flood in the Teesta Basin caused a complete shutdown of the Teesta-V Power Station. Restoration work is expected to be completed by March 2025, with power generation anticipated to resume in Q3 FY26.

Financial Impact:

• NHPC reported a 41.2% YoY decline in net profit for Q2 FY25, posting ₹909 crore compared to ₹1,546 crore in the same period last year.
• Revenue for the quarter rose 4.1% YoY to ₹3,052 crore, while EBITDA grew 1.7% YoY to ₹1,799 crore. However, EBITDA margins contracted to 58.9% from 60.3% last year.