Are NHPC Ltd latest results good or bad?

The latest financial results for NHPC Ltd indicate significant operational challenges during the third quarter of FY26. The company reported a net sales figure of ₹2,220.73 crores, reflecting a 34.01% sequential decline and a 2.89% decrease compared to the same quarter last year. This contraction in revenue is particularly concerning given the seasonal nature of hydropower generation, where typically, the post-monsoon period would see improved water availability and generation capacity. The operating profit before depreciation, interest, and tax (PBDIT) fell sharply to ₹211.60 crores, down from ₹2,026.87 crores in the previous quarter, marking an alarming 89.56% sequential decline. The operating margin, which dropped to 9.53% from 60.23% in Q2 FY26, signals severe operational stress and raises questions about the company's cost management and efficiency. Additionally, NHPC's consolidated net profit was reported at ₹219.12 crores, which represents a 78.55% decline compared to the previous quarter and a 5.24% decrease year-on-year. The standalone profit after tax turned negative at ₹-856.44 crores, highlighting core business challenges that extend beyond subsidiary performance. Interest costs also escalated, reaching ₹310.25 crores, an increase of 11.72% sequentially, which further compounds the financial pressures faced by the company. The rising debt burden, with long-term debt reported at ₹35,681.73 crores, has led to a debt-to-equity ratio of 1.09 times, indicating heightened financial leverage. Overall, NHPC Ltd's latest results reflect a period of sharp deterioration in financial performance, characterized by declining revenues, collapsing margins, and increasing financial burdens. The company has seen an adjustment in its evaluation, reflecting these challenges and the broader implications for its operational and financial stability.