NHPC Limited, India’s leading hydropower giant, is making headlines this week as its stock shows strong momentum on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). With a major board meeting scheduled for today, January 8, 2026, investors are closely watching the company’s next move regarding a massive ₹2,000 crore fundraising plan. This article explores the latest developments, the company’s financial health, and what the future holds for this “Navratna” public sector undertaking.
The ₹2,000 Crore Bond Issuance: What You Need to Know
The primary reason for the recent excitement is NHPC’s plan to raise capital through the issuance of unsecured, redeemable, taxable, non-convertible, and non-cumulative bonds. This fundraising is part of the company’s borrowing strategy for the 2025-26 financial year. The funds are expected to be raised through private placements in one or more tranches.
By securing this capital, NHPC aims to strengthen its financial position to support its ongoing and upcoming green energy projects. The board is expected to review and approve the General Information Document (GID) and Key Information Document (KID) during today’s meeting, which are essential regulatory steps before the bonds are offered to potential investors.
Strong Stock Performance in January 2026
The stock market has reacted positively to these announcements. In the first week of January 2026, NHPC shares witnessed a rally of nearly 10% over five consecutive trading sessions. As of early January, the stock is trading around the ₹83–₹84 mark, nearing its 52-week high of ₹92.30.
Market analysts have noted that NHPC is currently trading above its key moving averages, including the 50-day and 200-day Simple Moving Averages (SMA). This technical positioning often indicates a bullish trend. Furthermore, institutional interest is on the rise, with Foreign Institutional Investors (FIIs) increasing their stake in the company recently, signaling long-term confidence in India’s power sector.
Major Project Milestone: Subansiri Lower Hydroelectric Project
Beyond the financial news, NHPC has achieved a historic milestone in its operational capacity. On December 23, 2025, the company successfully commenced commercial operations of the first 250 MW unit of the Subansiri Lower Hydroelectric Project. Located on the border of Arunachal Pradesh and Assam, this is India’s largest hydropower project with a total capacity of 2,000 MW.
The inauguration was conducted virtually by the Union Minister of Power, marking a significant step toward India’s net-zero carbon goals. The remaining seven units are expected to be commissioned in a phased manner throughout 2026 and 2027. Once fully operational, this project will play a vital role in flood moderation and provide a massive boost to the energy supply in Northeast India.
Growth Strategy and Future Outlook
NHPC has set an ambitious target to become a 23 GW company by 2032. Currently, the company has several projects under construction with a combined capacity of over 8,500 MW across Arunachal Pradesh, Sikkim, and Jammu & Kashmir. While hydropower remains the core focus, NHPC is also diversifying into solar and pumped storage projects to balance the national grid.
Analysts suggest that the commissioning of the Parbati-II project (800 MW) and additional units of Subansiri Lower in 2026 will significantly increase the company’s revenue and cash flow. For long-term investors, the combination of a stable dividend yield (currently around 2.28%) and a strong pipeline of renewable energy projects makes it a noteworthy stock in the utilities sector.
Frequently Asked Questions (FAQs)
1. Why is the NHPC board meeting today, January 8, 2026?
The board is meeting to discuss and approve a proposal to raise ₹2,000 crore through the private placement of bonds to support the company’s financial requirements for the current fiscal year.
2. What is the current status of the Subansiri Lower Hydroelectric Project?
The first 250 MW unit began commercial operations in December 2025. The rest of the 2,000 MW project is expected to be completed in phases during 2026 and 2027.
3. Is NHPC a good dividend-paying stock?
Yes, NHPC is known for consistent dividend payouts. As of January 2026, it has a dividend yield of approximately 2.28%, which is attractive to investors looking for regular income.
4. What are the stock price targets for NHPC in 2026?
While targets vary by brokerage, many analysts see an upside potential with targets ranging between ₹90 and ₹115, depending on the successful commissioning of new projects.
5. What is NHPC’s long-term goal for power generation?
NHPC aims to increase its total installed capacity to 23 GW by the year 2032 by adding more hydro, solar, and wind energy projects.