NHPC

NHPC ROCE

The Return on Capital Employed (ROCE) of NHPC (NHPC.NS) as of Nov 13, 2026 is 8.43 %. In the previous year, Return on Capital Employed (ROCE) was 10.05 % — a change of -16.06% (lower).

ROCE

8.43 %

YoY

-16.06%

Last updated:

In 2026, NHPC's return on capital employed (ROCE) was 8.43 %, a -16.06% increase from the 10.05 % ROCE in the previous year.

The NHPC ROCE history

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ROCE
Date
ROCE
Jan 1, 2019
10.24 INR
Jan 1, 2020
11.54 INR
Jan 1, 2021
11.32 INR
Jan 1, 2022
11.12 INR
Jan 1, 2023
12.55 INR
Jan 1, 2024
9.13 INR
Jan 1, 2025
10.05 INR
Jan 1, 2026
8.43 INR
The NHPC ROCE history
YEARROCEYoY
8.43 %-16.06%
10.05 %+10.03%
9.13 %-27.22%
12.55 %+12.87%
11.12 %-1.78%
11.32 %-1.88%
11.54 %+12.67%
10.24 %+17.37%
8.72 %-20.18%
10.93 %+6.73%
10.24 %-4.82%
10.76 %+36.62%
7.87 %—

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NHPC Stock analysis

What does NHPC do? NHPC Ltd generates hydroelectric power through its power stations such as Salal, Dulhasti, Kishanganga, Nimoo Bazgo, Chutak, Baira Siul, Tanakpur, Dhauliganga, Rangit, Loktak, Indira Saga, Chamera - I, Uri - I, Chamera - II, and Omkareshwa. The company also provides project management, construction contracts, and consultancy services for hydropower projects, including survey, design, engineering, and operation. Its subsidiaries, Loktak Downstream Hydroelectric Corporation Limited, Bundelkhand Saur Urja Limited, Jalpower Corporation Limited, and Chenab Valley Power Projects Private Limited, support these activities. NHPC Ltd sells power generated from its projects to various buyers, including government entities and utilities, and manages eight hydro power projects totaling 6434 MW capacity. The company's primary revenue comes from electricity sales from its power stations and consultancy services for hydropower projects. It constructs and operates hydroelectric plants, with a focus on large-scale projects like the 6434 MW capacity projects. NHPC Ltd's subsidiaries handle specific regional or project-related activities, such as Loktak Downstream Hydroelectric Corporation Limited for Loktak power station operations. The main buyers of NHPC's power are government and utility companies, which purchase electricity for distribution to end-users. NHPC Ltd's business model relies on long-term power purchase agreements with government and utility entities for its hydroelectric output. The company's consultancy services, which include planning, design, and engineering, are sold to other developers or government bodies seeking to build or upgrade hydropower infrastructure. Its subsidiaries, like Jalpower Corporation Limited, likely support regional operations and project management, ensuring efficient delivery of power and services. The company's revenue streams are stable due to the long-term nature of these agreements and the consistent demand for renewable energy. NHPC is one of the most popular companies on Eulerpool.

ROCE Details

Unraveling NHPC's Return on Capital Employed (ROCE)

NHPC's Return on Capital Employed (ROCE) is a financial metric that measures the company's profitability and efficiency with respect to the capital employed. It is calculated by dividing earnings before interest and tax (EBIT) by the employed capital. A higher ROCE indicates that the company is effectively utilizing its capital to generate profits.

Year-to-Year Comparison

Analyzing NHPC's ROCE annually provides valuable insights into its efficiency in using its capital to generate profits. An increasing ROCE indicates improved profitability and operational efficiency, whereas a decrease might signal potential issues in capital utilization or business operations.

Impact on Investments

NHPC's ROCE is a critical factor for investors and analysts for evaluating the company’s efficiency and profitability. A higher ROCE can make the company an attractive investment, as it often signifies that the firm is generating adequate profits from its employed capital.

Interpreting ROCE Fluctuations

Changes in NHPC’s ROCE are attributed to variations in EBIT or the capital employed. These fluctuations offer insights into the company’s operational efficiency, financial performance, and strategic financial management, assisting investors in making informed investment decisions.

Frequently Asked Questions about NHPC stock

Return on Capital Employed (ROCE) of NHPC is 8.43 % in 2026.

Return on Capital Employed (ROCE) of NHPC changed from 10.05 % to 8.43 %, representing a -16.06% change. The value is lower than the previous year.

On Eulerpool you can find the complete historical development of Return on Capital Employed (ROCE) NHPC since 2006 – with annual values, charts, and detailed analysis.

ROCE is a profitability measure and stands for Return on Capital Employed or the return on invested capital. The measure shows the ratio of operating profit to the interest-bearing capital employed. The higher the return on capital employed, the more profitable a company operates and the higher the important free cash flow. The free cash flow refers to the portion of profits that is not needed for expanding the company at the end of a period, but is available to shareholders.

A 'good' varies by industry and company stage. On Eulerpool, you can compare Return on Capital Employed (ROCE)'s NHPC with sector peers and the industry average to assess whether it is attractive.

To evaluate Return on Capital Employed (ROCE)'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for Return on Capital Employed (ROCE).

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Profitability — NHPC

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