Press Release

Press Release

January 19, 2026

NUCLEAR POWER CORPORATION OF INDIA LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	4800.00	ACUITE AAA \| Stable \| Reaffirmed	-
Total Outstanding	4800.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed the long-term rating of ‘ACUITE AAA’ (read as ACUITE triple A) on the Rs.4800.00 Cr. bank facilities of Nuclear Power Corporation of India Limited (NPCIL). The outlook is ‘Stable’.

Rationale for rating reaffirmation
The rating reaffirmation considers NPCILs 100 percent ownership by the Government of India (GoI), and its strategic importance in India’s nuclear energy programme with Government’s focus on the use of cleaner fuel for power generation. The rating further reflects company’s long operational track record in developing nuclear plants in India and stable operational performance. The rating also factors in the healthy financial risk profile of the company and competitive tariff structure and must run status of plants ensuring healthy PLF levels along with assured fuel supply from government. However, the rating is constraint by implementation risk associated with the ongoing projects under construction and the counter party credit risk, as reflected in high receivable period.

About the Company

Mumbai based Nuclear Power Corporation of India Limited (NPCIL) is a Public Sector Enterprise incorporated in 1987 under the Department of Atomic Energy (DAE), Government of India (GoI). Presently, the company is the only entity in India responsible for design, construction, commissioning and operation of nuclear power reactors. NPCIL is presently operating 24 commercial nuclear power reactors with an installed capacity of 8780 MW and has 17 reactors under various stages of project implementation contributing additional 13100 MW of capacity by FY2032.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profiles of the NPCIL to arrive at this rating.

Key Rating Drivers

Strengths

Strategic asset for Government of India (GoI) with strong operational and financial assistance
NPCIL is wholly owned by GoI. It is the public sector undertaking which is engaged in design, construction, commissioning and operation of nuclear power reactors. NPCIL is presently operating 24 commercial nuclear power reactors with an installed capacity of 8780 MW. NPCIL is also in the midst of construction and installation of multiple reactors with cumulative capacity of 15200 MW. Out of which 2100 MW is already completed and 2700 MW is in the advance stage of completion and achieving criticality in near term and balance 10400 is at initial stages. NPCIL is a strategic entity for GoI to promote its nuclear energy initiative. GoI provides complete operational backup in terms of ensuring continuous supply of fuel and purchase of the power generated by NPCIL. Given such strategic importance and the complete ownership by the government, NPCIL is considered as a subsovereign entity, thereby enabling it to raise funds at competitive pricing from financial institutions and international lenders. The operational performance of the company has strengthened over the past few years on account of an improvement in plant capacity utilization levels. In FY25, the total gross generation from a total capacity of 8780 MW was 56681 MU as against 47,971 MU generated in FY24 with a total capacity of 8180 MW.

The overall plant load factor (PLF) of NPCIL stood ~85-90 percent in last 3 years. RAPS for Unit 7 which is of 700 MW commenced operations in April 2025 and Unit 8 RAPS will commence operation in FY2026 adding another 700 MW in the total capacity. The PLF is expected to moderate in FY2026 due to shut down for restoring purposes and for EMCCR (En-Masse Coolant Channel Replacement), this generally takes place once in every 15 years and this goes on for around 18 months. Acuité believes that NPCIL’s credit profile will continue to be strongly benefited by its strategic importance to GoI. The ownership pattern of NPCIL and the benefit it accrues from Government will remain key rating sensitivities.

Government's focus on the use of cleaner fuel for power generation
The Government of India is focusing on cleaner fuels to meet rising power demand while reducing carbon emissions. As of June 2025, the total installed capacity stood at about 476 GW, up from 446 GW in June 2024. Thermal power contributes around 50.5%, while renewables have grown to nearly 49%, reflecting strong policy support. Nuclear power currently accounts for 8.8 GW (~1.8% of capacity) and generated about 57 BU in FY 2024–25, an 18% increase over the previous year. Total electricity generation from all sources during FY 2024–25 is estimated at 1,821 BU, compared to 1,734 BU in FY 2023–24, registering a growth of 5%. To boost nuclear capacity, the government has introduced measures such as the Indian Nuclear Insurance Pool and amendments to the Atomic Energy Act, enabling joint ventures and private participation. India operates 25 reactors with 8.8 GW capacity, while 17 reactors totalling 13.1 GW are under construction or pre-project stages. The target is to reach 21.88 GW by 2031–32 and 100 GW by 2047 under the Nuclear Energy Mission. These initiatives, along with investments in advanced technologies like Small Modular Reactors, are expected to strengthen nuclear power’s role in bridging the demand-supply gap and support NPCIL’s growth prospects.

Healthy Financial risk profile
The company has healthy financial risk profile marked by healthy net worth, moderate gearing and comfortable debt protection matrices despite its continuing capital expenditure programme. The net worth of the company improved to Rs.67033.03 crore in FY25 as against Rs.61605.69 crore in FY24. The gearing of the company stood at 1.55 times in FY25 as against 1.47 times in FY24. The total debt stood at Rs.103874.95 crore in FY25 which mainly consists of long-term debt of Rs. 58502.43 crore external commercial borrowings of Rs.5190.87 crore and unsecured loans worth Rs.37390.83 crore and current maturities of long term debt of Rs.2790.82 crore. The total outside liabilities to tangible net worth (TOL/TNW) stood at 1.74 times in FY25 as against 1.60 times in FY24. The interest coverage ratio stood at 5.14 times in FY25 as against 11.75 times in FY24. The debt service coverage ratio (DSCR) stood at 2.07 times in FY25 as against 3.12 times in FY2024. Team believes that the financial risk profile will continue to remain healthy on account of strong cash accruals backed by a favourable tariff structure ensuring that there is no sharp rise in the debt levels.

Weaknesses

Implementation risk associated with the ongoing projects
NPCIL is in the midst of construction and installation of multiple reactors with cumulative capacity of 15200 MW. Out of which 2100 MW has commenced commercial operation till date, 2700 MW capacity is in advance stages of completion and achieving criticality in near to medium term and balance 10400 is at initial stages. Nuclear power projects typically have a long gestation period because the government and the project developer need to ensure very strong safety mechanisms and minimal risks to human life and the environment. Further, acquisition of land for green field projects and addressing public apprehensions about radiation risks also can take up a significant amount of time. While company's extensive experience in developing nuclear power plants somewhat mitigates project implementation risks, team believes that timely completion of its various projects and commencement of operations will continue to be a risk factor.

Counter-party credit risk
NPCIL has long-term power purchase agreements (PPAs) of 15-year with all state discoms except Discoms in Eastern part of India for all its nuclear power units mitigating the offtake risk. The receivable position elongated as on March 31, 2025 with total receivable of Rs. 4410.60 Cr. (including Rs.1660.01 Cr. pertaining to unbilled receivables) major of them is from State PSUs and departments. However, the receivables of the company have been reduce on account of the Late Payment Surcharge Scheme introduced by the government. The rules provide for clubbing of all outstanding dues including Principal, Delayed Payment Surcharge etc. into a consolidated amount which can be paid in interest free Equated Monthly Instalments (EMI). The maximum number of such EMIs can be 48 based on the quantum of the total outstanding dues. The receivables majorly include these legacy debtors, which have been largely recovered, thus debtors outstanding as on December 31, 2025 are ~ Rs. 2000.00 Cr.

ESG Factors Relevant for Rating

NPCIL is a nuclear power producer based and therefore, directly contributes to the reduction of carbon emissions. The other material factors from the environmental perspective are green supply chain and waste management. The governance factors that play an important role are ethical business practices, board oversight and management compensation. Further, risk management practices to minimise corruption associated with electricity and gas distribution plays a crucial role. Additionally, regulatory compliance, shareholder’s rights and audit control are other material issues in the power generation industry.

Rating Sensitivities

Any dilution in stake from GoI
Timely execution of capacity expansion

Liquidity Position

Strong

NPCIL’s strong liquidity position is enhanced by its association with GoI. The company has generated cash accruals of Rs.6542.76 crore for FY2025 as against its maturing debt obligations of Rs.2249.73 crore. NPCIL also has fund based working capital limits from banks of around Rs.2000.00 Cr, which are fully unutilized. Further, the ownership and the company’s strategic importance to the government strongly improves its ability to raise debt at a competitive rate from domestic and international lenders, thereby mitigating any liquidity risks.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	20384.66	20567.95
PAT	Rs. Cr.	4737.17	6522.66
PAT Margin	(%)	23.24	31.71
Total Debt/Tangible Net Worth	Times	1.55	1.47
PBDIT/Interest	Times	5.14	11.75

Note on Key Financials

The financial figures and ratios are based on Acuite's internal adjustments.

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
21 Oct 2024	Term Loan	Long Term	800.00	ACUITE AAA \| Stable (Reaffirmed)
	Term Loan	Long Term	1733.33	ACUITE AAA \| Stable (Reaffirmed)
	Term Loan	Long Term	333.33	ACUITE AAA \| Stable (Reaffirmed)
	Term Loan	Long Term	333.33	ACUITE AAA \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	1600.01	ACUITE AAA \| Stable (Reaffirmed)
24 Jul 2023	Term Loan	Long Term	1200.00	ACUITE AAA \| Stable (Reaffirmed)
	Term Loan	Long Term	2600.00	ACUITE AAA \| Stable (Reaffirmed)
	Term Loan	Long Term	500.00	ACUITE AAA \| Stable (Reaffirmed)
	Term Loan	Long Term	500.00	ACUITE AAA \| Stable (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4633.33	Simple	ACUITE AAA \| Stable \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Jan 2026	166.67	Simple	ACUITE AAA \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Akshat Shah
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.