Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
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’.
Acuité has assigned 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 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 capex 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 13 reactors under various stages of project implementation contributing additional 10300 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 in the midst of construction and installation of multiple reactors with cumulative capacity of 11000 MW. Out of which 700 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 7600 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 sub sovereign 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. The overall plant load factor (PLF) of NPCIL stood ~85-90 percent in last 3 years. Rajasthan Atomic Power Station (RAPS) Unit 7 commenced operations in April 2025 adding 700 MW and RAPS Unit 8 is expected to be commenced by March 27 adding another 700 MW by FY27. The PLF remain moderate in FY2026 at ~75 per cent 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 fuel sources to meet rising power demand while reducing carbon emissions. As of June 2026, India's total installed power generation capacity stood at approximately 549 GW, compared with 476 GW in June 2025. Non-fossil fuel sources contributed around 297 GW (54.2%) of the installed capacity, surpassing fossil-fuel-based capacity and reflecting the country's continued energy transition. Nuclear power currently accounts for 8.78 GW of installed capacity, while total electricity generation from all sources continues to witness steady growth driven by rising demand and economic activity. India’s installed power capacity crosses 548.8 GW in June 2026 India Renewable Energy Installed Capacity Reaches 288.58 GW in 2026. To boost nuclear capacity, the Government has launched the Nuclear Energy Mission with a target of achieving 100 GW of nuclear power capacity by 2047 and has proposed reforms to facilitate greater private sector participation in the sector. India currently operates 24 nuclear reactors with a total installed capacity of 8.78 GW, while nine reactors aggregating about 7.5 GW are under construction, apart from several approved projects in the pipeline. The Government has also earmarked Rs.20,000 crore for the development of advanced technologies, including Small Modular Reactors (SMRs). These initiatives are expected to strengthen nuclear power's role in India's energy mix, enhance energy security, support decarbonisation goals, and provide long-term growth opportunities for NPCIL.
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.74287.15 crore in FY26 as against Rs.67003.03 crores in FY25 marked by accretion of profits into reserves and further equity infusion by GoI. The gearing of the company stood at 1.61 times in FY26 as against 1.55 times in FY25. The total debt stood at Rs.119616.88 crores in FY26 which mainly consists of long-term debt of Rs.53964.52 crore and unsecured loans worth Rs.55164.29 crores and CPLTD of Rs.10488.07 crores. The total outside liabilities to tangible net worth (TOL/TNW) stood at 1.76 times in FY26 as against 1.74 times in FY25. The interest coverage ratio stood at 6.18 times in FY26 as against 5.14 times in FY25. The debt service coverage ratio (DSCR) stood at 1.92 times in FY26 as against 2.07 times in FY2025. Acuite 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 11000 MW. Out of which 700 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 7600 is at initial stages with total cost of CAPEX for 11000 MW stands at Rs.225032 crores out of which Rs.126570 crores has been incurred as of August 2026. 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, Acuite 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, 2026 with total receivable of Rs.5690.38 Cr, majority of them is from State PSUs and departments. However, the receivables of the company are expected to reduce on account of the Late Payment Surcharge Scheme introduced by the government. Late Payment Surcharge Scheme refers to the charges payable by a distribution company to the power generating company. The rules provide for clubbing of all outstanding dues including Principal, Late 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.
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
Potential triggers (individual or collective) for an upward rating action:
Not Applicable
Potential triggers (individual or collective) for a downward rating action:
Any dilution in stake from GoI
Delay in execution of capex projects or cost overruns altering funding requirements thereby deteriorating financial position
Net cash accruals falling below Rs. 5000 Cr consistently exerting pressure on liquidity
Liquidity Position
Strong
NPCIL’s Strong liquidity position is enhanced by its association with GoI. The company has generated cash accruals of Rs.7327.39 crores in FY2026 as against its maturing debt obligations of Rs.2790.82 crores. Further the cash and bank balance stood at Rs.1335.42 crores in FY26 while the current ratio stood at 0.91 times during the same period. NPCIL also has fund based working capital limits from banks of around Rs.2000.00 Cr, which are largely unutilized. Further, the ownership and the company’s strategic importance to the government strongly support 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 26 (Actual)
FY 25 (Actual)
Operating Income
Rs. Cr.
25592.79
20384.66
PAT
Rs. Cr.
5201.96
4737.17
PAT Margin
(%)
20.33
23.24
Total Debt/Tangible Net Worth
Times
1.61
1.55
PBDIT/Interest
Times
6.18
5.14
The financial figures and ratios are based on Acuite's internal adjustments.
Status of non-cooperation with previous CRA (if applicable)
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
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