NPCIL IPO likely in 2026 as budget support is cut sharply

The Initial Public Offering (IPO) of Nuclear Power Corporation of India Limited (NPCIL) is expected to materialise this year after remaining in the pipeline for over 15 years. The Department of Atomic Energy (DAE) informed a Parliamentary Standing Committee that Budget 2026-27 has reduced equity support to NPCIL from Rs 3,042 crore to Rs 100 crore, citing the company’s plan to proceed with a public listing.

The overall capital allocation to DAE has been reduced from Rs 11,977 crore to Rs 9,966 crore in the current budget. The department told the Parliamentary Standing Committee examining atomic energy demands for grants that the decline is largely due to the sharp reduction in equity support for NPCIL.

NPCIL is the sole operator of nuclear power plants in India, with 24 units and a combined capacity of 8,780 MW, excluding the 100 MW Rajasthan Atomic Power Station Unit-1 (RAP-1) under long-term maintenance. The company’s electricity generation increased to 56,881 million units (mu) in 2024-25 from 47,971 mu in the previous year, raising revenue from operations to Rs 19,880 crore. Profit before tax (PBT), however, declined by around one-third to Rs 4,343 crore. The operating surplus stood at Rs 8,976 crore, with the difference between surplus and pre-tax profit attributed to financing costs, depreciation, and other non-operating expenses.

The Parliamentary Standing Committee has raised concerns over the divergence between revenue growth and declining profitability. It has recommended that the government undertake an independent performance audit of NPCIL’s cost structure.

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