State-run Nuclear Power Corporation of India (NPCIL) reported a net exchange-rate variation loss of Rs 2,277.84 crore in FY26, against Rs 56.11 crore a year earlier, a more than 40-fold surge as rupee depreciation increased its foreign-currency obligations, according to the company’s latest annual report.
The increase of Rs 2,221.73 crore arose from Russian credit, foreign-currency term loans and external commercial borrowings used to finance nuclear power projects. NPCIL attributed the rise to the “depreciation of rupee against USD and Japanese Yen”, its management discussion and analysis said.
The dollar rose from Rs 85.6024 on April 2, 2025, to Rs 94.6543 on March 30, 2026, according to the exchange-rate figures provided. This represents an increase of Rs 9.05, or nearly 10.6%, in the rupee cost of a dollar. The loss was offset by corresponding rate-regulatory income under the applicable tariff framework.
The annual report shows net exchange-rate variation of Rs 2,291.94 crore under operating expenses, compared with Rs 61.04 crore in FY25. Separately, it identifies Rs 2,277.84 crore as exchange-rate variation recognised under rate-regulatory income, against Rs 56.11 crore in the previous year.
Explaining the recovery mechanism, NPCIL said foreign exchange rate variation (FERV) “shall be allowed as pass through” under Department of Atomic Energy tariff norms where hedging has not been undertaken. Actual hedging costs are also eligible under the framework. The company booked the currency loss under other expenses and recognised corresponding regulatory income.
The exposure is substantial at the Russian-assisted Kudankulam Nuclear Power Project (KKNPP). Outstanding Russian credit for Units 3 and 4 increased to Rs 30,467.63 crore at March-end 2026 from Rs 26,288.82 crore a year earlier. Credit for Units 5 and 6 rose to Rs 16,141.82 crore from Rs 11,102.01 crore.
Combined Russian credit reached Rs 46,609.45 crore, compared with Rs 37,390.83 crore in FY25. NPCIL reported a net addition of Rs 9,218.62 crore during the year, including Rs 4,139.52 crore in exchange-rate variation on outstanding Russian credit. The latter is a borrowing-related adjustment, distinct from the Rs 2,277.84-crore regulatory-income figure.
NPCIL also raised Japanese-yen-denominated external commercial borrowings worth Rs 3,190.47 crore and foreign-currency term loans amounting to Rs 4,741.68 crore during FY26. Total long-term borrowings, including current maturities, increased to Rs 1,18,708.01 crore from Rs 1,03,795.84 crore.
The annual report said funds raised through these sources were used mainly for capital expenditure on ongoing nuclear projects. Capital work-in-progress and intangible assets under development increased to Rs 1,14,572.49 crore from Rs 1,05,803.51 crore, reflecting expenditure on Kudankulam Units 3-6, Rajasthan Unit 8, Kaiga Units 5-6 and other projects, partly offset by capitalisation of Rajasthan Unit 7.
NPCIL’s total rate-regulatory income climbed to Rs 4,311 crore from Rs 362.76 crore, driven by exchange-rate variation and deferred-tax adjustments. Profit before tax rose 61.32% to Rs 8,909.27 crore, while revenue from operations increased 5.86% to Rs 21,045.32 crore.