The recommencement of work at Lower Subansiri is a major positive. In the past, however, agitation by locals had impacted construction activities. Moreover, commissioning of the project is still some time away (FY24 according to management) and we await progress on the same. Capex run- rate, on the other hand, is expected to increase as the company is investing/exploring new projects. This should reduce FCF and drag RoEs in the near term. NHPC’s regulated equity growth key driver of earnings – will be muted over the next few years as no new projects are being commissioned. We maintain Neutral with DCF-based TP of INR25/share.