Nava (513023) Q1 25/26 earnings summary

Executive summary

• Achieved record quarterly profit in Q1 FY26, with consolidated net profit up 31.8% sequentially to ₹39,909.07 lakhs and consolidated revenues rising 17.2% sequentially to ₹1,19,322.36 lakhs, driven by strong energy operations and improved receivables.

• MEL Zambia collected $75 million in receivables, reducing outstanding to $85.5 million, and paid a $50 million dividend to sponsors, with Nava group receiving $32.5 million.

• Major expansion projects in energy and agriculture, including MEL Phase II (300 MW) and a 100 MW solar project in Zambia, are progressing on schedule.

• Board approved unaudited consolidated and standalone results for the quarter ended June 30, 2025, with financials reviewed by the Audit Committee and unmodified review reports from statutory auditors.

Financial highlights

• Net cash position at INR 1,400 crores at the consolidated level for Q1.

• EBITDA for Q1 FY26 was ₹627.7 Cr, up 49.7% QoQ, with EBITDA margin improving to 50.9% from 39.7% in Q4 FY25.

• Standalone revenue grew 9.6% QoQ to ₹52,991.52 lakhs, and standalone PAT rose 45.2% sequentially to ₹14,105.31 lakhs.

• MEL Phase II expansion CapEx for the quarter was about INR 600 crores, with a total incremental CapEx of INR 700 crores planned.

• 100% of MEL Phase II power capacity tied up with ZESCO at a tariff of $0.095 per kWh.

Outlook and guidance

• Expectation to collect the remaining $85 million in MEL receivables before FY26 ends.

• MEL Phase II (300 MW) and 100 MW solar project in Zambia progressing on schedule, with commissioning targeted for August 2026 and July 2026, respectively.

• Avocado plantations in Africa to see first commercial harvest in Nov/Dec 2025; integrated sugar project in Zambia progressing, with $200 million CapEx to be spent over the next two financial years.

• Scheduled biannual maintenance shutdown for both Zambia power plant units in Q2.

• Management remains confident in recovering overdue receivables from a key customer, supported by a sovereign guarantee and arbitration award.