Nava (513023) Q3 25/26 earnings summary

Executive summary

• Achieved a key milestone with the $50 million Nava Global buyback, reflecting strong asset quality and disciplined capital allocation.

• Q3 FY26 consolidated revenue reached ₹1,061.5 Cr, up 7.3% sequentially and 20.9% year-over-year, with PAT at ₹325.7 Cr, an 83.5% increase quarter-over-quarter.

• Energy business remained resilient, with high plant availability and improved mining volumes and margins.

• Growth projects, including 300 MW MEL expansion, 100 MW solar in Zambia, avocado plantations, and Kawambwa sugar project, are progressing well.

• Mining division revenue rose 16.6% sequentially, while the Indian energy business saw a revenue decline due to planned shutdowns and lower demand.

Financial highlights

• EBITDA for Q3 FY26 was ₹513.0 Cr, with an EBITDA margin of 48.3%, up from 34.5% quarter-over-quarter, driven by MEL power plants operating at 97% PLF.

• Other income rose sharply to INR 70.4 crore in Q3 from INR 26 crore in Q2, mainly due to foreign currency fluctuations; sustainable other income estimated at INR 40 crore per quarter.

• Mining revenue grew 16.6% quarter-over-quarter due to higher, sustainable volumes averaging 35,000-42,000 tons monthly.

• Employee costs increased from INR 191 crore to INR 268 crore over nine months, attributed to commission provisions.

• Earnings per share for the quarter stood at ₹7.84, up from ₹4.57 in the previous quarter.

Outlook and guidance

• MEL's Phase II 300 MW power project and Maamba Solar's 100 MW project in Zambia are targeted for commissioning by FY27-28, with anticipated annual revenues of $180-200 million and $15-16 million, respectively.

• Avocado segment expected to become significant in 4-5 years, with full production from all divisions in 8 years.

• Sugar complex processing unit targeted for completion by mid-2028.

• Management remains confident in the recoverability of significant overdue receivables from a key Zambian customer, supported by a sovereign guarantee and arbitration award.

• No major plant shutdowns planned for FY26 and FY27; regular maintenance expected.