NLC India (513683) Q1 25/26 earnings summary

Executive summary

• Unit 1 of Ghatampur Thermal Power Station (660 MW) was dedicated to the nation; Unit 2 achieved oil synchronization and is targeting COD by September, with Unit 3 by December.

• Approval received for INR 7,000 crores investment in NLC India Renewables Limited, exceeding Navratna Guidelines.

• Maiden entry into critical mineral mining with successful bids for blocks in Chhattisgarh; MoU signed with IREL for collaboration in critical minerals.

• Historic MoU signed with Bhabha Atomic Research Centre for rare earth extraction from fly ash.

• Consolidated Q1 FY26 revenue from operations was ₹3,825.61 crore, up from ₹3,378.17 crore in Q1 FY25; consolidated net profit for Q1 FY26 stood at ₹839.21 crore, a significant increase from ₹566.69 crore in Q1 FY25.

Financial highlights

• Revenue from operations for Q1 FY26 was INR 5,825 crores, up 13.5% year-over-year from INR 3,378 crores.

• Profit after tax for Q1 FY26 was INR 839 crores, up 48% from INR 566 crores in Q1 FY25.

• Consolidated EBITDA for Q1 FY26 improved, with operating margin at 14.93% (vs. 21.48% in Q1 FY25); net profit margin for Q1 FY26 was 20.81%.

• NUPPL generated INR 642 crores in revenue for the quarter.

• Talabira mine Q1 EBITDA was INR 218 crores; PBT was INR 209 crores.

Outlook and guidance

• Renewable energy capacity target of 10 GW by 2030 remains, with 1 GW addition planned for FY26 and 1.5 GW annually thereafter.

• CapEx plan for FY26 is INR 23,601 crores; Q1 CapEx was INR 1,925 crores.

• Under-recovery expected to be lower than last year due to completed modifications and operational improvements.

• Management is confident of overcoming land acquisition challenges at Neyveli mines and ensuring lignite availability through contingency mining.

• The company is actively pursuing regulatory and legal resolutions for disputed receivables and tariff matters.