NLCINDIA - NLC India

📊 NSE: NLCINDIA 🏢 Power Generation And Supply 📅 Last Updated: 12/14/2025 10:34

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 14% YoY to INR 8,004 Cr in H1 FY26 from INR 7,036 Cr. The Power segment contributed INR 6,861 Cr (83% of segment revenue) while Mining contributed INR 4,208 Cr (18% including inter-segment revenue). For FY25, total income reached INR 16,889 Cr, a 21% increase from INR 13,948 Cr in FY24.

Geographic Revenue Split

Not explicitly disclosed in available documents, though operations are primarily centered in Tamil Nadu (Neyveli) and Uttar Pradesh (NUPPL), with off-takers like TANGEDCO in Tamil Nadu representing a significant portion of the credit risk.

Profitability Margins

Net Profit Margin (NPM) improved to 18.62% in H1 FY26 from 17.68% in FY25. Operating Profit Margin (OPM) stood at 19.57% in H1 FY26. PAT for FY25 was INR 2,714 Cr, a 46% increase from INR 1,857 Cr in FY24.

EBITDA Margin

EBITDA margin was 37.69% in H1 FY26 (INR 3,190 Cr) compared to 38.56% in FY25. A sharp decline was noted in Q1 FY26 to 24.4% from 32.1% YoY due to boiler modifications at the TPS-II expansion plant and early monsoon impacts.

Capital Expenditure

Planned capital expenditure of INR 25,000-30,000 Cr over fiscals 2026-2028 to expand the power portfolio from 6.7 GW to over 10 GW. Historical capex has been funded at a CERC-stipulated debt-equity ratio of 70:30.

Credit Rating & Borrowing

Maintains 'AAA/Stable' ratings from CRISIL, ICRA, CARE, and Infomerics. Interest coverage ratio improved to 6.92x in FY25 from 5.30x in FY24. Total debt stood at INR 22,415.49 Cr as of March 31, 2024.

⚙️ Operational Drivers

Raw Materials

Lignite and Coal are the primary raw materials, sourced through captive mining operations which provide fuel security for thermal plants. Lignite production was 13,376 LT in H1 FY26.

Import Sources

Primarily sourced from captive mines in India, specifically Neyveli (Tamil Nadu) for lignite and Talabira (Odisha) for coal.

Key Suppliers

Captive mining operations (self-supplied). NLCIL acts as the nodal agency for lignite mining in India.

Capacity Expansion

Current installed capacity is 6,731 MW (5,351 MW thermal and 1,380 MW renewable) as of December 2024. Expanding to >10 GW by FY28. NUPPL Unit I (660 MW) commissioned in Dec 2024; Units II and III expected by Sept and Dec 2025.

Raw Material Costs

Captive fuel availability mitigates price volatility; however, land acquisition issues in FY24 previously impacted fuel requirement and power generation levels.

Manufacturing Efficiency

Plant availability was 59.68% in 9M FY25, significantly below the normative level of 85%, leading to an under-recovery of fixed charges amounting to INR 517 Cr.

Logistics & Distribution

Not disclosed as a specific percentage of revenue, but involves power transmission to state utilities and coal/lignite transport from captive mines to pit-head plants.

📈 Strategic Growth

Expected Growth Rate

15-18%

Growth Strategy

Growth will be driven by commissioning the remaining 1,320 MW of the NUPPL project by end of 2025 and a massive INR 25,000-30,000 Cr capex plan to reach 10 GW capacity. This includes aggressive expansion into Renewable Energy (RE) and critical minerals like BESS and EV charging stations.

Products & Services

Electricity (Thermal and Renewable), Lignite, and Coal.

Brand Portfolio

NLC India Limited (NLCIL), NUPPL (Neyveli Uttar Pradesh Power Ltd), NTPL (NLC Tamil Nadu Power Ltd).

New Products/Services

Expansion into Battery Energy Storage Systems (BESS), Critical Minerals, EV Charging stations, and Carbon Capture systems.

Market Expansion

Targeting a total RE capacity contribution toward India's 500 GW 2030 goal, with specific focus on solar and wind projects in pipeline.

Market Share & Ranking

Nodal agency for lignite mining in India; holds 'Navratna' status since 2011.

Strategic Alliances

Joint Ventures include NLC Tamil Nadu Power Limited (89% stake) and Neyveli Uttar Pradesh Power Limited (51% stake with Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd).

🌍 External Factors

Industry Trends

The industry is shifting toward 50 GW annual RE additions. NLCIL is pivoting from a lignite-heavy thermal producer to a diversified energy player with a growing 1.38 GW RE portfolio.

Competitive Landscape

Competes with other central power utilities like NTPC and private players in the RE space, but maintains a niche in lignite-based thermal power.

Competitive Moat

Moat is sustained by 72.20% Government of India ownership, 'Navratna' status, and captive lignite mines which provide a low-cost fuel advantage over competitors relying on imported coal.

Macro Economic Sensitivity

Highly sensitive to government energy policies and India's target of 500 GW renewable capacity by 2030.

Consumer Behavior

Increasing demand for sustainable and green energy is forcing a shift in the generation mix toward renewables.

Geopolitical Risks

Minimal direct impact as a domestic energy producer, but subject to global trends in coal pricing and renewable technology costs.

⚖️ Regulatory & Governance

Industry Regulations

Operations are strictly governed by CERC norms for tariff determination and the Ministry of Coal for mining activities. Debt-equity must stay within 70:30 (2.33x) per CERC norms.

Environmental Compliance

Subject to stringent pollution norms for thermal plants; investing in carbon capture and renewable energy to meet ESG standards.

Taxation Policy Impact

Effective tax rate reflected in PAT growth; H1 FY26 tax expense was INR 488 Cr.

Legal Contingencies

Exposure to CERC disallowances of capital costs for operating projects, which impacted profitability in FY24. Specific court case values not disclosed.