Power Generation Company reports strong Q1FY26 results with Rs 7000 crore investment approval; new projects and 48 per cent PAT growth

DSIJ Intelligence-1 / 08 Aug 2025/ Categories: Mindshare, Trending

Power Generation Company reports strong Q1FY26 results with Rs 7000 crore investment approval; new projects and 48 per cent PAT growth

The stock is up by 30 per cent from its 52-week low of Rs 185.85 per share and has given multibagger returns of 375 per cent in 5 years.

NLC India Ltd reported strong results for Q1 FY26, driven by new projects and a significant growth in profit. The company's financial performance was marked by a 13.25 per cent increase in revenue from operations, reaching Rs 3,825.61 crore, and a 12.99 per cent growth in total income, which stood at Rs 4,115.85 crore. Most notably, the Profit After Tax (PAT) surged by 48.09 per cent to Rs 839.21 crore. This robust financial position was supported by a capital expenditure (Capex) achievement of Rs 1,925.62 crore, exceeding the target for the quarter. A key highlight was the dedication of Unit 1 (660 MW) of the Ghatampur Thermal Power Station to the nation by the Prime Minister.

The company also made significant strides in strategic expansion and diversification. The Cabinet Committee on Economic Affairs (CCEA) approved a substantial investment of Rs 7,000 crore in NLC India Renewables Limited (NIRL), beyond the limits for Navratna companies. NIRL, in turn, was awarded a 250MW/500 MWhr Battery Storage System (BESS) project by TNGECL and an LoA from NTPC for a 450 MW Wind-Solar Hybrid Power Project. NLC India Ltd is also venturing into the critical minerals sector, having been declared the preferred bidder for two phosphorite and limestone blocks and signing an MoU with IREL (India) Limited.

Furthermore, the company's operational progress included the successful oil synchronisation of Unit-2 (660 MW) at the Ghatampur Thermal Power Project. The company received permission from the Tamil Nadu government to dispose of overburden soil from its mines and produce M-Sand. Forest clearance was also granted for the Pachwara South OCP of NUPPL, and land acquisition for the Machhakata OCP was initiated. These developments, along with the financial achievements, position NLC India Ltd for continued growth in the energy and critical minerals sectors.

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About the Company

NLC India Ltd is a government-owned company in India primarily involved in lignite mining and thermal power generation. It operates mines in Tamil Nadu and Rajasthan, using lignite to produce electricity. This power is then sold to various states in India, including Tamil Nadu, Rajasthan, Andhra Pradesh, Kerala, Karnataka and Puducherry. As a Navratna company, NLC India holds a significant position in the Indian energy sector.

The company has a market cap of over Rs 32,000 crore and has been maintaining a healthy dividend payout of 24.4 per cent. The stock is up by 30 per cent from its 52-week low of Rs 185.85 per share and has given multibagger returns of 375 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.