NLC India Powers Ahead: H1 FY26 Sees Record Revenue and Strategic Expansion

NLC India Limited, a prominent Navratna public sector enterprise under the Ministry of Coal, has reported a robust financial performance for the first half of fiscal year 2026. The company achieved its highest-ever revenue from operations, signaling strong operational momentum and strategic execution. This impressive growth underscores NLC India's pivotal role in the nation's energy sector, as it continues to expand its footprint across conventional and renewable energy segments.

For H1 FY26, NLC India Limited recorded a total income of 8,463 Crore, a notable increase from the previous year. The revenue from operations alone stood at 8,004.02 Crore, marking a significant 13.77% year-on-year growth. This strong top-line performance translated into a Profit After Tax (PAT) of 1,564 Crore, reflecting efficient management and operational gains despite various market dynamics. The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a healthy figure of 3,190.17 Crore, maintaining strong margins.

Financial Snapshot: H1 FY26 Performance

The company's consolidated net worth as of September 30, 2025, reached 19,965.62 Crore, demonstrating a solid financial foundation and a growth of 12.35% over the previous year. This robust financial health is further validated by the AAA+ credit rating received from six different credit rating agencies, highlighting NLC India's strong creditworthiness and disciplined financial management. The improved collection efficiency, with the Debtor's turnover ratio increasing by over 100%, also points to effective working capital management.

Strategic Diversification and Capacity Expansion

NLC India is not merely focused on current performance but is actively charting an ambitious course for the future. The company's vision for 2030 includes a significant expansion of its capacity across various segments. It aims to increase its total income to 39,789 Crore and EBITDA to 20,149 Crore by 2030, with PAT projected to reach 5,000 Crore and total assets growing to 1,59,000 Crore.

A cornerstone of this strategy is the aggressive push into renewable energy. NLC India plans to expand its renewable energy capacity sevenfold, from the current 1.5 GW to an impressive 10 GW by 2030. This will elevate renewables to 51% of its total capacity mix, aligning with India's clean energy goals. The company is pursuing this through joint ventures with state governments in Rajasthan, Assam, Odisha, and Maharashtra, as well as through competitive bidding processes. Currently, 2.5 GW of renewable capacity is already under various stages of development.

In the current financial year, NLC India expects to commission approximately 350 MW of renewable energy capacity before March. Looking ahead, the company anticipates adding around 800 MW in the next financial year, with subsequent annual additions of 1 GW. This phased approach ensures steady progress towards its ambitious targets.

Beyond renewables, NLC India is also expanding its thermal power capacity, targeting an increase from 5,960 MW to 10,020 MW by 2030. Key projects like the Talabira Thermal Stage-II and a new power station near the Machhakata mine are in the pipeline, ensuring a balanced energy portfolio to meet the nation's growing power demand.

New Initiatives and Operational Excellence

NLC India is also making strategic forays into new, high-growth areas. The company is establishing a 4 MW Green Hydrogen pilot project in Neyveli to meet its internal requirements, with plans for commercial scaling. This initiative positions NLC India at the forefront of emerging energy technologies.

Another significant development is the collaboration with Bhabha Atomic Research Centre (BARC) to set up a pilot project for extracting rare earth elements from fly ash in Neyveli. This groundbreaking initiative aims to recover critical minerals not readily available in India, reducing import dependence and bolstering national self-reliance. The company has also partnered with Khanij Bidesh India Limited (KABIL) to identify and acquire critical mineral blocks globally, leveraging its extensive mining experience.

Operationally, NLC India has demonstrated resilience. Despite a slight dip in lignite production in H1 FY26, adjusted to match lower power demand, the company successfully commissioned 52.83 MW of its Barsingsar Solar project. The Unit-II of the Ghatampur Thermal Power Project, though delayed by monsoons, has completed its trial operations and is expected to declare Commercial Operation Date (COD) shortly. The company's proactive approach to maintenance, including overhauling six units during periods of lower power demand, reflects its commitment to operational efficiency.

Outlook and Investor Confidence

NLC India Limited's management remains confident in its strategic direction and financial outlook. The company plans a substantial CAPEX of 1,17,000 Crore over the next five years, with significant allocations for green projects (41,000 Crore), mining (14,000 Crore), and thermal projects (50,000 Crore). This CAPEX will be funded through a combination of internal resources and asset monetization, including a potential IPO for its renewable energy subsidiary, NIRL. The company's low debt-to-equity ratio provides ample headroom for future borrowings to support its growth ambitions.

NLC India's consistent profitability for 48 years and uninterrupted dividend payments for 26 years underscore its financial stability and commitment to shareholder value. The management's transparent communication regarding operational challenges and strategic initiatives instills confidence, positioning NLC India Limited as a key player in India's energy transition and a reliable investment for the long term.