Nava Q2 profit rises 127.3% as EBITDA margin reaches 42%

Nava Limited reported profit after tax of Rs 403.5 crore in the second quarter of financial year 2027 (Q2 FY27), up 127.3% year on year, as revenue from operations rose 29.9% to Rs 1,252.3 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) margin reached 42.0%. Indian energy realisations, lower coal prices and a lower tax charge were cited.

What drove Nava’s Q2 FY27 revenue growth?

Nava’s consolidated revenue from operations increased 29.9% year on year to Rs 1,252.3 crore in Q2 FY27, compared with Rs 963.7 crore in Q2 FY26. It also rose 3.3% from Rs 1,211.8 crore in Q1 FY27, while total income, including other income, increased 34.9% year on year to Rs 1,335.6 crore.

The presentation attributes the operational revenue increase partly to a 34.4% rise in energy division revenue, with all power plants operating at healthy plant load factors and increased plant availability at Maamba Energy Limited. Mining revenue was 33.10% higher because sales quantity increased, providing a second contributor to the group’s revenue movement.

Other income rose to Rs 83.2 crore in Q2 FY27 from Rs 26.0 crore a year earlier and Rs 57.0 crore in Q1 FY27. That meant other income accounted for a larger part of total income in the quarter, while revenue from operations remained the largest reported income line at Rs 1,252.3 crore.

How did Nava’s margin and costs change in Q2 FY27?

Nava’s Q2 FY27 EBITDA was Rs 560.9 crore, 64.4% above Rs 341.3 crore in Q2 FY26, and its EBITDA margin increased to 42.0% from 34.5%. The presentation says the year-on-year EBITDA improvement reflected higher realisations in the Indian energy division together with reduced coal prices.

The margin was lower sequentially, however, falling from 46.0% in Q1 FY27 as EBITDA declined 3.9% from Rs 583.5 crore even though revenue increased 3.3%. Manufacturing expenses rose 25.7% year on year to Rs 157.2 crore, while other expenses increased 63.5% to Rs 173.2 crore.

Nava said other expenses were higher because of foreign-exchange losses on current assets after depreciation of the Zambian kwacha, as well as higher freight and shutdown costs at Maamba Energy Limited. Cost of materials was nearly unchanged year on year at Rs 358.5 crore versus Rs 354.0 crore, but it rose 14.1% from Rs 314.3 crore in Q1 FY27.

Employee costs declined 11.1% year on year to Rs 99.3 crore, while estimated credit loss was a negative Rs 2.2 crore, compared with a negative Rs 25.5 crore in Q2 FY26. Finance charges increased 25.4% to Rs 3.5 crore and depreciation and impairment loss rose 10.2% to Rs 103.9 crore, yet profit before tax expanded 85.6% year on year to Rs 453.2 crore.

Why did Nava’s profit after tax rise faster than revenue?

Nava’s profit after tax (PAT) increased 127.3% year on year to Rs 403.5 crore because profit before tax rose 85.6% and tax expense fell 25.5%. The tax charge was Rs 49.4 crore in Q2 FY27, compared with Rs 66.3 crore in Q2 FY26, even as profit before tax increased from Rs 244.2 crore to Rs 453.2 crore.

Nava attributed the lower tax expense to reversal of a deferred tax liability provision following Zambian kwacha depreciation. This reduced the difference between pre-tax and post-tax profit: the PAT margin reached 30.2% in Q2 FY27, compared with 17.9% a year earlier and 26.2% in Q1 FY27.

Sequentially, profit before tax fell 5.5% from Rs 479.6 crore in Q1 FY27, but PAT rose 21.2% from Rs 332.8 crore because tax expense decreased 66.3% from Rs 146.4 crore. Earnings per share were Rs 11.14 in Q2 FY27, compared with Rs 4.58 in Q2 FY26 and Rs 9.80 in Q1 FY27.

For the first six months of FY27, PAT rose 27.7% to Rs 736.3 crore from Rs 576.6 crore in 6M FY26. The six-month EBITDA margin was 43.9%, slightly above 43.6% in the prior-year period, while the PAT margin rose to 28.3% from 25.9%.

What operating developments could affect Nava after Q2 FY27?

Nava reported that Maamba Solar’s 100 megawatt project was commissioned on 24 September 2026, with power injected into the grid. Maamba Energy Limited also declared a US$15.0 million dividend in October 2026, while Nava Global’s cumulative dividend income during the year was about US$28.0 million.

Maamba Energy Limited realised US$10.5 million from ZESCO in November 2026, reducing receivable arrears to US$2.6 million. Separately, Nava Bharat Projects Limited paid a dividend of Rs 8.2 crore during the quarter, adding to the operating and cash-flow developments disclosed alongside the financial results.

The presentation says mechanical and electrical erection for MEI’s Phase II 300 megawatt project is progressing, with phased commissioning targeted for July 2027. It also says avocado plantations in Divisions A and B received Global G.A.P and SMETA accreditations, with first commercial harvest and sales expected during November to March 2027.

Conclusion

Nava’s Q2 FY27 result combined 29.9% operational revenue growth, a 42.0% EBITDA margin and a lower Rs 49.4 crore tax charge to produce Rs 403.5 crore of PAT, up 127.3% year on year. The result differed from the sequential comparison, where EBITDA fell 3.9% and margin declined from 46.0%, but PAT still rose 21.2% as tax expense decreased.

The next disclosed milestones are phased commissioning of MEI’s Phase II 300 megawatt capacity by July 2027 and the avocado project’s planned first commercial harvest and sales during November to March 2027. Readers can also watch whether the reported US$2.6 million ZESCO receivable arrears change after the US$10.5 million November 2026 realisation.