Ladies and gentlemen, good day and welcome to NLC India Limited Q1 FY26 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mohit Kumar from ICICI Securities. Thank you, and over to you, Mr. Kumar.
Thank you, Rinju. Good evening. On behalf of ICICI Securities, I welcome you all to the Q1 FY26 earnings call of NLC India. Today, we have with us from the management, Shri M. Prasanna Kumar, CMD; Shri Suresh Chandra Suman, Director Mines, and Director Planning and Projects, Additional Charge; Shri M. Venkatachalam, Director Power; Shri Samir Swarup, Director Human Resources; and Shri Prasanna Kumar Acharya, Director Finance and CFO. We'll start the call with brief opening remarks by the management, which will be followed by Q&A. Over to you, sir.
Thank you, Mohit, for the introduction, and warm thank you to ICICI Securities for hosting this investor conference call. I also want to extend my gratitude to all the participants for your interest in NLCIL and to our investors for your unwavering support. Today, I'm happy to engage with NLCIL shareholders and address any questions you might have regarding our financial results for the quarter ended June 30th, 2025, as well as provide updates on our capacity addition program. Your involvement and feedback are invaluable to us, and I look forward to a productive discussion. I Prasanna Kumar Motupalli, Chairman and Managing Director of NLC India Limited, and joining with me are Dr. Suresh Chandra Suman, Director Mines, and Director Planning and Projects, Additional Charge, Shri Sameer Swarup, Director Human Resources, Shri M. Venkatachalam, Director Power, and Dr. Prasanna Kumar Acharya, Director Finance, along with Senior Management of the company.
Before the interaction, I would like to brief on the major highlights and performance of NLCIL during the quarter ended June 30th, 2025. The Honorable Prime Minister of India has dedicated Unit 1 of NUPPL, 660 megawatts, Ghatampur Thermal Power Station to the nation. The Cabinet Committee on Economic Affairs, CCEA, in its meeting dated 16th July 2025, provided approval for making the investment to the tune of INR 7,000 crores in NLC India Renewables Limited, NIRL, beyond the investment limit prescribed as the Navratna Guidelines issued by DPE. NLCIL has successfully achieved oil synchronization of Unit 2, 660 MW, of Ghatampur Thermal Power Project. NLCIL has been declared as the best bidder for Samharthi Copperite and Limestone Block and Raipura Phosphorite and Limestone Block of Balod, Chhattisgarh, in the auction of critical and strategic mineral blocks by the Ministry of Mines. This is NLCIL's maiden entry critical mineral mining business.
Government of Tamil Nadu has granted permission for disposal of overburdened soil from the external dumps of mines and to produce embankments from overburdened soil. For Machhakata Revised OCP, land acquisition, MoC has issued notification under Section 4(1) of CBA A ct, 1957. NIRL has been awarded with a combined capacity of 250 MW, 500 MW-hour battery storage system, projected by Tamil Nadu Green Energy Corporation Limited under Viability Gap Funding scheme. NLCIL has received LOA from NTPC for setting up a 450 megawatt ISTS connected wind solar hybrid power project. NLCIL has entered into MOU with IREL Limited to collaborate in the critical mineral sector. MoEF&CC has granted Stage 2 Forest Clearance for Pachwara South OCP of NUPPL. MoC has issued notification under Section 9(1) of CBA Act 1957 in respect of North Dhadu Western Part Power Block. The CAPEX agreement for Q1 2026 is INR 1,925 crores.
This is 113% against the target of INR 1,708 crores up to June 25. NLCIL Group has achieved a revenue from operations of INR 5,825 crores against 3,378 crores the previous year, thus registering a growth of 13.5%. NUPPL has generated 642 crores revenue from operations for the part of quarter ended June 2025. NLCIL Group has achieved a total income of 4,115 crores as against 3,642 crores the corresponding period of the previous year, registering a growth of around 13%. NLCIL Group has achieved a profit after tax for the quarter ended Q1 of 2025-26 is 839 crores as against 566 crores in the previous year of Q1 of 2024 to 2025, registering a growth of 48%.
I am happy to say that in a significant step towards Atmanirbhar Bharat, in line with the vision of Honorable Prime Minister of India, NIRL NLC India Limited has signed a historic memorandum of understanding with Bhabha Atomic Research Centre for the pioneering project to extract rare earth elements from fly ash. With this, I thank all the investors for the outstanding support to the company, and I thank all the participants in today's investor call for giving encouragement to Team NLCIL and at the same time giving valuable suggestions. I assure that whatever commitments we have given and the timelines we have given, we will be putting all our efforts to ensure that these commitments are met and increase the returns to investors. Thank you. Thank you all.
Speakers, should we open the line for questions?
Yes, sir.
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question comes from the line of Aditya Welekar with Axis Securities. Please go ahead.
Yeah, thank you for the opportunity, sir. My question is on the thermal power tendering and update on the expansion projects. So first, on the Ghatampur Unit 2 and 3, when are we expecting the COD? And related to that, the Pachwara South Coal Block post the EC grant of EC when we are expecting the commercial production? And within that, what is our status on tendering of Talabira Phase 1, Phase 2, and TPS-II Expansion?
As you know, Ghatampur Unit 1, the COD was declared in the month of December 2024, and the unit is running well and almost generated 2.6 billion units as on date. Unit 2, we already carried out oil synchronization at one go a month back, and we are targeting to declare the COD by end of September. Similarly, Unit 3, all activities are in fast progress. We are targeting to declare the COD by end of December of the current calendar year. Coming to Pachwara South, there was a major achievement. We got the Phase 2 forest clearance, and subsequently, all the actions for handing over of the forest land and all other activities are in fast progress, and we are targeting to start the coal production in the current financial year.
Coming to the tendering of the Talabira Phase 2, the environmental clearance activities are going on, and we are ready with the tender document, and we will be floating in the next three months' period. Similarly, the case with the Neyveli 2 into 500 megawatt thermal power station, that also we are ready with the tender document, and we will be floating the tender by October.
Okay. Just to follow up on that, sir, then we also have one Rajasthan Lignite Thermal of 375 MW, which is under evaluation. So is there any progress on that?
Yes, sir. Recently, we formed that JV with the Rajasthan government for establishing that 375 MW. So all the activities are in fast progress. We will be coming up with the tender as early as.
Okay. My second question is with respect to our renewable energy capacity additions plan. What is the RE capacity which we added in Q1? And if you can once again reiterate the guidance of RE capacity addition for this fiscal and next coming two fiscals?
Okay. So as on date, we are having 1.4 gigawatt of renewable capacity, and we generated more than 2.2 billion units of power in the last financial year. Our target is to achieve 10 GW capacity by 2030. All actions are in place for achieving this 10 GW by 2030. In Q1, we have not added any capacity, but our 300 MW r enewable project in Barsingar , around 70 MW is already installed, and we are going to start 50 MW anytime now. By September end, we will be commissioning the entire 300 MW. Similarly, 50 MW solar project on mine reclaimed land, which is first of its kind in the country, that is in the almost final stages of commissioning. We will be commissioning that in the month of by end of September.
So we had basically in the previous call, we said that we will be adding 1 GW in FY 2026, 1.5 in 2027, and post that 1.5 GW each year. So that target still holds?
Yes, sir. That target still holds. We will be adding more than that.
Okay, sir. Okay. Thanks a lot. I'll get back in the queue. Thank you.
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Arihant with Bowhead. Please go ahead.
Thank you, sir, for taking my question. Sir, just wanted to know what was the under-recovery in first quarter FY 2026, and can you provide a break-up plant-wise? What was it for TPS-II Expansion?
Okay. In the Q1, the under-recovery total on consolidated basis is INR 334 crores. Out of that, for NLC NTPL units, it's INR 245 crores. And if you want to break up, the majority of this is TPS-II Expansion, where the unit was under shutdown for the major modification which we are carrying out. And now that the major modification is completed, so going forward, the reliability of unit will be improved, and the under-recovery will come down.
Sir, was there any under-recovery in Ghatampur unit?
In Ghatampur unit, it was a starting phase. That's why there was a minor under-recovery of around INR 71 crores. But going forward, that will be compensated, and we will be recovering full fixed charges for the Ghatampur.
Okay. Sir, then wanted to know since Ghatampur Unit 2 and Unit 3 will come up later this year, and it will take for some time to ramp up those units. So will there be under-recovery in those units in the current fiscal year in FY 2026? And what would be the approximate amount?
See, in December, we declared COD of Unit 1. That unit is running well. And we are expecting that in the current financial year for Unit 1, there will not be any under-recovery. And these units are very stable, and we hope the same for the other units also. The initial problems will be very less, and the units will run in a sustainable manner.
Okay. And sir, what is the total under recovery we are expecting in FY 2026?
For total all the units?
Yes.
So whatever measures we are taking, with those measures, we are expecting that the under-recovery will be much less than what was there in the last financial year.
Okay. Sir, then wanted to know regarding Talabira mine, what was the PBT from Talabira mine in first quarter? And can you also provide what was the realization from eAuction and NTPC respectively, and the quantity sold in both the cases?
Okay. So in Q1, the EBITDA is 218 crores for Talabira. And one second. And in the Q1, the total sale value is 610 crores compared to 466 crores in the last financial year. And through eAuction, the rate is 1,024 against last year's 1,354. To NTPC, it is through MOU route, it is 42. And to our NTPL, it is 595.
Okay, sir. And sir, one more thing regarding Rajasthan 2 GW solar JV project which we have, and also Assam one gigawatt JV project. So wanted to know, have we got the land for this project? What timelines are we thinking for acquiring this land? And probably when we will go for tender for these projects?
Regarding Assam, where we are targeting addition of one gigawatt capacity, in the Northeast Ministers' Conference last month, we got land for 500 MW. So we are making due diligence, and our tender documents are ready, and we will go for tendering at any time. And from that also, for 150 MW also, one land parcel is identified, and we are making due diligence. The drone survey is already completed. So that 150 MW also, we will go for tender at the earliest. And we are in the process of searching land for balance 300 MW. In Rajasthan, the joint venture was formed recently, and we are in the process of identifying the land. And we are hopeful that within three months, we will be identifying the entire land, and the projects will be completed within 15 months.
Thank you, sir. And sir, last question, wanted to know on the Talabira power plant project. So have we acquired the complete land for that project, and has the BHEL started construction activity for that project? And also, will we be acquiring the land for Phase 2 of that project along with Phase 1, or will that be acquired separately?
See, we require around 880 acres of land for Phase 1 and Phase 2, and we are in the possession of 808 acres of land. Only 71 acres of land is pending. 808 acres of land is already handed over to BHEL, and BHEL started their preliminary activities of compound wall, site leveling, and structure demolition work that is already started. The engineering activities are also in fast progress. Drawing approvals, everything is going on as per our timeline.
Phase 2 project land also we will acquire along with the Phase 1 land?
Yes, yes. That is along with the Phase 2 land also we will acquire.
Okay. Thank you, sir.
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Mohit Kumar with ICICI Securities. Please go ahead.
Yeah. Thanks for the opportunity, sir. My two questions. First is on this, sir, how has been the progress on the modification of TPS-II, both the units? And is it fair to expect normal operation by Q2 FY 26, or do you think we should build back in numbers from Q3?
As you know, this TPS-II expansion, one unit major modification we already completed. That is recently completed. And after the modification, the performance of unit is comparatively better. And we will be going for the modification of unit number two from the Q3. Once that is also done, we are hopeful that the under-recovery will be minimal. We will take it from the Q4 because the second modification we are going to do in the Q3.
Understood, sir. My second question is, how are you booking revenues in Ghatampur? Is it at 90% or 85% of the actual capital cost? And what is the status of tariff petition for the capital cost approval for Ghatampur?
So yesterday itself, the interim tariff order of ERC is issued, and it is at 85%.
85%? Is that right, sir?
Yes, sir.
We are taking the share number for booking our revenues. Is that right?
Yes, sir.
When do you expect the final capital cost approval, sir?
So that will take some time.
Understood, sir.
Maybe after unit three completion only that will come.
Understood, sir. Thank you, sir. Thank you. Understood. Thank you.
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Viraj Mithani, Jupiter Financial. Please go ahead.
Yeah. Am I audible?
Yes, sir.
Yeah. Thank you for the update, sir. My question is regarding the rare earth mineral. Can you give some color on that? The JV on rare earth, how would be when will come into the full in the production and a bit more color on that would be nice.
Okay, so we are having the experience of more than seven decades in mining operation. We want to use that experience. That's why we are entering into mining of critical minerals as well as rare earth elements. In the critical minerals, we got two blocks. We participated in all tranches of auctions, and we got two blocks in Chhattisgarh, phosphorite blocks. All activities are in fast progress. In addition to that, we are trying to get some critical mineral and rare earth element blocks abroad. We are in discussion with some companies through IREL and through KABIL. It is in the preliminary stage where we signed the NDA with them, and we are making due diligence of these blocks. These are in the Republic of Mali.
Mr. Mithani, are you done with the questions? Since there is no reply from the line of Mr. Mithani, we'll promote the next participant. And that is from the line of Darsh Solanki with Axis Securities. Please go ahead.
Yeah. Hi, sir. Sir, I just wanted to check one thing. In our presentation uploaded on the website, our CapEx outlook for till FY 2030 is close to INR 1.16 lakh crores. So I just wanted to check how much of this CapEx is expected to be done in FY 2026 and FY 2027?
See, that INR 1.16 lakh crore, that is for CapEx up to 2030, spread over next five years. So in the year 2026, 2027, we are targeting CapEx of INR 19,000 crores.
Both years?
May 2026 to 2027 financial year 2026 to 2027 INR 19,000 crores, and in 2027 to 2028 also around INR 20,000 crores, and 2028 to 2029 around INR 20,000 crores.
Got it. And sir, next question is regarding the IPO. So you said that the IPO we are targeting to go by Q2 of FY 2027. So are we still on that same timeline?
Yes. All positive developments are happening. First development was we got exemption from government tax exemption in shortest possible time. And subsequently, there was a rule from cabinet for transfer of assets from NLC to NIRL. So all actions are going on smoothly, and we are hopeful that we will be able to achieve those timelines.
Understood. Thank you.
Thank you. Next question comes from the line of Nikhil Abhyankar with UTI Mutual Fund. Please go ahead.
Thank you, sir.
Sir, just want to know the EBITDA and gross block for the RE capacity as of FY 25. So can you just get the full year EBITDA for FY 25 and the gross block?
Okay. For EBITDA for renewables in 2024 to 2025 was INR 627 crores. And in the Q1 of this financial year, it is INR 153 crores.
Okay.
So renewable capacity is performing exactly in line with the last year. The generation and all other parameters are exactly the same.
Sir, what would be the Gross Block for the renewable capacity?
It will be around INR 6,000 crores.
INR 6,000 crores.
Sir, also, can you give us the cost of production per ton for Talabira coal and PBT that you mentioned earlier for this quarter?
The Talabira, you are asking the cost of sale or cost of production?
Cost of production.
Sorry, I think we will communicate that.
Sure.
PBT, sir, for this quarter?
PBT for the Q1 in Talabira is INR 209 crores.
209 crores.
Sure, and sir, I just want to go back to the numbers of FY 25. I just want to know how many one-off income was booked for the entire year in FY 25?
One-off income?
Yeah.
You are talking about Talabira or?
No, no. The entire company. NLC as a whole, consol.
We will tell you the price.
Okay. Because I was just trying to reconcile the PBT for last year. It was around INR 3,700 crores. So we've got a regulated equity of INR 10,000 crores. Even if we assume post-tax regulated return of 20%, that is INR 2,000 crores, then under-recovery was around INR 800 crores. So INR 1,200 from the regulated business. Whole PBT was INR 800 crores. So again, INR 2,000+ renewable-related PBT. So that won't be that much.
Last financial year, the regulatory whatever we got, that is around INR 638 crores.
638 crores.
Yes, sir.
But still then, and then what would be the RE PBT for last year?
RE?
Profit before tax.
Just one moment. You are talking about 2425?
Yes.
No, no. This is for entire year sales. So Q1 only, no? This is Q1. It is INR 80 crores, but just a minute, please.
Sure, sir.
Actually, we will reply to you separately.
Okay, sir. Sure. Thank you.
Thank you.
Thank you. Next question comes from the line of Viraj Mithani with Jupiter Financial. Please go ahead.
Yeah. Am I audible now?
Yes, sir. You're audible.
Yes, sir. My question is in continuation of the previous question. What will be the CapEx required for mining these rare earth minerals? And when does the revenue start going from this project?
See, rare earth minerals. We are at present having two blocks of critical minerals, phosphorite and limestone. So we are in the initial stage of getting LOA from the government. And now they are in the G3 stage. The exploration needs to be done. And subsequently, three years will take for exploration. And subsequently, the mining activities will start. So we are targeting for 1 million metric tons of critical mineral production by 2030. So we are working in line with that.
The CapEx required would be, sir?
CapEx required will be, I think it is very preliminary to discuss about that because we will be knowing that once we do the due diligence and take it forward.
Okay. Thank you, sir. Thank you and all the best.
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Arihant with Bowhead. Please go ahead.
Yes, sir. Wanted to know what is our current consolidated regulated equity and how much regulated equity have we added from the Ghatampur project till now?
See, as of date, our regulated equity is INR 9,713 crores. And we are expecting to take this to around INR 18,000 crores by 2030 after addition of Ghatampur, Talabira, and all those things. Finally, the regulated equity will be around INR 18,000 crores by 2030. And in the NUPPL, the regulated equity increased by INR 329 crores with the addition of unit number one.
Okay, sir. Sir, then another question I wanted to ask regarding the 810 MW Rajasthan solar project for which we recently signed PP also. So wanted to know when we will be going for tendering of that project and when do we expect completion of that project?
See, this 810 MW, we are going with BOS mode. We will be directly procuring the modules. And for the balance of system, already tender is floated. We got very good response for the tender. We are about to finalize that tender. We will be finalizing the tender within the next 15 days.
When do we expect this project to get commissioned?
The project completion time is 15 months. So within that timeline, we will be commissioning the project.
Okay, sir. And regarding Machhakata Mines, sir, wanted to know, have we got the environmental clearance for that project? When is that expected and when we will go for MDO of that project?
See, while allotting the mine to us, the government has given us 56 months' time. But we are targeting to start production within 36 months. So all the activities in this direction are in fast progress. And the milestones we are achieving. So we are hopeful that we will be able to start the production within 36 months.
Okay. Thank you, sir.
Thank you. A reminder to all the participants that you may press star and one to ask a question. Our next question comes from the line of Mahesh Patil with ICICI Securities. Please go ahead.
Yeah. Hi, sir. Sir, you mentioned 19,000 CR CapEx for FY 27. Sir, can you give us the number for FY 26 and what was it in Q1?
In FY 26, the total CapEx plan is INR 23,601 crores.
Sir, how much CapEx has been included in Q1?
No, no. I am telling about 2026, 2027. You want 2025, 2026?
Yes, sir.
25, 26 total and Q1 you are asking, no?
Yes, sir. Correct.
Q1 is INR 1,925 crores.
Okay. And for Q1?
We are targeting INR 5,078 crores.
5,078. Okay. Thank you.
Thank you. Next question comes from the line of Aditya Welekar with Axis Securities. Please go ahead.
Yeah. Thanks for the opportunity again, sir. On this Talabira thermal coal production, so in FY 26, our target is of 20 million tons. Is that right? Are we still holding that?
Yes. You are right. It is 20 million metric tons in the current financial year.
What will be the split between e-auction and other routes like NTPL, NTPC swapping?
See, NTPL will be standing around 3 million metric tons. And NTPC MOU around 4 million metric tons. And we signed an MOU with DVC also that we are expecting around 0.5 million metric tons. And the balance is e-auction. Out of that, there are three types of auction we are doing. The midterm coal supply e-auction, that is around 5.90 million metric tons. 180-day e-auction, that is 5 million metric tons. And spot e-auction, that is 1.60 million metric tons. The total is 20 million metric tons.
Understood. And currently, what is the e-auction price we are getting in Q1?
See, in Q1, the average e-auction price which we are getting is INR 1,024 against INR 1,354 in the last financial year.
Understood, sir. Thank you. That's it from my side.
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Somnath Saha with B&K Securities. Please go ahead.
Hello, sir. Thank you for the opportunity. The question is a bit repeated. Can you just miss the number? Can you please repeat the regulated equity for Ghatampur Unit 1, sir?
Can you please repeat? I think we could not get you our way.
Actually, I'm asking about the regulated equity numbers for Ghatampur Unit 1. What is the current?
Okay. Equity number for Ghatampur Unit Number 1? INR 329 crores, right? It's already withdrawn?
329 crores, sir.
Also, sir, if I talk about the first unit, it took around 13 months after it synchronized, if I'm not wrong. So the second unit was synchronized on 20th July. So should we expect similar long gestation time?
No, no, no. No, no, no. No, no, no. Actually, for Unit Number One, all facilities, common facilities like coal handling facility, ash handling facility, and other facilities were to be established. That's why it took a lot of time. But the coal handling system is common for all the three units. And the coal handling plant is already completed. Work is completed. And we are doing the direct feeding of coal from wagon tippler to the bunkers. So whatever delay happened in Unit Number One, that will not be repeated here. We are hopeful that in Unit Number Two, we will be able to achieve COD by end of September.
Okay. Thank you, sir.
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Viraj Mithani with Jupiter Financial. Please go ahead.
Yes, sir. What would be your guidance for FY 26 in terms of sales growth and profit after tax?
CapEx?
No, no. Guidance for the sales. Next year, guidance.
Can you please repeat, please?
What would be your guidance in terms of sales growth and the profit after tax?
See, that exactly we cannot tell. But there will be improvement over the current financial year, the next financial year.
Any growth numbers, like percentage-wise or something?
That is very difficult to tell at this stage.
Okay. Thank you, sir. Thank you and all the best.
Thank you. Ladies and gentlemen, we have reached the end of the question and answer session. I would now like to hand the conference over to the management. All right. Before that, I'll just ask for questions. If you have any questions, participants, you may press star and one. We have a question that is from the line of Arihant with Bowhead. Please go ahead.
Actually, sir, just wanted to know what is the annual fixed cost of a Ghatampur plant for Unit One, if you can tell?
Just a minute. That is quarterly, no? The quarterly, it is around INR 398 crores.
398 crores.
Okay. Sir, I wanted to know regarding the TPS-2 plant. So that plant was having, I think, some coal milling issues. So I wanted to know, has that issue been resolved? And what is the TPS-2 plant?
TPS-2?
Yes.
Okay.
I wanted to know, has that issue been resolved? What is the PF we can expect that plant to operate at?
See, the TPS-II plant is having seven units. So there are some issues with the milling systems. Those issues have been sorted out, and we are hopeful that going forward, we will be able to maintain the minimum PF levels in the next three quarters.
Okay. Thank you, sir.
Thank you. A reminder to all the participants that you may press star and one to ask a question. Ladies and gentlemen, as there are no further questions, we have reached the end of the question and answer session. I would now like to hand the conference over to the management for closing comments.
I thank all the investors for their outstanding support to the company. And I thank all the participants in today's investors' call for giving encouragement to NLCIL. And at the same time, giving valuable solutions. Thank you all.
Thank you.
There was one minute. There was one query regarding our business. We are in the financial year 2024-25. What is the PBT? That is INR 232 crores. Just to compare it.
Thank you. On behalf of NLC India Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.