Target Price: ₹320
Current Market Price: ₹248.05
NLC India reported a year-on-year revenue increase of 14.2%, amounting to ₹4,200 crore. This growth was bolstered by a significant 34% rise in mining revenue and a 4% increase in revenue from power generation. However, fuel costs rose by 6.2%, resulting in an EBITDA increase of 30.1% to ₹1,390 crore. The profit after tax (PAT) saw a decline of 26.2% year-on-year, totaling ₹720 crore.
In the second quarter, power generation saw a 2% increase year-on-year, reaching approximately 6.8 billion units. Lignite production declined by 8% due to reduced national demand, while coal production rose by 19% to 3.6 million tonnes. Total installed capacity currently stands at 6,899 MW, with a project pipeline of 2.4 GW in renewable energy. The company has already commissioned 150 MW of the 300-MW Barsinsar Solar Project. The NUPPL Ghatampur Unit-2, with a capacity of 660 MW, successfully completed a 72-hour full load test and is expected to be commissioned soon.
The first unit of the Talabira thermal project is set for commissioning in February 2030, followed by Unit 2 in August 2030 and Unit 3 in February 2031. Currently, regulated equity is at ₹11,990 crore, comprising ₹8,590 crore for thermal projects and ₹3,400 crore for mining operations. This figure is projected to increase to ₹19,670 crore by FY30E.
The recommendation to maintain a “buy” rating with a target price of ₹320 reflects an expectation of an 11% revenue compound annual growth rate (CAGR) and a 21% EBITDA CAGR from FY25 to FY28E.
Published on November 27, 2025
