Target: ₹375
CMP: ₹320.65
NLC India has announced plans to significantly expand its mining capacity, aiming to increase from the current total of 50.1 million tonnes per annum (mtpa) in FY25 to 104.4 mtpa by FY30. This ambitious expansion will involve a capital expenditure (capex) of ₹14,199 crore. The company intends to enhance its lignite mining capacity from 30.1 mtpa to 41.4 mtpa and to raise its coal mining capacity from 20 mtpa to 62 mtpa. Moreover, NLC India plans to establish a mining capacity for critical minerals at 1 mtpa.
In parallel, NLC India is focusing on its energy sector, with plans to nearly double its thermal power capacity to 10 GW by FY30, which will require a capex of ₹49,981 crore. Renewable energy capacity is also set for extensive growth, increasing from 1.6 GW currently to 10 GW by FY30, with a planned investment of ₹41,599 crore. In addition to these projects, the company has allocated ₹11,101 crore for various diversification initiatives.
The company’s renewable energy portfolio is expected to grow to approximately 2 GW by the end of FY26, with a rapid scale-up to 8 GW by FY28 and 10 GW by FY30. NLC India has entered into several state-level joint ventures to promote large-scale renewable energy development, with around 3 GW of capacity currently under construction.
The Pachwara South Coal Block, which has a capacity of 9 mtpa, began mining operations in December 2025. At peak production, it is expected to fulfill Ghatampur’s annual coal demand of approximately 6 mtpa. For the near term, production from the Pachwara block is projected to reach about 2 mtpa by FY27.
Currently, NLC India’s stock is trading at a Bloomberg consensus EV/EBITDA multiple of 13.2x for FY26E and 9.3x for FY27E.
Published on May 4, 2026
