NLC India shares jump 5% after securing renewable power project; Check the details

Synopsis: Shares of Navratna stock jumped 5% after its subsidiary secured a 600 MW renewable power project with energy storage from SECI, boosting investor sentiment and strengthening the company’s renewable energy and clean power portfolio.

The shares of this company, engaged in one of India’s most respected public sector companies in lignite mining and power generation are now in focus after it jumped by upto 5% following a new work order from Solar Energy Corporation.

With a market capitalisation of Rs. 36,205 cr, the shares of NLC India Ltd were trading at Rs. 261.10 per share, jumping 5% in today’s market session, making a high of Rs. 265.20, up from its previous close of Rs. 251.50 per share. The stock gained 16% over the past year, rose 3% on a year-to-date basis, advanced 8% in the last six months, and declined 2% over the past month.

About the order 

NLC India Limited informed that its wholly owned subsidiary, NLC India Renewables Limited (NIRL), has received a Letter of Award (LoA) from the Solar Energy Corporation of India (SECI). 

The award pertains to setting up a 600 MW renewable power project coupled with 300 MW / 1,800 MWh Energy Storage Systems (ESS), forming part of a larger 1,200 MW renewable capacity with 600 MW / 3,600 MWh ESS tendered by SECI under a tariff-based competitive bidding process.

Under the terms of the award, NIRL will develop, own, and operate the project and supply power generated from the facility to SECI for a period of 25 years under a Power Purchase Agreement (PPA). 

The project is domestic in nature and involves both power generation and long-duration energy storage, strengthening NLC India’s renewable and clean energy portfolio. The Scheduled Commencement of Supply Date (SCSD) for the full project capacity is set at 24 months from the effective date of the PPA. This order reinforces NLC India’s strategic push into large-scale renewable energy and energy storage solutions aligned with India’s clean energy goals.

NLC India Ltd is a government-owned Navratna company engaged primarily in lignite mining and power generation, with a growing focus on renewable energy. The company operates thermal power stations, lignite mines, and renewable projects across India, playing a key role in the country’s energy security while gradually transitioning toward cleaner and sustainable energy sources.

The company reports a ROCE of 10.5% and ROE of 14.5%, indicating steady capital efficiency. It trades at a P/E of 13.8, significantly lower than the industry average of 25.6, with an attractive PEG ratio of 0.28. Additionally, it maintains a healthy dividend payout of 24.4% and has delivered strong compounded profit growth of 50% over the last three years.

Financial Outlook and Capex Plan

The financial outlook indicates strong growth over the next five years, with revenue from operations projected to rise from Rs. 13,001 crore in FY24 to Rs. 37,713 crore by FY30. Profit after tax is expected to increase steadily from Rs. 1,868 crore to Rs. 5,294 crore, supported by improving EBITDA margins from about 40% to over 50%. Assets are also projected to expand significantly, reaching nearly Rs. 1.6 lakh crore by FY30, reflecting sustained capacity expansion and long-term growth.

It has outlined an ambitious capex plan of Rs. 1.17 lakh crore over the next five years under its 2030 strategy. The investment focuses on mining (Rs. 14,199 crore), thermal power (Rs. 49,981 crore), green energy including renewables and pumped hydro (Rs. 41,599 crore), and diversification initiatives (Rs. 11,101 crore), highlighting a balanced growth approach across conventional and clean energy segments.

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