NLC India Targets Revenue Surge in FY27 as New Thermal Capacity, Coal Production and Renewable Expansion Drive Growth

NLC India Targets Revenue Surge in FY27 as New Thermal Capacity, Coal Production and Renewable Expansion Drive Growth

The Electrical Post

NLC India Limited (NLCIL) expects a sharp rise in revenue and earnings over the next few years, supported by commissioning of new thermal power capacity, higher coal production, renewable energy expansion and a growing mining business, according to management commentary during the company's Q4 FY26 investor interaction.

Chairman and Managing Director M. Prasanna Kumar Motupalli said the company remains confident of achieving its FY27 revenue target of around Rs. 25,300 crore, compared with approximately Rs. 17,500 crore in FY26. The projected growth will be driven by expansion across all three business verticals—mining, thermal power and renewable energy.

A key growth driver will be the commencement of production from the Pachwara South Coal Block. NLCIL has targeted more than 2 million tonnes of coal production from the mine during FY27. The company is simultaneously ramping up production from its Talabira coal block, where output is expected to increase to 20 million tonnes during FY27 compared with 18.5 million tonnes in the previous year.

In the power generation segment, the company is on the verge of commercializing Unit III of the 1,980 MW Ghatampur Thermal Power Project. With all three units becoming operational, NLCIL expects a significant increase in thermal power generation and revenue contribution. Management noted that Units I and II have already been performing well and the availability of the entire station will strengthen earnings from FY27 onward.

The renewable energy business is also entering a major expansion phase. Nearly 1 GW of solar projects are currently under implementation and are expected to be commissioned within the next six to nine months. The company plans to add 300 MW at Khavda and additional solar capacities at other locations, contributing meaningfully to revenue growth in FY27 and FY28.

Management indicated that rising electricity demand across the country is providing favorable market conditions for power producers. While some generating units were under reserve shutdown a month earlier due to lower demand, the situation has changed significantly in recent weeks. According to the company, all 23 operating units were brought into service to meet rising grid requirements, with several stations reporting plant availability factors exceeding 80%.

The coal business continues to emerge as one of NLCIL's strongest earnings contributors. During FY26, Talabira mine sold more than 12 million tonnes of coal through e-auctions compared with 7.3 million tonnes in the previous year. Although auction prices moderated slightly, the higher volume helped improve overall sales performance. Revenue from coal sales increased to Rs. 2,517 crore during FY26 from Rs. 2,429 crore in the previous financial year.

Looking ahead, NLCIL expects combined coal production from Talabira and Pachwara South to reach approximately 22 million tonnes during FY27. Talabira alone is expected to produce 20 million tonnes, of which nearly 16 million tonnes will be available for merchant sales after meeting captive requirements. Pachwara South is expected to reach peak production of 9 million tonnes ahead of schedule, with management targeting full capacity in the third year against the mine plan target of the fourth year. Once peak production is achieved, around 3 million tonnes are expected to be available for merchant sale annually.

The company believes Pachwara coal will command strong market demand because of its superior quality, classified in the G10-G11 grade category. The mine will also support fuel requirements for the Ghatampur thermal station, improving integration between NLCIL's mining and power generation businesses.

Financially, mining remains the largest contributor to profitability. During FY26, the mining business generated EBITDA of Rs. 2,030 crore, significantly higher than thermal power EBITDA of Rs. 1,393 crore and renewable energy EBITDA of Rs. 492 crore. The figures underscore the growing importance of coal mining in NLCIL's earnings profile, even as the company aggressively expands its renewable portfolio.

The company is also pursuing diversification into nuclear energy and critical minerals. NLCIL recently signed an agreement with Nuclear Power Corporation of India Limited (NPCIL) for establishing a joint venture that will develop a 700 MW nuclear power station. The initiative aligns with the Government of India's target of achieving 100 GW of nuclear power capacity by 2047 and reflects NLCIL's strategy of maintaining a balanced generation portfolio comprising thermal, renewable and emerging energy technologies.

Another strategic focus area is critical minerals. NLCIL has secured phosphorite and limestone blocks in Chhattisgarh and is collaborating with IIT-ISM Dhanbad to support exploration and mineral processing activities. The company believes that processing technology remains a key challenge in the critical minerals value chain, and the partnership will help address technological gaps. However, management clarified that critical minerals are unlikely to make a major revenue contribution before 2030 as the acquired blocks are currently in the exploration stage.

The company has secured the Semhardih and Raipura blocks in Chhattisgarh, which together contain substantial limestone and phosphorite reserves. Management noted that India remains heavily dependent on imports for phosphorite, making domestic resource development strategically important. However, revenue projections remain premature until detailed exploration and reserve assessments are completed.

Addressing concerns raised by investors regarding operational risks in Neyveli mines, management clarified that there is currently no impact on lignite production or power generation due to land acquisition issues. The company stated that challenges related to river diversion and land availability that had affected operations in previous years have largely been resolved with support from state and central governments. While certain land acquisition matters remain under process, management emphasized that no generation loss is being experienced because of lignite shortages.

On the financial front, NLCIL benefited significantly from favorable regulatory developments during FY26. The company reported a regulatory income movement of around Rs. 900 crore following regulatory orders received during the year. Management indicated that similar appeals remain pending before regulatory authorities and could continue to provide positive contributions in future years, although the magnitude may vary. The regulatory income has been accounted for on an accrual basis, with cash realization expected within the stipulated timeline prescribed by regulators.

Looking ahead, NLCIL remains focused on expanding capacity across thermal, renewable and mining segments while maintaining a balanced portfolio approach. With Ghatampur nearing full commissioning, solar projects under execution, coal production ramping up and new opportunities emerging in nuclear energy and critical minerals, the company expects the next phase of growth to be supported by both operational expansion and strategic diversification.

Management reiterated that the combination of higher power demand, expanding generation assets, rising coal output and disciplined execution positions NLCIL to achieve its long-term target of becoming a larger and more diversified energy company while continuing to deliver growth in revenue and profitability.
 

Published at : Sep 08, 2026 07:50 AM (IST)

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