NLC India Q1 PAT zooms 43% YoY to Rs 798 cr; approves Rs 5,228 crore asset transfer to renewable arm

NLC India's consolidated net profit jumped 42.57% to Rs 797.59 crore on a 13.24% increase in revenue from operations to Rs 3,825.61 crore in Q1 FY26 over Q1 FY25.

Profit before tax tanked 27.75% to Rs 593.60 crore in Q1 FY26 as against Rs 821.66 crore in Q1 FY25.

Total expenses rose 27.75% year on year to Rs 3,728.96 crore in the quarter ended 30 June 2025. Employee benefits expense stood at Rs 578.93 (down 8.32%YoY), finance cost was at Rs 298.79 crore (up 57.68%) and cost of fuel consumed stood at Rs 776.33 crore (up 72.53% YoY) during the period under review.

Revenue from Mining segment jumped 25.17% to Rs 2,043.40 crore in Q1 FY26 as against Rs 1,632.49 crore in Q1 FY25. Revenue from Power Generation segment rallied 6.62% to Rs 3,272.42 crore in Q1 FY26 from Rs 3,069.12 crore in Q1 FY25.

On a standalone basis, the companys net profit fell 25.76% to Rs 368.17 crore on 5.78% decline in revenue from operations to Rs 2495.60 in Q1 FY26 over Q1 FY25.

Alongside the quarterly results, the company has received in-principle approval to execute a business transfer agreement for transferring its operational renewable energy assets to its wholly owned subsidiary, NLC India Renewables (NIRL).

The transfer involves renewable assets valued at Rs 5,228 crore, subject to adjustments based on the asset valuation on the actual date of transfer. NIRL was specifically formed to develop and operate the companys renewable energy portfolio.

This restructuring is part of NLC Indias broader Asset Monetization Scheme, which has been approved by the Ministry of Coal, the companys administrative ministry. The move aims to streamline operations by consolidating renewable energy assets under a focused entity. The proposed transfer will be executed through a combination of cash consideration, equity share allotment, or loan/interest transfer in favor of NIRL.

NLC India is engaged in the business of mining of lignite and generation of power by using lignite as well as Renewable Energy Sources.

Shares of NLC India rose 0.09% to currently trade at Rs 233.50 on the BSE.

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