NLC India's Q2 FY 2025-26 Quarterly Results

Result Summary

• NLC India Ltd reported a 5.6% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 0.5%.
• Its expenses for the quarter were down by 3.0% QoQ and up 13.9% YoY.
• The net profit decreased 13.6% QoQ and decreased 26.2% YoY.
• The earnings per share (EPS) of NLC India Ltd stood at 5.23 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

NLC India Ltd is a prominent company operating in the energy sector, primarily focusing on the mining of lignite and the generation of electricity. As a government-owned entity, NLC India plays a significant role in contributing to the country's energy needs. The company is involved in lignite mining, power generation, and renewable energy projects, making it a critical player in the Indian power industry. NLC India Ltd has a strategic focus on expanding its renewable energy portfolio and increasing its operational efficiency. Recent developments in the company include ongoing projects to enhance its capacity in both conventional and renewable energy sectors. The company's commitment to sustainable development aligns with India's broader energy strategy, aiming to increase energy security and reduce carbon footprint.

Revenue

In the second quarter of the fiscal year 2026 (Q2FY26), NLC India Ltd reported a total income of ₹4346.72 crores, marking a 5.6% increase from the previous quarter (Q1FY26), where the income was ₹4115.85 crores. However, when compared to the same quarter in the previous fiscal year (Q2FY25), there was a slight decline of 0.5%, as the income then stood at ₹4370.11 crores. This quarter-over-quarter increase suggests a positive trajectory in terms of revenue generation, despite a marginal year-over-year decline. The fluctuations in total income reflect the dynamic nature of the energy market and the company's ongoing efforts to optimize its revenue streams amidst changing market conditions.

Profitability

NLC India Ltd's profitability metrics for Q2FY26 indicate a mixed performance. The profit before tax (PBT) for the quarter was ₹921.34 crores, which is a significant 55.2% increase from ₹593.60 crores in Q1FY26. However, this figure represents an 18.7% decline when compared to ₹1133.41 crores in Q2FY25. The tax expense for Q2FY26 was ₹196.61 crores, a notable change from a tax credit of ₹245.55 crores in Q1FY26, resulting in a year-over-year increase of 30.2% from ₹151.01 crores in Q2FY25. Consequently, the profit after tax (PAT) decreased by 13.6% QoQ to ₹724.80 crores from ₹839.21 crores in Q1FY26 and by 26.2% YoY from ₹982.41 crores in Q2FY25. These figures illustrate the impact of tax fluctuations and other operational factors on the company's profitability.

Operating Metrics

The operating metrics for NLC India Ltd in Q2FY26 demonstrate both growth and challenges. The total expenses for the quarter were ₹3615.72 crores, reflecting a 3.0% decrease from ₹3728.96 crores in Q1FY26, while showing a 13.9% increase when compared to ₹3173.39 crores in Q2FY25. This decrease in expenses on a quarterly basis highlights efforts in cost management, despite an increase year-over-year. Earnings per share (EPS) for Q2FY26 were reported at ₹5.23, a 4.2% increase from the previous quarter's ₹5.02, but a 32.2% decrease from ₹7.71 in Q2FY25. These metrics underscore the company's ability to manage costs effectively while navigating the complexities of the market, although year-over-year comparisons suggest varying levels of operational efficiency and profitability challenges.