NLC India Ltd, a prominent power generation and lignite mining company, saw its shares climb an impressive 19% to an all-time high of Rs 387.40 on Thursday. This significant rally pushed the company's market capitalization to Rs 52,969 crore, following the announcement of strong fourth-quarter (Q4) and full fiscal year (FY26) financial results.
Exceptional Q4 Performance Fuels Rally
The surge in NLC India's stock price is primarily attributed to its stellar Q4 earnings. The company reported a net profit of Rs 1,394 crore for the quarter, a near threefold increase compared to Rs 482 crore in the same period last year. Revenue from operations also saw a substantial rise of 31.5%, reaching Rs 5,042.5 crore, up from Rs 3,836 crore a year earlier.
Operating performance indicators further underscored the company's robust health. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surged to Rs 1,774.4 crore from Rs 861.4 crore in the corresponding quarter last year. This led to a sharp expansion in the EBITDA margin, which grew from 22.5% to 35.2%.
Record-Breaking Fiscal Year 2026 Achievements
Beyond the quarterly results, NLC India also delivered its highest-ever annual performance for FY26 since its inception:
- Revenue: The company achieved an all-time high revenue from operations of Rs 17,490 crore, marking a 14.44% growth from Rs 15,283 crore in the previous fiscal year.
- Net Profit: Annual net profit hit a record Rs 3,769 crore, an increase of 38.91% from Rs 2,714 crore in the preceding year.
- Production & Generation: FY26 saw record production and generation across its segments. Annual coal production from Talabira II & III OCP stood at 19.14 MT, with dispatches reaching 17.69 MT. Renewable energy power generation also rose significantly to 2.26 BU.
- Capacity Additions: NLC India added 1,013 MW to its capacity, including 660 MW from Unit 2 of GTPP (thermal) and 303 MW from renewables (300 MW solar in Rajasthan, 3 MW rooftop in Tuticorin, Ghatampur, and Neyveli).
- Capital Expenditure: The company incurred its highest-ever capital expenditure, exceeding Rs 9,131 crore, in FY26.
In light of these strong results, the board of the Maharatna firm, which operates under the coal ministry, recommended a final dividend of 2.5%, or Rs 0.25 per equity share, for FY26. This recommendation is subject to shareholder approval at the upcoming annual general meeting.