Nava PAT Jumps 116%; Dividend at Record High
Nava Limited's FY26 standalone PAT jumped 116% to INR 911 crore, driven by upstream dividends and buybacks, alongside a record dividend of INR 8.50 per share. Consolidated results were impacted by non-cash deferred tax adjustments from Zambian Kwacha appreciation. The company remains focused on its 100 MW solar and 300 MW thermal projects, with domestic power realisations guided at INR 5.50 per unit.
*this image is generated using AI for illustrative purposes only.
Nava Limited has released the transcript of its analyst and investor conference call held on May 15, 2026, covering the operational and financial performance for the fourth quarter and full year ended March 31, 2026. The disclosure was filed with the National Stock Exchange of India Limited and BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, bearing reference number NAVA/SECTL/49/2026-27 and signed by VSN Raju, Company Secretary and Vice President.
Management Overview and Financial Highlights
Managing Director and CEO Ashwin Devineni described FY26 as a strong and important year for the company, both operationally and strategically. At the standalone level, the company reported a 116% increase in profit after tax to INR 911 crore, marking one of the strongest performances in the company's history. The growth was primarily supported by healthy upstream dividend flows from overseas investments and buyback proceeds received during the year. The company also declared a dividend of INR 8.50 per share, the highest in its history.
On the consolidated side, profitability was impacted by accounting-led tax adjustments at Maamba Energy Limited (MEL) relating to deferred tax movements. The increase in deferred tax expenses — a non-cash item — was primarily driven by approximately 32% appreciation of the Zambian Kwacha, resulting in unrealized foreign exchange gains. Management clarified that this deferred tax provision involves no immediate cash outflow, is linked to exchange rate movements, and is expected to reverse over time as exchange rates stabilize.
Key financial details shared during the call are summarised below:
| Metric: | Details |
|---|---|
| Standalone PAT Growth: | 116% increase |
| Standalone PAT: | INR 911 crore |
| Dividend Declared: | INR 8.50 per share (highest in company history) |
| NBEIL Revenue: | INR 442 crore |
| NBEIL PBT: | INR 80 crore |
| NBEIL PAT: | INR 59 crore |
| Financial Assets & Investments: | INR 1,347 crore (liquid mutual funds and debt products) |
Operational Performance and Business Verticals
On the ferro alloys front, management acknowledged pricing pressures stemming from European Union safeguard duties on Indian imports and geopolitical disruptions in the Middle East, which have led to surplus domestic supply and lower prices. However, Nava noted it is largely insulated from spot market volatility, with approximately 40% of production covered under long-term yearly contracts with two major Japanese mills and another 40–50% under quarterly fixed-base contracts with large private steel producers in India, leaving only 10–15% exposure to the spot market. Total silico manganese production for the next year is expected to be approximately 130,000 tons, with ferro silicon discontinued given more favourable market conditions for silico manganese.
On the power side, a reduction in coal prices by Singareni Collieries — the sole coal supplier for Nava's Telangana operations — effective September 2025 has improved the company's cost structure, enabling higher plant load factor (PLF) participation year-round. Management guided domestic power realisations at approximately INR 5.50 per unit. On a consolidated EBITDA margin basis, management indicated a trajectory of 35–40% for the foreseeable future.
Project Pipeline and Capital Commitments
Management provided updates on several ongoing projects and capital commitments across geographies:
| Project: | Details |
|---|---|
| 100 MW Solar Plant (MEL): | Commissioning expected to commence July 2026; tariff at $0.078 |
| 300 MW Thermal Expansion (MEL Phase 2): | Commissioning expected early January 2027 |
| Avocado (First Commercial Harvest): | ~150 tons harvested; ~1,000 tons expected next year |
| Avocado Peak Revenue Potential: | $22 million (expected post 2032) |
| Maamba Solar Expected Revenue: | $20 million–$22 million (top line); $6 million–$7 million (bottom line) |
| Total Equity Commitment (Group): | ~$130 million |
| Agri-side Debt (Pending): | ~$100 million |
| Maamba Phase 2 Equity (Pending): | ~$17.50 million |
| Solar Debt (Pending): | ~$30 million |
On receivables from ZESCO, management confirmed that 90% of outstanding amounts have been collected, with the remaining 10% expected to be received within the next six months. The company also disclosed that $15.50 million was received during the year against a previously outstanding account, reversing provisions made in prior years. A balance of $1.30 million remains, expected to be reversed in the next financial year.
Africa Mining and Strategic Initiatives
On the mining front, Nava is focused on manganese exploration in Ivory Coast, where a 360 square kilometre mine has been allocated. Exploration works over a 2 square kilometre area have yielded promising results, and the company is working towards an exploitation permit, expected within approximately one year. On lithium exploration in Zambia's Mapatizya area (Kalomo district), initial results in certain areas were positive; however, a portion of the area has been contested by another company holding a different license. The matter is currently under review by the ministry, and Nava has indicated it will not proceed further until clarity is obtained.
Regarding land assets in India, management is exploring options — including joint ventures and outright sale — for its Nacharam (Telangana) and Dharmavaram land parcels. Management indicated that the value of the Nacharam land has appreciated significantly and that a third party may be engaged to evaluate options.
Zambia Operations and Currency Dynamics
Management addressed concerns around cross-currency translation impacts on consolidated financials. The approximately 32% appreciation of the Zambian Kwacha has led to higher deferred tax liabilities on a non-cash basis. However, management clarified that cash flows from operations are not affected, as power purchase agreements (PPAs) remain denominated in USD, and coal sales revenues in Kwacha serve as a natural hedge against local employee costs. The Zambian government has mandated that all local employee and contractor transactions be conducted in Zambian Kwacha. Management also noted that Zambia is heading into elections in August, with no major operational disruptions reported and receivables being collected on time.
Historical Stock Returns for Nava
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.80% | -2.32% | -12.02% | +15.91% | +33.28% | +1,209.51% |
How might the outcome of Zambia's August 2026 elections impact Nava's power purchase agreements and the timeline for MEL's 300 MW thermal expansion commissioning?
If the Zambian Kwacha appreciation trend continues or reverses sharply, how could that affect Nava's consolidated profitability and the reversibility of the deferred tax liabilities beyond FY27?
With the EU safeguard duties on Indian ferro alloy imports persisting, could Nava's long-term contract coverage with Japanese mills and Indian steel producers face renegotiation risks at renewal, and what alternative export markets is the company exploring?
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