Nava Ltd will temporarily shut down one of its 60 MW independent power producer (IPP) units in Odisha for routine maintenance. The shutdown commences on September 6, 2026, and is expected to last between 55 and 60 days.

The company stated the decision aligns with recommendations from the Original Equipment Manufacturer (OEM) and prevailing industry best practices. The work involves routine inspection, maintenance, and overhauling activities required to comply with safety and regulatory standards.

Operational Context

Nava Ltd’s energy operations in Odisha consist of three generating units with an aggregate capacity of 150 MW. This portfolio includes two 60 MW IPP units and one 30 MW captive power plant (CPP) unit. The shutdown affects only one of the two larger IPP units.

The company scheduled the downtime during a period of relatively lower thermal power production requirements. This timing coincides with greater availability of hydel power and consequently lower tariffs. Nava Ltd does not expect any material adverse impact on its business operations or overall performance due to this planned outage.

The company disclosed this information under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations. It intends to keep stock exchanges informed of any material developments and will promptly intimate them upon the resumption of operations.

The Board of Directors of Nava Limited approved unaudited consolidated financial results for the quarter ended June 30, 2026, reporting a significant improvement in profitability compared to the preceding quarter. The company achieved its highest-ever quarterly total income of ₹1,269 crore. During the earnings conference call held on August 14, 2026, management provided updates on key growth projects, noting that while the 300 MW MEL Phase II thermal expansion has faced logistical delays, the 100 MW solar initiative remains on schedule.

Consolidated net profit attributable to shareholders stood at ₹332.8 crore, up from ₹136.3 crore in the quarter ended March 31, 2026. This represents a 144.2% increase quarter-on-quarter. Total comprehensive income for the period was ₹1,268.8 crore. Revenue from operations increased 6% to ₹1,211.8 crore from ₹1,142.8 crore in the prior quarter. Standalone total income reached a record ₹689 crore, supported by lower coal and manufacturing costs along with dividend income from Nava Global.

Segment Performance

The Energy segment remained the primary revenue driver, contributing significantly to the top-line growth. Operational parameters improved across all power plants, which operated at higher Plant Load Factors (PLFs). The Telangana 114 MW plant operated at a PLF of 87.3%, while the Odisha 150 MW plant improved to 93.4%. NBEIL’s 150 MW unit operated at a PLF of 76.0%. Management noted that the 300 MW MEL plant operated at a strong 89.3% PLF during the quarter.

Ferro Alloys revenue declined due to a planned shutdown of production at Odisha-Ops. However, sales realisations increased by ₹3,200/MT with higher export sales. Mining revenue grew with increased sales quantity. Management clarified that the Odisha unit resumed operations on August 1, 2026, following long-term maintenance activities.

Financial Highlights

Consolidated EBITDA rose 37.9% to ₹583.5 crore, expanding margins to 46.0% from 35.4% in the previous quarter. Cost of materials decreased relatively due to lower coal costs from Singareni Collieries. Finance costs decreased significantly to ₹2.5 crore from ₹7.1 crore. Other income rose to ₹57.0 crore from ₹52.0 crore.

Standalone results showed a different trajectory. Standalone PAT fell 44.4% to ₹266.0 crore from ₹478.1 crore in Q4FY26. The decline was primarily due to the absence of an exceptional item of ₹403.9 crore recorded in the previous quarter. Standalone EBITDA, however, surged 87.6% to ₹318.6 crore.

What the Numbers Show

The divergence between consolidated and standalone profitability highlights the impact of non-recurring items on the prior quarter’s baseline. While consolidated PAT surged 144.2%, standalone PAT contracted sharply because Q4FY26 included an exceptional gain of ₹403.9 crore. Operationally, the business is strengthening: EBITDA margins expanded to 46.0% as material costs declined and receivable credit loss provisions reversed minimally, with arrears from ZESCO nearing 100% realization. Maamba Energy receivables stand at US$ 13.4 million, down from US$ 18.4 million as on June 30, 2026, following a US$ 15.0 million realization. Management indicated that deferred tax expenses of ₹40 crore in the current quarter may reverse if the Kwacha-USD exchange rate stabilizes further.

Project Updates and Outlook

Management provided specific timelines for upcoming growth initiatives during the earnings call:

• MEL Phase II: Commissioning of the 300 MW thermal plant has been delayed to Q2FY28 (June-July timeframe) due to geopolitical conflicts causing logistical delays in shipping critical materials. The project cost remains at $400 million, with a debt-equity mix of $300 million debt and $100 million equity. Expected revenue is approximately $200 million annually.
• Maamba Solar: Construction of the 100 MW project is nearing completion, set for commissioning in September 2026.
• Sugar Project: Commissioning is targeted for Q4FY28, with expected annual revenues of ₹55 to ₹60 million.
• Agri Business: Avocado plantation is 75% complete with over 286,000 trees on ground; Division A is yielding commercial fruit.
• Mining Exploration: Lithium exploration is underway despite slight slowdowns due to elections. Manganese exploration covers 360 square kilometers, with detailed exploration completed on 2 square kilometers showing promising results.

Auditor Review and Notes

Walker Chandio & Co LLP conducted a limited review of the consolidated results. The auditors highlighted uncertainty regarding recoverability of trade receivables amounting to ₹1,651.5 crore from a customer of Maamba Energy Limited, secured by a sovereign guarantee from the Government of Zambia. Management considers these receivables realizable based on a favorable arbitration award.

Additionally, the auditors noted contingent liabilities and assets related to legal proceedings involving subsidiary Brahmani Infratech Private Limited. No adjustment was made to the statement regarding this matter pending final outcome.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE725A01030/f050d069-5f71-48f1-845b-d180d3375468.pdf