State-run NLC India 's board has taken significant steps toward monetizing its renewable energy assets, giving in-principle approval for listing its wholly-owned subsidiary NLC India Renewables Limited (NIRL). The decision aligns with the National Monetisation Pipeline targets set by the Government of India.

Board Decisions and Strategic Moves

The company's board approved several key initiatives during its meeting on Monday. The primary focus was on the potential listing of NIRL, with plans to divest up to 25% stake through a public offer.

The board also gave in-principle approval to invest up to ₹66.60 crore in NLC India Renewables through equity share subscription, demonstrating continued commitment to the renewable energy segment.

Dividend Announcement

Shareholders have reason to celebrate as the company announced an interim dividend of ₹3.60 per equity share for the financial year 2025-26. The record date has been fixed for January 16, 2026, to determine eligible shareholders for dividend distribution.

Stock Performance Analysis

The PSU stock presents a mixed performance picture. While it has been a market laggard over the past year, delivering 6% returns compared to the benchmark Nifty's 10% returns, its longer-term performance tells a different story.

The stock currently trades above both its 50-day and 200-day simple moving averages of ₹251.00 and ₹245.00 respectively, according to Trendlyne data, indicating positive technical momentum.

Company Profile and Recent Performance

NLC India operates as a public sector enterprise under the Ministry of Coal, with primary activities in lignite mining and power generation. Incorporated in 1956 and headquartered in Neyveli, Tamil Nadu, the Navratna company is expanding its solar and wind capacity in alignment with India's energy transition goals.

The company's recent financial performance showed some challenges in the September quarter. Consolidated net profit declined 27% to ₹665.00 crore compared to ₹912.00 crore in the corresponding quarter of the previous year. Total revenue remained relatively stable at ₹4,347.00 crore, marginally down from ₹4,370.00 crore in the year-ago period.

Looking Ahead

The proposed listing of NIRL represents a strategic move to unlock value from the company's renewable energy assets while supporting the government's monetisation objectives. The company is yet to announce its December quarter earnings, which will provide further insights into its operational performance.

NLC India Limited announced on Monday, January 12, that its board of directors has granted in-principle approval for the listing of NLC India Renewables Limited (NIRL), its wholly-owned subsidiary. The listing will involve dilution of equity stake up to 25% in one or more tranches through a public offer, subject to requisite regulatory approvals.

Board Decisions and Approvals

The board's key decisions encompass both the renewable subsidiary's public listing and shareholder returns. The in-principle approval for NIRL's listing will be communicated to the Ministry of Coal for onward submission to the Department of Investment and Public Asset Management (DIPAM).

Dividend Declaration and Investment Plans

The board declared an interim dividend of 36%, amounting to ₹3.60 per equity share of face value ₹10 each, for the financial year 2025-26. January 16 has been fixed as the record date for determining members entitled to receive the interim dividend, which will be paid to eligible shareholders as per statutory timelines.

Further, the board granted in-principle approval to invest up to ₹66.60 crores in NIRL, in one or more tranches, by way of subscription to equity shares at face value. The proposed investment, subject to necessary statutory approvals, is intended to fund green energy projects to be executed through joint venture companies.

Recent Financial Performance

NLC India Ltd reported mixed financial results for the quarter ended September 2025. The Chennai-based lignite coal miner experienced a 27.10% year-on-year decline in consolidated net profit, which fell to ₹665.00 crores from ₹912.00 crores in the corresponding quarter last year.

Despite the profit decline, revenue from operations rose 14.00% to ₹4,178.40 crores from ₹3,657.30 crores a year ago, supported by higher output and improved realisations. Operating performance was stronger, with earnings before interest, tax, depreciation, and amortisation (EBITDA) up 30.50% year-on-year to ₹1,400.00 crores from ₹1,073.00 crores.

Market Response

Shares of NLC India Ltd closed at ₹257.00, up ₹4.60 or 1.82%, on January 12, reflecting positive market sentiment towards the board's strategic decisions regarding the renewable subsidiary's listing and dividend declaration.