NLC India Limited (NLCIL), a Navratna public sector enterprise, has taken a significant step towards expanding its presence in the critical minerals and rare earth elements (REE) sector. On September 10, 2025, NLCIL signed a Memorandum of Understanding (MoU) with Khanij Bidesh India Limited (KABIL) to collaborate on identifying, acquiring, and developing critical and strategic mineral projects globally.

Strategic Partnership

The partnership between NLCIL and KABIL aligns with the Government of India's initiative to encourage public sector enterprises to acquire critical mineral assets through both domestic and international acquisitions. This move is expected to strengthen India's position in the global critical minerals market and enhance the country's self-reliance in strategic resources.

Expanding Horizons

NLCIL, known primarily for its operations in lignite mining and power generation, is actively pursuing opportunities in the critical minerals and REE sector. This diversification strategy aims to capitalize on the growing demand for these essential resources in various high-tech industries, including renewable energy, electronics, and defense.

Global Ambitions

The collaboration with KABIL, a joint venture company set up by three Central Public Sector Enterprises, is set to leverage the combined expertise of both entities. KABIL's focus on securing mineral assets abroad complements NLCIL's ambition to expand its footprint in the critical minerals sector.

Implications for India's Resource Security

This strategic partnership is expected to play a crucial role in securing a stable supply of critical and strategic minerals for India. As global demand for these resources continues to rise, particularly in the context of the clean energy transition and technological advancements, such collaborations become increasingly important for national resource security.

Looking Ahead

While specific details of the projects to be undertaken under this MoU have not been disclosed, the agreement marks a significant step in NLCIL's diversification strategy. It also underscores the government's commitment to enhancing India's capabilities in the critical minerals sector through strategic partnerships and global acquisitions.

As NLCIL and KABIL embark on this collaborative journey, stakeholders will be keenly watching the developments that unfold from this partnership, potentially reshaping India's position in the global critical minerals landscape.

NLC India Limited has made significant strides in both its renewable energy initiatives and financial performance, as revealed in recent company announcements and quarterly results.

Solar Project Milestone

NLC India has successfully commissioned the first phase of its ambitious 300 MW solar power project in Rajasthan. The company received the commissioning certificate from Rajasthan Renewable Energy Corporation Limited on August 26, 2025, for a 52.83 MW capacity installation at Barsingsar, Bikaner. This development marks a crucial step in NLC India's commitment to expanding its renewable energy portfolio.

Quarterly Financial Performance

Alongside its progress in green energy, NLC India has reported robust financial results for the latest quarter:

The company witnessed a substantial 42.75% year-over-year increase in net profit, rising to ₹798.00 crore from ₹559.00 crore in the same quarter last year. Revenue from operations also saw a healthy growth of 13.26%, reaching ₹3,826.00 crore compared to ₹3,378.00 crore in the previous year.

However, it's worth noting that EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) experienced a decline of 13.59%, falling to ₹935.00 crore from ₹1,082.00 crore. Consequently, the EBITDA margin contracted to 24.44% from 32.03% in the corresponding quarter of the previous year.

Stock Performance

The market responded positively to these developments, with NLC India's shares rising by 1.51% to ₹236.04. Over the past month, the stock has registered a modest gain of 0.70%.

Looking Ahead

The commissioning of the first phase of the solar project in Rajasthan aligns with NLC India's strategic focus on expanding its renewable energy footprint. As the company continues to balance its traditional operations with green energy initiatives, investors and industry observers will be keenly watching the progress of the remaining phases of the 300 MW solar project and its impact on future financial performance.