NLC India Limited (NLCIL) has taken a significant step in its asset monetization plan by entering into a Business Transfer Agreement with its wholly-owned subsidiary, NLC India Renewables Limited (NIRL). The agreement, signed on October 31, 2025, involves the transfer of 1,430 MW of renewable energy assets from NLCIL to NIRL.

Key Details of the Asset Transfer

• Assets Involved: 7 Renewable Energy Assets
• Total Capacity: 1,430 MW
• Agreement Date: October 31, 2025
• Expected Completion Date: December 31, 2025

Financial Implications

The transfer of these renewable energy assets represents a substantial portion of NLC India's operations:

These figures are based on NLCIL's audited financial statements as of March 31, 2025, where the company reported a consolidated revenue of ₹15,282.96 crore and a net worth of ₹18,722.97 crore.

Transaction Details

• Consideration: NIRL will pay for the assets by issuing equity shares or acknowledging debt.
• Valuation Basis: The transaction is being carried out at book value based on the audited financial statements of March 31, 2025.
• Approvals: The transaction has received approval from NLCIL's Audit Committee, Board of Directors, and the Government of India.

Regulatory Compliance

The company has stated that this transaction falls under related party transactions. However, as it is being conducted between NLCIL and its wholly-owned subsidiary, compliance with Regulation 37A of SEBI (LODR) Regulations, 2015, regarding scheme of arrangement, is not applicable.

This strategic move aligns with the Asset Monetization Plan approved by the Ministry of Coal, which oversees NLC India Limited. The transfer is expected to streamline NLCIL's renewable energy operations and potentially unlock value for the company.

Investors and stakeholders will be watching closely to see how this restructuring impacts NLC India's financial performance and strategic positioning in the renewable energy sector going forward.

NLC India Limited , a Navratna public sector undertaking, has reported a mixed set of financial results for the second quarter. The company saw an increase in revenue but experienced a decline in net profit compared to the same period last year.

Revenue and EBITDA Growth

NLC India's revenue for Q2 rose to ₹41.78 billion, up from ₹36.60 billion in the corresponding quarter of the previous year, marking a 14.15% increase. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw significant growth, reaching ₹14.00 billion compared to ₹10.72 billion year-over-year. This resulted in an improved EBITDA margin of 33.50%, up from 29.34% in the same quarter last year.

Profit Decline

Despite the revenue growth, NLC India's consolidated net profit for Q2 declined to ₹6.66 billion, down from ₹9.10 billion in the previous year's corresponding quarter. This represents a 26.81% decrease in net profit year-over-year.

Financial Performance Overview

Operational Highlights

The company's board of directors, in a meeting held on October 29, approved several key decisions:

1. An in-principle approval to invest up to ₹666 crore in NLC India Renewables Limited (NIRL), a wholly-owned subsidiary, for funding green energy projects through joint venture companies.

2. The appointment of Shri Sushanta Kumar Panda as the new Company Secretary and Compliance Officer, effective October 30.

3. Approval for borrowing a rupee term loan of ₹1,200 crore from Punjab National Bank to refinance the existing loan for the 1000 MW Neyveli New Thermal Power Station (NNTPS).

Challenges and Future Outlook

NLC India faces challenges related to land availability for lignite mining at Neyveli, which is impacting its operations. However, the company remains confident in overcoming these challenges through sustained efforts in the near future. To ensure lignite availability, NLC India has undertaken contingency mining with additional costs and resources.

The company continues to focus on expanding its renewable energy portfolio, as evidenced by the investment approval in NIRL and the recent commissioning of 52.83 MW of a 300 MW Solar Power Project at Barsingsar.

As NLC India navigates through these operational challenges and continues its expansion in the green energy sector, investors and stakeholders will be closely watching how the company balances its traditional mining operations with its renewable energy ambitions in the coming quarters.