Thank you. Good evening.

On behalf of ICICI Securities, I welcome you all to the Q3 FY '26 earnings call of NLC India Limited. Today we have with us from the management Shri M.

Prasanna Kumar Motupalli, Chairman and Managing Director; Shri Suresh Chandra Suman, Director (Mines); Shri Samir Swarup, Director (Human Resources); Shri M. Venkatachalam, Director (Power); Shri Prasanna Kumar Acharya, Director (Finance) and CFO; Shri Rajesh Pratap Singh Sisodia, Director (Planning and Projects); along with other senior management from the company.

We will start the call with brief opening remarks by the management, which will be followed by a Q&A. Over to you, sir.

Thank you, Mohit, for the introduction, and thanks to ICICI Securities for hosting NLCIL's investor conference call. I also want to extend my gratitude to all the participants and investors for your unwavering support and interest to NLCIL.

Today, I'm happy to engage with the NLCIL stakeholders and address any questions you might have regarding our financial results for the quarter and nine months ended 31st December 2025, as well as to provide updates on our capacity addition program. Your involvement and feedback are valuable to us, and I look forward for a productive discussion.

I, Prasanna Kumar Motupalli, Chairman and Managing Director of NLC India Limited, and joining with me Shri Suresh Chandra Suman, Director (Mines); Shri Samir Swarup, Director (Human Resources); Shri M. Venkatachalam, Director (Power); Shri Prasanna Kumar Acharya, Director (Finance) and CFO; Shri Rajesh Pratap Singh Sisodia, Director (Planning and Projects); and also with other senior management of the company.

Before the interaction, I would like to brief on the highlights and performance of NLCIL. NUPPL's unit number 2, 660 MW of 1,980 MW Ghatampur Thermal Power Project, has successfully achieved commercial operation declaration, COD, on 9th December 2025.

Talabira mine achieved highest single-day production of 1,01,040 tonnes on 30th December 2025, and highest single-day coal dispatch of 91,124 tonnes on 31st December 2025. Pachhwara South Opencast Mine has commenced mining operations on 19th December 2025.

NLCIL commissioned 300 MW solar power project at Barsingsar on 23rd January 2026. This is highest capacity single-location solar plant for NLCIL.

NLCIL received LOA from National Capital Region Transport Corporation Limited, NCRTC, for the development of 110 MW grid-connected solar PV project in the state of Uttar Pradesh under captive mode. We signed coal mining agreement for development and operation of North Dhadu Western Part coal mine under MDO mode.

We signed its maiden green loan agreement with Sumitomo Mitsui Banking Corporation, SMBC, under the ECB framework amounting to Japanese yen 15.464 billion, that is US$100 million, to fund renewable energy projects through its subsidiary NIRL. NIRL signed JV agreement with PTC India Limited for development of 2 GW of green energy capacity, and formation of JV company is in progress.

NIRL and Odisha Renewable Energy Development Agency, OREDA, signed an MOU to jointly develop solar, hybrid, rooftop, and energy storage projects in the state of Odisha. Honorable Union Minister of State for Coal and Mines, Government of India, laid foundation stone for Neyveli Neer project of capacity 1 lakh liters per day.

Mining plan and mine closure plan of the North Dhadu Western Part coal mine was approved by the Coal Controller Organization, Ministry of Coal. Business Transfer Agreement was signed between NLCIL and NIRL, which is our wholly owned subsidiary, for transfer of renewable assets from NLCIL to NIRL, and the asset has been transferred with effect from 1st January 2026.

NIRL has signed a long-term power purchase agreement with SJVN Limited for development of 200 MW wind power project. Gazette notification under Section 7(1) of CBA Act 1957 issued by Government of India for Machhakata revised coal mine, Angul, Odisha, which will facilitate land acquisition.

LOA issued for establishment of 4 MW PEM electrolyzer-based green hydrogen plant in Neyveli. DIPAM of Government of India has accorded approval for the formation of the joint venture between NIRL and MAHAPREET to collaborate in the field of renewable energy, and the joint venture formation is in progress.

NLC India Limited has won silver shield at the ICAI Awards for Excellence in Financial Reporting 2024-2025 at Delhi. NLC India Limited won laurels in the PRSI awards for the annual report for financial year 2024-2025.

NLCIL won the SKOCH award for corporate excellence in financial performance. The cash realization from depositors crossed [unclear] reaching ₹10,242 crore.

Declared interim dividend of 36%, ₹3.60 per share on the paid-up equity share capital for the financial year 2025-2026, highest since last 5 years. Recorded capex of ₹6,242 crore up to December 2025, exceeding financial year 2025-2026 annual target by 23%.

Under the MOU evaluation by Department of Public Enterprises, NLCIL received an excellent rating for financial year 2024-2025. Coming to key highlights of standalone physical and financial performance for the nine months ended December 2025: achieved coal production of 113 lakh tonnes compared to 115 lakh tonnes in the corresponding period of the previous year.

Total revenue from operations is ₹7,946 crore against ₹7,563 crore in the corresponding period of the previous year, registering a growth of 5%. Profit after tax is ₹1,282 crore against ₹1,244 crore in the corresponding period of previous year, registering a growth of more than 3%.

The total earnings before interest, taxes, depreciation and amortization, EBITDA, is ₹3,240 crore against ₹3,207 crore in the corresponding period of previous year, registering a growth of 1%. The net worth as on 31st December 2025 stood at ₹18,535 crore compared to ₹17,010 crore in the corresponding period of previous year, registering a growth of 9%.

The collection efficiency of power debtors till 31st December 2025 stood at 119% as against 107% in the previous period. Coming to key highlights, the group performance and financial performance for the nine months ended December 2025: achieved gross power generation of 20.54 billion units including renewable power generation of 1.6 billion units.

All-time highest ever nine months ended revenue from operations of ₹12,447 crore as against ₹11,447 crore in the previous year, registering a growth of 9%. All-time highest ever nine months ended profit after tax of ₹2,288 crore as against ₹2,245 crore in the previous year, registering a growth of 2%.

The total earnings before interest, taxes, depreciation and amortization, EBITDA, is ₹4,899 crore as against ₹4,695 crore in the corresponding period of previous year, registering a growth of more than 4%. The net worth as on 31st December 2025 stood at ₹20,640 crore compared to ₹18,441 crore in the corresponding period of previous year, registering a growth of 12%.

With this, I thank all the investors and all stakeholders for the outstanding support to the company. Thank you.

Yes.

Thank you for the opportunity, sir. My question is with respect to our financial performance.

In this quarter we are seeing that revenue from operations on a consolidated basis is staying almost flat on a year-on-year basis despite our Ghatampur plant two units getting operational and cost of fuel consumed is rising. What is causing this, if you can shed some light on that?

Actually, the overall power situation in the country, because of favorable weather conditions, the power demand is not as comparable to last year. That is the reason why the generation levels from other units is comparatively lesser.

That is the reason why the overall generation levels are flat.

What about the cost of fuel, means there is a increase in that also? If you

are talking about the consolidated, I think in the last quarter onwards the two units of Ghatampur are operating. There the cost of fuel is comparatively higher, so that is the reason why the cost of this thing is higher.

Okay. My second question is with respect to our rest of the thermal plants and their probable targets.

For the unit 3 of Ghatampur, in the previous call we said that we will be achieving it beyond Feb 2026. Is it on target or there is some delay in that?

Again for rest of the power plants, that is Odisha pithead TPS phase 1 and phase 2 and TPS-II second expansion and Rajasthan lignite thermal, if you can share the latest updates.

In the month of December we commercialized our unit number 2, and the unit number 1 and unit number 2 are operating exceedingly well with good availability and reliability. Unit number 3, all the activities are in fast progress.

The steam blowing activities are in progress. We are hopeful that in the current financial year we will be able to declare commercial operation of the entire station.

All the three units will be under commercial operation in the current financial year. We are trying for that.

Coming to the Talabira, as the EPC contract was awarded to BHEL. There were some initial issues with the land acquisition.

All the issues are sorted out. The land is handed over to BHEL, and all the activities are in fast progress in Talabira to achieve our target of adding the first unit in the financial year '29-30.

Coming to the new Neyveli 2x500 MW, already we floated the tender, and that process is on. We are hopeful that we will be able to award the contract in the H1 of the next financial year and take the activities forward.

The Rajasthan 3x125 MW, the initial due diligence activities are going on. Once that is done, we will go for tendering.

Understood. Just one last question on Pachhwara coal block.

Now we have started that. If I recall means this fulfills 50% of our Ghatampur requirement, if that is right.

Then how this ramp-up will happen and how much will be cost saving if we source coal from this Pachhwara coal block, if any color on that?

Actually, this Pachhwara South coal block will feed the entire coal to Ghatampur. This financial year we will be starting the production.

Next financial year we will be able to produce around 1.5 to 2 million units. For the balance quantity, we are having tie-up for the bridge linkage from the Coal India subsidiaries.

That coal we are receiving. In the next financial year, the Talabira production will be 2 million and the balance 4 million tonnes we will get through bridge linkage.

Coming to the reduction in the fuel expenses, there will be certainly some reduction, but exactly we cannot say, I think it will be to tune of around ₹1.

Sir. I'll get back in the queue.

Thanks for the response.

Thank you for the opportunity, sir. My first question is on the fixed-cost recovery.

What has been the...

Sorry, just a sec. Is it clear now?

Is it better?

Yeah.

Thank you for the opportunity. My first question is on the fixed-cost recovery.

What has been the recovery on the standalone basis as well as on NTPL and Ghatampur plant?

Actually, on standalone basis, compared to the fixed-cost under-recovery of ₹510 crore in the last financial year first nine months, this year it is ₹623 crore. Main positive point here is that the main problematic unit, that TPS-II second expansion, in which we carried out the major modification.

I'm happy to communicate that after carrying out the major modification, the availability of unit is 90%, and even generation is also at the highest level, and it is having highest generation and availability of all the 250 MW contemporary units in the country. We are targeting the modification in the second unit also.

Once that is done, I think the entire under-recovery what we were having earlier, that will not be there in future. Got it.

You were asking about this NTPL and NUPPL

Ghatampur.

In NUPPL, the under-recovery is around ₹78 crore. In NTPL, there is no under-recovery.

It is having availability factor more than 85%. This NUPPL also, that is because of initial teething problems the under-recovery is there.

Otherwise, both the units are very stable and operating exceedingly well.

Got it. Second question is again pertaining to Ghatampur plant.

What has been the cost of power plant which has been capitalized till date, and what will be the further capitalization?

See, we got approval of RCE-2 and that is 19,000... Just one minute, please.

That is 21,780. There will be RCE-3.

I think, but that will be around ₹23,000 crore approximately.

Okay. What is the status of tariff petition for Ghatampur plant?

For unit number 1 we got interim order, and unit number 2 we are filing the petition with CERC.

Okay. Sir, one last question.

What is the timeline for the green energy IPO which has been planned?

Okay. As all the activities for the IPO are in fast progress.

Even the cabinet, we got the cabinet approval, and subsequently whatever exemption was required for the tax, that also we got in record time. We are expecting the IPO in the month of September '26.

All activities are in fast progress. We are trying to speed up further, but we are expecting it will be in the month of September '26.

Sir. Thank you so much.

Good evening, sir. Sir, my first question was on the financials, consolidated financials.

Are there any one-offs in the revenues or PAT that we should be knowing about in terms of the one-times that are there in this quarter?

Actually, around ₹260 crore we got some favorable CERC order. Those things are the one-offs in the financial statement.

That is in the consolidated, nothing in the standalone, right?

It is standalone only.

That is standalone. Okay.

On the tax also there is some one-off? In the consolidated, the tax rate is much less than the stipulated rate?

No, no, no.

Okay. My second question, sir, is on the under-recoveries again.

We have seen the under-recoveries being very erratic. Now sometimes we see 400, this time it's 600, and we've been targeting to get the under-recoveries to lower than ₹300 crore for the year.

When do we see a kind of stable state scenario in our lignite plants where we'll see the under-recoveries in a kind of more balanced number every quarter instead of being this kind of erratic number which we've seen quarter-on-quarter?

The erratic nature of under-recovery was mainly attributed to the TPS-II expansion, where we were facing some technical issues. As I already communicated, we did modification in one of the units, and that unit is performing exceedingly well.

We are going to do the modification in other unit also, which we are expecting in the H1 of next financial year. Once that is done, I think the under-recovery values will be in a sustained manner.

They will not be erratic.

Okay. Sir, could you give us the break-up of the coal sourcing for Ghatampur at full capacity?

You said approximately 4 million is the bridge linkage. What is the total?

I understand the total coal requirement for the three units is about 9 million. Does it mean that we'll be sourcing about 5 million from Talabira or what is it?

Because when...

Total requirement is around 6 million metric tonne. Our Pachhwara South coal block is 9 million metric tonne.

We will be able to fully source the coal from Pachhwara once the full production happens in Pachhwara. For the next financial year, our Pachhwara South coal block is about to start production in the month of March, next financial year we will be able to produce around 2 million metric tonne.

The balance 4 million metric tonne we will be sourcing through the bridge linkage from Coal India subsidiaries.

Okay. What is the standalone and consolidated regulated equity as of the end of the quarter?

On

our regulated equity, the standalone it is ₹12,464 crore.

That is consolidated, you mean?

That is consolidated.

Yeah. Standalone?

This NTPL is ₹1,741 crore, and NUPPL ₹3,336 crore. The balance is the other projects.

This includes the NUPPL second phase, right?

Yes, exactly.

Okay. It would be mostly capitalized this quarter, right, NUPPL second phase, because it won't be in commercial production in December when you started the plant.

It'll mostly be included in the regulated equity this quarter, right?

Our unit started commercial operation on December 9th. That is taken into account.

Okay. Thank you, sir.

Thank you.

Hi, sir. Thanks for taking my question.

Sir, I wanted to know when are we expected to receive environment clearance for Talabira Phase 2 project, and when will we float the tender for this project, and by when we will be able to award this project?

See, the Talabira Phase 2, 800 MW, we are expecting the environmental clearance at around end of H1 next financial year. Before that, we will start the tender activities and we'll float the tender.

We are hopeful that by December the order will be placed for Phase 2 of Talabira.

Sir. Sir, I wanted to know what was the Talabira e-auction volume this quarter, and what was the realization this quarter from e-auction?

The third quarter, the e-auction is around 26 lakh tonne. 27 lakh tonne, in fact it is 26.91 lakh tonne.

The overall sale rate of e-auction was 1,561 ₹1,561. For the nine months period, the auction is 84,91,000, and the overall sale rate was ₹1,561.

Sir. Sir, and I wanted to ask about the renewable projects.

Wanted to know when will the 600 MW Gujarat solar project will get commissioned, and also have we got the land for Assam 1,000 MW solar JV project?

This 600 MW, all the activities are in fast progress. We awarded the BOS contract long back and placed order for the modules also.

Most of the modules are received at site. We are hopeful that by the end of the current financial year we will be able to add 300 MW.

Within next 1, 1.5 month in the next financial year, the balance 300 MW also will be added. Coming to the land at Assam, all the activities are in fast progress there also, and it is in the final stages.

Requisition for money is raised by them. Once that is done, I think they will hand over the land to us.

Okay. Sir, and one last question from my side regarding the 450 MW hybrid project.

When are we expected to receive PPA for that project?

Actually, the PPA is to be signed by NTPC. I think they are in the process of signing PPA with the beneficiary.

After that, they will sign with us. Most probably that will happen in the first quarter of the next financial year.

Okay. Thank you, sir.

Thank you for the opportunity. Sir, regarding this green JV that NLC India Renewables is setting up with PTC India for a 2,000 MW project, can you throw some more light on as to how much capex are we looking to incur there, what kind of assets are we looking to build up, and what would be the respective roles for NIRL and PTC?

Actually, we are targeting to add 2 GW with overall capex of around ₹10,000 crore. NLC being expert in the area of renewables, we are taking lead role, and they will be our JV partner.

Sir. Thank you.

I have two questions. One is regarding the capex.

Can you provide the capex break-up? The second question is regarding the rare-earth materials.

Since Union budget was shaped around rare earth and critical minerals, what's the status? Have you updated any status regarding the critical minerals that you are partnered with Bhabha Atomic Energy?

The first question is regarding the capex.

Capex break-up, yeah.

Capex this financial year up to December, our capex figure is ₹6,241 crore. Out of that, NLCIL standalone is ₹2,389 crore...

sorry, ₹3,270 crore. This Pachhwara South coal block is ₹685 crore.

NTPL, it is ₹143 crore. NUPPL Ghatampur, it is ₹1,087 crore.

NIRL, it is ₹1,022 crore. Total is around ₹6,241 crore.

Regarding the critical minerals and rare earth elements, we are having experience of more than 7 decades in opencast mining. To leverage that experience, since beginning we have been trying for critical mineral blocks and participating in all the auctions.

In the last auction, we got two blocks in the state of Chhattisgarh.

Okay. Any update regarding what would be the capacity of that block?

Actually, it is too preliminary to estimate the capacity of these blocks. This is a phosphorite and limestone blocks, both are the adjacent blocks and good blocks with less stripping ratio.

The geological reserves, they are around 3.39 million tonnes phosphorite in one of the blocks, Simhardih block, and 14.57 million tonnes in Raipur phosphorite block. There are huge reserves of limestone also.

In one block it is 428 million tonnes, and in other block it is 170 million tonnes.

Also, if I'm not wrong, you had a target of 1 million tonne to mine for critical minerals, by FY '30. Is it possible that we could achieve that?

Even we are targeting along with the domestic blocks, we are targeting for acquisition of some of the blocks in overseas also. For that, we signed an MOU with IREL.

Also we signed MOU with KABIL, Khanij Bidesh India Limited, and there also we are putting all the efforts to acquire some of the ready blocks for production of critical minerals. Also you asked one more question about the MOU with BARC.

As we signed an MOU with BARC for establishing one pilot project in Neyveli for extracting rare-earth elements from the fly ash of lignite-based power stations in the Neyveli. That all the activities are in fast progress.

The design of the activities completed. Now the tenderization and everything will be completed.

We are expecting that in the next 9 months period the pilot plant will be operational and extraction of rare-earth elements will be started.

Okay. Any revenue generations we can expect from that?

Abhi, sorry to interrupt.

Sure.

Thanks again. Sir, just on the RE projects, we have a target of 8 GW by 2028.

How the projects will be progressing, how much is in pipeline, and are you facing any right of way or land acquisition issues there?

See, as you rightly said, in '28 our target is around 8 GW and by 2030 the target is 10 GW. We started the year with around 1,400 MW, and already we added 300 MW, 300 MW, and we are going to add another 300 MW.

By the end of financial year we'll be around 2 GW company. To reach target of 10 GW, we are aggressively adding capacity in different states.

We already formed joint venture with Rajasthan government for adding 2 GW of renewables. We formed joint venture with Assam government for adding 1 GW of renewables.

We are forming a JV with MAHAPREET for adding around 5 GW of renewable capacity. Similarly, we are in forming JV with Odisha also for adding around 2 GW capacity.

If you combine all these things, it will be coming much more than the 10 GW. Already around 3 GW renewable projects already activities are in fast progress.

With these projects will be commissioned in next 1.5 to 2 years. Out of that, the 600 MW in Gujarat, there is an advanced stage, we will be commissioning the entire 600 MW in the quarter 1 of the next financial year.

Our 810 MW project in Pugal, that is also we are in the final stages of taking the land, and we will take it forward in fast-track mode. There are many projects in pipeline to achieve the target of 8 GW by '28 and 10 GW by 2029-'30.

Just a follow-up, out of this 8 GW, how much is a PPA tied up as of now?

No, out of this 8 GW, the 3 GW which I was telling which are in progress, for that we formed JV with Assam. Whatever capacity we will be installing there, that will be taken by the respective state government.

Once we take the land, then after that this PPA will be signed with them.

Understood, sir. Thanks a lot.

Hello, sir. Just I had a question on regulated equity.

When I'm looking at the presentation in 9 months FY '26, our regulated equity for the mine segment is ₹3,458 crore and in 2027 it is showing as ₹4,437 crore. When I'm looking at the total capital cost of Pachhwara and when I'm trying to add up the regulated equity, it's coming to around ₹4,000-odd crore.

Can you just help me to bridge that gap of that ₹400-odd crore? What is the regulated equity to be added from Pachhwara?

Actually, by end of 2027 the regulated equity from mines is ₹4,437 crore only. Your question is that when you are adding Pachhwara, it is coming around ₹4,000 crore only.

Parallelly, our three mining projects are going on, our North Dhadu, our Machhakata, and Patrapali, all these three mines activities are going on. The balance will be,

Talabira also,

and Talabira also some of the more activities are there. That's why that is ₹4,437 crore.

Okay. Second question is on the thermal side of it.

If you see our thermal capacity regulated equity is around ₹9,061 crore. In FY '25 when I'm looking at the standalone basis, it was around ₹3,984 crore, and from NTPL it is ₹1,741 crore.

Is the balance from Ghatampur or how is it? Because I suppose the total capital cost of Ghatampur is ₹21,781 crore, when I am extracting the regulated equity and the NLC's part of it, it is coming around ₹3,300 crore.

There when I'm totaling it, I suppose there is still a gap of around ₹1,400-odd crore. Just wanted to understand that.

Out of this ₹9,000 crore, ₹3,336 crore is related to NUPPL, and ₹1,741 crore is related to NTPL. In NUPPL also till now two units are only added to this one, and once we commission that the third unit also we will add to that.

Also two FGD projects are going on in our NTPL as well as our NNTPS, so that is also contributing in this equity.

Okay. Sir, last question on the financials.

In consolidated statements in Q3, in last Q3 FY '25 there was some ₹1,000 crore of true-up value and there was some adjustments. In this quarter there are no adjustments, right, or is there any adjustments?

No,

there is adjustment of around ₹260 crore that is already shown. Because of the favorable CERC order, it is around ₹260 crore against ₹1,000 crore last year.

It is ₹260 crore this year.

Okay. RE capacity addition for the next two years, just a ballpark number?

This year we will be adding total around 600 MW. In the next financial year around 1 GW and subsequently 1.5 GW every year.

Okay. Thank you very much, sir.

Hi, sir. Sir, just wanted to know regarding Machhakata power plant, whether the feasibility study report for that plant has come out?

Second, I wanted to know about the 2,000 MW Rajasthan solar JV project, how much land have we acquired for that project, and when are we expecting commissioning of that project?

Regarding Machhakata thermal power station, the initial pre-feasibility report we received, and we are examining that for setting up of the thermal power station there. Coming to the Rajasthan renewables of 2 GW, we received land for around 600 MW, 600 MW.

Balance is in fast progress. We are taking up with RVUNL.

We are hopeful that in the next quarter we will be getting the entire land for 2,000 MW. Once we get the land, within one year we will be able to start the generation from that plant.

From the first quarter of FY '28, the generation should start from this plant? Yes,

exactly.

Okay. Thank you, sir.

I thank all the participants and investors in today's investor call for giving encouragement to team NLCIL, and at the same time giving valuable suggestions. On behalf of the management, I assure that whatever commitments we have given and the timelines we have given, we will put all efforts to ensure that these commitments are met and increase the return to the investors.

Thank you, all.

Thank you.