Leading energy company NLC India Ltd has outlined ambitious expansion plans, aiming to achieve 10GW of thermal energy capacity by 2030. To support this growth, the company is set to raise Rs.5,000 crore, reinforcing its commitment to strengthening India’s power infrastructure.
Price Action
On Tuesday, shares of NLC India Ltd surged to an intra-day high of Rs.227.80 a piece, reflecting an 9.41 percent jump from its previous close of Rs.208.20 each. However, the stock later was trading at Rs.226.51 per share. Over the past five years, the stock delivered 330 percent returns.
Major Expansion
NLC India Ltd is set to expand its renewable energy capacity significantly, targeting a rise from 1.4 GW to 10 GW by 2030, an almost sevenfold increase. Additionally, the company plans to launch an Initial Public Offering (IPO) for its renewable energy subsidiary in the latter half of FY26, as stated by Chairman and Managing Director Prasanna Kumar Motupalli.
Currently, NLC India’s renewable portfolio consists of 50 MW of wind power, with the remainder coming from solar projects, primarily located in Tamil Nadu.
To meet its ambitious goal, the company is advancing key solar projects, including a 300 MW installation in Barsingsar, Rajasthan, a 600 MW project at Khavda Solar Park, and another 800 MW capacity addition in Rajasthan.
Furthermore, a joint venture with the Rajasthan government is expected to contribute an additional 2 GW of renewable capacity, strengthening the company’s clean energy pipeline.
Also read: Bulk Deal: Stock in focus after shares worth ₹4.45 Cr changed hands
Fund Raising
NLC India Ltd’s board has approved raising up to USD 600 million (approximately Rs.5,000 crore) through External Commercial Borrowings (ECB) in foreign currency, depending on business requirements. The funding will be secured via the direct route, in compliance with Reserve Bank of India (RBI) guidelines.
Additionally, the company is seeking financial support from Multilateral Development Banks (MDBs) through the Department of Economic Affairs (DEA) to fund its upcoming renewable energy projects.
Renewable Divestment
NLC India is set to expand its renewable energy capacity to 10 GW by 2030, with an investment of approximately ₹50,000 crore. The company has established subsidiaries like NIRL and NIGEL to drive its renewable and clean energy initiatives, including plans for an NIRL IPO in FY26.
Alongside its renewable push, NLC is developing thermal projects such as Ghatampur and Talabira. To optimize costs, the company plans to raise ₹5,000 crore through overseas borrowings to refinance high-cost loans. Additionally, a joint venture in Assam has been formed, with NIRL holding a 51 percent stake and APDCL 49 percent, to develop 1,000 MW of solar projects.
NLC aims to become a 20 GW energy company by 2030, with renewable energy contributing over 50 percent of its total capacity.
Financial Performance
NLC India Ltd reported revenue of Rs.4,411 crore in Q3 FY25, marking a 39.4 percent surge from Rs.3,164 crore in the corresponding quarter last year. Sequentially, revenue saw a 21 percent increase from Rs.3,657 crore in Q2 FY25.
The company’s Profit After Tax (PAT) rose 174 percent year-on-year to Rs.696 crore from Rs.254 crore in the same period. However, on a quarterly basis, PAT fell 29 percent to Rs.982 crore.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
