Nava (513023) Q1 26/27 earnings summary

Executive summary

• Consolidated total income reached an all-time quarterly high of INR 1,269 crore (₹1,268.8 Cr), up 6.2% QoQ for Q1 FY 2027, reflecting strong performance and disciplined cost management.

• Standalone total income hit a record INR 689 crore (₹688.9 Cr), aided by lower coal and manufacturing costs and dividend income from international operations.

• Consolidated EBITDA rose 37.9% QoQ to ₹583.5 Cr, with EBITDA margin at 46.0%.

• Consolidated PAT surged 144.2% QoQ to ₹332.8 Cr, with PAT margin at 26.2%.

• The diversified portfolio, including energy, mining, and agriculture, contributed to robust results and operational resilience.

Financial highlights

• MEL's 300 MW plant operated at a high 89.3% PLF, supporting strong energy segment results.

• Operational revenue increased 6.0% QoQ; energy division revenue up 18.3% with higher PLFs.

• Mining revenue rose 20.4% QoQ due to increased sales quantity.

• Deferred tax expense for the quarter was INR 40 crore, influenced by Zambian currency fluctuations; this may reverse if the currency stabilizes.

• EBITDA margin for the Zambian energy segment is expected to be sustainable at 45%-50%; consolidated EBITDA margin is projected at 35%-40%.

Outlook and guidance

• Phase II of MEL (300 MW) is now expected to be commissioned by Q2 FY 2027-28 (around July 2027), later than initially planned, but with no material CapEx impact.

• Maamba Solar's 100 MW project construction is nearing completion, set for commissioning in Sep 26.

• Management remains focused on long-term value creation, leveraging financial strength and operational resilience to navigate geopolitical and supply chain challenges.

• Avocado plantation is 75% complete, with commercial fruit yield in Division A.

• Integrated Sugar project progressing with plantation and equipment supplies underway.