PSU Power Stock in Focus as NLC India Targets 600% Expansion in Renewable Energy by 2030
PSU Power : India’s power generation sector is evolving rapidly, with a total installed capacity of 466.26 GW as of January 2025. Renewable energy is becoming a dominant force, contributing 100.33 GW, while coal continues to be the largest source at 220.49 GW. Amid this transformation, NLC India Ltd, a key player in the PSU power sector, is making headlines with its ambitious expansion plans in the renewable energy space.
Massive Growth Plans: 10 GW Renewable Energy Target by 2030
NLC India is aggressively expanding its renewable energy portfolio, targeting 10 GW of capacity by 2030, a sevenfold increase from its current 1.4 GW. This move aligns with India’s renewable energy push and positions NLC India as a major player in the sector.
To achieve this, the company is focusing on solar and wind energy projects, aiming for over 50% renewable capacity in its total energy mix by 2030. This strategic shift is part of the company’s long-term sustainability and growth vision.
IPO Plans for Renewable Energy Expansion
In a bid to fund its aggressive growth, NLC India plans to launch an IPO for its renewable energy division. The public offering is expected to take place in Q4 of FY26 or Q1 of FY27. Currently, the company is assessing the valuation of its renewable assets to finalize the IPO structure, ensuring optimal value realization for stakeholders.
Strong Operational Performance and Expansion in Thermal & Coal Mining
Apart from its renewable energy expansion, NLC India is also ramping up lignite and coal production. The company has set a production target of 26 million metric tonnes for the next fiscal year, having already achieved a record 16 million metric tonnes in coal output.
In the thermal power segment, key projects include:
- Ghatampur Thermal Power Plant (3×660 MW): Expected completion between November 2024 and March 2025
- Talabira Project (₹27,213 crore investment): To be completed by 2029–2030
- Pachwara South Coal Block (₹2,243 crore): Scheduled for FY 2026
The company has also secured major agreements, including a 200 MW solar power project in Telangana and a JV with RVUNL for 3×125 MW thermal and 2 GW renewable energy projects.
Stock Price Movement and Market Overview
NLC India Ltd’s stock is experiencing volatility amid these developments. The stock was trading at ₹245.10, down 4.50% from the previous close of ₹256.65. Despite the dip, long-term investors remain optimistic about the company’s growth potential in the renewable energy sector.
Financial Performance & Key Ratios
NLC India has reported exceptional financial growth, with revenue rising 39% YoY from ₹3,164 crore in Q3FY24 to ₹4,411 crore in Q3FY25. Net profit soared 174% from ₹254 crore to ₹696 crore in the same period.
Financial Ratios & Stock Performance
| Metric | Value |
|---|---|
| Market Cap | ₹34,581 Cr. |
| Current Price | ₹249 |
| 52-Week High/Low | ₹312 / ₹186 |
| Stock P/E | 15.4 |
| Book Value | ₹128 |
| Dividend Yield | 1.20% |
| ROCE | 6.54% |
| ROE | 6.79% |
| Debt to Equity | 1.27 |
| Price to Book Value | 1.94 |
| Industry P/E | 31.3 |
| Intrinsic Value | ₹136 |
| PEG Ratio | -2.30 |
| DMA 200 | ₹236 |
| Free Cash Flow (3Yrs) | ₹10,826 Cr. |
| Free Cash Flow (5Yrs) | ₹8,648 Cr. |
| Debt | ₹22,521 Cr. |
Key Takeaways
- Aggressive Renewable Energy Expansion: 10 GW renewable energy target by 2030
- IPO Plans: Renewable energy division IPO expected in FY26–FY27
- Coal & Thermal Growth: Strong coal production and upcoming power projects
- Financial Growth: Strong revenue and profit growth in Q3FY25
- Stock Performance: Market showing mixed sentiments amid expansion plans
Q&A: Understanding NLC India’s Growth Story
Q1: Why is NLC India expanding its renewable energy capacity?
A1: The company aims to capitalize on India’s renewable energy growth and align with the government’s clean energy push. The target is to reach 10 GW capacity by 2030, a 600% increase from current levels.
Q2: How is NLC India funding this expansion?
A2: The company plans to launch an IPO for its renewable energy division in FY26 or FY27 to raise funds for expansion.
Q3: What are NLC India’s key upcoming projects?
A3: Major projects include the Ghatampur Thermal Plant (3×660 MW), Talabira coal project (₹27,213 crore investment), and multiple solar and wind energy projects.
Q4: How has NLC India performed financially?
A4: Revenue grew 39% YoY, reaching ₹4,411 crore, while net profit surged 174% to ₹696 crore in Q3FY25.
Q5: Is NLC India a good investment?
A5: The company has strong growth potential, especially in renewable energy. However, investors should consider volatility, debt levels, and market conditions before investing.
With its bold expansion strategy, strong financials, and upcoming IPO, NLC India Ltd is poised to be a major player in India’s renewable energy future.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.