At a Glance
NLC India, a Navratna PSU under the Ministry of Coal, is India’s lignite-to-electricity specialist. With ₹31,000+ Cr market cap, generous dividends, and massive renewable ambitions, it’s trying to go from being a thermal relic to a green giant — while still raking in ₹1,673 Cr in “other income” like a true babu stock.
⚡ 1. TL;DR – Coal, Capital, and Contingent Liabilities
- 🧯 Core Biz: Lignite mining + power generation
- ⚡ Renewables: 1,370 MW solar + 51 MW wind
- 💥 Stock Price: ₹84 (June 2020) → ₹229 (June 2025) —2.7x in 5Y
- 💸 Dividend Yield: 1.3% | Payout: 16% (down from 30%+)
- 🧾 FY25 PAT: ₹2,714 Cr (up 45% YoY)
- 📈 RoE: 14.9% | RoCE: 10.8%
- 🏗️ Capex-heavy: ₹15,000+ Cr in
- CWIP
- ⚠️ ₹13,859 Cr in contingent liabilities
- 🧠 KMPs: CMD Prasanna Kumar Motupalli, CFO Pradeep Kumar
- 🧨 Other income = 62% of PAT in FY25
🏭 2. Business Model – Dig Coal, Burn It, Sell Power (Repeat)
- NLC = Neyveli Lignite Corporation. The OG lignite miner.
- Fully government-owned until IPO in 2016; now still 72.2% held by GoI.
- Two main business verticals:
- Mining: 30.6 MTPA of lignite capacity
- Power Generation:
- Thermal (Lignite-based): 4,240 MW
- Renewable: 1,421 MW
🔋 NLC also sets up JVs with state discoms (Rajasthan, Tamil Nadu) for co-owned generation projects.
🌱 Ambitions of adding 6+
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