01 — At a Glance
The Dodgy-Hands Diversifier That’s All-In on Zambia
- 52-Week High / Low₹735 / ₹396
- 9M FY26 Revenue₹3,148 Cr
- 9M FY26 PAT₹895 Cr
- Full-Year EPS (FY25)₹38.57
- Q3 EPS (Dec 2025)₹7.84
- Book Value₹286
- Price to Book2.02x
- Dividend Yield1.35%
- Debt / Equity0.20x
- Promoter Holding50.1%
Auditor’s Opening Note: Nava posted ₹326 crore PAT in Q3 FY26, an 83.5% jump QoQ, thanks to a 300 MW thermal plant in Zambia running at 97% load factor and collecting receivables from the Zambian power utility. Meanwhile, the ferroalloy business is bleeding, Indian power margins are collapsing, and management is now betting $800 crore on avocado plantations and sugar manufacturing in Zambia. This is either visionary diversification or the financial equivalent of “all-in.” The stock is at ₹575, down -19.7% YTD. Take a wild guess which way the market is voting.
02 — Introduction
Nava Bharat: The Company That Trades Alloys By Day, Dreams of Avocados By Night
Established in 1972 as a ferro alloys manufacturer, Nava Bharat Ventures Ltd — now trading as Nava Ltd (NSE: NAVA) — has evolved into a sprawling, unfocused, multinational conglomerate that manufactures silicon manganese, generates power from coal, mines coal in Zambia, and has just announced intentions to plant 400,000 avocado trees and build a sugar mill. Yes, avocados. In Zambia. Because apparently, ferrochrome margins are not exciting enough.
The company operates ferroalloy plants in Telangana and Odisha with a combined capacity of 180,000 TPA. It owns 434 MW of coal-fired power generation capacity in India and manages a 300 MW thermal plant in Zambia (65% owned subsidiary, Maamba Collieries). It has successfully diverted 65% of Zambia’s power generation into its coffers and is now working on adding another 300 MW there for $400 million.
Q3 FY26 results showed consolidated revenue of ₹991 crore, PAT of ₹326 crore, and a massive profitability spike — entirely courtesy of Zambia. India’s ferroalloy and power segments are in freefall. Industrial policy is shifting away from merchant coal power. And management’s response? Announce a $800 crore agricultural bet on Zambia. Welcome to Nava — where diversification rhymes with “panic.”
Concall Note (Feb 2026): “Sharp improvement in profitability with consolidated net profit rising 83.5% QoQ.” Buried in the sentence: “major contribution is from MEL power plants.” Translation: India is broken, Zambia is carrying the entire company on its back.
03 — Business Model: The Schizophrenic Conglomerate
Alloys, Power, Mining, Avocados, Sugar, Healthcare. Pick One.
Nava operates across four primary segments, each with its own drama:
Energy (75% of revenue): Generates power from coal. 434 MW across 5 plants in India (Telangana, Odisha, Andhra Pradesh). 300 MW in Zambia. Over 70% of output is locked under power purchase agreements (PPAs). The remaining 30% is sold at spot rates — which are collapsing. Q3 merchant tariffs dropped 12% YoY. Indian capacity is being rendered obsolete by renewable power flooding the market. Zambia’s 300 MW, meanwhile, runs at 97% PLF and has zero competition.
Ferro Alloys (19% of revenue): Produces silico manganese and ferrosilicon. Capacity of 180,000 TPA. Q3 volumes were down 30% QoQ due to plant shutdowns. Realizations are weak. Margins are sideways. The company claims “pricing improvement” post-Q3, but concall guidance is cautious. This segment is a cash cow that stopped producing milk.
Mining (6% of revenue): Maamba Collieries in Zambia. Supplies coal to the 300 MW plant. External coal sales ramping to 40,000 TPM by Q2–Q3 FY26. Also exploring lithium and rare earth minerals. Real growth potential, but still small.
Others (Healthcare, Agri-Business): The Iron Suites Medical Center in Singapore. Nava Avocado WOS with 91,500 plants and plans for 400,000+. Kawambwa Sugar project with ₹800 crore capex. These are venture bets, not core business. Yet management is sounding increasingly bullish on them.
💬 Here’s the real question: Is Nava a power company that dabbles in alloys, or an agri-business startup that accidentally inherited a coal plant? Because the balance sheet suggests management doesn’t know either.
04 — Financials Overview
Q3 FY26: The Zambia Effect
Result type: 9-Month / Half-Yearly Plus Quarter | Q3 EPS: ₹7.84 | 9M FY26 EPS (Full Period): ₹24.21 | Full-year FY25 EPS: ₹38.57
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 991 | 842 | 964 | +17.7% | +2.8% |
| Operating Profit | 443 | 450 | 315 | -1.6% | +40.6% |
| EBITDA Margin % | 45% | 53% | 33% | -800 bps | +1200 bps |
| PAT | 326 | 353 | 178 | -7.6% | +83.1% |
| EPS (₹) | 7.84 | 8.63 | 4.58 | -9.2% | +71.2% |
The Real Story: Headline says “83.5% profit spike.” Reality says “Maamba received ₹125 crore in receivables from the Zambian power utility (ZESCO), and upstreamed ₹89 crore to the parent.” Adjust for this one-time windfall, and Q3 operating performance is basically flat YoY. Ferroalloy margins collapsed. Indian power was weak. Zambia carried the weight. This is not a normalised quarter. This is a quarter masked by receivables collection timing.
05 — Valuation Discussion
What’s This Schizophrenic Conglomerate Actually Worth?
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