PSU Power stock in focus as it plans 600% expansion in its renewable energy capacity by 2030

India’s power generation sector is a critical component of its economy, boasting a total installed capacity of 466.26 GW as of January 2025. The sector is characterized by a diverse energy mix, with coal contributing 220.49 GW and renewable sources, particularly solar, expanding rapidly to 100.33 GW. 

Price movement 

With a market capitalization of Rs 33,986.46 crore, the shares of NLC India Ltd were trading at Rs 245.10 per share, decreasing around 4.50 percent as compared to the previous closing price of Rs 256.65 apiece. 

Matter Explanation 

NLC India is rapidly expanding its renewable energy portfolio, targeting 10 GW by 2030, a sevenfold rise from its current 1.4 GW. The plan includes solar and wind projects, aiming for over 50 percent renewable capacity by 2030 as part of its long-term growth strategy. 

To facilitate this expansion, NLC India plans to launch an IPO for its renewable energy division to support its expansion. The offering is expected in Q4 of FY26 or Q1 of FY27. The company is currently assessing asset valuation to finalize the IPO details, ensuring an optimal approach for its public listing. 

Additionally, NLC India is driving lignite production with a target of 26 million metric tonnes for the next fiscal year. It achieved a record-high coal output of over 16 million metric tonnes. The company is advancing thermal power projects, with Ghatampur nearing commercial operation and Talabira progressing steadily. 

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Financial analysis 

Examining the company’s financial performance, revenue magnified by 39 percent from Rs 3,164 crore in Q3FY24 to Rs 4,411 crore in Q3FY25, during the same time frame, net profit magnified by 174 percent from Rs 254 crore to Rs 696 crore. 

Operational Highlights 

The company achieved key milestones, including revised vesting for Machhakata Coal Block, clearances for Pachwara South, JV agreements with RVUNL for 3×125 MW thermal and 2 GW renewable projects, and a 200 MW solar power agreement with Telangana. 

Upcoming project 

The company’s upcoming projects include the Ghatampur thermal power plant (3×660 MW) by Nov 2024–Mar 2025, the Rs 27,213 crore Talabira project by 2029–2030, the Rs 2,243 crore Pachwara South coal block (FY 2026), and multiple renewable projects (FY 2025–FY 2027).

Company Snapshot 

NLC India Limited is an India-based firm that mines lignite and coal, generates power utilizing lignite and renewable energy sources, and provides consultancy related to it. The company’s sectors include mining and power generation. 

Written by Abhishek Singh

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