NLC India Targets 20 Million Tonnes Of Coal Production In FY26

NLC India is targeting 20 million tonnes of coal production and 25 MT of lignite production in the current financial year, according to Chairperson Prasanna Kumar Motupalli.

The state-owned energy and mining major is also optimistic about maintaining the Ebitda margin in the fiscal after registering a strong margin expansion in the preceding fiscal.

"Last financial year, we targeted 16 MT but produced 17.2 MT of coal. And this financial year, we are targeting 20 MT," the managing director during a conversation with NDTV Profit on Wednesday.

"We achieved the target for lignite also. And the next financial year, we increased our target to 25 MT," he added.

He added that the power generation target for FY26 is 35 billion units.

The top executive outlined the "favourable conditions" in FY26 compared to FY25 that helped the company see strong financial performance with the rise in profit and Ebitda margin. 

Motupalli expressed confidence in sustaining the margin expansion at around 22.5% in FY26. He emphasised that the margin growth is driven by improvements in coal production and power generation.

"The first point is the coal production... We are going to achieve more than 20 MT in the current fiscal," Motupalli said.

In terms of power production, our Ghatampur Unit Number 1 was already commercialised in December 2024. The company is going to declare the commercial operation date for Ghatampur Units 2, 3 in the current fiscal, according to the chairperson. "So, that will add to our margins."

NLC India is also expanding its renewable energy portfolio as projects of 300 MW in Rajasthan and 100 MW in Gujarat will become operational in FY26.

Motupalli described FY25 as a "golden year" for NLC India. The company achieved an all-time high profit after tax, profit before tax and Ebitda. It was driven by a 36% year-on-year surge in coal production to 17.2 MT. 

Lignite production reached 24 MT, reflecting a 1.6% YoY growth, in FY25. Gross power generation rose 3% YoY. Coal e-auction volumes hit 7.3 MT in FY25.

In terms of other income, the CMD explained it comprised favourable regulatory orders, higher dividends from joint ventures, increased interest income, and mine closure reimbursements from the Ministry of Coal.  

Motupalli noted that mine closure reimbursements are expected to continue annually, ensuring a steady contribution to other income.