NLC India Ltd
NSE:NLCINDIA

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NLC India Ltd
NSE:NLCINDIA
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Price: 316.6 INR -0.5% Market Closed
Market Cap: ₹439B

Q1-2026 Earnings Call

AI Summary
Earnings Call on Aug 13, 2025

Strong Profit Growth: Quarterly profit after tax rose 48% year-on-year to INR 839 crores.

Revenue Expansion: Revenue from operations grew 13.25% year-on-year to INR 3,825 crores.

Operational Progress: Ghatampur Unit 1 is running well; Unit 2 COD targeted by September and Unit 3 by December 2025.

Renewables Target: The company reaffirmed its guidance to reach 10 GW renewable capacity by 2030, with multiple projects nearing commissioning.

CapEx Outperformance: Q1 CapEx achieved INR 1,925 crores, exceeding the quarterly target by 13%.

Coal and Mineral Expansion: First critical mineral mining blocks acquired; coal and renewable projects progressing on schedule.

Under Recovery Lowering: Under recovery in Q1 was INR 334 crores, expected to fall further for the full year due to completed modifications and better plant reliability.

Financial Performance

NLC India reported robust financial results for Q1 FY '26, with profit after tax increasing by 48% year-on-year to INR 839 crores and revenue from operations rising 13.25% to INR 3,825 crores. The company also achieved a total income of INR 4,115 crores, reflecting strong operational momentum.

Capacity Expansion

The company made significant progress on its capacity addition program. Ghatampur Thermal Power Station's Unit 1 is fully operational, Unit 2 is expected to reach commercial operation by September 2025, and Unit 3 by December 2025. Numerous other thermal and renewable projects are advancing, with tenders for new plants and joint ventures under way.

Renewable Energy Strategy

NLC India reaffirmed its goal to reach 10 GW of renewable energy capacity by 2030. As of now, the company has 1.4 GW installed. Several projects, including a 300 MW site at Barsingsar and a 50 MW solar project on reclaimed mine land, are set for commissioning by September. The management confirmed annual capacity addition targets remain intact and may even be exceeded.

Critical Minerals & Diversification

The company entered the critical minerals mining sector, securing two phosphorite and limestone blocks in Chhattisgarh. It also signed an MoU with IREL for collaboration in this space and is exploring international opportunities. Production from these ventures is targeted by 2030, with ongoing exploration and due diligence.

CapEx and Investment Plans

NLC India achieved Q1 CapEx of INR 1,925 crores (113% of the target). The CapEx plan for FY '26 is INR 23,601 crores, with targeted CapEx of INR 19,000 crores for FY '27. The company confirmed a long-term CapEx outlook of INR 1.16 lakh crores by 2030, aligning with its expansion plans.

Under Recovery Management

The total under recovery for Q1 was INR 334 crores, primarily due to shutdowns for major modifications at TPS-2 expansion. Management expects under recoveries to be much lower this year as key plant modifications are now complete, with improved reliability anticipated across units.

Coal Mining and Sales

Talabira mine EBITDA for Q1 was INR 218 crores, with sales value at INR 610 crores. The average e-auction price in Q1 was INR 1,024 per tonne, down from INR 1,354 the previous year. The company targets 20 million tonnes of coal production in FY '26, with allocations to NTPL, NTPC, and various auction routes.

Upcoming IPO and Asset Transfers

Progress continues toward an IPO for the renewables subsidiary (NIRL), targeted for Q2 FY '27. Key government approvals for asset transfers and tax exemptions have been secured, and management is confident in meeting the set timelines.

Revenue from Operations
INR 3,825 crores
Change: Up 13.25% YoY.
Total Income
INR 4,115 crores
Change: Up 13% YoY.
Profit After Tax
INR 839 crores
Change: Up 48% YoY.
CapEx (Q1 FY '26)
INR 1,925 crores
Change: 113% of target.
Guidance: FY '26 target INR 5,078 crores.
CapEx (FY '26 Plan)
INR 23,601 crores
Guidance: FY '27 target INR 19,000 crores.
Under Recovery (Q1)
INR 334 crores
Guidance: Expected to be much less than last year.
Renewables EBITDA (Q1)
INR 153 crores
No Additional Information
Renewables EBITDA (FY '25)
INR 627 crores
No Additional Information
Renewables PBT (FY '25)
INR 232 crores
No Additional Information
Talabira Mine EBITDA (Q1)
INR 218 crores
No Additional Information
Talabira Mine PBT (Q1)
INR 209 crores
No Additional Information
Talabira Mine Sales Value (Q1)
INR 610 crores
Change: Up from INR 466 crores YoY.
Talabira e-auction price (Q1)
INR 1,024 per tonne
Change: Down from INR 1,354 YoY.
Renewables Installed Capacity
1.4 GW
Guidance: Target 10 GW by 2030.
Coal Production Target (FY '26)
20 million tonnes
Guidance: 20 million tonnes in FY '26.
Regulated Equity (Current)
INR 9,713 crores
Guidance: Expected to reach INR 18,000 crores by 2030.
Ghatampur Unit 1 Regulated Equity
INR 329 crores
No Additional Information
Renewables Gross Block
INR 6,000 crores
No Additional Information
Ghatampur Unit 1 Annual Fixed Cost
INR 1,592 crores
No Additional Information
Revenue from Operations
INR 3,825 crores
Change: Up 13.25% YoY.
Total Income
INR 4,115 crores
Change: Up 13% YoY.
Profit After Tax
INR 839 crores
Change: Up 48% YoY.
CapEx (Q1 FY '26)
INR 1,925 crores
Change: 113% of target.
Guidance: FY '26 target INR 5,078 crores.
CapEx (FY '26 Plan)
INR 23,601 crores
Guidance: FY '27 target INR 19,000 crores.
Under Recovery (Q1)
INR 334 crores
Guidance: Expected to be much less than last year.
Renewables EBITDA (Q1)
INR 153 crores
No Additional Information
Renewables EBITDA (FY '25)
INR 627 crores
No Additional Information
Renewables PBT (FY '25)
INR 232 crores
No Additional Information
Talabira Mine EBITDA (Q1)
INR 218 crores
No Additional Information
Talabira Mine PBT (Q1)
INR 209 crores
No Additional Information
Talabira Mine Sales Value (Q1)
INR 610 crores
Change: Up from INR 466 crores YoY.
Talabira e-auction price (Q1)
INR 1,024 per tonne
Change: Down from INR 1,354 YoY.
Renewables Installed Capacity
1.4 GW
Guidance: Target 10 GW by 2030.
Coal Production Target (FY '26)
20 million tonnes
Guidance: 20 million tonnes in FY '26.
Regulated Equity (Current)
INR 9,713 crores
Guidance: Expected to reach INR 18,000 crores by 2030.
Ghatampur Unit 1 Regulated Equity
INR 329 crores
No Additional Information
Renewables Gross Block
INR 6,000 crores
No Additional Information
Ghatampur Unit 1 Annual Fixed Cost
INR 1,592 crores
No Additional Information

Earnings Call Transcript

Transcript
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Operator

Ladies and gentlemen, good day, and welcome to NLC India Limited Q1 FY '26 Earnings Conference Call hosted by ICICI Securities Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mohit Kumar from ICICI Securities. Thank you, and over to you, Mr. Kumar.

M
Mohit Kumar
analyst

Thank you, Rinju. Good evening. On behalf of ICICI Securities, I welcome you all to the Q1 FY '26 Earnings Call of NLC India. Today, we have with us from the management, Shri M. Prasanna Kumar, CMD; Suresh Chandra Suman, Director, Mines and Director, Planning and Projects Additional Charge; Shri M. Venkatachalam, Director, Power; Shri Samir Swarup, Director, Human Resources; and Shri Prasanna Kumar Acharya, Director, Finance and CFO.

We'll start the call with brief opening remarks by the management, which will be followed by Q&A. Over to you, sir.

P
Prasanna Motupalli
executive

Thank you, Mohit ji, for the introduction, and warm thank you to ICICI Securities for hosting this investor conference call. I also want to extend my gratitude to all the participants for your interest in NLCIL and to our investors for your unwavering support. Today, I'm happy to engage with NLCIL shareholders and address any questions you might have regarding our financial results for the quarter ended June 30, 2025, as well as provide updates on our capacity addition program. Your involvement and feedback are invaluable to us, and I look forward to a productive discussion.

I, Prasanna Kumar Motupalli, Chairman and Managing Director of NLC India Limited. And joining with me are Dr. Suresh Chandra Suman, Director, Mines and Director, Planning and Project Additional Charge; Shri Samir Swarup, Director of Human Resources; Shri M. Venkatachalam, Director, Power; and Dr. Prasanna Kumar Acharya, Director of Finance, along with senior management of the company. Before the interaction, I would like to brief on the major highlights and performance of NLCIL during the quarter ended June 30, 2025. The Honorable Prime Minister of India has dedicated Unit 1 of NUPPL 660 megawatt, Ghatampur Thermal Power Station to the nation.

The Cabinet Committee on Economic Affairs, CCEA in its meeting dated 16th July 2025, provided the approval for making the investment to the tune of INR 7,000 crores in NLCIL India Renewables Limited, NIRL beyond the investment limit prescribed by the Navratna guidelines issued by DPE. NLCIL has successfully achieved oil synchronization of Unit #2, 660 megawatt of Ghatampur Thermal Power project. NLCIL has been declared as preferred bidder for Semhardih Phosphorite and Limestone Block and Raipura Phosphorite and Limestone Block of Balod, Chhattisgarh in the auction of critical and strategic mineral blocks by Ministry of Mines.

This is NLCIL's maiden entry into critical minerals mining business. Government of Tamil Nadu has granted permission for disposal of overburden soil from the external dumps of mines and to produce M-Sand from overburden. For Machhakata revised OCP, land acquisition MOC has issued notification under Section 4(1) of CBA Act A&D1957. NIRL has been awarded with combined capacity of 250 megawatt, 500 megawatt battery storage system project by Tamil Nadu Green Energy Corporation Limited under Viability Gap Funding scheme.

NLCIL has received LoA from NTPC for setting up of 450 megawatt of ISTS connected wind-solar hybrid power project. NLCIL has entered into MoU with IREL Limited to collaborate in the critical minerals sector. MoEF and CC has granted Stage 2 forest clearance for Pachwara South OCP of NUPPL. MoC has issued notification under Section 9(1) of CBA A&D Act 1957 in respect of North Dhadu (Western Part) coal block.

CapEx achievement for quarter 1 '25-'26 is INR 1,925 crores, which is 113% against the target of INR 1,708 crores up to June '25. NLCIL group has achieved revenue from operations of INR 3,825 crores as against INR 3,378 crores in the previous year, registering a growth of 13.25%. NUPPL has generated INR 642 crores revenue from operations for the part of quarter ended June 2025. NLCIL Group has achieved a total income of INR 4,115 crores as against INR 3,642 crores in the corresponding period of the previous year, registering a growth of around 13%. NLCIL Group has achieved a profit after tax for the quarter ended Q1 of 2025-'26 is INR 839 crores as against INR 566 crores in the previous year of quarter 1 of '24-'25, registering a growth of 48%.

And I'm happy to say that since we can stride towards Atmanirbhar Bharat in line with the vision of Honorable Prime Minister of India, Shri Narendra Modi ji, NLC India Limited has signed a historic memorandum of understanding with Bhabha Atomic Research for the pioneering project to extract rare earth elements from clay ash.

With this, I thank all the investors for the outstanding support to the company. And I thank all the participants in today's investor call for giving encouragement to team NLCIL and at the same time, giving valuable suggestions. I assure that whatever commitments we have given and the time lines we have given, we will be putting all efforts to ensure that these commitments are met and increase the returns to investors. Thank you all.

M
Mohit Kumar
analyst

Speakers, should we open the line for questions?

P
Prasanna Motupalli
executive

Yes.

Operator

[Operator Instructions] The first question comes from the line of Aditya Welekar with Axis Securities.

A
Aditya Welekar
analyst

My question is on the thermal power tendering and update on the expansion projects. So first on the Ghatampur Unit 2 and 3, when are we expecting the COD? And related to that, South Pachwara coal block post the CC grant of CC, when we are expecting the commercial production? And within that, what is our status on tendering of Talabira Phase 1, Phase 2 and TPS-2 second expansion?

P
Prasanna Motupalli
executive

As you know, Ghatampur Unit #1, the COD was declared in the month of December 2024 and the unit is running well and almost generated 2.6 billion units as on date. And Unit #2, we already carried out [indiscernible] at one go a month back. And we are targeting to declare the COD by end of September. Similarly, the Unit #3, all activities are in fast progress. We are targeting to declare the COD by end of December of the current calendar year.

Coming to South Pachwara, there was a major achievement. We got the Phase 2 forest clearance. And subsequently, all the actions for handing over of the forest land and all other activities are in fast progress, and we are targeting to start the coal production in the current financial year.

Now coming to the tendering of the Talabira Stage II, the forest -- the environmental clearance activities are going on. And we are ready with the tender document, and we will be floating in next 3 months period. Similar is the case with the Neyveli 2 x 500-megawatt thermal power station that also we are ready with the tender document, and we will be floating the tender by October.

A
Aditya Welekar
analyst

Okay. Just a follow-up on that, sir, then we also have Rajasthan lignite thermal of 375 megawatt, which is under evaluation. So is there any progress on that?

P
Prasanna Motupalli
executive

Yes. Recently, we formed that JV with Rajasthan Government for establishing that 375 megawatts. So all the activities are in fast progress. We'll be coming up with the tender at the earliest.

A
Aditya Welekar
analyst

Okay. My second question is with respect to our renewable energy capacity additions plan. What is the RE capacity which we added in Q1? And if you can once again reiterate the guidance of RE capacity addition for this fiscal and next coming 2 fiscals?

P
Prasanna Motupalli
executive

So as on date, we are having 1.4 gigawatt of renewable capacity and we generated more than 2.2 billion units of power in the last financial year. And our target is to achieve 10 gigawatt capacity by 2030. So all actions are in place for achieving this 10 gigawatt by 2030. In quarter 1, we have not added any capacity. But our 300-megawatt renewable project in Barsingsar, around 70 megawatt is already installed. And we are going to start 50 megawatt any time now.

And by September end, we will be commissioning the entire 300 megawatt. And similarly, 50-megawatt solar project on mine reclaimed land, which is first of its kind in the country. That is in the almost final stages of commissioning. So we will be commissioning that in the month of -- by end of September.

A
Aditya Welekar
analyst

So we had basically in the previous call, we said that we will be adding 1 gigawatt in FY '26, 1.5 in '27 and post that 1.5 gigawatt each year. So that target still holds?

P
Prasanna Motupalli
executive

Yes. That target still holds. We'll be adding more than that.

Operator

Next question comes from the line of Arihant with Bowhead.

U
Unknown Analyst

Just wanted to know what was the under recovery in first quarter FY '26? And can you provide breakup plant-wise, what was it in TPS-2, TPS expansion?

P
Prasanna Motupalli
executive

So in the quarter 1, the under recovery total on a consolidated basis is INR 334 crores. Out of that for NLC, Neyveli units is INR 245 crores. And if you want to break up the majority of this is TPS-2 expansion, where the unit was under shutdown for the major modification, which we are carrying out. And now that major modification is completed. So going forward, the reliability of unit will be improved and under recovery will come down.

U
Unknown Analyst

Sir, was there any under recovery in Ghatampur unit?

P
Prasanna Motupalli
executive

In Ghatampur unit, it was starting phase. That's why there was a minor under recovery of around INR 71 crores. But going forward, that will be compensated and we'll be recovering full fixed charges for the Ghatampur.

U
Unknown Analyst

Okay. Sir, I wanted to know since Ghatampur Unit 2 and Unit 3 will come up later this year, and it will take some time to ramp up those units. So will there be under recovery in those units in the current fiscal year in FY '26? And what would be the approx amount?

P
Prasanna Motupalli
executive

See, in December, we declared COD of Unit #1. That unit is running well. And we are expecting that in the current financial year for Unit #1, there will not be any under recovery. And these units are very stable. And we hope the same for the other units also. The initial problems will be very less and the units will run in a sustainable manner.

U
Unknown Analyst

Okay. And sir, what is the total under recovery we are expecting in FY '26?

P
Prasanna Motupalli
executive

For total all the units?

U
Unknown Analyst

Yes.

P
Prasanna Motupalli
executive

So whatever measures we are taking with those measures, we are expecting that we will be -- the under recovery will be much less than what was there in the last financial year.

U
Unknown Analyst

Okay. Sir, I wanted to know regarding Talabira mine, what was the PBT from Talabira mine in first quarter? And can you also provide what was the realization from e-auction and NTPC, respectively, and the quantity sold in both the cases?

P
Prasanna Motupalli
executive

So in quarter 1, the EBITDA is INR 218 crores for Talabira and in quarter 1, the total value is INR 610 crores compared to INR 466 crores in the last financial year. And through e-auction, the rate is INR 1,024 against last year's INR 1,354. 2 and 3C, it is through MoU route [indiscernible] and for our NTPL it is INR 595.

U
Unknown Analyst

And sir, one more thing regarding Rajasthan 2 gigawatt solar JV project, which we have and also Assam 1 gigawatt JV project. So wanted to know, have we got the land for this project? What time lines are we thinking for acquiring this land and probably when we will go for tender for these projects?

P
Prasanna Motupalli
executive

Regarding Assam, where we are targeting addition of 1 gigawatt capacity in the Northeast Minister's conference last month, we got the land for 500 megawatts. So we are making due diligence and our tender documents are ready, and we will go for tendering at any time. And apart from that also, for 150 megawatt also, land parcel is identified, and we are making due diligence. The drone survey is already completed. So that 150 megawatt also, we will go for tender at the earliest.

And we are in the process of setting land for balance 300 megawatt. In Rajasthan, the joint venture was formed recently. And we are in the process of identifying the land, and we are hopeful that within 3 months, we will be identifying the entire land and the projects will be completed within 15 months.

U
Unknown Analyst

And sir, last question, I wanted to know on the Talabira power plant project. So have we acquired the complete land for that project? And has the BHEL started construction activity for that project? And also, we will be acquiring the land for Phase 2 of that project along with Phase 1 or will that be acquired separately?

P
Prasanna Motupalli
executive

See, we require around 880 acres of land for Phase 1 and Phase 2. And we are in the process of possession of 808 acres of land, only 71 acres of land is pending. So 808 acres of land is already handed over to BHEL. And BHEL started their preliminary activities of compound wall site leveling and structure demolition work that is already started. So -- and the engineering activities are also in fast progress, drawing approvals, everything is going on as per our time line.

U
Unknown Analyst

Okay. So Phase 2 project land also we will acquire along with the Phase 1?

P
Prasanna Motupalli
executive

Yes. That is along with Phase 1 we acquire.

Operator

[Operator Instructions] Next question comes from the line of Mohit Kumar with ICICI Securities.

M
Mohit Kumar
analyst

I have 2 questions. First is on this, sir, how has been the progress on the modification of TPS Stage 2, both the units? And is it fair to expect normal operation by Q2 FY '26? Or do you think we should bake in numbers from Q3?

P
Prasanna Motupalli
executive

So as you know, this TPS 2 expansion, 1 unit major modification we already completed. That is recently completed. And after the modification, the performance of unit is comparatively better. And we will be going for the modification of Unit #2 in the quarter 3. So once that is done, we are hopeful that the under recovery will be minimal. So you can take it from the quarter 4 because the second one modification we are going to do in the quarter 3.

M
Mohit Kumar
analyst

Understood, sir. My second question is how are you booking revenues in Ghatampur? Is it at 90% or 85% actual capital cost? And what is the status of tariff petition for the capital cost approval for Ghatampur?

P
Prasanna Motupalli
executive

Yesterday itself, the interim tariff order of ERC is issued and it is at 85%.

M
Mohit Kumar
analyst

85% is that right, sir? We are taking the same number for booking our revenues. Is that right?

P
Prasanna Motupalli
executive

Yes.

M
Mohit Kumar
analyst

And when do you expect the final capital cost approval, sir?

P
Prasanna Motupalli
executive

So that will take some time. Maybe after Unit 3 completion only that will come.

Operator

[Operator Instructions] Next question comes from the line of Viraj Mithani with Jupiter Financial.

U
Unknown Analyst

My question is regarding this rare earth minerals. Can you give some color on that, the JV on rare earth mineral like how will be -- when will come into full like in the production and a little bit more color on that would be nice.

P
Prasanna Motupalli
executive

Okay. So we are having experience of more than 7 decades in mining operations. So we want to use that experience. That's why we are entering into mining of critical minerals as well as rare earth elements. In the critical minerals, we got 2 blocks. We participated in all tranches of auctions, and we got 2 blocks in Chhattisgarh of phosphorite blocks and all activities are in fast progress.

In addition to that, we are trying to get some critical mineral and rare earth element blocks abroad. So we are in discussion with some companies through IREL and [indiscernible]. And it is in the preliminary stage. We signed the NDA with them, and we are awaiting due diligence of these blocks. These are in the Republic of [indiscernible].

Operator

Mr. Mithani, are you done with your questions? Since there is no reply from the line of Mr. Mithani, we'll promote the next participant that is from the line of Darsh Solanki with Axis Securities.

D
Darsh Solanki
analyst

Sir, I just wanted to check one thing. In our presentation uploaded on the website, our CapEx outlook till FY '30 is close to INR 1.16 lakh crores. So I just wanted to check how much of this CapEx is expected to be done in FY '26 and FY '27?

P
Prasanna Acharya
executive

See, that 1.16 lakh crores that is for up to 2030 spread over next 5 years. So in the year '26-'27, we are targeting CapEx of INR 19,000 crores.

D
Darsh Solanki
analyst

Both years?

P
Prasanna Motupalli
executive

'26-'27 -- financial year '26-'27, INR 19,000 crores and in '27-'28 also around INR 20,000 crores and '28-'29 around INR 20,000 crores.

D
Darsh Solanki
analyst

And sir, next question is regarding the IPO. So you said that the IPO we are targeting to go by Q2 of FY '27. So are we still on that same time line?

P
Prasanna Motupalli
executive

Yes. All positive developments are happening. First development was we got exemption from government for tax exemption in the shortest possible time. And subsequently, there was approval from cabinet for transfer of assets from NLC to NIRL. So all actions are going on smoothly, and we are hopeful that we will be able to achieve those time lines.

Operator

Next question comes from the line of Nikhil Abhyankar with UTI Mutual Funds.

U
Unknown Analyst

Sir, just want to know the EBITDA and gross block for the RE capacity as of FY '25. So can you just give the full year EBITDA for FY '25 and the gross block?

P
Prasanna Motupalli
executive

EBITDA for renewables in 2024-'25 was INR 627 crores. And in the quarter 1 of this financial year, it is INR 153 crores. So renewable capacity is performing exactly in line with the last year. The generation and all other parameters are exactly same.

U
Unknown Analyst

And sir, what would be the gross block for the renewable capacity?

P
Prasanna Motupalli
executive

It will be around INR 6,000 crores.

U
Unknown Analyst

INR 6,000 crores. And sir, also can you give us the cost of production per tonne for Talabira coal and PBT did you mention earlier for this quarter?

P
Prasanna Motupalli
executive

For Talabira -- are you asking the cost of sale or cost of production?

U
Unknown Analyst

Cost of production.

P
Prasanna Motupalli
executive

I think we'll communicate that separately.

U
Unknown Analyst

And PBT, sir, for this quarter?

P
Prasanna Motupalli
executive

PBT for the quarter 1 in Talabira is INR 209 crores.

U
Unknown Analyst

INR 209 crore and sir, I just want to go back to the numbers of FY '25. I just want to know how many one-off income was booked for the entire year in FY '25?

P
Prasanna Motupalli
executive

One-off income?

U
Unknown Analyst

Yes.

P
Prasanna Motupalli
executive

You're talking about Talabira or [indiscernible]?

U
Unknown Analyst

No, no, the entire company, NLC as a whole, consol.

P
Prasanna Motupalli
executive

We will tell you.

U
Unknown Analyst

Okay. Because I was just trying to reconcile the PBT for last year, it was around INR 3,700 crores. So we've got a regulated equity of INR 10,000-odd crores, even if we assume post-tax regulated return of 20%, that is INR 2,000 crores, then under recovery was around INR 800-odd crores. So INR 1,200 crores from the regulated business, whole PBT was INR 800-odd crores. So again, INR 2,000 crores plus renewable related PBT. So that was...

P
Prasanna Motupalli
executive

Last financial year, the regulatory, whatever we got, that is around INR 638 crores.

U
Unknown Analyst

INR 638 crores. But still then -- and then what would be the RE PBT for last year?

P
Prasanna Motupalli
executive

RE?

U
Unknown Analyst

Profit before tax.

P
Prasanna Motupalli
executive

You are talking about '24-'25?

U
Unknown Analyst

Yes.

P
Prasanna Motupalli
executive

[indiscernible] Just a minute please. We will reply it to you separately.

Operator

Next question comes from the line of Viraj Mithani with Jupiter Financial.

U
Unknown Analyst

Am I audible now?

P
Prasanna Motupalli
executive

Yes, you are audible.

U
Unknown Analyst

Sir, my question is continuation from the previous question. What will be the CapEx required for mining this rare earth minerals? And when the revenue start flowing from this project?

P
Prasanna Motupalli
executive

See, rare earth minerals, we are at present having 2 blocks of critical metals phosphorite and limestone. So we are in the initial stage of getting LoA from the government. And now they are in the G3 stage. The exploration needs to be done. And subsequently, 3 years will take for exploration. And subsequently, the mining activities will start. So we are targeting for 1 million metric tonne of critical mineral production by 2030. So we are working in line with that.

U
Unknown Analyst

And the CapEx required would be, sir?

P
Prasanna Motupalli
executive

CapEx required will be -- I think it is very preliminary to discuss about that because we will be knowing that once we make the -- we do the due diligence and take it forward.

Operator

[Operator Instructions] Next question comes from the line of Arihant with Bowhead.

U
Unknown Analyst

Sir, I wanted to know what is our current consol regulated equity? And how much regulated equity have we added from the Ghatampur project till now?

P
Prasanna Motupalli
executive

See, as on date, our regulated equity is INR 9,713 crores. And we are expecting to take this to around INR 18,000 crores by 2030 after addition of Ghatampur, Talabira and all those things. Finally, the regulated equity will be around INR 18,000 crores by 2030. And NUPPL, the regulated equity increased by INR 329 crores with the addition of Unit #1.

U
Unknown Analyst

Okay, sir. Sir, another question I wanted to ask regarding the 810 mgawatt Rajasthan Solar project for which we recently signed PPA also. So wanted to know when we will be going for tendering of that project and when do we expect completion of that project?

P
Prasanna Motupalli
executive

See, this 810 megawatt, we are going with BOS mode. We are -- we will be directly procuring the modules. And for the balance of services, already tender is floated. We got very good response for the tender. We are about to finalize that tender. We will be finalizing the tender within the next 15 days.

U
Unknown Analyst

And when do we expect this project to get commissioned?

P
Prasanna Motupalli
executive

The project completion time is 15 months. So within that time line, we will be commissioning the project.

U
Unknown Analyst

Okay, sir. And regarding Machhakata mine, sir, I wanted to know what is the -- have we got the environment clearance for that project? When is that expected? And when we will go for [indiscernible] of that project?

P
Prasanna Motupalli
executive

See, for the -- while allotting the mine to us, the government has given us 56 months' time, but we are targeting to start production within 36 months. So all the activities in this direction are in fast progress and the milestones we are achieving. So we are hopeful that we'll be able to start the production within 36 months.

Operator

[Operator Instructions] Our next question comes from the line of Mahesh Patil with ICICI Securities.

U
Unknown Analyst

Sir, you mentioned INR 19,000 crores CapEx for FY '27. Sir, can you give us the number for FY '26? And what was it in Q1?

P
Prasanna Motupalli
executive

Okay. So in FY '26, the total CapEx plan is INR 23,601 crores.

U
Unknown Analyst

And sir, how much CapEx has been incurred in Q1?

P
Prasanna Motupalli
executive

No, no. I'm telling about '26-'27. You want '25-'26?

U
Unknown Analyst

Yes, sir.

P
Prasanna Motupalli
executive

'25-'26 total and Q1, you are asking?

U
Unknown Analyst

Yes sir.

P
Prasanna Motupalli
executive

Q1 is INR 1,925 crores. And we are targeting INR 5,078 crores.

Operator

Next question comes from the line of Aditya Welekar with Axis Securities.

A
Aditya Welekar
analyst

On this Talabira thermal coal production, so in FY '26, our target is of 20 million tonnes. Is that right? Are we still holding that?

P
Prasanna Motupalli
executive

Yes, you're right. It's 20 million metric tonnes in the current financial year.

A
Aditya Welekar
analyst

And what will be the split between e-auction and the other routes like NTPL, NTPC swapping?

P
Prasanna Motupalli
executive

See, NTPL will be around 3 million metric tonnes and NTPC MOU around 4 million metric tonnes. And we signed an MOU with [indiscernible] also that we are expecting around 0.5 million metric tonne. And balance is e-auction. Out of that, there are 3 types of auction we are doing. The midterm coal supply e-auction that is around 5.90 million metric ton, 180 days e-auction that is 5 million metric tonnes and spot e-auction that is 1.60 million metric tonne. The total is 20 million metric tonne.

A
Aditya Welekar
analyst

Understood. And currently, what is the e-auction price we are getting in Q1?

P
Prasanna Motupalli
executive

See, in Q1, the average e-auction price, which we are getting is INR 1,024 against INR 1,354 in the last financial year.

Operator

[Operator Instructions] Next question comes from the line of Somnath Saha with B&K Securities.

S
Somnath Saha
analyst

My question is a bit liberated. Can you -- I just missed the number. Can you please repeat the equity for [indiscernible].

P
Prasanna Motupalli
executive

Can you please repeat? I think we could not get your voice.

S
Somnath Saha
analyst

Actually, I'm asking the regular equity numbers for Ghatampur Unit 1. What is the current?

P
Prasanna Motupalli
executive

Okay. Equity number for Ghatampur Unit #1, INR 329 crores which already we told.

S
Somnath Saha
analyst

INR 329 crores. Also, sir, if I talk about the first unit, it was -- it took around 13 months after it's synchronized, if I'm not wrong. So the second unit was synchronized on 20th July. So should you expect similar long time?

P
Prasanna Motupalli
executive

No, no, no. Actually, for Unit #1, all facilities, common facilities like coal handling facility, ash handling facility and other facilities were to be established. That's why it took a lot of time. But the coal handling system is common for all the 3 units. So we are -- and the coal handling plant is already work is completed. And we are doing the direct fitting of coal from wagon to the bankers. So whatever delay happened in Unit #1, that will not be repeated here. We are hopeful that in Unit #2, we will be able to COD by end of September.

Operator

[Operator Instructions] Next question comes from the line of Viraj Mithani with Jupiter Finance.

U
Unknown Analyst

What will be your guidance for FY '26 in terms of sales growth and profit after tax?

P
Prasanna Motupalli
executive

CapEx?

U
Unknown Analyst

No, no guidance for the sales, next year guidance.

P
Prasanna Motupalli
executive

Can you please repeat please?

U
Unknown Analyst

What would be your guidance in terms of sales growth and the profit after tax?

P
Prasanna Motupalli
executive

See, that exactly we cannot tell, but there will be improvement over the current financial year, the next financial year.

U
Unknown Analyst

Any growth numbers, say percentage-wise or something?

P
Prasanna Motupalli
executive

That is very difficult to tell at this stage.

Operator

Ladies and gentlemen, we have reached the end of question-and-answer session. I would now like to hand the conference over to the management.

Alright, before that I'll just ask for questions. [Operator Instructions] We have a question that is from the line of Arihant with Bowhead.

U
Unknown Analyst

Just wanted to know what is the annual fixed cost of Ghatampur plant for unit 1, if you can tell?

P
Prasanna Motupalli
executive

That is quarterly, no. The quarterly, it's around INR 398 crores.

U
Unknown Analyst

Sir, I wanted to know regarding TPS 2 plant. So that plant was having, I think, some coal milling issue. So wanted to know has that issue been resolved? And what is the -- TPS 2 plant?

P
Prasanna Motupalli
executive

TPS 2?

U
Unknown Analyst

Yes. So wanted to know has that issue been resolved? And what is the PF we can expect that plant to operate at?

P
Prasanna Motupalli
executive

TPS 2 plant is having 7 units. So there are some issues with the milling systems. Those issues have been sorted out. And we are hopeful that going forward, we will be able to maintain the minimum PAF levels in the next 3 quarters.

Operator

[Operator Instructions] Ladies and gentlemen, as there are no further questions, we have reached the end of question-and-answer session. I would now like to hand the conference over to the management for closing comments.

P
Prasanna Motupalli
executive

I thank all the investors for their outstanding support to the company. And I thank all the participants in today's investors call for giving encouragement to NLCIL and at the same time, giving valuable suggestions. Thank you all. There was one query regarding RE business in the financial year '24, '25, what is the PBT? That is INR 232 crores just to add.

Operator

Thank you. On behalf of NLC India Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

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