NLC India’s board has approved the sale of 10 crore shares in its renewable arm, NLC India Renewables, setting the stage for an FY27 IPO. The company also reported a strong Q2 profit of ₹1,381 crore, driving shares up nearly 9%.
NLC India Limited has officially moved forward with its plan to unlock value in its green energy business. The company’s board of directors approved the sale of up to 10 crore equity shares in its wholly-owned subsidiary, NLC India Renewables Limited, through an Offer for Sale. This strategic divestment is a critical step toward taking the subsidiary public, with the IPO targeted for the 2026-27 financial year.
The announcement of the IPO plans came alongside strong financial results for the second quarter of the current fiscal year. NLC India reported a consolidated net profit of ₹1,381 crore, more than doubling from the ₹665 crore reported in the same quarter last year. The company’s operational revenue also saw healthy growth, rising 13.3% to ₹4,732 crore. Investors reacted positively to these updates, pushing the company's share price up by approximately 8-9% in trading.
While the headline numbers show growth, there are details that investors may want to watch closely. The company’s EBITDA margin, which measures core operating profitability, contracted to 28.9% in the second quarter compared to 33.5% in the year-ago period. This indicates that while the top-line revenue is growing, the cost of operations or other pressures may be impacting the margin efficiency of the core business.
To fund its massive growth plans, the company is also looking to bolster its balance sheet. The board has sanctioned raising up to ₹2,500 crore through the issuance of bonds or debentures. This capital will likely support the company’s ambitious expansion, which includes an additional 660 MW project at the Ghatampur Thermal Power Station. With a target of massive capacity expansion by 2030, the company is balancing its traditional power business with a rapid build-up in renewables.
In addition to the IPO and expansion plans, the company announced an interim dividend of ₹1.50 per equity share for the shareholders, with a record date set for November 12, 2026. For investors, the key monitorables moving forward will be the timeline for the renewable subsidiary's IPO, the actual execution and commissioning of the major power projects like Ghatampur, and whether the company can improve its operating margins amid rising input and expansion costs.