NLC India's Ambitious ₹1.17 Lakh Crore Capex Plan to Boost Mining, Thermal, and Renewable Sectors by 2030

NLC India Limited, a distinguished Navratna enterprise of the Government of India, is engaged in the business of mining lignite, coal, and the generation of power using lignite as well as renewable energy sources and consultancy. This makes it a company worth tracking closely. With a market cap of ₹33,695 crores, shares of NLC India Limited declined around 2 percent to ₹243 on Friday, as against its previous closing of ₹248.05 on BSE.

The company’s revenue from operations is projected to more than double from ₹15,283 crore in FY25 to ₹24,430 crore by FY26 and ₹37,713 crore by FY30. Profit after tax is also expected to grow consistently, increasing from ₹2,714 crore in FY25 to ₹3,482 crore by FY26 and ₹5,294 crore in FY30. The company’s asset base is set to expand significantly—from ₹57,851 crore in FY25 to ₹76,130 crore by FY26 and ₹1,59,747 crore in FY30.

Operational efficiency improves meaningfully over this period, with EBITDA margins increasing from 38.6 percent in FY25 to 41.9 percent in FY26, and reaching 50.6 percent in FY30. Total income is expected to grow from ₹18,160 crore in FY25 to ₹25,863 crore in FY26, and further to ₹39,789 crore by FY30, while EBITDA expands from ₹6,841 crore in FY25 to ₹10,841 crore in FY26, before reaching ₹20,449 crore in FY30.

Further, NLCIL’s outlook from 2025 to 2030 reflects a significant expansion across mining, thermal power, and renewable energy. On the mining front, the company plans to scale its capacity from 50.1 MTPA to 104.35 MTPA, with lignite production rising from 30.1 MTPA to 41.35 MTPA, coal output increasing from 20 MTPA to 62 MTPA, and an additional 1 MTPA coming from critical minerals.

In the thermal power segment, NLCIL aims to grow its installed capacity from the current 5,960 MW—comprising 3,640 MW under NLCIL and 2,320 MW through joint ventures—to 10,020 MW, with NLCIL’s share increasing to 7,040 MW and JV capacity to 2,980 MW.

The company also has an ambitious renewable energy roadmap, targeting an increase from 1,599 MW at present—primarily 1,548 MW of solar and 51 MW of wind—to 10,110 MW by 2030, including 9,609 MW of solar and 501 MW of wind.

NLCIL has outlined an extensive five-year capex plan of ₹1.17 lakh crore, aimed at accelerating growth across mining, thermal power, renewable energy, and diversification initiatives by 2030. In the mining segment, the company plans a total capex of ₹14,199 crore, covering ongoing projects, upcoming expansions of 44.25 MTPA, and a 1 MTPA critical minerals project, taking total mining capacity to 104.35 MTPA.

In the thermal power portfolio, NLCIL has earmarked ₹49,981 crore, including ongoing 660 MW projects and upcoming additions of 3,400 MW, expanding total thermal capacity to 10,020 MW. The most significant push is toward green energy, where the company plans to invest ₹41,599 crore to scale renewable capacity to 10,110 MW, with allocations for pumped hydro projects.

Alongside core operations, NLCIL is pursuing diversification projects with a planned capex of ₹11,101 crore. These include converting Overburden (OB) to sand, lignite-to-coal gasification, establishing EV charging stations, and other emerging business opportunities.

In Q2 FY26, NLC India reported a consolidated revenue from operations of ₹4,178 crores, a significant growth of more than 9 percent QoQ and 14 percent YoY. Meanwhile, its net profit for the quarter stood at ₹725 crores, representing a decline of nearly 14 percent QoQ and 26 percent YoY, over the same period. In terms of financial ratios, NLC India has a RoE of 14.5 percent and ROCE of 10.5 percent, with a debt-to-equity ratio of 1.22. Further, the stock is currently trading at a lower P/E of 12.8, compared to the industry average of 27.2.