NLC India surges after company transfers renewable energy assets to NLC India Renewables

Shares of NLC India rose as much as 5.8% to hit an intraday high of ₹271 on the National Stock Exchange on Friday, January 2. On the BSE, NLC India shares advanced as much as 6.1% to hit in intraday high of ₹272 after company informed exchanges that it has transferred seven renewable energy assets to NLC India Renewables Limited, a wholly owned subsidiary of NLC India Limited.

"We write to inform that the Company has transferred its 7 Renewable Energy Assets ("RE Assets") to NLC India Renewables Limited ("NIRL"), a wholly owned subsidiary of NLC India Limited," NLC India said in an exchange filing.

NLC India shares were witnessing higher than usual trading activity as trading volume jumped by more than two times to 36.44 lakh shares compared with an average trading volume of 17.76 lakh shares.

As many as 2.45 lakh shares changed hands on the BSE compared with an average of 1.17 lakh shares traded daily in the past two weeks.

NLC India Q2 earnings

The company’s net profit in the second quarter slumped 26%. On the topline front, the company’s Q2FY26 revenue jumped 14% YoY to ₹4,178 crore as against ₹3,657 crore in the same period last year.

The mining segment revenue jumped from ₹2,164 crore to ₹1,616 crore in the same period last year. While the power generation segment remained flat at ₹3588 crore vs ₹3466 crore in the Q2FY25.

On the operational front, the company’s EBITDA, Earnings before interest, taxes and depreciation, jumped 30% YoY to ₹1,399 crore as against ₹1,072 crore. On the other hand, the EBITDA margin also expanded by over 300 basis points.

However, the bottom-line growth remained subdued by 26% YoY at ₹724 crore as against ₹982 crore in the previous year’s same quarter. The drop in the net profits can be partly attributed to higher tax expenses.

As of 1:32 pm, NLC India shares traded 5.43% higher at ₹270.25, outperforming the NIFTY50 index which was up 0.6%.