Nava

Nava achieved its highest-ever quarterly profit in Q1 FY26, with net profit surging 61% sequentially to ₹490 crore. Consolidated revenues grew 15% QoQ to ₹1,213 crore, driven by robust energy operations and improved realizations in the metal business. This performance was supported by disciplined cost control and strong operational execution across all business segments.

A major highlight of the quarter was the collection of $75 million in arrears from ZESCO, significantly improving MEL's receivable position. This liquidity allowed MEL to declare a maiden dividend of $32.5 million, which strengthens Nava's consolidated balance sheet and enhances cash flow visibility. Management expects to collect the remaining $85 million in arrears by the end of FY26.

Nava is on track with its ambitious expansion plans in Zambia, including a 300 MW thermal Phase II expansion and a 100 MW solar project. The solar plant is scheduled for commissioning in July 2026, followed by the thermal plant in August 2026. 100% of the Phase II power is already tied up with ZESCO at a tariff of 9.5 cents per kilowatt hour.

The company is making tangible progress in Africa with its commercial agriculture initiatives, including avocado plantations and an integrated sugar project. The sugar project involves a $200 million investment through April 2028 and includes the relocation of an idle 20 MW power plant from India to Zambia. This relocation aims to capture value from existing assets while meeting the power needs of the sugar project and the local grid.

The ferroalloys segment benefited from long-term contracts in Japan and product diversification into ferrosilicon for the US market, yielding better realizations despite a subdued broader market. However, mining profitability was pressured by unfavorable forex movements between the USD and Zambian Kwacha. In India, the company is transitioning captive power plants in Telangana and Odisha into independent power producers to improve capacity utilization.