Detailed Narrative
Zambian Energy Expansion Strategy
Nava is significantly expanding its footprint in Zambia with a dual-track approach. The 300MW thermal expansion requires a $400 million capex, with $190 million already spent as of December 2025, targeting completion in H2 FY27. Simultaneously, a 100MW solar project with a $90 million outlay is underway, expected to generate $15-16 million in annual revenue upon full operation in FY28.
Mitigating Domestic Power Volatility
Facing a 12% YoY decline in Indian power exchange pricing, management is aggressively pursuing bilateral contracts. They have secured a 5-year contract with Tamil Nadu for their 60MW Odisha plant at ₹5.2 per kWh. For the upcoming summer, management stated they are 'more or less fully committed' for Q4 and are tying up surplus quantities for Q1 FY27.
Agricultural Diversification Timeline
The company's long-term growth is tied to its agri-business pivot. The avocado segment, with a $55 million commitment, has already planted 2 of 4 planned divisions and harvested a 140-metric ton pilot crop. While it will take 8 years for full production, management expects it to be a significant revenue contributor within 4-5 years. The $100 million Kawambwa Sugar project is slated for completion by April 2028.
Capital Allocation and Shareholder Returns
Management emphasized a disciplined approach to capital allocation, highlighted by the completion of a $50 million buyback at Nava Global. This was funded by strong dividend flows from Maamba Energy. Despite the buyback, Nava remains the 100% owner of Nava Global, and the move was intended to boost shareholder confidence while maintaining enough cash for greenfield expansions.