NAVA LIMITED — Q3 FY26 earnings call

Call held 5 Feb 2026

Management summary

Nava delivered a strong Q3 FY26 performance characterized by sharp margin expansion and robust profitability growth. The company is aggressively pivoting towards diversification, with significant capital commitments in Zambian solar and thermal expansion, alongside long-term agricultural projects in avocado and sugar. While the domestic Indian power market faces pricing headwinds, the company is mitigating risks through long-term bilateral contracts.

Highlights

  • Consolidated net profit surged 83.5% quarter-on-quarter (QoQ) driven by operational efficiency.

  • EBITDA margin expanded significantly to 48.3% from 34.5% in the previous quarter.

  • Successfully completed a $50 million buyback for Nava Global, supported by Maamba Energy dividends.

  • Maamba Energy Limited (MEL) power plant achieved a high Plant Load Factor (PLF) of 97%.

  • Mining revenue grew 16.6% QoQ due to higher volumes, with sustainable sales of 35,000-42,000 tons per month.

  • Total debt stood at approximately $200 million as of the end of Q3 FY26.

  • Other income jumped to ₹70.4 crores, though management indicates ₹40 crores is the sustainable quarterly run rate.

Key financials

  1. EBITDA Margin 48.3% +40%QoQ
  2. Net Profit Growth 83.5% +83.5%QoQ
  3. Other Income ₹70.4 Cr +170.7%QoQ
  4. Total Debt $200 Mn

What they filed

Q1 FY27: revenue down 1.5%, net profit up 88.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue331 280 484 530 439 +33%396 +41%559 +15%522 −2%
EBITDA73 62 82 144 69 −5%57 −8%115 +40%152 +6%
Net profit146 47 97 141 156 +7%135 +187%478 +393%266 +89%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Energy (MEL Zambia)
    97% PLF$30.5 Mn Outstanding Arrears
  • Mining
    16.6% Revenue Growth42,000 tons Monthly Sales Volume
  • Ferro Alloys
    ₹0 Cr EBIT8% Pricing Improvement

Guidance & targets

Capex

  • 300MW Thermal Expansion Outlay Capex · H2 FY27 · High confidence $400 million
    For the 300-megawatt expansion thermal plant, total capex outlay is $400 million.

    — Karthik P, AGM (Projects & Finance)

  • 100MW Solar Project Outlay Capex · H1 FY27 · High confidence $90 million
    And for the 100-megawatt solar plant, capex outlay is $90 million.

    — Karthik P, AGM (Projects & Finance)

  • Kawambwa Sugar Project Commitment Capex · April 2028 · High confidence $100 million
    the Kawambwa Sugar Limited, which is $100 million commitment.

    — Ashwin Devineni, MD & CEO

  • Avocado Project Commitment Capex · Next 4-5 years · Medium confidence $55 million
    we broadly spoke about the avocado where it's a $55 million commitment

    — Ashwin Devineni, MD & CEO

Revenue

  • 300MW Thermal Annual Revenue Revenue · FY28 · Medium confidence $180-200 million
    On the 300-megawatt thermal power plant in case of full year operations, the expected revenue is $180 million to $200 million.

    — Karthik P, AGM (Projects & Finance)

Risks & concerns

  • Declining Domestic Power Exchange Pricing

    medium

    Exchange prices dropped 12% YoY; management is shifting to long-term bilateral contracts to mitigate volatility.

    Both acknowledged

  • Ferro Alloys Profitability

    medium

    Segment is currently at EBIT breakeven; management expects stability but admits it is not a high-margin vertical.

    Analyst downplayed

  • Receivables Arrears in Zambia

    medium

    Outstanding arrears for Maamba Energy stand at $30.5 million.

    Analyst acknowledged

Areas of evasion (2)

  • Specific market valuation of land assets
  • Detailed ROCE targets for new projects

Q&A highlights

2 direct
Sustainability of Other Income and EBITDA Margins Direct
Sustainable other income under consol per quarter is around INR40 crores.

Clarifies that the current spike in other income (₹70.4Cr) is largely due to forex gains and not a permanent base.

Asked by Kaushik Doshi, ICICI Securities

Ferro Alloys Segment Underperformance Partial
While we don't look at it as a very high-margin vertical, but we are confident that in terms of the scale, there will always be a good top line involved with it.

Highlights management's acknowledgement that Ferro Alloys is a low-margin, volume-driven business currently struggling at breakeven.

Asked by Jatin Damania, SVAN Investments

Domestic Power Pricing Downturn Direct
If you look at the exchange pricing itself, I think there's been a drop of about 12% year-on-year... we are looking at mitigating this downturn through mainly entering into long-term and short-term contracts.

Reveals the strategy to shift away from volatile merchant power markets toward stable PPAs (like the ₹5.2/kWh Tamil Nadu contract).

Asked by Jatin Damania, SVAN Investments

1 min read 4 chapters

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.

This is an AI-generated summary of a publicly available earnings call transcript.
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