NAVA LIMITED — Q4 FY25 earnings call

Call held 16 May 2025

Management summary

Nava delivered a record-breaking FY25 performance driven by robust growth across Metals, Mining, and Energy segments. The company is aggressively pursuing a multi-pronged expansion strategy in Zambia, including solar power, thermal expansion, and agro-projects, while successfully managing its debt profile and returning capital to shareholders. Management remains focused on high-margin international operations and optimizing domestic ferroalloy production through niche market exports.

Highlights

  • Record consolidated revenue of ₹4,135 crores for FY25, representing 4.6% YoY growth.

  • Highest-ever annual PAT of ₹1,434 crores achieved in FY25.

  • Maamba Energy (MEL) receivables improved significantly; received $55 million post-FY25 close to repay shareholder loans in full.

  • Phase-II 300 MW expansion at Maamba on track for commissioning in August 2026 with a 9.5 cent tariff.

  • New 100 MW Maamba Solar project expected to be commissioned by July 2026 with a $90 million project cost.

  • Completed ₹360 crore share buyback in Q4 FY25 and a stock split in Q3 FY25.

  • Ferroalloys business turned around in FY25, contributing to overall profit improvement.

  • Zambia Sugar plant commissioning targeted for March 2028; Avocado plantation to yield first commercial crop by end of 2025.

Concerns

  • Raw Material Security for Ferroalloys

Key financials

  1. Revenue ₹4,135 Cr +4.6%YoY
  2. PAT ₹1,434 Cr
  3. Consolidated Net Debt ₹580 Cr
  4. Maamba Phase-II Debt 94 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
    ₹834 Cr Q4 Revenue₹833 Cr Q3 Revenue
  • Metals
    0 Turnaround Performance

Guidance & targets

Capacity

  • Maamba Solar Commissioning Capacity · by July 2026 · High confidence July 2026
    Yes. So we are looking at commissioning it possibly by July '26.

    — Ashwin Devineni, CEO

  • Phase-II 300 MW Commissioning Capacity · by August 2026 · High confidence August 2026
    Yes, it’s progressing well and we are still sticking to the original schedule of commissioning in August 2026.

    — Ashwin Devineni, CEO

Capex

  • Maamba Solar Project Cost Capex · FY26-27 · High confidence $90 million
    So the project cost we envisage is US$90 million, US$63 million would come in the form of debt and US$27 would come in the form of equity.

    — Ashwin Devineni, CEO

  • Maintenance Capex Capex · per year · Medium confidence $25 million
    Maintenance CAPEX is generally around $25 million per year and these are consolidated numbers.

    — K.V.S. Vithal, CFO

Margin

  • Phase-II Thermal Tariff Margin · from commissioning · High confidence 9.5 cents
    So the tariffs for the Phase-II 300 MW is 9.5 cents, it starts at 9.5 cents and then year-on-year that keeps going up.

    — Ashwin Devineni, CEO

Debt

  • Peak Debt for Expansion Debt · next 2-3 years · Medium confidence $250 million to $300 million
    Debt should be around $250 million to $300 million, taking all the expansion projects together.

    — K.V.S. Vithal, CFO

Volume

  • External Coal Sales Volume · monthly · Medium confidence 35,000 to 40,000 tons
    But if you look at the target, it's about 35,000 to 40,000 per month.

    — Ashwin Devineni, CEO

Risks & concerns

  • Raw Material Security for Ferroalloys

    high

    Raw materials contribute 40% of costs; management will not expand Indian production without securing captive raw material sources.

    Management acknowledged

  • Zambian Utility Receivables

    medium

    $105 million is still pending from the Zambian utility; management expects to receive the remainder by the end of the current financial year.

    Both acknowledged

  • Ferroalloy Market Volatility

    medium

    The market is extremely volatile with supply overhang in India, leading the company to focus on niche export markets like Japan.

    Management acknowledged

Areas of evasion (1)

  • Specific PLF for the solar plant was deemed 'too early to say' beyond a broad 20-22% target.

Q&A highlights

3 direct
Decline in Q4 Profitability despite Stable Revenue Direct
The profitability of Maamba is much higher than the ones in India and therefore there is a drop in the profitability from the quarter-on-quarter perspective.

Explains that a temporary shutdown at the high-margin Zambia plant (MEL) skewed consolidated profits even though Indian units filled the revenue gap.

Asked by Shree Gopal Kankani

Tax Exemption Status for Maamba (MEL) Direct
The MEL tax exemption... continues till the end of Financial Year ‘26. And only after that we get into the next regime of 50% tax exemption for three years.

Clarifies the tax runway, confirming 100% exemption for another year, which is a significant driver of net cash flow.

Asked by A.M. Lodha

Commercial Viability of Mining Concessions Direct
We finally concluded that the commercial viability in terms of mining [iron ore] probably was not there... whereas on the lithium exploration activities are currently underway.

Reveals management's discipline in halting unviable projects (iron ore) while pivoting to high-potential critical minerals like lithium.

Asked by Vijay P

2 min read 5 chapters

Detailed narrative

Record Financial Performance and Capital Allocation

Nava achieved its highest-ever revenue and profit in FY25, with consolidated revenue reaching ₹4,135 crores. The company demonstrated strong shareholder focus by completing a ₹360 crore share buyback in Q4 and a stock split in Q3. Post-year-end, the receipt of $55 million in receivables allowed the Maamba subsidiary to fully repay its shareholder loan to the sponsor, significantly strengthening the balance sheet.

Zambian Energy Expansion Roadmap

The company is executing a massive expansion in Zambia, centered on the Maamba Phase-II 300 MW thermal plant and a new 100 MW solar project. Phase-II is slated for August 2026 commissioning with a lucrative 9.5 cent starting tariff. The solar project, costing $90 million, is expected by July 2026. These projects are supported by non-recourse debt, with peak consolidated debt expected to reach $250-$300 million during the construction phase.

Strategic Pivot in Ferroalloys and Mining

The ferroalloy business saw a turnaround in FY25, but management is cautious about domestic expansion due to oversupply and high raw material costs (40% of total cost). Instead, they are focusing on niche products for the Japanese and US markets. In mining, Nava has halted iron ore activities due to poor quality at depth but is actively exploring two lithium concessions spanning 11,000 hectares in Zambia.

Operational Efficiency and Regulatory Outlook

Maamba Energy (MEL) continues to benefit from a 100% tax holiday until the end of FY26, after which it will transition to a 50% exemption for three years. In India, the conversion of 60 MW captive power units to Independent Power Producer (IPP) status in Odisha is expected to drive higher Plant Load Factors (PLF) and revenue growth in FY26. Maintenance schedules are well-planned, with a major shutdown for MCL not due until early 2027.

Diversification into Agro-Industry

Nava is diversifying its revenue streams through the Nava Avocado and Kawambwa Sugar projects. The avocado plantation is expected to yield its first commercial crop by the end of 2025, albeit in small quantities initially. The sugar plant is a longer-term play, with commissioning targeted for March 2028, further embedding the company into the Zambian economy.

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