NLC India's Q4 margin rebounds as net profit jumps 216.24% YoY
Revenue grew faster than expenses, while the lower tax rate amplified profit growth and other income contributed 17.79% of pre-tax profit.
Filed 13 May 2026, 20:15 IST · after market close · NLC India Ltd (NLCINDIA)
Key takeaways
- Consolidated operating margin rose 12.74 percentage points YoY to 35.19% as revenue grew 31.45% while expenses grew 9.86%.
- Net profit increased 216.24% YoY, but the comparison was flattered by a 480.57-percentage-point fall in the tax rate to 4.16%.
- The stock gained 13.88% after the results, well above its 3.08% median absolute move after the past eight result announcements.
Price around the results
Revenue growth lifted the consolidated operating result
Consolidated revenue rose 31.45% YoY to Rs 5,042.46 cr, while expenses increased 9.86%, driving operating profit up 106.00%. Sequentially, revenue grew 13.49% and expenses grew 10.27%, so operating profit rose 19.93% and operating margin expanded 1.89 percentage points. This was the second consecutive quarter of margin improvement from the 22.45% recorded in Q4FY25.
Margin recovery came despite higher sequential finance costs
The margin expansion reflected revenue growing faster than expenses in both the YoY and QoQ comparisons. Interest costs rose 35.28% QoQ and 11.99% YoY, while depreciation increased 16.46% and 19.68%, respectively. Other income accounted for 17.79% of pre-tax profit, and the lower 4.16% tax rate materially supported reported net profit.
NLC India matched the Utilities peer median
The 35.19% operating margin matched the median for the 17 Utilities peers that had reported the same quarter. Net profit rose 104.62% QoQ, even as pre-tax profit fell 11.01%, because the tax rate declined by 7.98 percentage points and other income fell 57.48%. The sequential margin recovery therefore came from operations, while the profit increase also reflected the tax line.
Management outlined a large renewable and generation pipeline
Management said it targets 10,110 MW of renewable capacity by 2030. The presentation lists the 2,400 MW Odisha Pithead TPS Phase I project at Rs 27,213 cr and the 11.5 MT MINE III project at Neyveli at an estimated Rs 3,156 cr. It also identifies a 600 MW Gujarat solar project at Rs 3,336 cr for September 2026 and a 250 MW/500 MWhr battery-storage project for March 2027.
The market reaction was unusually large for this stock
The stock rose 13.88% on the first session after the results, including a 6.85% opening gap, and remained up 7.61% after five sessions. That reaction was well above the 3.08% median absolute move across the past eight result announcements, when the stock rose four times and fell four times.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,042 cr | ₹4,443 cr | +13.49% | +31.45% |
| Other income | ₹155 cr | ₹364 cr | -57.48% | +13.84% |
| Expenses | ₹3,268 cr | ₹2,964 cr | +10.27% | +9.86% |
| Operating profit | ₹1,774 cr | ₹1,479 cr | +19.93% | +106.00% |
| Operating margin (%) | 35.19% | 33.30% | — | — |
| Interest | ₹364 cr | ₹269 cr | +35.28% | +11.99% |
| Depreciation | ₹695 cr | ₹597 cr | +16.46% | +19.68% |
| Profit before tax | ₹870 cr | ₹978 cr | -11.01% | +850.56% |
| Tax | ₹36 cr | ₹119 cr | -69.50% | -91.84% |
| Net profit | ₹1,481 cr | ₹724 cr | +104.62% | +216.24% |
| EPS (₹) | ₹10.05 | ₹5.22 | +92.53% | +197.34% |
Operating margin of 35.19% compares with a Utilities sector median of 35.19% across 17 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +13.88% | +12.69% |
| Next session | +8.32% | — |
| 5 sessions | +7.61% | +6.58% |
| 15 sessions | +3.35% | — |
| 30 sessions | +0.63% | — |
Volume on the results session was 10.74× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- NLC India targets 10,110 MW of renewable energy capacity by 2030.
Expansion
- The Odisha Pithead TPS Phase I is a 2,400 MW project costing ₹27,213 crore, with LOAs issued for three units.
- The MINE III project at Neyveli has planned capacity of 11.5 MT and estimated cost of ₹3,156 crore.
- The company is developing a 600 MW Gujarat solar project costing ₹3,336 crore, expected in September 2026.
- A 250 MW/500 MWhr TNGECL battery storage project is planned for March 2027, with the NIT floated.
- A 200 MW CPSU solar project costing ₹1,221 crore is scheduled for December 2026.
What to watch
- Whether operating margin remains above the 35.19% recorded in Q4FY26.
- Whether the tax rate stays near the 4.16% reported in Q4FY26.
- Progress against management's stated 10,110 MW renewable-capacity target for 2030 and the September 2026 Gujarat solar project timeline.