Nava (513023) Q1 25/26 earnings summary

Executive summary

• Achieved record quarterly profit in Q1 FY26, with consolidated net profit up 31.8% quarter-on-quarter to ₹39,909.07 lakhs and consolidated revenues rising 17.2% sequentially to ₹1,19,322.36 lakhs, driven by robust energy operations and improved receivables.

• Growth was led by the Energy division's operational excellence, high PLFs, and disciplined cost control, with the segment contributing the largest revenue.

• Maamba Energy Limited (MEL) collected $75 million in receivables and declared a maiden dividend of $32.5 million, with strategic restructuring separating Maamba Solar Energy Limited.

• Board approved unaudited results for the quarter, reviewed by the Audit Committee and auditors.

• 72 lakh equity shares were bought back and extinguished in Q4 FY25, and a stock split was effective January 2025.

Financial highlights

• Net cash position at INR 1,400 crores at the consolidated level for Q1.

• MEL Phase II expansion CapEx for the quarter was about INR 600 crores, with a total incremental CapEx of INR 700 crores planned.

• PBT margin at 43.5% and PAT margin at 32.4% for Q1 FY26; EBITDA margin at 50.9%.

• Standalone revenue grew 9.6% QoQ to ₹52,991.52 lakhs; standalone PAT rose 7.6% YoY to ₹14,105.31 lakhs.

• Basic EPS (consolidated, continuing operations) was ₹10.90 for the quarter.

Outlook and guidance

• MEL Phase II (300 MW) and 100 MW solar project in Zambia progressing on schedule, with commissioning targeted for August 2026 and July 2026, respectively.

• Expectation to collect the remaining $85 million in MEL receivables before FY26 ends, with management confident due to sovereign guarantee and arbitration award.

• Avocado plantations in Africa to see first commercial harvest later this year; integrated sugar project in Zambia progressing, with $200 million CapEx to be spent over the next two financial years.

• Scheduled biannual maintenance shutdown for both Zambia power plant units in Q2.

• Ongoing monitoring of expected credit loss provisions at each reporting period.