Record margins, flat growth; capex delays offset strength

₹1,269 Cr reported vs ₹1,211.8 Cr revenue delivered; variance within classification

OPM 43.5% beats 35–40% guidance; PAT -16.6% YoY shows revenue headwinds offset cost gains

PAT -16.6% YoY, revenue +1.6% YoY; QoQ PAT +144.3% but from weak Q4 base

4–5 month delay from Jan-Feb FY27 guidance; no capex revision disclosed but timing risk clear

Jan-Feb FY27 → Q2 FY27-28 (June-July). 4–5 month delay driven by geopolitical/supply chain issues; logistical delays on critical equipment shipments. Management said capex impact immaterial but timing clearly slipped.

July 2026 → end-September 2026. 2-month slip; not material but signals execution tightness.

35–40% maintained and beaten (43.5% OPM delivered). CFO reaffirmed 35–40% at consolidated level after transfer pricing eliminations.

Nikhil noted 5–10% pricing improvement QoQ, 70% offtake secured under long-term/quarterly contracts. Orissa shutdown temporary; margin stability or slight increase expected through FY end. Sales stagnation due to maintenance, not fundamental.

Q2 FY27-28 (June-July 2027), delayed 4-5 months from original Jan-Feb FY27 plan due to geopolitical/supply chain logistical issues. ₹200M p.a. revenue expected.

Fairly attractive tariff in place; confident of healthy margin. Won't talk specifics until commissioning.

Q4 FY28; ₹55–60M p.a. revenue.

Accounting standards allow historical cost carry. Third-party study underway on current values and monetization options.

Elections concluded; Nava's operations not linked to political parties. No impact expected.

Driven by Kwacha-USD exchange rate (INR 18 as of 30 June). If currency stabilizes, reversal possible.

Orissa unit shut Q1 for long-term maintenance; resumed Aug 1. Temporary headwind. 70% of production already committed under long-term/quarterly contracts; margin stability or slight increase expected.

~15% ROE. Tax holiday not currently in place but pursuing with government.

Decline due to less reversal of ECL credit. Sustainable margin: 45–50% EBITDA.

Looking at solar + wind + battery storage combinations. SMRs early stage. Location agnostic; prioritize best risk-adjusted returns, which in India renewable space can be hit-or-miss given tariff/grid volatility.

Exploration mine targets Indian operations. Separate government-controlled mine for Ivory Coast factory—JV approval still pending.

Q1 revenue +1.6% YoY (₹1,211.8Cr); management focused on margin (35–40%) rather than growth

Q1 delivered OPM 43.5%, beat guidance. Zambia energy sustainable 45–50%. Transfer pricing eliminations keep consolidated at 35–40%.

Timeline slipped Jan-Feb FY27 → Q2 FY27-28; capex profile said stable but execution risk evident

Delayed 2 months from July; completion flagged as 'set to be commissioned shortly'

Phase 2 thermal slipped 4–5 months (Jan-Feb FY27 → Q2 FY27-28) due to logistical delays on equipment shipments from geopolitical conflicts. Risk: further escalation, secondary supplier pressure.

Kwacha-USD rate at INR 18 as of 30 June created ₹40Cr deferred tax expense Q1 (vs ₹163Cr Q4, ₹261Cr FY26). Reversal risk if currency stabilizes, but masks underlying operational quality.

Consolidated revenue +1.6% YoY (₹1,211.8Cr) and PAT -16.6% YoY (₹332.8Cr) despite margin beat. Metals segment stagnant (Orissa shutdown), India power expansion cautious. Growth reliant on capex projects delayed.

Metals volume-driven, margin-driven risk. Sales stagnant historical; Q1 dip due to Orissa maintenance. 70% production committed but 30% exposed to spot volatility. Pricing 5–10% QoQ improvement may not sustain.

MEL (300MW thermal, Zambia) is primary profit engine. 100% consolidation at ~65% Nava stake via Nava Global. Zambia operational/political risk (though elections recent, manageable). Power market tariff/offtake concentration risk.