Nava Ltd (NSE: NAVA) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
Ashwin Devineni — Managing Director and Chief Executive Officer
Nikhil Devineni — Executive Director
GRK Prasad — Executive Director
Analysts:
Unidentified Participant
Mohit Kumar — Analyst
Anukul Arora — Analyst
Viraj Mahadevia — Analyst
Nidhi Shah — Analyst
Gopal Kakani — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the NAVA Limited Q1 FY26 earnings conference call hosted by ICICI Securities. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference has been recorded. And now hand the conference over to Mr. Mohit Kumar from ICICI Securities. Thank you. And over to you, sir.
Mohit Kumar — Analyst
Thank you, Shubham. Good evening. On behalf of ICICI Securities, I welcome you all to the G1FY26 earnings score of NAVA Limited. Today we have with us from the management. Mr. Ashwin Devinani, CEO, Mr. J.R. kiparsad, Executive Director, Mr. Nikhil Dharanani, Executive Director, Mr. K.V.S. mittal, CFO and Mr. V.S.N. raju, Company Secretary. We will begin with the opening remarks for the management which will be followed by Q and A. Thank you. And over to you, sir.
Ashwin Devineni — Managing Director and Chief Executive Officer
Thank you. Good afternoon ladies and gentlemen and thank you for joining us today. I am delighted to share that Nava has once again set a new benchmark delivering its highest ever quarterly profit in Q1 FY26. A clear reflection of strong and consistent operational performance across all businesses. Consolidated revenues reached rupees 1213 crore rising nearly 15% sequentially while net profit surged over 61% quarter on quarter to 490 crore. This exceptional growth was driven by robust energy operations, higher realizations in our metal businesses and disciplined cost control. One of the most notable achievements this quarter was the sharp improvement in Mamba Energy Limited’s receivables position where areas of US$75million successfully collected.
Equally significant was made with the median dividend of USD 32.5 million declared by MEL further strengthening our balance sheet and enhancing cash flow visibility. On the growth front, we are making steady tangible progress. The MEL Phase 2 expansion adding 300 megawatts of capacity and the 100 megawatt solar project in Zambia are moving forward on schedule. Commercial agriculture initiatives in Africa are advancing with avocado plantations poised for their first commercial harvest later this year and the integrated sugar project progressing as planned in India. Our strategy to convert active power plants in Telangana and Orissa into independent power producers will enable higher PLF and open new market opportunities.
This quarter’s performance highlights not just the resilience of our business model and the strength of our execution capabilities, but also the clear momentum in Our strategic growth initiatives. We are building on this foundation to deliver even greater value in the quarters ahead. I now welcome your questions. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin with a question and answer session. Anyone who wishes to ask a question by press and one on the Touchstone phone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line from Anukul from Invad. Please go ahead.
Anukul Arora
Yeah, hi sir. Thanks for the opportunity. So congratulations on the set for receiving out on the receivables that were due in Mel. I just wanted to know that the outstanding receivers are now you may see 85.5 million. So how much of this are you expecting for this year? Basically for FY26.
Ashwin Devineni
Yeah. So I think you know, with regards to areas like I’ve mentioned on the previous calls too, this is a constant discussion process with Zesco. We expect to receive the entire $85 million in areas before the end of this financial year.
Anukul Arora
Okay, so entire receivables would be receivable by this entire year? Basically.
Ashwin Devineni
Yes.
Anukul Arora
Got it, got it. Another question that I had was the last con call you told that there are tax exemption will continue for the entire year. But this year the tax was there. Could you just throw some light on the same?
Ashwin Devineni
Yes. So we have revisited the tax position in consultation with the local tax authorities in Zambia. And we have received a confirmation that from this year onwards, which is financial year 26 onwards, part of the tax concession will not be available. So just to clarify, up to last year we had 100% of the power profits. Profits generated out of the power business was exempted for the next three years, which is FY26, 27 and 28, we will be taxed at 50% of the tax rate, which is 15%. And the last two years we will be taxed at 75% of the tax rate which is 22.5%.
Anukul Arora
All right, sir, got in the clarification. Thank you so much on that.
operator
Thank you. The next question comes from the line of Viraj Mahadevia from Mani Group. Please go ahead.
Viraj Mahadevia
5 Congrats on stable results. Just if you could elaborate a little bit on the sugar cane or the sugar plant in Zambia. You mentioned the power plant has been set for relocations. You can elaborate what that is. But why you decided to enter sugar. In Zambia and how this 200 million will be Funded debt and equity.
Ashwin Devineni
The sugar plant, the cogeneration power plant has been with us in NOAA since 2017. In an ideal way, what we found is we could actually have them relocated as part of the KSL integrated project to obtain two benefits. One, to meet full power requirement of the sugar project and also to provide an opportunity to sell power in that region, which is very short in terms of power. So the proposal is to relocate the 20 megawatt power plant to. Jamie.
Viraj Mahadevia
So sorry, just to understand the full thought process, the raw keen stocks on the plantation will be used as part of the sugar power plant to generate electricity which is sold back to the grid. Is that correct?
Ashwin Devineni
No, no. This power plant has been idle. It’s not been generating any power in Genoa. What we are proposing to do is to have that relocated to JAMIA to obtain a better value. Otherwise we need to have it scrapped here. So what? By doing the relocation we actually are getting a much value upside in terms of the capturing the entire WDV value of that sugar plant.
Viraj Mahadevia
Understood.
Nikhil Devineni
From processing, the sugar would be used as fuel. Part of the power would be used for captive use by the sugar plant and the remainder balance would be sold in the open grid.
Viraj Mahadevia
Understood. Can you elaborate what the 200 million is required then if the plant is already in existence in India and shipped to Zambia.
Nikhil Devineni
I’m sorry, can you repeat.
Viraj Mahadevia
The s release as CAPEX outlay for the Sugar project is $200 million.
Nikhil Devineni
Right. The $200 million comprises the full fledged plantation. The plantation cost also is included in that $200 million. Aside from the actual sewer plant, the coal generation power plant and distillate.
Viraj Mahadevia
Okay, and over what period will these investments be made?
Nikhil Devineni
This will get spent till April 28 by when we expect the crushing and the sugar production commences.
Viraj Mahadevia
So next to financial year next to financial.
Nikhil Devineni
That’s right.
Viraj Mahadevia
Okay, thank you. I’ll come back.
operator
Thank you. Before we take the next question, we would like to remind participants, if you wish to ask a question, you may press start and one, the next question comes from the line of Nidisha from ICICI securities. Please go ahead.
Nidhi Shah
Yes, thank you so much for taking my questions. So my first question is on. Is on Mel 2. So I just wanted to ask what is the capex that was done in Q1 and what is the capex that remains for this plant?
Ashwin Devineni
See, MEL started the phase two works in August 24th. Currently the process is on and the expense that the incremental CAPEX that you see is practically on Mel phase two, about 700 crores incremental one, 600 crores. Yeah. And the balance works will happen over the next four quarters. We expect the bulk of that capex getting incurred in that period with the balance towards the commissioning phase which is in Q2 of FY27. Q1. End of Q1.
Nidhi Shah
All right. My second question on this is that I recall that 70% of the power, the capacity for phase two has been tied up. So what was the tariff for that and what, and what is our plan for the remaining 30% that is currently untied?
Ashwin Devineni
Sorry, 100% of the power is tied up.
Nidhi Shah
Okay, so that remaining 30 is another player or is it the same?
Ashwin Devineni
No, it’s always been the state utilities, Esco. We have a PPA with them for all our power.
Nidhi Shah
All right, what is the tariff of that EPA?
GRK Prasad
9.5 cents per kilowatt hour.
Nidhi Shah
Okay. And on SARO alloys, my, my question is that the volumes and the realization as per the PPD have gone up significantly. Yet we see that PBT is down on a YOY level. Were there any say extraordinary or one time costs?
Ashwin Devineni
So I think in terms of the overall market for ferroloids is unfortunate. Hello.
operator
Yes, sir.
Ashwin Devineni
Yeah, so in terms of the overall markets of ferroloids there’s been not much of a difference compared to last quarter. It still continues to remain in a fairly subdued manner. But I think over the last quarter you saw better realizations on two counts. One is the heavy reliance upon the Japanese market where we have a long term contract that has yielded far better results than the spot market. And adding to that is the product diversification into ferrosilicon. That too has helped us achieve better results, mainly owing to the exports made to the us. Both these things jointly has yielded better realizations.
Nidhi Shah
So sir, my question primarily was that the realizations are better and the volumes are better. So why is PBT down this quarter for ferro alloys like on a yoy basis?
operator
Sir, we are unable to hear you.
Nidhi Shah
Am I audible now?
Ashwin Devineni
Just give us a second. That is working out now.
Ashwin Devineni
The leukomatinase realization was lower year on year. That compensated by ferrocenicon realizations being higher.
Nidhi Shah
All right, all right. Thank you.
operator
Thank you. The next question comes from the line of Sri Gopal Kakani from SG Kankani and Associates. Please go ahead.
Gopal Kakani
Good afternoon, sir. I just wanted to get confirmation that 100 megawatt solar power plant is to be commissioned by July 26 and 300 megawatt thermal power plant is to be commissioned by August 26. I just wanted to get that pre confirmed.
Ashwin Devineni
Yes, those are correct. That is the plan.
Gopal Kakani
Okay, answer one more question. In this quarter this mining operations profitability has come down. Y over. Is there any major reason? Sir.
Ashwin Devineni
One second.
Nikhil Devineni
This is mainly on account of the forex impact between USD and Zambia.
Gopal Kakani
Okay. Okay. Thank you, sir.
operator
Thank you. The next question comes from the line of Viraj Mahadevia from Moneygrow. Please go ahead.
Viraj Mahadevia
Hi sir. I’m back again. What is the net cash on the books for Q1 cashless debt at a consolidated level?
Nikhil Devineni
We have net cash of close to 1420. Net of cash.
Viraj Mahadevia
Sorry.
Nikhil Devineni
2,400 cross cash.
Viraj Mahadevia
2,400 crores of net cash. Cross cash. Okay. And how much is the debt?
Nikhil Devineni
Net cash will be around 1400.
Ashwin Devineni
Okay, thank you. My second question is. Is there a Zambia shutdown for maintenance and in Q2.
Ashwin Devineni
I’m sorry, can you repeat that?
Viraj Mahadevia
Is there a Zambia power plant shutdown for Maintenance planned in Q2?
Ashwin Devineni
Both the units are going to go under shutdown in the next two months for their scheduled biannual maintenance.
Viraj Mahadevia
Right. Okay. Thank you. Sir, Just a suggestion. It would be helpful if we could get in the investor presentation or a press release a table on sources and uses of parts for the various projects that are underway. Because we have four or five projects underway with different timelines with different amounts. It would be really helpful if you could have a summary table highlighting what is the capex we plan to spend over the next two years and what are the sources for that and the timelines for which project. Sure.
Ashwin Devineni
We’ll make sure. Can I.
Viraj Mahadevia
Thank you very much. All the best.
operator
Thank you. The next question comes from the land of Vijayap, an individual investor. Please go ahead.
Unidentified Participant
Hello.
operator
Yes, sir.
Unidentified Participant
Okay. First of all, let me begin with congratulating the CEO of the company on the handsome bonus of $1.5 million declared by the company and the employees of the company for the RSUs who received RSUs as per the stock option plan. I have. My first question is regarding the company policy of distributing 25% of the profits to the shareholders as dividend. Does that profit possible? Does that policy still hold?
Ashwin Devineni
Yes. So I think our primary dividend policy is between. I’d say 25 to 30%. I think the last few years we’ve been giving 27, 28% of the standalone profits. But that being said, that is our standard dividend policy. But given how our international operations perform and what dividends we receive from the international operations, which sometimes is unknown at this point, we will always be open to considering Special dividends in addition to the. So this 25 normal dividend based on the policy.
Unidentified Participant
So this 25% received by Nawa Limited will be including the dividend or including the profits of the Zambia operation?
Ashwin Devineni
No. So the Zambia operations profits are shown on the console level if the once Zambia declares a dividend to say the Singapore entity and the Singapore entity in turn declares the dividend to Nava, it comes into the Nava anyways. So you know, it’s difficult for us to declare a dividend here when we have not received it from the Zambian entity. And that’s exactly why our dividend policy is based on, you know, the standalone numbers. While we have the leeway to always announce special dividends like we have this time based on dividends we receive from the Zambia operation.
Unidentified Participant
Okay, Honestly it was a disappointment that like last year, there was no interim dividend declared this year. Coming to the next point that I have, it says in strategic updates that Nava Global will directly hold 65% equity in MSELJV. Now what is MSCL?
Ashwin Devineni
MSEL is Mamba Solar Energy Ltd. It’s basically the company that’s setting up the 100 megawatt solar plant.
Unidentified Participant
Okay, so otherwise the Mamba Energy Ltd. 65 holding is with NAVA Limited.
Ashwin Devineni
No, Mamba Energy is also owned by Nava Global. So by the way, so Nava Global was previously called Singapore which was the holding entity for all these assets and changed the name. Well then yeah then I mean Nava Global also owns 65% of MES. All we’re doing here is moving out MSCL, the solar entity from Mahpa Energy Limited and having a direct shareholding from Nava Global and 65% LZP 60 semi toning 35%.
Unidentified Participant
Yeah. So with all this consolidation taking place of Zambia operations under the control of Nava Global Limited, is Nava Global Limited having any intention of listing itself on Singapore Exchange or any of the foreign exchanges are having an IPO.
Ashwin Devineni
Currently that’s not in the plants.
Unidentified Participant
But there is a possibility that Nava Global will go global and get listed on foreign exchange. Foreign stock exchanges.
Ashwin Devineni
Well, I mean I don’t want to speculate on this call right now, but currently that’s not on the books.
Unidentified Participant
Okay, so in that case, now Limited remains the ultimate owner of Nava Global Limited.
Ashwin Devineni
Yes.
Unidentified Participant
Thank you. I will go back in the queue.
operator
Thank you. As there are no further questions from the participants, I now hand the conference over to management for closing comments. Thank you. And over to you sir.
Ashwin Devineni
Thank you for your insightful. Questions. You may reach out on the wider investor platform and each other. Queries or clarifications? Thank you.
operator
Thank you. On behalf of ICICI securities limited that concludes this conference. Thank you for joining us. And you may now disconnect your line. Thank you.