Nava Ltd (NSE: NAVA) Q3 2026 Earnings Call dated Feb. 05, 2026
Corporate Participants:
Ashwin Devineni — Chief Executive Officer
GRK Prasad — Executive Director
GRK Prasad — Executive Director
Nikhil Devineni — Senior Vice President
Analysts:
Nidhisha — Analyst
Kaushik Doshi — Analyst
Vaishnavi Gunu — Analyst
Sri Gopal Kankani — Analyst
Jatin Damania — Analyst
JAM — Analyst
Salish Raja — Analyst
Agarwal — Analyst
Presentation:
operator
Good day and welcome to the NAVA Limited Q3FY26 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 is being recorded. I now hand the conference over to Ms. Nidhisha from ICICI Securities. Thank you. And over to you, ma’. Am.
Nidhisha — Analyst
Thanks, Shubham. Good evening. On the behalf of ICICI Securities, I welcome you all to the Q3 and FY26 earnings call of Nava Limited. Today we have with us from the management. Mr. Ashwin Deviani, Managing Director and CEO Mr. G.R.K. prasad, Executive Director, Mr. Nikhil Denani, Executive Director and Mr. V.S.N. raju, Company Secretary. We will begin with opening remarks from the management which will be followed by Q and A. Over to you, Sims.
Ashwin Devineni — Chief Executive Officer
Thank you. Good afternoon everyone and thank you for joining us. I would like to begin with a key milestone that underscores our commitment to shareholder value. The successful completion of Nava Global $50 million buyback. Supported by strong dividend flows from Mamba Energy. This transaction reflects the quality of our underlying assets, disciplined capital allocation and our continued focus on strengthening results to shareholders. Operationally, Q3 FY26 was a strong quarter for Nava. We delivered healthy revenue growth and a sharp improvement in profitability. With consolidated net profits rising 83.5% quarter on quarter. Our energy business remained resilient. Mel continued to reduce areas while maintaining high plant availability and mining posted improved volumes and margins.
Equally important, our growth projects are progressing steadily. From the 300 megawatt MEL expansion and the 100 megawatt solar project in Zambia to experiencing early success in in our avocado plantations and steady execution of the Kawamba Sugar project. These investments are designed to diversify earnings, enhance cash flows and build long term resilience. We will take any questions now. Thank you.
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press STAR and one on a touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. In order to ensure that the management is able to address questions from all the participants in the conference, please restrict your questions to two per participant. For more questions, please rejoin the queue. Ladies and gentlemen. We will wait for a Moment. While the question queue assembles the next question.
The first question comes from the line of Kaushik Doshi from ICICI Securities. Please go ahead.
Kaushik Doshi — Analyst
Hello. Am I audible? Sir?
operator
Yes, sir.
Kaushik Doshi — Analyst
Thank you for the opportunity, sir. And congratulations for the great achievement. My first question is Credit income jump sharply to 70.4 crore in quarter three compared to 26 crore in quarter two. Can you break this down between dividend interest and indicate what portion is sustainable?
Ashwin Devineni — Chief Executive Officer
So you are referring to consolidation level or at the standalone level?
Kaushik Doshi — Analyst
Select consolidation level.
Ashwin Devineni — Chief Executive Officer
Console level. It is mainly on account of like foreign currency saturations.
Kaushik Doshi — Analyst
Okay, sir. And what portion is sustainable? Can you indicate that?
Ashwin Devineni — Chief Executive Officer
I’m sorry, can you repeat this?
Kaushik Doshi — Analyst
What portion of that is sustainable? Can you indicate on that?
GRK Prasad — Executive Director
Again there’s a lot of disturbance from the background. Not your voice is not the judge.
operator
Maybe. We are unable. There is disturbance from the background.
Kaushik Doshi — Analyst
Is it clear now?
operator
Yes, it’s clear.
Ashwin Devineni — Chief Executive Officer
Yes. Concern per quarter is around 40 crore.
Kaushik Doshi — Analyst
Okay, sir. And for my second question is EBITDA margin expanded sharply to 48.3% from 34.5% quarter on quarter. How much of this expansion is driven by NVL PLs normalization versus cost reversal.
Ashwin Devineni — Chief Executive Officer
The major contribution is from MEL power plant Power plants this quarter. MEL power plant operated with 97% PLS. So engine and energy business. The PLS were good. But at the same time few power. Few power plants had a planned shutdown activity.
Kaushik Doshi — Analyst
Okay, sir. Got it, sir. My next question is mining revenue grew 16.6% quarter on quarter due to higher volume. Is this volume run rate sustainable or was Q3 usually strong?
GRK Prasad — Executive Director
Yeah. In terms of the mining division, I think the average in terms of sales about 35 to 40 to 42,000 tons. On a monthly basis. That’s what we’ve been averaging. And that’s sustainable.
Kaushik Doshi — Analyst
Okay, sir. Thank you. I will come back in Q.
operator
Thank you. The next question comes from the line of Vaishnavi Gunu from Craving Alpha Wealth Fund. Please go ahead.
Vaishnavi Gunu — Analyst
Hello.
operator
Yes, ma’. Am.
Vaishnavi Gunu — Analyst
Yeah. Thank you for taking my question. For just two, three questions from my end. The first one is with respect to Zambia. So in terms of macro perspective with respect to power, what are the plans of the government to diversify away from hydropower? And do you see any or expect any projects that will generate revenue for us?
Ashwin Devineni — Chief Executive Officer
Yes, I think the answer to that is Mamba. Right. They’ve already diversifying from hydropower by signing PPAs and absorbing power from us from phase one. From phase two. Aside from that they’re increasing a lot of solar projects we are undertaking 100 megawatt solar project. While there are other solar projects also in the country coming up. Some commissioned and some yet to be commissioned. So. So I think they are eagerly diversifying away from. Hydropower.
Vaishnavi Gunu — Analyst
So apart from the upcoming 300 megawatt project, do you see any other project for us?
Ashwin Devineni — Chief Executive Officer
For us? Yes, we are. We are setting up another 100 megawatt solar. Right. And we are also exploring other opportunities in terms of renewable.
Vaishnavi Gunu — Analyst
Okay. And so one question is on the cash that we are receiving from Nava Global, how do we plan to deploy that?
Ashwin Devineni — Chief Executive Officer
So I presume you’re talking about the buyback amount.
Vaishnavi Gunu — Analyst
Yes, the buyback and dividend.
Ashwin Devineni — Chief Executive Officer
Yeah. So you know, like we always stated, our primary objective is to ensure that we have enough cash to fund future projects. Maybe greenfields or expansion. And then apart from that, you know, we always look at corporate actions and we’ve been fairly generous in this past year with regards to corporate actions which always boost shareholder confidence.
Vaishnavi Gunu — Analyst
Professor Noted. Pram sir, one question is on the Avocado and agriculture fund, how do we plan to scale this segment and how much further do we plan to invest here?
GRK Prasad — Executive Director
I think on the avocados, see we have four divisions split into 275 hectares each. Right now as we speak two divisions have already been planted and the first division has given us the first pilot crop of about 140 metric tons. I think going forward we are looking at about a time horizon of eight years until the full production from all four division hits the markets.
Vaishnavi Gunu — Analyst
So for this sector grow significantly and contribute to the revenue, how much time frame would we expect.
Ashwin Devineni — Chief Executive Officer
Down four to five years to be significant segment.
Vaishnavi Gunu — Analyst
Okay sir, I’ll join back with you.
Ashwin Devineni — Chief Executive Officer
Sorry, are you there?
Vaishnavi Gunu — Analyst
Yes sir. Noted. I’ll join back with you for further questions.
operator
Yeah, thank you. The next question comes from the line of Sri Gopal Kankani from SG Kankani Associates. Please go ahead.
Sri Gopal Kankani — Analyst
Good afternoon sir. I have seen the presentation where you have mentioned this H1 of Next Financial aid completion target for solar power plant and H2 for thermal power plant. But I wanted to know the what is the expected completion time for sugar complex?
Ashwin Devineni — Chief Executive Officer
The sugar complex or the processing unit should be complete by April, around April 2028. So I say mid-2028.
Sri Gopal Kankani — Analyst
Okay. And my second question is that what is the area of that Nataram land, sir? And what is the present market value approximately?
GRK Prasad — Executive Director
Area.
Ashwin Devineni — Chief Executive Officer
Approximately about 20 crores. Is the, you know, per acre market value there?
Sri Gopal Kankani — Analyst
20 crores per acre. Pardon?
Nikhil Devineni — Senior Vice President
65 acres. 65 market value. 65 acres.
Sri Gopal Kankani — Analyst
65 acres is the total area of the late night. Okay?
GRK Prasad — Executive Director
Yes.
Sri Gopal Kankani — Analyst
And what is the present market value? Approximately.
GRK Prasad — Executive Director
We are not what we know is area is garnering a lot of interest and the market value say from 10 years ago has definitely been on the upswing. So to give you a precise number at the juncture we will not be able to but we know from the inclining trend.
Sri Gopal Kankani — Analyst
Okay, okay, okay. Thank you sir.
operator
Thank you. The next question comes from the line of Jatin Damania from Swine Investments. Please go ahead.
Jatin Damania — Analyst
Good evening sir and thank you for the opportunity. Spending in the Zambia for the thermal and solar. Can you help us on the separate amount? How much are you spending on thermal and solar?
Ashwin Devineni — Chief Executive Officer
Sorry, I can’t. Your voice is being muffled. Can you speak a little away from the phone also we can’t hear you clearly now.
Jatin Damania — Analyst
It’s audible.
Ashwin Devineni — Chief Executive Officer
It’s better. Better, yeah.
Sri Gopal Kankani — Analyst
So just wanted to understand the capex that we will be spending for the 300 megawatt and 100 megawatt separately in Zambia.
Ashwin Devineni — Chief Executive Officer
300 megawatt expansion plan. So expansion thermal plant total capex outlay is $400 million. And for the 100 megawatt solar plant capex outlay is $90 billion.
Jatin Damania — Analyst
And out of the how much we have already spent.
Ashwin Devineni — Chief Executive Officer
As of 31st December for the thermal plant total spent is around close to $190 million spent close to $10 million. Your debt and equity, this is not just equity, this is debt and equity.
Jatin Damania — Analyst
And this debt equity is in ratio of 70.
Ashwin Devineni — Chief Executive Officer
Correct.
Jatin Damania — Analyst
And the entire capex is funded by Nava or even the Zambian government is contributing to the project
Ashwin Devineni — Chief Executive Officer
6535. So we contribute on the equity side we contribute 65% and Jessica my age, our partner contributes 35%.
Jatin Damania — Analyst
Okay, the partner contribute 35%. Sure sir, definitely that gives a good visibility in terms of the power project coming from the Zambia. But when you come to the domestic market the look little bit lower in terms of the pricing as well as demand. So how do you see the domestic power segment growth going ahead?
GRK Prasad — Executive Director
As you rightly pointed out, the domestic power scene seems to be on the declining trend. If you look at the exchange pricing I think there’s been a drop of about 12% year on year. So I think the way we are looking at mitigating this downturn is through mainly entering into long term and short term contracts rather than, you know, being completely dependent on the exchange where there’s a lot of volatility. I think in this Regard. We have informed you the last quarter that we have engaged into a long term five year period bilateral contract with Tamil Nadu for our 60 megawatt IPP plant in Orissa.
So besides that we’re also looking at targeting a similar allocation for the other units that we have domestically.
Jatin Damania — Analyst
And at. What rate we have entered into a contract. I mean TPA size. You can help.
GRK Prasad — Executive Director
This is at five point per kilowatt hour. The long term.
Jatin Damania — Analyst
And last question on the other than the power business, what’s your take on the faro? Because the segment is consistently underperforming. I understand the market is not good. But now given the recent safeguard duty on the steel and you have seen some uptake in the prices on the faro front. How do you look this segment growth in the coming quarters of the in for FY27?
GRK Prasad — Executive Director
I think see even if you look at compare the last quarter with this quarter that we’re in, there’s been an improvement of pricing by about 8%. Right. I think this is has a lot to do with the capital allocation that the government has put upon in terms of infrastructure and so on. So going forward we are hopeful that prices if not they don’t increase to a very large extent, at least they’re going to remain stable. While we don’t look at it as a very high margin vertical but we are confident that you know, in terms of the scale there will always be a good top line involved with it.
Jatin Damania — Analyst
So but I’m looking from the operating performance but see as you indicated that the quarter on quarters of prices have increased. But when you look at the segmental reserve there’s a sharp drop in the profitability in the faro segment. So I’m just unable to digest this. From 2 crores of EBIT we are almost at break even on the faro front.
GRK Prasad — Executive Director
No, I think what I mentioned was from quarter three to the quarter that we’re in currently quarter four there’s been an increase.
Ashwin Devineni — Chief Executive Officer
Sure.
Jatin Damania — Analyst
Okay. Okay, noted. Thank you. That’s all from my side now. The best.
operator
Thank you. The next question comes from the line of Kaushik Doshi from ICICI Securities. Please go ahead.
Kaushik Doshi — Analyst
Thank you sir for the opportunity. My next question is what is the amount of debt at the end of 9th month? FY26.
Ashwin Devineni — Chief Executive Officer
Close to $200 million.
Kaushik Doshi — Analyst
Okay, so my next question is do we have any tire top power for this summer for Indian power plant?
GRK Prasad — Executive Director
Yeah. So I think in terms of quarter four we are more or less fully committed.
Kaushik Doshi — Analyst
Okay sir, thank you. That’s it. From myself.
operator
Thank you. The next question comes from the line of JAM from ICICI securities. Please go ahead.
JAM — Analyst
Thank you for the opportunity. So my first question is for the 300 megawatt NL Phase 2 and 100 megawatt solar project. Can you share the expected capex from the mix and and rsv?
Ashwin Devineni — Chief Executive Officer
I think we’ve just answered that with regards to both the plans just a. Couple of minutes ago. In terms of the capex, please just go to the transcript.
JAM — Analyst
Okay sir, so how much is outstanding receivables for Mamba?
Ashwin Devineni — Chief Executive Officer
The areas amount that is yet to be paid is about $30.5 million.
JAM — Analyst
Okay sir, that answers my question. Thank you so much.
operator
Thank you. The next question comes from the line of Salish Raja from BNK Securities. Please go ahead.
Salish Raja — Analyst
Yeah, sir could you please update us on the Ivory coast and also can you give us the payback period that you are expecting from the solar project that 90 million USD that we are doing?
GRK Prasad — Executive Director
So in terms of Ivory coast, as you’re aware we are currently under exploration for the 360 square kilometer concession that we were awarded. I don’t have much to share in terms of the discovery yet. I think that’s still underway. So when we do have something I’ll.
Ashwin Devineni — Chief Executive Officer
Get back to you.
Salish Raja — Analyst
Okay. And what about the solar investment? We are investing 90 million USD. What about the payback period that you are expecting from this solar project?
Ashwin Devineni — Chief Executive Officer
It’s 10 to 12 years.
Salish Raja — Analyst
Yeah. Okay. Okay, okay. Okay sir, currently in Zambia, what is the mixer between thermal and solar? So how the mix is changing. Thermal and solar in overall Zambia, how is the mix?
Ashwin Devineni — Chief Executive Officer
So right now we are the only thermal. Yes. So initially Zambia was almost 95% hydro and we came into the picture with thermal. But now there are quite a few solar plants that are coming up but they’re all without storage. So possibly the only other base load. Apart from the, you know, the hydros. But I think there’s a, there’s a fair bit of solar coming up and there is also talk of some other thermal projects coming up. But I think solar is gaining more traction.
Salish Raja — Analyst
Okay, okay. Yeah, thank you.
operator
Thank you. The next question comes from the line of stupid Agarwal from cl. Please go ahead.
Agarwal — Analyst
Hi, am I audible?
operator
Yes ma’. Am.
Agarwal — Analyst
Yeah. Could you comment on the increase in employee cost from 191 crores to 268 crores.
Ashwin Devineni — Chief Executive Officer
Please tell me which period you are referring to.
Agarwal — Analyst
Nine months. Comparison consolidated.
Ashwin Devineni — Chief Executive Officer
One moment please. Yeah. It is on account of commission like there was a gem. The provision was made in the last Quarter So on like nine months period. It is more compared to the previous nine months period in 2024.
Agarwal — Analyst
Okay, sir. And another question is. We have bought back like. Nava Global has brought back 50 million of shares. So is there any future plan to like make it a wholly owned subsidiary?
Ashwin Devineni — Chief Executive Officer
It is a wholly owned subsidiary. It was a buyback. The share capital reduced. It is. It is still a wholly owned subsidiary of Nava. Nava owns 100% of Nava Global.
Agarwal — Analyst
Then what is the reason for buyback?
Ashwin Devineni — Chief Executive Officer
Was a single shareholder. Hence you know, after buyback still it holds 300. So Nava Global bought back the shares. So Nava still remains the 100 owner.
Agarwal — Analyst
Okay, sir. Thank you.
operator
Thank you. The next question comes from the line of Vaishnavi Guru from Craving Alpha Wealth Fund. Please go ahead.
Vaishnavi Gunu — Analyst
Yeah. Hi. Thank you for taking my question again. First is with respect to commissioning of the power plants and power plants in 2026. If I’m not wrong. So what kind of revenue you are expecting from these two power plants? If you can give us a broad guidance like around in FY25 or 29.
operator
Hello sir.
Ashwin Devineni — Chief Executive Officer
From the 300 megawatt thermal power plant in case of full year operations the expected revenue is $180 $200 million. And from the 100 megawatt solar project in case of full year operations the expected revenue is 15 to 16 million dollars.
Vaishnavi Gunu — Analyst
Can you please repeat again? For the solar plants it is 15.
Ashwin Devineni — Chief Executive Officer
To 16 million dollars.
Vaishnavi Gunu — Analyst
So do we expect. So by when do we expect the full operation of these two power plants?
Ashwin Devineni — Chief Executive Officer
It will be financially at 27. 28.
Vaishnavi Gunu — Analyst
This last question from my end. Do we have any planned shutdown for this FY26 and FY27.
Ashwin Devineni — Chief Executive Officer
Yeah, we definitely. I mean all the plants undergo shutdown and maintenance every year. So there are going to be planned.
GRK Prasad — Executive Director
Shutdowns for all our units during the year.
Vaishnavi Gunu — Analyst
Any anything major?
Ashwin Devineni — Chief Executive Officer
No, nothing major.
Vaishnavi Gunu — Analyst
Okay. Thank you.
operator
Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star and one on a Touchstone telephone. The next question comes from the line of Sri Gopal Kankani from SG Kangani Associates. Please go ahead.
Sri Gopal Kankani — Analyst
Thank you sir for giving me again opportunity. I just wanted to know that. We have recently learned from newspapers that Moil has increased the prices of magnesium by 5% from 1st of February. Do we have sufficient stock of manganese or. This is going to adversely affect our profitability for production of silicon manganese.
GRK Prasad — Executive Director
Our exposure to Moil is extremely limited. We only. In fact we don’t buy any Lumps from them we only buy a very small amount of fines. So this should not have much of an impact.
Sri Gopal Kankani — Analyst
Okay, so then sir, from where our main requirement is being met out.
GRK Prasad — Executive Director
From various sources, mostly outside of India.
Sri Gopal Kankani — Analyst
Okay? Okay. Okay. Thank you sir.
operator
Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on the Touchstone telephone. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on the Touchstone telephone. The next question comes from the line of Nidhisha from ICICI securities. Please go ahead.
Nidhisha — Analyst
Yes, thank you so much for taking my question. So sir, could you give us some broad based idea on on CapEx for FY27 and FY20, where are we looking to spend the capex and of the capex that we are doing, what kind of revenues we can expect in the next coming years?
Ashwin Devineni — Chief Executive Officer
I mean that’s a fairly broad question. So in terms of the current year with regards to the capex commitments, it’s all based on the ongoing projects, namely I think the phase two, 300 megawatts thermal, you have phase one of solar which is 100 megawatts committed with the potential of another phase that may get committed later based on market dynamics. Then on the agri side we as we broadly spoke about the Avocado where it’s a 55 million commitment and the.
GRK Prasad — Executive Director
Sugar project, the Kalamba Sugar Limited which is 100 million commitment.
Nidhisha — Analyst
So we are expecting all these capex to kind of be undertaken till in the Europe till FY27 end. Right. So do we have anything in mind for FY28?
Ashwin Devineni — Chief Executive Officer
Can we have anything? I’m sorry, on mine? Yes, we do have, you know, we do have projects in the pipeline that we are thinking about but it’s too early for us to commit or discuss those projects. But as we progress, as we have projects that we are developing, we also are constantly evaluating new projects that we can take up.
Nidhisha — Analyst
All right, lastly on the capex side, what was the capex that was undertaken in the nine months of this year?
Ashwin Devineni — Chief Executive Officer
Phase 2 thermal power plant, the CapEx insured is around 90 to $100 million. And towards the solar power? Solar 100 megawatt solar power plant, CapEx increase $10 million. When it comes to Avocado plantation, the capex increase around $8 million. For the KSL Sugar plant, the CapEx incurred is $8 million.
Nidhisha — Analyst
All right, and my last question would be that for the Indian power plants, do we have a tie up for power this summer?
Ashwin Devineni — Chief Executive Officer
Yes. So I think like I mentioned Earlier. For quarter four, we are more or less fully committed. I think for the Q1 of FY27 2, we are in the process of tying up most of our surplus quantities.
Nidhisha — Analyst
All right, thank you so much.
operator
Thank you. A reminder to all participants, Anyone who wishes to ask a question may press star N1 on a dust on telephone. The next question comes from the line of Stuti Agarwal from cil. Please go ahead. Mr. Agarwal, you may proceed with your question.
Agarwal — Analyst
Hello. Yeah, I wanted to check on what is the status of mines in Africa. So it’s about the lithium mine base.
Ashwin Devineni — Chief Executive Officer
Yeah. So in terms of the lithium ion, you know, we’re still in the exploration stage. You know, that’s currently underway. You know, these processes take a little while and they involve various steps. So that’s currently underway. It’s still in the exploration stage.
Agarwal — Analyst
Okay, sir, thank you.
operator
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Thank you. And over to you, sir.
Ashwin Devineni — Chief Executive Officer
Thank you once again for joining us today. I hope we have answered all your queries. We continue, we appreciate all your continued interest and support. And as we move ahead, we remain focused on delivering sustainable long term value for all stakeholders. Thank you and have a nice day.
operator
Thank you. On behalf of ICICI Securities. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.