Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Nava Ltd (NSE: NAVA) Q4 2026 Earnings Call dated May. 15, 2026
Corporate Participants:
Madhuri — Operator
Ashwin Devineni — Chief Executive Officer
GRK Prasad — Executive Director
Nikhil Devineni — Senior Vice President
Analysts:
Nidhi Shah — Analyst
Unidentified Participant
Saket Kapoor — Analyst
Presentation:
Madhuri — Operator
Good evening, ladies and gentlemen. I am Madhuri, Moderator for the conference call. Welcome to Nava Limited Q4FY26 earnings conference call. As a reminder, all participants will be in listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call, please signal an operator pressing star and then zero on your touch tone telephone. Please note this conference is recorded. I would now like to hand out the floor to Ms.
Nidhi Shah. Thank you. And over to you, ma’. Am.
Nidhi Shah — Analyst
Yeah. Thank you so much. Madhuri. Good evening. On the behalf of ICSS Securities, I welcome you all to the Q4 and FY26 earnings call of Nawa Limited. Today we have with us from the management. Mr. Ashwin Devmeni, Managing Director and CEO. Mr. Mikhail Devnani, Executive Director. Mrs. J.R.K. Prasad, Executive Director. Mr. B. Sri Nivasa, Chief Financial Officer. Mr. Vya Sen Raju, Company Secretary and Ms. Lisa from Corporate Communications. We will begin with opening remarks from the management which will be followed by a Q and A.
Over to you, sir.
Ashwin Devineni — Chief Executive Officer
Thank you very much. Good afternoon everyone. And thank you for joining us today. FY26 has been a strong and important year for Nava. Both from an operational and strategic perspective. Our business continued to perform steadily across geographies, supported by disciplined execution, stable operations and improving efficiencies. At the standalone level, we reported 116% increase in profit after tax to 911 crore rupees, marking one of the strongest performances in the company’s history. The growth was primarily supported by healthy upstream dividend flows from our overseas investments and proceeds received during the year.
We also witnessed one of our strongest years of cash generation supported by these inflows alongside healthy operational cash flows, further strengthening our liquidity and balance sheet position. On the consolidated side, profitability was impacted by a certain accounting led tax adjustment at mel, which is Mamba Energy Limited relating to deferred tax movements. To provide some context on this, the increase in deferred tax expenses which is a non cash item, was primarily driven by approximately 32% appreciation of the Zambian Kwacha, resulting in unrealized foreign exchange gains.
These unrealized gains create a timing difference between how income is recognized in the financial statements and how it is treated for tax purposes. As a result, a deferred tax liability is recorded. However, the underlying operational and cash performance of the business remains healthy and consistent. And on this it is important to note the following and there are four points on this deferred tax provision. One, Non cash in nature, this deferred tax does not involve any immediate cash flow cash outflow and is purely an accounting adjustment.
The second is its link to the exchange rate movement. The deferred tax position will be reassessed during every reporting period based on the outstanding loan balances and the prevailing exchange rate. Third, that is temporary and reversible. Since the underlying driver is foreign exchange fluctuation, the impact can be temporary and as exchange rates stabilize or move in opposite direction, the deferred tax liability is expected to reverse over time and it has no impact on the core performance.
This movement should be viewed as a technical accounting adjustment and not as an indicator of the company’s operational performance or cash position. That being said, overall we believe today NAVA is in a stronger position operationally, financially and strategically with stable core businesses, healthy liquidity, improving cash flows and multiple long term growth drivers in place. A testament to this is the dividend declared for the year at 8 rupees 50 paisa per share which is the highest in the company’s history.
With that overview, I would now like to hand over the call for a detailed discussion on the financial and operational performance for the year. Thank you very much.
Questions and Answers:
Madhuri
Thank you sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on a telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and N1 again, The first question comes from Aditya Shreeman from PCs Securities. Please go ahead.
Unidentified Participant
Hi sir. Am I audible?
GRK Prasad
Yes.
Unidentified Participant
Yeah. So I had a few questions. The first one is the status of the projects of the 100 megawatts solar project and the 300 megawatts thermal project. Sir.
Ashwin Devineni
Yeah. So the solar project is due to be at least. Commissioning is supposed to commence in the month of July this year 2026. And the phase two, which is a 300 megawatt expansion at Mel and is to be commissioned during the early part of January 2027.
Unidentified Participant
Okay, sir. And what is the status for the avocado and the sugar complex?
Ashwin Devineni
Well, on the avocado front, in fact this year we’ve had our first commercial harvest for about 150 tons. As we speak, the rest of the growth in the last division, Division D is taking place. We expect that to be complete towards the end of this financial year. Post which in terms of plantations we would be fully complete with it. However, in terms of commercial sale, we are expecting next year there would be a harvest sale of about 1,000 tons. And going from there every year the quantity would double in nature up until 2034.
Unidentified Participant
Sir, one last question, sir. What are the domestic realizations for power?
GRK Prasad
Power for the current year? We estimated it around 5 rupees 55.
Unidentified Participant
Okay. Okay. Thank you sir.
Madhuri
Thank you, sir. Participants are kindly requested to ask two questions in the initial round and may join the queue for more questions. The next question comes from Saket Kapoor. From Kapoor and Co. Please go ahead.
Unidentified Participant
Yeah. Namaskar sir. Hope I’m audible. Hello.
GRK Prasad
Yes. Yes you are.
Unidentified Participant
Yeah. Yes. Sir, if you could just explain to us the alliance of expected credit loss that we have factored of 20 crore for this quarter and an amount of rupees 137 crore for the entire year. And sir, second. Yeah, yeah please.
GRK Prasad
It is an account of Jasport dues which were outstanding as on 31st March 25th. We have received during the year about like 15.5 million and that the project made in the previous years were reversed.
Unidentified Participant
Okay, so these are. These are gains that we have booked for for the current year.
GRK Prasad
Yes.
Unidentified Participant
And sir, going ahead, will this be any recurrence of the same? How much more will be reversed back? Going ahead
GRK Prasad
We are left with 1.3 million which will be reversed during the next.
Unidentified Participant
If you could just give some understanding of how the core business aspect in terms of the different verticals are behaving this. The silico, manganese, the ferro silicon and the type of the expected realizations going ahead. And as you mentioned about the cash flow from the subsidiaries and the buyback program, what should one anticipate going ahead and how are the power realizations going to shape up? I think so. In your. No, in your presentation you did alluded to the fact of lower reduced realizations for both Ferro alloys as well as the Indian energy increased fixed cost which was mentioned in the financial highlights.
So if you could just give us the in brief, the setup of the business environment for all the verticals and going ahead, what should we anticipate?
Ashwin Devineni
That’s a very broad question but let me try to answer it the best I can. I think first with respect to the ferrous vertical, yes, there were many pricing pressures on account of two major possibilities. One was the fact that India now produces about 4 million tons of manganese alloys out of which approximately 1 million is slated for export. And the main export destinations are Europe and Middle East. So over the course of the last year the European Union has imposed safeguard duties against Indian imports into the country.
That coupled with the geopolitical situation going on in the Middle east has definitely put a strain on Indian exports. And as a result of that we are seeing a lot of that material being dumped in the domestic market which is essentially causing the prices to come down. However, I think when it comes to Nava, we are fairly well insulated from these volatilities because of one, we have a long term arrangement, a yearly contract with the two major Japanese mills which essentially accounts for 40% of our production.
In addition to that we also have quarterly fixed pace contracts with some of the big steel producers, private steel producers in India which again accounts for another 40 to 50%. So our level of volatility or exposure to the spot market is only to the extent of 10 to 15% per se. So going forward I do see that there should be a slight improvement even in terms of the metals vertical. Now I think coming to the power side, you know this year is definitely in terms of our entire cost structure it would look very different from the preceding year because the drop in coal prices by Singerini Collries whom we are essentially drawing 100% of our coal from in the Telangana operations.
So this allows us to essentially have a better cost structure and be able to participate in a lot of these bilateral tenders even during the non peak season which was not the case earlier. So as a result of this, this year onwards we’re going to be looking at a fairly better overall PLF.
Unidentified Participant
If you could just. On. On this part. If you could just dwell further. You are. We are expecting lower coal prices the current year. I. I missed. I’m very sorry to interrupt. In the interest of time I request you to rejoin. Yes ma’, am. I am joining. Yeah, I’m joining the queue. It is only what sir has told I. I could not get his point, point. So I’m joining the queue. No issues with that. Thank you. Thank you. Please clarify. One second.
Ashwin Devineni
I didn’t get your question. I’m sorry, can you repeat that
Unidentified Participant
Only for the coal prices. I could not get the correlations you were trying to explain for the Singulari crore coal mine. If you could just repeat what you said. And I joined the queue.
Ashwin Devineni
Our offtake for coal which is the sole raw material for power generation in Telangana is coming from Singerini collvies.
Unidentified Participant
Over
Ashwin Devineni
The course of the last year, sometime In September of 2025 they have decreased their coal prices to be more in line with the international market. And this essentially has had a big impact on our operations where now we are able to operate year round with a higher PLF and gain more contracts.
Unidentified Participant
Right, I’ll join the queue sir. Thank you.
Madhuri
Thank you sir. Participants are kindly requested to ask two question in initial round and may join the queue for more questions. The next question comes from Viraj Mahadeva from Moneygrove. Please go ahead.
Unidentified Participant
Hi Ashwin. One is the financial assets and investments of 1347 crores. Is that cash like in niche? That is it in debt products, NCS etc. Like it was the prior year. And what is the planned use for this? The major investments are in liquid mutual funds and then dead products. Right. And sorry, what is the planned use for this money going forward?
Ashwin Devineni
Yeah. So I think as you’re aware now we have the agro projects in the pipeline with both the avocado and the sugar which are to be funded essentially from the corpus in the Indian accounts.
Unidentified Participant
Understood. So what is the equity contribution still pending for all these new projects coming on stream and how much incremental debt is likely to be taken to complete all these projects. So delta on equity and delta on debt.
Ashwin Devineni
So right now I think if you look at the total commitment I’m talking about for the group as such, the total commitment is about 130 million in terms of equity and in terms of the agri side debt we’re looking at about 100 million. And for the. For Mamba, we’ve already taken on the debt for the phase two and I think for the solar 30 million is spending so that is pending. These are for existing projects that we’re currently implementing. But as you kind of know we’re always looking at other projects that could probably shape up during the course of the year.
So those are not considered.
Unidentified Participant
Understood. So if I just to clarify, so 100 from agri on debt remaining to be taken and 30 on solar debt remaining to be taken. So 130 million incremental debt and 130 million equity contribution into agri still remaining,
Ashwin Devineni
Not into agri. So in agri it is about 100 and then we have some equity contribution that needs to go into Mamba. Sorry, the Mamba is about 17.5 million. Not solar. Solar. We made our entire equity contribution. I’m talking about for phase two. We have a last tranche that needs to go in and the remainder of that is for the agri which includes the sugar and the avocado.
Unidentified Participant
Understood very clearly. I’ll come back for more questions. Thank you.
Madhuri
Thank you sir. The next question comes from Abhinav Nalawadi from ICICI Securities. Please go ahead.
Unidentified Participant
Yeah sir, thanks for the opportunity. My first question is what is the cost of 100 megawatts solar plant and what is the tariff?
Ashwin Devineni
Yeah, I mean I’m not going to go into the cost of the solar plant now but in terms of the tariff it’s 7.8 US cents.
Unidentified Participant
7.8. Sorry,
Ashwin Devineni
7.8 US cents.
Unidentified Participant
Second question is on NBL. What is the revenue EBITDA and PAT for FY26.
Ashwin Devineni
I’m sorry, revenue and profit after tax.
Unidentified Participant
Is 442 crore and then PPD is 80 crore. PAT is. Didn’t get the PAT number. PAT is 59 crore. Understood. Thank you sir.
Madhuri
Thank you sir. The next question comes from Jalak Jain from Chhattisgarh Investment Limited. Please go ahead.
Saket Kapoor
Hello, I’m audible.
Madhuri
Yes. Yes,
Saket Kapoor
Hello. Yeah. So my question is how is the situation in Zambia currently and due to West Asia crisis, do we have any power deceptions in Zambia and are there any problems in receiving the payment from this comp?
Ashwin Devineni
So the situation in Zambia is fine. The only change there is Zambia is going into elections. Elections are due to be held in the month of August. I mean the power situation is fine. And with currently what’s happening, there are no major disruptions. I think the only disruption is what the rest of the world is facing which is increase in fuel prices.
Saket Kapoor
And with regards
Ashwin Devineni
To receivables, we’ve been getting it on time.
Saket Kapoor
Okay. And my second question is due to the West Asia crisis, are we anticipating any Increase in supply of coal in Zambia. Sorry.
Ashwin Devineni
So we have our own captive mine there. Right. So it’s a mine mouth power plant. So we’re not dependent on import of coal.
Saket Kapoor
So are we thinking it to sell even more
Unidentified Participant
Like
Saket Kapoor
As the demand is rising?
Ashwin Devineni
No, we have a large customer base. Our sales for our coal business is fairly healthy. And definitely if opportunities arise and there is a good market, we will definitely explore it.
Saket Kapoor
Okay, thank you.
Madhuri
Thank you ma’. Am. Dear participants, if you have any questions please press star and one on a telephone keypad. The next question comes from Shakit Kapoor from Kapoor and Co. Please go ahead.
Unidentified Participant
Yeah, thank you for the opportunity again. Sir, when we look at our EBITDA margin excluding off I think so the one off also before that the EBITDA margin for the quarter has declined on a consolidated basis from Q on Q basis sir. So what should be the number that we should factor in for the current financial year? And also with in terms of our the subsidiary Mel Jambia there also we have seen The PLF on Q1Q basis was down. So how should we. What should be penciling in sir, in terms of how the trajectory for the EBITDA margin is likely going to trend going ahead?
That is the first question.
Ashwin Devineni
Just give us a second. It. Yeah, so I think just to. I just wanted to get the numbers before I answered your question. So in terms of the EBITDA delta, it’s because the last quarter actually there was other income so hence the EBITDA was slightly higher. I’m talking Q1Q.
Unidentified Participant
Sorry sir, I’m talking about the Q1Q part only for quarter three December quarter versus the March quarter. If that comparison works sir, there are the decreases the other income by 18 crore in Q4. Right. The other reasons are Q4 Mama Energy Power Plant had a planned shutdown because of which there is an increase in the manufacturing expenses and replace and maintenance. These are the major reasons for decreasing. Okay then for in. For as we as investors what should be pensioning in in terms of a steady state EBITDA margin trajectory for the foreseeable future?
And sir, second question was also with respect to the volume in terms of the silicon and the ferro alloys, what kind of incremental volume can we expect in terms of production and sales for the next year? If an understanding could be said, these two were my points.
Ashwin Devineni
So with regards to you know, what can you expect? I firstly I don’t think you should be looking at quarter on quarter. There are lots of variables and so on. So I think you should look at basically annual performance and base your forecast on that. And then
Unidentified Participant
For the year as a whole, what should be pensioning in in terms of the EBITDA margin trajectory? Sir, then for the current year for 26, 27, it’s
Ashwin Devineni
Very dynamic. Right. Because on a year on year basis you have various things coming up. We have phase two coming up. We have tax holidays that we are losing for phase one. So it’s very hard for us today to give you an exact number until we have. We get everything up and running and everything is as usual.
Unidentified Participant
Okay. Even a trajectory. Sir, you, you must be, have. You must have worked out on a trajectory of say 35 to 40% or 42 to 45%. Wherein we should be in that sailing through that period with the type of adjustments which you have just talked about.
Ashwin Devineni
Yeah. So you can assume 35 to 40%.
Unidentified Participant
Okay. And now for the volume increase in terms of the, the ferro and the silico manganese part of the story. What are the utilization levels and any incremental offtake that we may anticipate for the current year?
GRK Prasad
With regard to perolite production, the total production will be on the same lines like last year because the Varissa plant was under shutdown for first quarter of the year. So the sales quantity will remain like in the previous year.
Ashwin Devineni
I think in total we’re looking at about 130,000 tonnes for the next year.
Unidentified Participant
Okay, so this time we did 134 for silico and ferro was 8,000.
Ashwin Devineni
We’ve actually discontinued Ferro silicon because the market for Silco manganese is more favorable at the moment. So I’m just talking about silco manganese being at 130,000.
Unidentified Participant
So that will be flat, sir. FY26, we did 134. I joined the queue, ma’. Am. Definitely yes ma’. Am. Thank you ma’. Am.
Madhuri
The next question comes from Sai Shreyas from Scientific Investing. Please go ahead.
Nikhil Devineni
Good evening sir. Am I audible?
Unidentified Participant
Yes
Nikhil Devineni
Sir. Thank you for the opportunity. So my first question is, can you please help us understand why is there a sudden jump in the employee costs year over year?
GRK Prasad
This is like partly on account of like ESOP. Like we are giving RHCs to employees to some extent on account of this labor code and normal wage hike like to the employees we are giving.
Nikhil Devineni
Okay. So sir, will this be the sustainable cost or is there any expected increase?
GRK Prasad
It will be like sustainable subject to like increment to be usually due to the empires.
Nikhil Devineni
Okay sir. And my next question is sir, can you please help us understand what is the revenue potential from the agrochemical agro sector, from the avocado as well as the sugar.
GRK Prasad
With regard to avocado, when it is in cheap, the expected revenue is 22 million.
Nikhil Devineni
Is it? Is it yearly 22 million? And from when will it start contributing, Sir?
GRK Prasad
So like already the commercial operations have begun. Like we start harvesting some fruit. But it will be incremental. The revenue will be like it is not static, like equal over the years. By the time it reaches peak, the 20, the total revenue would be 22 million.
Nikhil Devineni
Okay, the peak revenue is 22 million. And from when will this commercialization start? Is it from FY27 or 28, sir?
Ashwin Devineni
So I think the peak we can look at post 2032. But until then you’re going to definitely have incremental revenues flowing in every year.
Nikhil Devineni
Okay. Okay, thank you. Sir.
Ashwin Devineni
Just to add, we’ve already started selling fruit. It’s just commenced. So it starts in a small way and then slowly picks up as the trees grow.
Madhuri
Thank you. Sir. The next question comes from Meeraj Mahadevia from Moneygrow. Please go ahead.
Unidentified Participant
Hello, can you hear me? Yes. Yeah, Ashwin, the way I look at your financials, there seems to be a bit of a structural cross currency issue. Right. Historically you had the benefit of dollar billing in Zambia and dollar weakening against the rupee and the local currency also weakening against the rupee. So higher revenues and lower costs that seems to have swapped more recently, which is why you’ve seen massive cost escalations and a jump particularly in employees. Is that the right understanding?
And secondly, if that is the case, then it’s probably better to build in some natural hedge on currency where local employees are paid there in dollars since your revenue earned dollars.
Ashwin Devineni
Yeah. So, you know, it’s a good thing. By the way, the Zambian Kwach has appreciated because that means that the country is doing well. And I also think that this also ensures that we get paid on time. You know, the GDP is growing very healthily. What would happen? Yeah.
Unidentified Participant
In your cross currency translation to inr, you take a hit, you know.
Ashwin Devineni
Yes, well, the thing is we. Exactly. And even in Zambia we have to report in Kwacha. So once the dollar balance sheet gets converted to Kwacha, you have these issues that sometimes are notional in nature in terms of employees. The Zambian government passed a law or a statutory instrument late last year where it said that all local employees, local contractors and transactions have to be transacted in Zambian Kwacha. So you can’t have an employee there getting paid in dollars. I mean this used to benefit us before when the Kwacha was depreciating, but now it is.
But you know, it’s kind of become stable. I think it’s appreciated extensively in a very short period of time. We may see some correction later, but I look at this as a good thing.
Unidentified Participant
Yeah, but I guess then the next question is, can you change your PPAs from dollars to kocha at the current rate? Because you know it’s like for like hedge, right? Right now you’re on the wrong side of the currency equation in terms of INR financials. So the rupee continues to weaken and the quacha continues to strengthen. Then you’ll continue taking a hit on your console pnl.
Ashwin Devineni
Yeah. See the Kwacha appreciation, like we from cash flow point of view are not affected at all. This only affects the tax position. So. And trust me, you want to keep the PPA as USD. In fact, when the law was passed or the statutory instrument was passed to move all local transactions, they actually ring fenced power assets and so on where they can continue at USD. So all our expenses, O and M expenses, everything are USD based. So apart from just tax purposes, because we have to convert our balance sheet from USD to Kwacha, there really is no effect of this appreciation.
Unidentified Participant
But why not on your employee costs? Because the Kwacha cost of your employees, translated to INR is getting more and more expensive. Because a Kwacha is strengthening,
Ashwin Devineni
INR is weakening. But that is hedged with my coal sales. Right. My coal sales today is in Kwacha now. So while the cost of the employees is kind of going up to a slight extent. So is the cold sale
Unidentified Participant
Value? Is that, is that, does that cover it?
Ashwin Devineni
The revenue generated from cold sales. So the delta is hardly anything. And in terms of my core employees then it’s not much.
Unidentified Participant
Understood. Very helpful. Sorry. My next question is the 10% that’s remaining of the. By the way, congratulations on collecting 90%. But the 10% that’s remaining, when is that likely to be due from ZQ?
Ashwin Devineni
Over the course of FY27. Yes, definitely. I say in the next six months we should get it.
Unidentified Participant
Okay.
Madhuri
The next question comes from Jalak Chain from Chhattisgarh Investment Limited. Please go ahead.
Saket Kapoor
Yeah, hello, thank you for taking my question. My question is can you please shed some light on the mining activities in Africa like MN ore and lithium.
Ashwin Devineni
So I think with respect to manganese, we are focused on ivory cores. And the second mine which has been allocated to us which is 360 square kilometers. In fact, we have just completed the exploration works recently in a two square kilometer area. And we have found promising results where we are able to take this forward towards an exploitation permit. That’s what we are currently working on and I think hopefully in the next one year we should be able to achieve that. Yeah. And on the lithium front, as we had informed before exploration was underway.
We did. Although the initial exploration results in certain parts were fairly positive, we did come across a certain obstacle where there was another company once, after seeing our activity, had claimed some of that area for a different license, a TIN license. So that is currently under review by the ministry and what we have indicated is until we get clarity and clearance we won’t proceed further. So it’s currently underway but it’s under review by the ministry to overcome the third.
Saket Kapoor
Okay, thank you.
Madhuri
Thank you ma’. Am. The next question comes from Keta Joshi from nearby Assets Management. Please go ahead.
Unidentified Participant
Hello. Hi. Am I audible?
Madhuri
Yes.
Unidentified Participant
So thank you for the opportunity. What is X? My question is what is expected incremental revenue and EBITDA from Mamba solar power project? 100 megawatt. The. So the top line expected is 2020 to 22 million and then bottom line expected is 6 to 7 million. Okay. Okay. Thank you so much.
Madhuri
Thank you ma’. Am. The next question comes from Saket Kapoor from Kapoor and company. Please go ahead.
Unidentified Participant
Yes, sir. Only an understanding of how the power realization per unit would shape up I think. So you have alluded to the fact of softening of the Indian energy business. So what should be the outlook for the on. On the tariff front? And and second question was again pertaining to the volume for the ferro silicon part wherein you mentioned130. So we will be flattish for this year since last year was 134. The sales number for silicon manganese
Ashwin Devineni
In terms of the production volumes, we are expecting a slight uptick in it. But with respect to pricing, again that’s an extremely fluid situation. Month on month it does vary. But I don’t see any reason for it to fall compared to the preceding year as of now.
Unidentified Participant
And for the power part, sir, what should we anticipate in terms of the realization? I
Ashwin Devineni
Think on the power side, you know, although India has reached the expected peak, demand is supposed to touch 277 gigawatts. You are also seeing a huge capacity addition in the form of renewable energy which is serving as a deterrent for prices going up. So if you just look at the exchange Year on year there’s been a 13% drop. So our strategy has been more to rely upon the bilateral contracts where the net realizations are faring better than what it is on the spot. So given the situation, I think we can expect somewhere close to 550.
Unidentified Participant
Okay, thank you.
Madhuri
Thank you sir. The next question comes from Vedant Sarda from Nirmal Bank Securities. Please go ahead.
Unidentified Participant
Am I audible?
Madhuri
Yes sir.
Unidentified Participant
First of all, congratulations to the management for a good financial year. My question is with respect to volume, like you said, the production would be a bit high but over a long term horizon, three to five years of time frame, how we can see the volume growth in our ferro alloys business.
Ashwin Devineni
At full capacity utilization we are able to produce about 160,000 metric tons with the current setup in place. However, we are always evaluating which vertical is it better to produce alloys versus export that power to the grid. Right now, given that it is peak summer where power tariffs are on the higher side, we have decided to exploit this time by shutting down the furnaces in Orissa in lieu of power export while we are also carrying out all the preservation activities and so on. So this is an ongoing situation where we assess where the enhanced profitability comes from and as such take a call.
So I would not be able to give you a fixed number in terms of what the projection would be. It’s a very dynamic situation.
Unidentified Participant
Okay. And like you said on pricing you can’t comment but can you give some more color on what’s the factors which can drive the prices upwards or downwards on ferroholys?
Ashwin Devineni
Yes, I think so. It’s directly linked to steel because this is the feedstock that goes into steel production. So if you see an uptick in steel prices, ferrooy prices also invariably go up. Although there is healthy increase in the steel production in India, there is a lot of surplus alloy alloy supply in India too because of the lack of export markets which I touched upon earlier. As a result of that you’re seeing a lot of rising pressure right now. Hopefully the situation in Europe and the Middle east improves soon.
We can probably look at a rebound.
Unidentified Participant
Thank you so much.
Madhuri
The next question comes from Viraj Mahadevia from Moneygrow. Please go ahead.
Unidentified Participant
Hi Ashwin. So going back to our earlier point, the financial investments would be enough to cover your equity contributions required for the projects. You will incrementally have roughly about 1200 crores of debt that you take on between agri and solar. You know, you’ll obviously generate free cash flows next year. But any Plans on the land sale, the land bank in India, because it’s obviously a privilege to run a thermal business with zero debt.
Ashwin Devineni
Yeah, definitely. I mean, in terms of the land, we’re exploring different options now. We have two. We have the Na Charam land which is in Telangana, and then we have the Dharmavaram land, that’s more, you know, could be used for like industrial use and so on. But on the NHA Charam land, the value has been appreciating. So, you know, if you were on the previous investor calls years ago, there was a lot of pressure to sell it, sell it and thank God we held on to it because now the value is a lot higher.
So now I think we are exploring options of, you know, possible JVs and so on in terms of developing that plan. So once we have a
Unidentified Participant
Kind of as opposed to outright sale,
Ashwin Devineni
I mean both options are available, but we are essentially what we’re trying to look at options and we’re probably going to engage a third party to give us options in terms of sale, JV and whatever makes sense, we will take it forward.
Unidentified Participant
Understood. And would I be able to ask what would be the rough value of that land today, approximately?
Ashwin Devineni
It’s hard for me to say. I mean, you can ask me questions on the energy. Are we
Unidentified Participant
Talking 500, 800 crores? Is it more? Just a broad range?
Ashwin Devineni
I wouldn’t want to speculate on this call.
Unidentified Participant
Understood. And you know, sorry I missed you on your last point on Africa mining. The line was unclear. I think you mentioned one of them had encouraging results and lithium was on hold because the lease is contested, is that right?
Ashwin Devineni
Yes, if
Unidentified Participant
You can just repeat that. So which one has had positive results and what’s the way forward?
Ashwin Devineni
The manganese mine that we were exploring, you know, we had, we were exploring certain areas at Ivory Coast. Yes. So one seems promising, which we need to take forward and the various steps involved there. And in terms of the lithium, you know, we’ve done, we started the exploration, the initial part was done. There were certain areas that were slightly promising, but that area, some of these areas have been contested by another company that has a different license, actually. A license. So there’s the Kalumo
Unidentified Participant
District, right? The lithium, amethyst, tantalum, tin.
Ashwin Devineni
Yes, Mapitisia. That area
Unidentified Participant
Right. In
Ashwin Devineni
Zambia, it’s actually close to, fairly close to where our thermal plant is.
Unidentified Participant
Understood. Okay, all the best. Nothing more for me, thank you.
Madhuri
Thank you, sir. There are no further questions. Now I hand over the floor to management for closing comments.
Ashwin Devineni
Thank you once again. For joining us today and for your continued trust and support in Nava. We remain committed to build a strong, sustainable and future ready business through disciplined execution, prudent capital allocation and long term value creation. Thank you and we look forward to interacting with you again next quarter.
Madhuri
Thank you, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using doorsa bus conference call service. You may disconnect your lines now. Thank you and have a pleasant evening.