NLC India Q2 FY27 Results (NSE: NLCINDIA)
Signal: Growth decelerated
The read
The quarter is a quality-negative earnings inflection: consolidated revenue rose 13.3% YoY, but pre-regulatory profit fell 59.5% to ₹295.95 crore as fuel cost reached 24.6% of revenue, while PAT rose 83.2% only because deferred-tax credit increased to ₹987.74 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,732.35 Cr | +13.3% | +0.3% |
| Net profit | ₹1,328.01 Cr | +83.2% | |
| EBIT margin | N/A |
P&L walk
Revenue increased to ₹4,732.35 crore, +13.3% YoY and +0.3% QoQ, but fuel cost rose 41.0% YoY to ₹1,163.83 crore, pre-regulatory profit fell 59.5% to ₹295.95 crore, and PAT growth came primarily from a ₹987.74 crore deferred-tax benefit.
Segments
No segment table is disclosed; the consolidated group generated ₹1,328.01 crore PAT versus standalone PAT of ₹1,205.00 crore, so subsidiaries and associates added ₹123.01 crore to reported profit.
Key positives
- Consolidated revenue reached ₹4,732.35 crore, up 13.3% YoY, while sequential revenue remained stable at +0.3%.
- Employee benefits and other expenses grew only 1.7% YoY to ₹2,095.93 crore, below revenue growth of 13.3%.
- Debt capital on a standalone basis declined to ₹9,120.93 crore from ₹10,157.36 crore at 31 March 2026, while debt-equity remained moderate at 0.47x.
- The company approved a 660 MW expansion at Ghatampur and proposed up to ₹2,500 crore of privately placed listed bonds to fund requirements.
Key concerns
- Fuel cost rose 41.0% YoY to ₹1,163.83 crore, lifting fuel cost to 24.6% of revenue from 19.8% and compressing calculated gross margin by 980bps.
- Consolidated pre-regulatory profit fell 59.5% YoY to ₹295.95 crore, while finance costs increased 51.3% to ₹437.57 crore and depreciation increased 32.9% to ₹728.53 crore.
- PAT growth of 83.2% to ₹1,328.01 crore was tax-driven: deferred-tax credit was ₹987.74 crore versus ₹54.20 crore YoY.
- Standalone H1 operating cash flow was only ₹274.39 crore against ₹971.47 crore of pre-tax profit, indicating weak cash conversion.
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