Nava Limited reported a strong Q3 FY’26, marked by an 83.5% quarter-on-quarter rise in consolidated net profit. Management discussed the successful completion of the $50 million buyback, supported by dividends from Maamba Energy. Key focus areas included steady progress on major growth projects in Zambia, such as the 300 MW thermal expansion and a 100 MW solar project, alongside expanding their avocado plantations and the Kawambwa Sugar project.
Q3 FY’26 Financial and Operational Highlights
Nava Limited presented robust results for the third quarter ending December 31, 2025. Management highlighted a significant milestone: the successful completion of the Nava Global $50 million buyback, funded by strong dividend flows from Maamba Energy. Operationally, the quarter saw healthy revenue growth and a substantial profitability improvement, with consolidated net profit rising by 83.5% quarter-on-quarter.
In the energy segment, Maamba Energy (MEL) maintained high plant availability, and mining operations saw improved volumes and margins. Regarding other income, the consolidation level saw a jump to INR 70.4 crores (Q3) from INR 26 crores (Q2), primarily driven by foreign currency fluctuations, with a sustainable run-rate estimated around INR 40 crores per quarter.
EBITDA margin expansion to 48.3% (from 34.5% QoQ) was largely attributed to the MEL power plant achieving 97% PLF.
Progress on Growth Projects
The company confirmed steady progress across its diversification pipeline:
- Zambia Thermal/Solar: The 300 MW MEL expansion thermal plant (Total Capex: $400 million) and the 100 MW solar project (Total Capex: $90 million) are progressing. For the thermal plant, nearly $190 million had been spent as of December 31st.
- Revenue Guidance (Full Year Ops): Expected revenue from the 300 MW plant is $180 million to $200 million, and from the 100 MW solar project is $15 million to $16 million. Full operation is anticipated in FY ’27-28.
- Domestic Power Strategy: To mitigate declining domestic power pricing (down about 12% YoY), Nava has entered a long-term 5-year bilateral contract with Tamil Nadu at INR 5.2 per kWh for its 60 MW IPP plant in Odisha.
Agri and Other Segments
Management provided updates on non-energy ventures:
- Avocado: With 4 planned divisions across 275 hectares each, the first division yielded a pilot crop of about 140 metric tons. Full production contribution is expected over an 8-year horizon, with significant contribution seen in 4 to 5 years.
- Sugar: The Kawambwa Sugar Limited processing unit completion is targeted for around April 2028 (mid-2028).
- Ferro Alloys: While the segment has been underperforming, management noted a recent 8% pricing improvement quarter-on-quarter, though profitability remains near breakeven.
- Lithium Mines (Ivory Coast): Exploration for the 360 sq km concession is still underway.
Balance Sheet and Debt
Debt at the end of the first nine months of FY ’26 stood close to $200 million, with a stated debt-to-equity ratio around 70:30 for the Zambian projects. Outstanding receivables (arrears) for Maamba amount to about $30.5 million.
Source: BSE
