WatchTalking point
Cash conversion trending down
Cash conversion (CFO ÷ profit) has averaged 2.27× over the last 3 profit-making years versus 3.87× before that.
Importance 64 / 95 · cash quality
NLC India Limited · Research view
NLC India Limited
NSE: NLCINDIABSE: 513683ISIN INE589A01014Face value ₹10standalone
₹253
−3.18% · 2026-10-01 · 52-wk ₹236–₹371
Financials to FY2026 · 8 years of history · prices to 2026-10-01consolidatedstandalone
Section 02 · Synthesis
What stands out?
The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.
StrengthConcernWatchContext
StrengthTalking point
Returns at a multi-year high
ROE of 13.7% is the highest in 7 years (prior range 7.9% to 12.1%).
Importance 55 / 95 · profitability
StrengthTalking point
Profit compounding faster than revenue
Over 7 years profit compounded at 10.4% a year while revenue compounded at 6.2% a year — though FY2024 saw a one-off step-change of 48% (a merger, restructuring or a recovery off a low base), so the compounding is uneven.
Importance 52 / 95 · growth
Section 03 · The company
Who is this company?
Classified by the exchange under Utilities › Power › Power › Power Generation.
- Market cap
- ₹35,082 cr
- FY2026 revenue
- ₹10,864 cr
- FY2026 net profit
- ₹2,525 cr
- Net worth
- ₹19,270 cr
- Total debt
- ₹10,157 cr
- EPS (basic)
- ₹18.21
- Listed
- NSE · BSE
- Reporting
- Ind-ASApr–Mar
Peer set used on this page: 5 power generation.
Section 04 · Business performance
Is the business growing?
RevenueNet profit
Strength
Over 7 years profit compounded at 10.4% a year while revenue compounded at 6.2% a year — though FY2024 saw a one-off step-change of 48% (a merger, restructuring or a recovery off a low base), so the compounding is uneven.
Rule PROFIT_CAGR_VS_REVENUE_CAGR
- Revenue growth per year
- +6.2%over 7 years
- Revenue growth
- +5.6%vs last year
- Net profit growth
- +32.9%vs last year
- Change in net profit since FY19
- +99%
Reported net profit grew 32.9% (FY2025 → FY2026), but pre-tax profit was ₹2,150 — an unusually low tax charge this year accounts for most of the gain, so the underlying trend is softer than the headline.
Revenue has compounded at 6.2% a year over 7 years (₹7,146 → ₹10,864) — steady rather than rapid.
Section 05 · Recent activity
What changed recently?
Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.
Concern
Q1 FY27 net profit was ₹436 cr, down 48.0% from ₹839 cr a year earlier.
Rule QTR_PROFIT_GROWTH_YOY
Watch
Q1 FY27 net profit declined 48.0% vs the same quarter last year, reversing the growth seen in the two preceding quarters (+4.0% and +216.2%).
Rule QTR_TREND_REVERSAL
Watch
Q1 FY27 net profit declined 48.0% while revenue grew 23.3% vs the same quarter last year — a gap of 71.3 percentage points.
Rule QTR_PROFIT_VS_REVENUE_GROWTH
A. Quarterly results
RevenueNet profit
| Quarter | Revenue | YoY | Net profit | YoY | Net margin |
|---|---|---|---|---|---|
| Q2 FY25 | 3,657 | — | 982 | — | 26.9% |
| Q3 FY25 | 4,411 | +39.4% | 696 | +173.9% | 15.8% |
| Q4 FY25 | 3,836 | +8.3% | 468 | +311.1% | 12.2% |
| Q1 FY26 | 3,826 | +13.3% | 839 | +48.1% | 21.9% |
| Q2 FY26 | 4,178 | +14.2% | 725 | −26.2% | 17.3% |
| Q3 FY26 | 4,443 | +0.7% | 724 | +4.0% | 16.3% |
| Q4 FY26 | 5,042 | +31.5% | 1,481 | +216.2% | 29.4% |
| Q1 FY27 | 4,717 | +23.3% | 436 | −48.0% | 9.3% |
B. TTM snapshot
Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters
- Revenue
- ₹18,381 crTTM
- EBITDA
- ₹6,963 crTTM
- EBIT
- ₹4,458 crTTM
- PBT
- ₹3,153 crTTM
- Net profit
- ₹3,367 crTTM
C. Corporate actions
22 Sept 2026DividendFinal Dividend - Rs. - 0.2500 — ₹0.25/share
20 Jan 2026DividendInterim Dividend - Rs. - 3.6000 — ₹3.60/share
19 Sept 2025DividendFinal Dividend - Rs. - 1.5000 — ₹1.50/share
7 Feb 2025DividendInterim Dividend - Rs. - 1.5000 — ₹1.50/share
17 Sept 2024DividendFinal Dividend - Rs. - 1.5000 — ₹1.50/share
16 Feb 2024DividendInterim Dividend - Rs. - 1.5000 — ₹1.50/share
18 Sept 2023DividendFinal Dividend - Rs. - 2.0000 — ₹2.00/share
24 Feb 2023DividendInterim Dividend - Rs. - 1.5000 — ₹1.50/share
21 Sept 2022DividendFinal Dividend - Rs. - 1.5000 — ₹1.50/share
14 Mar 2022DividendInterim Dividend - Rs. - 1.5000 — ₹1.50/share
21 Sept 2021DividendFinal Dividend - Rs. - 1.5000 — ₹1.50/share
17 Feb 2021DividendInterim Dividend - Rs. - 1.0000 — ₹1.00/share
5 Mar 2020DividendInterim Dividend - Rs. - 7.0600 — ₹7.06/share
26 Mar 2019DividendInterim Dividend - Rs. - 4.5300 — ₹4.53/share
23 Oct 2018BuybackBuy Back of Shares
20 Jul 2018DividendFinal Dividend - Rs. - 0.2700 — ₹0.27/share
26 Mar 2018DividendInterim Dividend - Rs. - 4.2300 — ₹4.23/share
24 Mar 2017DividendInterim Dividend - Rs. - 7.3400 — ₹7.34/share
9 Feb 2017BuybackBuy Back of Shares
7 Sept 2016DividendFinal Dividend - Rs. - 1.2000 — ₹1.20/share
14 Mar 2016DividendInterim Dividend - Rs. - 0.3000 — ₹0.30/share
11 Feb 2016DividendInterim Dividend - Rs. - 1.5000 — ₹1.50/share
8 Sept 2015DividendFinal Dividend - Rs. - 1.0000 — ₹1.00/share
26 Feb 2015DividendInterim Dividend - Rs. - 1.8000 — ₹1.80/share
11 Sept 2014DividendFinal Dividend - Rs. - 1.8000 — ₹1.80/share
Section 06 · Business performance
Is it becoming more profitable?
EBITDA marginNet margin
Strength
ROE of 13.7% is the highest in 7 years (prior range 7.9% to 12.1%).
Rule ROE_AT_MULTI_YEAR_HIGH
- EBITDA margin now
- 37.9%
- 8-year range
- 34.3–50.6%
- ROE FY2026
- 13.7%
- ROCE FY2026
- 9.8%
ROE of 13.7% is well above the power generation median of 9.2%.
ROE rose from 11.4% to 13.7%, but reported profit this year was lifted by an unusually low tax charge this year (pre-tax profit was ₹2,150) — the operating return moved less than this.
EBITDA margin improved from 35.1% to 37.9% of revenue.
EBITDA margin has ranged from 34.3% to 50.6% over 7 years and sits at 37.9% now.
Section 07 · Financial health
Is financial health improving?
Net worth (shareholders' funds)
Watch
Cash conversion (CFO ÷ profit) has averaged 2.27× over the last 3 profit-making years versus 3.87× before that.
Rule CASH_CONVERSION_DETERIORATING
Operating cash flowNet profit
- Total debt
- ₹10,157 cr
- Operating cash flow ÷ net profit
- 1.00×FY2026
- Free cash flow
- ₹1,741 cr
- Current ratio
- 0.64×
Operating cash flow has matched or exceeded reported profit in 5 of the last 6 profit-making years (latest 1.00×).
Free cash flow has been positive in 6 of the last 6 years.
Section 08 · Relative position
How does it compare with peers?
Ranked against 5 power generation (FY2026, consolidated).
Revenue growth
NLCINDIA · 3rd of 5 · set median 14.4%
EBITDA margin
NLCINDIA · 4th of 5 · set median 54.3%
Return on equity
NLCINDIA · 1st of 5 · set median 9.0%
P/E ratio
NLCINDIA · 1st of 5 · set median 16.9×
Context
Trades at 10.42× earnings — 38% below the power generation median of 16.93×.
Rule PE_BELOW_PEERS
- P / E
- 10.4×TTM to Jun 26
- P / B
- 1.4×latest book
- P / S
- 1.9×TTM sales
- Earnings yield
- 9.6%TTM to Jun 26
On the trailing twelve months. Last full year: P/E 9.3× · P/S 1.9× · ROE 16.0%.
Section 09 · The stock
How has the stock performed?
Context
Over 5 years the stock returned 32.6% a year while profit compounded at 19.4% a year — the FY2021 base was somewhat depressed, so part of this is recovery rather than trend.
Rule STOCK_RAN_AHEAD · rebound
- 1-year return
- −8.7%
- 3-year return
- +87.5%
- 5-year return
- +310.0%
- From 52-wk high
- −31.8%
Section 10 · Technical data
What does the technical data say?
Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.
- vs 50-day avg
- Below₹276
- vs 200-day avg
- Below₹283
- RSI (14)
- 35.3neutral
- MACD histogram
- -0.3
- From 52-wk high
- −31.8%
- From 52-wk low
- +7.1%
- 30-day volatility
- 23.3%ann.
- 6-month return
- −5.8%
Section 11 · Open questions
What should I investigate further?
Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.
- WatchCash conversion trending downCash conversion (CFO ÷ profit) has averaged 2.27× over the last 3 profit-making years versus 3.87× before that.CASH_CONVERSION_DETERIORATING · conviction 64
- WatchProfit growingReported net profit grew 32.9% (FY2025 → FY2026), but pre-tax profit was ₹2,150 — an unusually low tax charge this year accounts for most of the gain, so the underlying trend is softer than the headline.PROFIT_GREW_YOY · conviction 41
- WatchReturns improvingROE rose from 11.4% to 13.7%, but reported profit this year was lifted by an unusually low tax charge this year (pre-tax profit was ₹2,150) — the operating return moved less than this.ROE_IMPROVED_YOY · conviction 38
- Cash-flow-statement facts are unavailable for FY2019, FY2020 — those filings predate SEBI's Cash Flow Statement disclosure requirement. All other loaded years carry full P&L, balance sheet and cash-flow data.
Section 12 · Reference
The numbers
The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.
| Metric | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 7,146 | 7,916 | 7,250 | 9,856 | 12,955 | 10,519 | 10,286 | 10,864 |
| Total income | 8,059 | 9,133 | 8,967 | 10,662 | 14,196 | 11,392 | 11,487 | 12,035 |
| EBITDA | 2,447 | 3,991 | 3,671 | 4,255 | 6,204 | 3,919 | 3,613 | 4,117 |
| Profit before tax | 1,276 | 2,209 | 1,439 | 2,333 | 4,017 | 1,835 | 1,683 | 2,150 |
| Net profit | 1,267 | 1,414 | 1,042 | 1,237 | 1,248 | 1,847 | 1,900 | 2,525 |
| EPS (₹) | 8.5 | 10.2 | 7.5 | 8.9 | 9.0 | 13.3 | 13.7 | 18.2 |
| Net worth | 12,511 | 12,640 | 13,575 | 13,807 | 14,639 | 15,994 | 17,465 | 19,270 |
| Total debt | 11,985 | 15,012 | 13,398 | 10,239 | 9,348 | 7,969 | 7,525 | 10,157 |
| Operating cash flow | — | — | 4,052 | 6,086 | 3,479 | 5,266 | 5,645 | 2,513 |
| Free cash flow | — | — | 3,171 | 5,875 | 1,706 | 3,238 | 1,700 | 1,741 |
| Ratio | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|
| Growth | ||||||||
| Revenue growth YoY | — | 10.8 | -8.4 | 36.0 | 31.4 | -18.8 | -2.2 | 5.6 |
| Profit growth YoY | — | 11.6 | -26.3 | 18.7 | 0.9 | 47.9 | 2.9 | 32.9 |
| Profitability | ||||||||
| EBITDA margin % | 34.3 | 50.4 | 50.6 | 43.2 | 47.9 | 37.3 | 35.1 | 37.9 |
| Net margin % | 15.7 | 15.5 | 11.6 | 11.6 | 8.8 | 16.2 | 16.5 | 21.0 |
| Return on equity % | 10.1 | 11.2 | 7.9 | 9.0 | 8.8 | 12.1 | 11.4 | 13.7 |
| Return on capital % | 6.9 | 11.6 | 9.0 | 10.7 | 19.9 | 10.3 | 9.2 | 9.8 |
| Leverage & cash | ||||||||
| Debt to equity | 0.96 | 1.19 | 0.99 | 0.74 | 0.64 | 0.50 | 0.43 | 0.53 |
| Cash flow ÷ profit | — | — | 3.89 | 4.92 | 2.79 | 2.85 | 2.97 | 1.00 |
| Current ratio | 1.12 | 1.21 | 1.23 | 1.75 | 1.85 | 1.65 | 0.81 | 0.64 |