NLC India Shares Rise 3% on Subsidiary Listing Plan, Strong Expansion Targets

NLC India’s shares surged 3% to ₹263.05 following the board’s in-principle approval for the listing of its renewable energy arm, NLC India Renewables Limited (NIRL). The proposed public offering will involve diluting up to 25% equity, aligning with the Government of India’s National Monetisation Pipeline, while NLC retains majority control. The move aims to unlock value from its green energy portfolio and create an independent fundraising route without straining the parent’s balance sheet. A capital infusion of ₹66.6 crore into NIRL has been approved to strengthen project execution ahead of listing. The company also declared an interim dividend of ₹3.60 per share (36% payout ratio), balancing long-term growth with shareholder returns. Despite a 14.25% revenue increase to ₹4,178 crore in Q2 FY26, net profit dipped to ₹725 crore (-26.17%) due to higher costs. However, investor sentiment was buoyed by aggressive expansion plans: Mining capacity to double to 104.35 MTPA by 2030 Renewable energy target of 10,110 MW (from 1,599 MW), led by solar (9,609 MW) Entry into critical minerals (1 MTPA) With a market cap of ₹35,262 crore and trading at a PE of 13.4x—well below the sector average of 26.5x—the stock offers valuation appeal as NLC transitions into a diversified clean energy leader.