Press Release April 07, 2026 NLC INDIA RENEWABLES LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	2669.00	ACUITE AAA | Stable | Reaffirmed	-
Total Outstanding	2669.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has reaffirmed its long-term rating of 'ACUITE AAA' (read as ACUITE triple A) on the Rs. 2,669.00 Cr. bank facilities of NLC India Renewables Limited (NIRL). The outlook is 'Stable.' Rational for Rating The reaffirmation of the rating continues to reflect the strategic importance of the company for NLC India Limited (NLCIL) in strengthening its presence in the renewable energy segment. NLC India Renewables Limited (NIRL), a wholly owned subsidiary of NLCIL, is currently developing a total renewable capacity of 1,860 MW across four projects. Acuité notes that the 600 MW solar project in Gujarat has experienced a delay, with the Scheduled Commercial Operation Date (SCOD), earlier set for December 2025, now expected to be revised to Q2 FY27, primarily due to adverse climatic conditions that have impacted construction activities. Additionally, the company started developing three more projects during FY26, comprising 810 MW of solar capacity, 200 MW of wind capacity, and 250 MW/ 500 MWh battery energy storage system. The rating derives comfort from the execution strength provided by long-term power purchase agreements (PPAs) signed for all four ongoing projects at predefined tariffs. However, these strengths are partly offset by project implementation risk, as the projects remain under construction and may witness further slippages, along with funding risks associated with the projects.

About the Company

Incorporated in 2023, NLC India Renewables Limited is wholly owned subsidiary of NLC India limited. The Company is engaged in power generation. It focuses on monetizing the existing renewable energy (RE) assets, optimizing their value and ensuring efficient asset management. It is setting up 600 MW Solar Power Project in GSECL's Solar Park at Khavda (GSECL Stage-2) Gujarat. Current directors of the company are Mr Prasanna Kumar Motupalli, Dr. Prasanna Kumar Acharya, Mr Rajesh Pratap Singh Sisodia and Mr Ramchandra Parashar. Its registered office is located at Chennai.

About the Group

­NLC India Limited Incorporated in November 1956, NLC India Limited (NLC; erstwhile Neyveli Lignite Corporation Limited), is an integrated power company having captive lignite and coal mines and a consolidated thermal generation capacity of 5,960 MW and renewables generation capacity of 1781 MW. The company was awarded the ‘Navratna’status in the year 2011, and it acts as a Nodal Agency for lignite mining appointed by the Ministry of Coal (MoC), with majority market share in lignite mining in the country. NLCIL serves as an important source of power generation to the states of Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Telangana, Rajasthan, and Union Territory of Puducherry. It operates four open cast lignite mines with current capacity of 30.1 MTPA, namely Mine I, Mine IA, Mine II and Barsingsar Mine. It also operates an open cast coalmine, Talabira II & III having current capacity of 20.0 MTPA. NLCIL has lignite thermal power generation capacity of 3640 MW, with 4 pithead power plants at Neyveli, Tamil Nadu, 1 pithead power plant at Barsingsar, Rajasthan and a 1000 MW coal plant through JV (NTPL) in Tamil Nadu. The company also has solar energy capacity of 1730 MW and wind energy capacity of 51 MW. NLCIL operates on a cost plus basis with electricity tariff determined by CERC and also the lignite transfer price is determined by CERC. NLCIL India Limited is currently managed by Mr. Prasanna Kumar Motupalli, Dr. Suresh Chandra Suman, Mr. M Venkatachalam, Mr. Rajesh Pratap Singh Sisodia, Mr. Samir Swarup, Dr. Prasanna Kumar Acharya, Mr. Sanoj Kumar Jha, Mr. Mangat Ram Sharma, Shri M. T. Ramesh, Dr. Vasant Ashok Patil and Shri Pradeep Kumar Saraogi ceased to be Independent Directors on the NLCIL board upon completion of their one-year terms. NLC Tamil Nadu Power Limited NLC Tamil Nadu Power Limited (NTPL), incorporated in 2005, is a joint venture company of NLC India Limited and Tamil Nadu Generation and Distribution Company (TANGEDCO) and is promoted by NLC India Limited in Tamil Nadu. The JV was incorporated with an idea of expansion devised by NLC to set up a 2x500 MW thermal power plant in Tuticorin, Tamil Nadu. Current directors are Mr. Prasanna Kumar Motupalli, Mr. M Venkatachalam, Dr. Prasanna Kumar Acharya, Mr Rajesh Pratap Singh Sisodia, Mr. Govinda Rao and Mr. Deepak Goel. Company has its registered office in Chennai, Tamil Nadu. Neyveli Uttar Pradesh Power Limited Neyveli Uttar Pradesh Power Limited (NUPPL) is a joint venture company promoted by NLC India Limited and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL). The JV was incorporated in 2012 and Ghatampur, Uttar Pradesh, was chosen as the site for a 1,980-MW (3x660 MW) supercritical power project. The company is engaged in power generation. The current directors of the company are Mr. Prasanna Kumar Motupalli, Mr. M Venkatachalam, Mr. Prasanna Kumar Acharya, Mr. Sanjay Kumar Dutta, Mr. Sudheer Babu Motana and Mr. Samir Kumar Swain. Company has its registered office in Lucknow, Uttar Pradesh. NLC India Green Energy Limited NIGEL was incorporated with a forward-looking mission to lead the company’s future renewable/green energy initiatives. NIGEL will play a crucial role in exploring and implementing new projects in the renewable/green energy sector, thereby expanding our portfolio and advancing our sustainability goals.

Unsupported Rating

­Not Applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

­Acuité has combined the business and financial risk profiles of NLC India Limited and its subsidiaries NLC Tamil Nadu Power Limited (NTPL; 89% held by NLCIL), Neyveli Uttar Pradesh Power Limited (51% held by NLCIL), NLC India Renewables Limited (100% held by NLCIL) and NLC India Green Energy Limited (100% held by NLCIL) together referred as NLC Group.

Key Rating Drivers

Strengths

­Strategic importance to the project The project is strategically important for the NLCIL in line with the vision to achieve 10GW by significantly expanding the capacity of renewable energy by 2030. NLC India Limited (NLCIL), a Navratna public sector undertaking (PSU) of the Government of India (GOI) in the mining and power generation sectors, aims to emerge as a leading company with a strong focus on social responsibility and sustainability. NLCIL has established itself as a symbol of growth and resilience within India's energy landscape. Acuite believes that the long operational track record of NLCIL will benefit the NIRL in the long run. Low demand risk supported by long-term PPA arrangement The demand risk for the projects remains low, supported by long-term Power Purchase Agreements (PPAs) executed for the entire capacity across all projects at prescribed tariffs. PPAs with a tenure of 25 years have been signed for 600 MW with Gujarat Urja Vikas Nigam Limited (GUVNL), 810 MW with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), 200 MW with Satluj Jal Vidyut Nigam Limited (SJVN), and 250 MW/ 500 MWh battery energy storage system with Tamil Nadu Power Distribution Corporation Limited (TNPDCL). Acuité believes that the fully tied-up long-term PPAs provide revenue visibility and offer comfort regarding the company’s ability to scale and sustain its operations over the long term. Healthy financial Risk Profile The financial risk profile of the group is healthy with robust net worth, moderate leverage ratios and comfortable coverage indicators. The net worth of the group increased in FY 2025 to Rs 21,732.15 Cr. as against Rs 19,137.55 Cr. in FY 2024, with an accretion of profits to reserves. The leverage ratios of the group remain moderate with debt-equity ratio of 1.03 times in FY 2025 as against 1.17 times in FY2024. The coverage indicators improved in FY25 supported by higher cash accruals, as interest-coverage-ratio stood comfortable at 3.15 times in FY 2025 as against 2.82 times in FY 2025. Debt-service- coverage-ratio also increased to 1.94 times in FY 2025 as against 1.64 times in FY 2024. Acuité believes despite large capex plans and expected regular dividend pay-out, the financial risk profile, is expected to remain healthy over the medium term backed by robust networth level, un-utilized bank limit and sizeable cash accrual.

Weaknesses

Project risk associated with timely completion of ongoing projects The company is exposed to project execution risk due to multiple ongoing projects. The 600 MW solar project in Gujarat has experienced a delay, with the Scheduled Commercial Operation Date (SCOD), earlier set for December 2025, now expected to be revised to Q2 FY27, primarily due to adverse climatic conditions that have impacted construction activities. Additionally, the company commenced development of three more projects during FY26, comprising 810 MW of solar capacity, 200 MW of wind capacity, and 250 MW/ 500 MWh battery energy storage system, with an aggregate project cost of around Rs. 6,624.28 crore. These projects are currently at a nascent stage. Acuité believes that the timely completion and commencement of the ongoing projects, along with the generation of expected cash flows, will remain key rating sensitivities. Moderate funding risk The company's projects which were started during FY26 remain exposed to financial closure risk, as term loan sanctions for these projects are yet to be finalized. The absence of sanctioned long-term debt poses a risk to the timely execution and commencement of these projects and may lead to cost escalations or implementation delays. Acuité believes that timely tying up funds for these projects, will remain a key rating sensitivity.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

­Not Applicable

Potential triggers (individual or collective) for a downward rating action:

Further, delay in ongoing projects

Liquidity Position

Strong

The liquidity profile of the group is strong marked by generating net cash accruals of Rs 4,633.79 Cr. for FY 2025 as against its debt repayment obligations of Rs. 1,377.15 Cr. for the same year. Cash and bank balance stood at Rs. 143.70 Cr. as on 31st March 2025. Further, the accruals are expected to be sufficient to meet the debt servicing obligations in FY2026 and FY2027. The funding for the capex programme is expected to be met through a mix of internal accruals and debt funding. Furthermore, the group, being a 'Navratna' CPSE, has strong financial flexibility to raise additional debt at competitive rates. Acuité expects cash accrual, cash and equivalents, and unutilized bank lines will sufficiently cover debt obligations, incremental capex and working capital requirements.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	15800.82	13408.07
PAT	Rs. Cr.	2713.37	1867.32
PAT Margin	(%)	17.17	13.93
Total Debt/Tangible Net Worth	Times	1.03	1.17
PBDIT/Interest	Times	3.15	2.82

Status of non-cooperation with previous CRA (if applicable)

­­Not Applicable

Any Other Information

None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 20 Mar 2025 Proposed Long Term Loan Long Term 2669.00 ACUITE AAA | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Bank Of Baroda Not avl. / Not appl. Term Loan 24 Feb 2025 Not avl. / Not appl. 31 Dec 2041 2669.00 Simple ACUITE AAA | Stable | Reaffirmed

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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

­ Sr. No.  Company name 1 NLC India Limited 2 NLC Tamil Nadu Power Limited 3 Neyveli Uttar Pradesh Power Limited 4 NLC India Renewables Limited 5 NLC India Green Energy Limited

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Siddharth Garg Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.