Ladies and gentlemen, good day and welcome to Nava Limited Q2FY26 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Kumar from ICICI Securities. Thank you, and over to you, sir. Thank you. Good evening. On behalf of ICICI Securities, I welcome you all to the Q2FY26 earnings call of Nava Limited. Today, we have with us from the management, Mr. Ashwin Devineni, Managing Director and CEO, Mr. G. R. K. Prasad, Executive Director, Mr. Nikhil Dhonandi, Executive Director, Mr. K. V. S. Bittal, CFO, and Mr. V. S. Raju, Company Secretary. We will begin with the opening remarks from the management, which will be followed by Q&A. Over to you, sir. Thank you. Good evening, everyone, and thank you for joining us today. I'm pleased to share that the second quarter has been another strong period for Nava, marked by consistent operational performance and strategic progress across our businesses. In line with our commitment to shareholder value, I'm also pleased to note that Nava has declared a 300% interim dividend, which marks the highest ever interim dividend in its history, and this further reinforces our strong balance sheet and consistent track record of rewarding shareholders. We also continue to deliver steady dividend distributions from both Maamba Energy and Nava Global, reflecting our healthy cash generation and disciplined capital management. This remains one of our key strengths and a clear demonstration of our focus on delivering sustained returns to our shareholders. Our revenues grew steadily, driven by robust performance in the metals segment and sustained momentum in our energy business. One of the key milestones this quarter was the successful transition of our Odisha captive power plant into an independent power plant, a move that strengthens our growth trajectory in the energy sector. Our new projects, including the 100-megawatt solar project under construction and the 300-megawatt expansion at Maamba, are advancing well, laying a strong foundation for the next phase of growth. Above all, our long-term fundamentals are robust. We will remain agile, prudent, and committed to rewarding your trust as we advance our business aspirations. I now open this call for your questions. Thank you. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. In order to ensure that the management will be able to address questions from all participants in the conference, kindly limit questions to two per participant. Should you have a follow-up question, please rejoin the queue. The first question is from the line of A M Lodha from Sanmati Consultants. Please go ahead. Hello. Good afternoon, sir. Good afternoon. Am I audible, sir? Yes. Yes. Yes, you're audible. Please go ahead. Sir, I have got two questions. One is energy sales relating to outside India and energy sales inside India, number one. Number two, regarding employee costs. There are two questions which I am asking you first. Sir, total energy sales is down from INR 1,045 crore to INR 876 crore in quarter two. This is partially on account of shutdown in Zambia as well as lower price realization in the domestic front. Please, can you clarify this? Yes. The energy sales, the drop is on two counts. One is there is a planned shutdown, semi-annual shutdown in our Maamba. That is one reason. It is a one-off, and it was planned. The second one is on account of lower demand in India on account of the prolonged monsoon and weather conditions. Sir, can you quantify the Zambian loss of revenue in the shutdown? In amount, money, in terms of money? We'll get back to you, Mr. Lodha. Okay, sir. Now, regarding same energy question, next question regarding to energy, this is continuing the first question. 60-megawatt Odisha power plant commence this IPP from 1 November 2025. How much sale we can, company can achieve on the sale of energy, the 60-megawatt power plant? It is thermal power plant, I think. Correct. It's a thermal power plant IPP. I think in terms of sales, in fact, recently we have secured a long-term PPA for a period of five years for the Odisha IPP. Basically, it's for the state of Tamil Nadu. The PPA commences from February of 2026 and is on until five years thereafter. Okay. How much revenue this power plant can generate, 60 megawatt, as per the terms of PPA? See, this PPA is 50 MW out of the 60 into two IPP in Odisha. We expect the operation to cover at about 50-plus MW on an annual basis. What is the rate? No, the rate is. What is the rate at which we are selling the power to the government? No. As per the long-term PPA, which I'd mentioned, the delivered rate is INR 5.95. Okay, sir. Now, second question is, sir, regarding the employee cost. In this quarter, there is a sharp jump in employee cost in quarter two. It is INR 111.6 crore, INR 111.6 against INR 65.77. Is there one-off in this employee cost, or company started recognizing the expenses of the employees in the Zambia Maamba Collieries Limited? It has two components. One is the salary increases and the revisions that have happened in second quarter, that is effective 1st of April. That is one. The second is we also do the fair valuation of the RSUs, which is done every quarter. These are significantly the two entities, the two components of the salary cost. Can we expect the similar expenses in the coming quarters? Mr. Lodha, I think you can come back in line. Let the others answer. Correct. Correct. The next question is from the line of C. K. Bharati. As a shareholder, please go ahead. Yeah. Hello, sir. Am I audible? Yes. Hello. Just what Mr. A. M. Lodha was asking, I would like to get the clarification about how this increase in salary wages has happened from INR 55 crore to INR 111 crore. Sorry, your voice is not very clear. Could you repeat that? Yeah. Just what Mr. A. M. Lodha was asking, previous speaker, regarding employees' benefit expenses, which has gone up from INR 650 million to INR 1,110 million. Please continue with your answers. Sir, it was already explained in the previous. No, no. It was not explained properly. It was not explained properly, I believe. You said there are two components. One is because of increment in the salary. Other is because of the revaluations of some fair value adjustment. Can you just quantify both these? How much is towards increment, and how much is towards reinstatement of fair valuations? Yeah. We will get back to you. When can I expect this answer? We will separately give it to you. That is Monday. Yeah. Another question is, just I wanted to know your dividend policy of Nava Global. I understand from the presentation that you have received $72.8 million from Maamba towards dividend. How much have you distributed from Nava Global to Nava India dividend so far out of the $72.8 million? The dividend policy for Nava Global that's adopted by the board is 30% of PAC would be distributed as dividend. As it stands right now, that's what we have followed. Therefore, Nava Global, after receiving the dividend from NEL, had declared $10 million to Nava. Can you just enlighten us what are the uses of cash with Nava Global, how they are going to deploy those? Sorry to interrupt. C. K. Bharati. Hello. Yeah? Can you please rejoin the queue to ensure that, management? Yes. Yes, please. A reminder to all participants, anyone who wishes to ask a question may press star and one on the touch-tone telephone. The next question is from the line of Abhinav Nalawade from ICICI Securities. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity. I understand the MEL-2 plant is going as per the planned commissioning. I just wanted to know what is the Capex that was done in Q2, and what is the Capex that is pending for this plant? In terms of. That total outlay is $400 million for phase two. Out of that, currently, $226 million has been spent. Understood. Thank you. The second question is on Nava Cordon Plantation. It is mentioned that the first foot yield and income is projected in second half FY 2026. What are the earnings that we can expect from this? Yeah. In terms of the phase two coming on stream, you're going to be during the later part of next year. Thank you. Thank you Thank you and all the best. Thank you. The next question is from the line of Shikhar Tiwari as an individual investor. Please go ahead. Hi. Am I audible? Yes, you're audible. Please go ahead. Please go ahead. My question is regarding that the company is now having a significant amount of cash flow on its balance sheet. Going forward, what is the policy of this management to utilize the cash flow? Are we going to invest in more businesses in Zambia, or are we going to look for opportunities throughout Africa or India and invest in those profitable opportunities? The second question is if there is any policy regarding the dividend distribution from this cash flow going forward. Yeah. In terms of our growth plan, I do not think we are specific to any geography. As and where we see good opportunities, we evaluate the risk versus return, and if it makes sense for us, we will expand. Today, as it stands, if you look at our current projects that we have in the pipeline, we have a total equity commitment of approximately about $200 million at three ends in the energy sector. Notwithstanding that, we have adopted a dividend policy at the Nava Global level that 30% of the PAC would be declared as dividend to its shareholders. Okay. Thank you. Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on the touch-tone telephone. The next question is from the line of C. K. Bharati as an individual shareholder. Please go ahead. Yeah. Hello, sir. The same question. What are the uses of Nava Global balance 70%? Out of that 70%, 30% you are going to distribute as dividend. What are the uses of that fund? You told that $200 million will be required for the expenses and balance. How are they going to use those funds? No. I explained this before, sir. I very clearly stated that as funds come into, say, I'm talking about the Nava Global level, 30% of them will be declared as a dividend based on the dividend policy. The remainder will be used for expansions and growth capital. Today, as we stand, we have approximately about $200 million of equity commitments. Apart from this, we're always looking at new opportunities too. That's the utilization of the funds. Okay, sir. Thank you very much. Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on the touch-tone telephone. The next question is from the line of Prabhakar from RTP Securities. Please go ahead. Good afternoon. Sir, I have two questions. One is, what is the status of the mining exploration? The second thing, last time you said that you have been appointed a consultant with regard to the Nacharam land, how it can be utilized? What is the outcome of that report? What are we going to plan with that land? Is there any proposal of giving the bonus out of the existing reserves to the shareholders? Okay. Sorry. In terms of your first question with regards to exploration, which exploration are you talking about? There's lithium, and there's also the manganese exploration in Cote d'Ivoire. Yeah. This government has been allotted the rest of land for us for the exploration of mining with, I think, other than Mumbai, Zambia. I think in both geographies, in Zambia as well as Cote d'Ivoire, the exploration works are underway, are still underway. I think once we have some concrete information out of that, we'll report it. How much time can I expect to? How much time? I can't put a number on it, but we expect to have some news by the end of next year. End of? No. I think, sir, one thing we need to understand is exploration activities, they could take a small amount of time or a very long amount of time. Unfortunately, we can't put our finger and say there are minerals in a certain area and so on. I don't think we can give you a timeline in terms of when we can show you results because these are very large pieces of land that we are exploring, and there's a very long-drawn process. As soon as we strike something positive that needs to be reported, we will definitely let the shareholders know in the first instance. Okay. What about this Nacharam outcome? Yeah. Nacharam, we're still exploring good options. I mean, as you probably know, the Hyderabad real estate values, especially in that region, are climbing, and they're increasing. We do see some interest. We're basically still evaluating options. Nothing's continued. Is there any proposal of giving a bonus to the shareholders out of the existing reserves on that? Sir, we just declared a dividend, our highest ever interim dividend. I think we've been very, very generous in terms of declaring dividends and interim dividends on a yearly basis. Every time we receive funds from MEL-2 dividends, a portion of that is always distributed back here to the shareholders. There's no proposal of only by way of a distribution or dividend only? Concern, there is no proposal to issue the bonus or shares? Currently, there's no proposal. Right now, we've just declared a dividend. Okay. Thank you, sir. Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on the touch-tone telephone. The next question is from the line of Shikhar Tiwari as an individual investor. Please go ahead. Thank you for the opportunity again. I just would like to understand how does the management see the company five years from now onwards? Will it be a diversified business which will invest in profitable enterprises, or do we see ourselves as an energy company or a mining company? What is the vision of the board? I think as a company, we have extremely strong roots in certain verticals, being the energy sector, the metal sector, the mining sector, and the agri sector. We definitely want to leverage on those expertise to expand the business. Today, already, we have a very good pipeline of future projects that are going to add to the revenues and bottom line in the next coming years. In addition to that, we're constantly exploring new opportunities in similar verticals, both as greenfield and M&A activity, which will definitely add to the pipeline of projects that we want to undertake. One thing to note is, given our assessment of projects that we get into, where we evaluate the risk versus reward, we're in a very good situation where we have very, very limited debt. Whenever a good opportunity arises, we can jump on that immediately. Okay. Thank you. Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on the touch-tone telephone. The next question is from the line of Wanjin from Nava Limited. Please go ahead. Yeah. So I'm able to see that your EBITDA margin has been dropped from 48% to 34%. I wanted to know, going forward, will we be able to recover the 48% margin, or 34% will be the new normal? Moreover, that 100-megawatt solar project that we have signed, I wonder what is the rate at which we have signed, and what is the revenue that we'll be getting two years down the line from that project? On the EBITDA part, it is mainly due to one is the forex has been impacting us. You are referring to YOY, Q1 last year, 48% to 34%. The forex has impacted adversely in this particular quarter, which definitely we feel it will reverse. Also, the second is in terms of the demand condition here in this particular quarter has also impacted. Definitely, these one-offs are there in this quarter, and somehow we should be able to bounce back to a level which is much higher than the current quarter. Can you give the light on the 100-megawatt solar project? Yeah. So the solar project, the tariff at the PPA or purchase agreement that we've signed with the utility is at $0.078 per kilowatt hour. What is the revenue that we'll be looking at two years down the line and margins, if you can give light on that as well? I mean, I think in terms of revenue, we'll talk. We don't want to start talking about margins and all on this call. In terms of the revenue, we'll give you the information at a later period. Okay. Okay. Good. Thank you. Thank you. The next question is from the line of Rada and from Big Energy Cities. Please go ahead. Hi, sir. Thank you for the opportunity. Sir, what I wanted to understand is from next quarter, we start seeing the avocado revenue coming in. With respect to that, you have four phases of plantation. In the second half of FY2026, is it fair to assume that only phase A, which is 100,000 trees, will contribute this year in terms of revenue? However, on the expense side, initially, the employee and other expenses might look higher? In terms of the avocados, we did have a very small but initial first crop production this year itself. Next year, end of next year, will be slightly larger, which will slowly scale up. I think we're looking at probably full production at FY2028. It will slowly increase kind of in a phased manner like in all agriculture. The one lakh trees of the crop yield will not be sold in the second half. That is not the right assumption, but it would be lower since it is the initial phases currently. No, it'll be done in phases. When you plant 100,000 trees, they don't all fruit at the same time. This is agriculture, so it'll take a little while. If you're looking at full production and in terms of full revenue, you're looking at 2028, basically. Okay. Sir, is this going to be B2B sales? Have you identified those customers already? What kind of margin potential does this business have? Is it fair to assume that this business can do 50%+ EBITDA margins at optimal utilization? No. See, I'm not going to talk about margins and so on on this call, but in terms of the sale, we currently are evaluating. We have distributors that essentially take your entire crop, and then they deal with the marketing and the sales. That is one option we're looking at. We are also open to kind of looking at the combination where we do have some direct sales, and we have distributors. That is something we are currently evaluating, and we will decide before the end of next year when we have a larger production. Will the employee and other expenses go up in next quarter as well? There were some one-offs, as I mentioned, in terms of valuation and all that. We do not expect the employee cost to go up beyond this level. Okay. Thanks so much. Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on the touch-tone telephone. The next question is from the line of A M Lodha from Sanmati Consultants. Please go ahead. Was dropped. Actually, I was on the line, but I was now reconnected now. Sir, just I wanted to know what the $55 million payment from JESCO is still outstanding. When can we expect to get this, sir? We should expect. We are not going to commit on anything, but we hope to receive it before the end of this financial year. This is the end of this financial year? That is March 2026? Yes. Sir. Sir. Another second question, sir, is bank borrowing has been gone from INR 823 crore to INR 1,569 crore in the consolidated balance sheet. Whereas we have got cash and cash equivalent and bank to INR 1,800 crore. This INR 1,800 crore, still we have borrowed the money. Could we utilize this INR 1,800 crore in the project, sir? Yeah. The borrowings are mainly towards the Maamba phase two. We are borrowing in a phased manner in line with the development of the project. A big part of that is still in our cash and cash balance, which will be used subsequently to fund that project. That is one reason. The other is, as we mentioned, we are realizing the areas from JESCO, which is also contributing to the increase in cash balance quarter on quarter. Another question, sir. Second, the investment has gone from INR 597 crore to INR 226 crore in the quarter in the consolidation. This investment is related to mutual funds, bonds, or it is intercompany investment? No, it is investment in current investments, which is effectively bonds and other investments which are maturity of more than one year, which are classified as investments. These are not investments in any other company. Okay. Thank you very much. Thank you. The next question is from the line of Shree Gopal Kankani from SGA Kankani and Associates. Please go ahead. Good afternoon, sir. I just wanted to know the status of implementation of 300 megawatt power expansion in Zambia. Is it as per schedule? Yes. The progress is going well. We expect to have both the units commissioned by the later part of next year. Better part, I think earlier it was planned in August 2026. Yes. That is after the schedule. I mean, I don't want to commit on an exact date or a month right now because this is a very, very aggressive time schedule that we've agreed. Generally, these plants take about three to four years to build. We are trying to do it in two years. We are doing our best. Things are going fine, and we're still looking at the later part of next year. Okay, sir. Second thing, in the last phone call, you had said that there is a planned maintenance shutdown of Zambia plant for two months. Whether that shutdown has taken place in this quarter or it is going to come in next quarter? It has already happened in this particular quarter. In this quarter. From October onwards, there is no such maintenance shutdown in Zambia plant? No. Not for this year. Okay. Thank you, sir. Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on the touch-tone telephone. The next question is from the line of Bhagwandas Gandhi from CMS. Please go ahead. Yeah. Good afternoon, sir. Thank you very much for giving the opportunity. Just I want to know that any project you are taking land, acquiring land from government in Andhra Pradesh for any project? No. We currently have no plans. Yes. That's it. Thank you very much, sir. That's the only query. Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on the touch-tone telephone. The next question is from the line of A. M. Lodha from Sanmati Consultants. Please go ahead. Sir, last question. Any plan for monetization of this Hyderabad land, sir? No. We just explained it, Mr. Lodha. Basically, we are looking at opportunities. The price is going up in that region, and we are considering various opportunities. When there is anything material, we will let the wider group know. Okay. A reminder to all participants, anyone who wishes to ask a question may press star and one on the touch-tone telephone. Last two questions, please. As there are no further questions, I would now like to hand the conference over to management for closing comments. Over to you, sir. Thank you. I trust we answered all your queries. If there are any further queries, please reach out to our investor team. I know there's been one or two questions that we need to respond, which we will do on Monday. We would like to thank our shareholders and partners for their continued confidence as we stay focused on building a stronger, sustainable Nava. Thank you, everyone. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.