State-run NMDC has created history by crossing the record milestone of producing and selling over 50 million tonnes of iron ore in financial year 2025-26, becoming the first mining company in India to reach this landmark. The Navratna Central Public Sector Enterprise under the Ministry of Steel achieved this milestone days before the end of FY 2025-26, giving the state-run miner a stronger role in India's steel supply chain at a time when domestic demand for steel continues to expand. The achievement reflects NMDC's long-term expansion of India's iron ore base and positions the company as a critical player in the country's steel manufacturing value chain.
State-run NMDC has implemented its fourth price cut this financial year, reducing iron ore prices effective July 10, 2026. According to Business Standard, the company has cut Baila Lump by ₹250 per tonne and Baila Fines by ₹150 per tonne. However, Morgan Stanley reports that the effective price reduction, including taxes and charges, works out to ₹310 per tonne for lumps and ₹190 per tonne for fines. The revised pricing structure includes Baila Lump (65.5%, 10–40 mm) at ₹5,450 per tonne and Baila Fines (64%, -10 mm) at ₹4,700 per tonne. This follows an earlier revision on June 3, 2026, when the company had set lump ore at ₹5,700 per tonne and fines at ₹4,850 per tonne. The company had previously raised iron ore lump and fines prices by up to 11.1% effective April 5, 2026, followed by a further increase of ₹200 per tonne effective May 6, 2026. The current pricing reflects a strategic calibration in response to changing market conditions and domestic demand patterns.
According to Business Standard, NMDC shares declined 1.78% to ₹83.37 following the announcement of the price cuts. The brokerage noted that the price cut was largely in line with market expectations, pointing to continued weakness in global iron ore markets. Benchmark iron ore prices for 61% Fe grade have fallen around 7% since the end of May to about $98 per tonne, as higher supply has coincided with softer demand from China. The brokerage emphasized that seaborne iron ore prices have softened as increased supply has coincided with weaker demand from China, putting pressure on benchmark prices. The arrival of the monsoon season, which typically impacts mining activity and steel demand, is also likely to have influenced the company's pricing decision.
Earlier this month, NMDC reported record iron ore production for the quarter ended June, highlighting strong operational performance despite fluctuations in commodity prices. As reported by CNBC TV18, NMDC demonstrated strong production growth in June 2026, with iron ore production rising 44.26% year-on-year to 5.15 million tonnes compared to 3.57 million tonnes in June 2025. The company's sales also increased 11.17% to 3.98 million tonnes during the same period. However, on a sequential basis, production declined 3% from 5.31 million tonnes in May, while sales slipped 1.5% from 4.04 million tonnes. The company's Chhattisgarh operations remained its largest production hub, with output rising to 3.58 million tonnes from 2.28 million tonnes year-on-year, while sales increased to 2.79 million tonnes.
Despite the recent price cuts, NMDC reported robust financial performance in Q4 FY26. According to Business Standard, the company reported a 35.03% jump in standalone net profit to ₹2,020.13 crore on a 60.69% jump in revenue from operations to ₹11,173.14 crore in Q4 FY26 over Q4 FY25. The company is engaged in exploration and production of iron ore along with diamond production and the sale of sponge iron and wind power generation. NMDC has set ambitious capacity expansion plans with a target of 100 mtpa capacity by FY31 and a long-term target of 10%-15% of revenue from non-iron ore segments like coal, gold, magnetite, and lithium mining prospects in Australia. The company plans to accelerate capacity expansion to meet rising domestic demand, driven by the government's continued focus on infrastructure development and higher steel consumption.
