NMDC Ltd. reported a 2% year-on-year increase in consolidated net profit to ₹2,007 crore for the quarter ended June 2026, compared with ₹1,969 crore in the corresponding quarter last year. The state-owned iron ore producer's performance beat the CNBC-TV18 poll estimate of ₹1,989 crore, demonstrating better-than-expected results. Consolidated revenue from operations increased 2% to ₹6,795 crore from ₹6,634 crore in Q1 FY26, though it fell short of the CNBC-TV18 poll estimate of ₹7,237 crore. Other income increased to ₹347 crore from ₹300 crore a year earlier, taking total income to ₹7,143 crore, compared with ₹7,039 crore in Q1 FY26. Total income during April-June increased to ₹7,142.54 crore, up 1.5% from ₹7,038.97 crore in the first quarter of FY26.
Iron ore production surged 26% year-on-year to 151.17 lakh tonnes in the April-June quarter, significantly outpacing sales growth. Iron ore sales volume increased 2% to 117.30 lakh tonnes from 115.17 lakh tonnes in the year-ago period, while ore transferred for pellet job work rose 46% to 8.19 lakh tonnes from 5.60 lakh tonnes. The company generated iron ore sales revenue of ₹6,508 crore during the quarter, demonstrating strong operational performance in its core business. Average domestic realisation increased 4% to ₹5,548 per tonne from ₹5,353 per tonne in Q1 FY26, indicating improved pricing power despite volume challenges. Revenue from iron ore sales stood at ₹6,802.12 crore, around 10% higher than ₹6,199.15 crore recorded in April-June FY26.
NMDC's EBITDA stood at ₹2,817 crore with a margin of 41%, compared with ₹2,777 crore and 42% margin in Q1 FY26. The EBITDA figure was slightly below the CNBC-TV18 poll estimate of ₹2,499 crore, though the margin performance was above the poll estimate of 34.5%. Profit before tax increased 2% to ₹2,692 crore from ₹2,644 crore in the year-ago quarter. Total expenses increased 4% to ₹4,450 crore from ₹4,288 crore in the year-ago quarter. The margin pressure was primarily attributed to royalty and other levies rising 31% to ₹1,644 crore from ₹1,255 crore in Q1 FY26, representing an increase of around 30%. The rise in royalty costs, along with higher raw material and employee expenses, kept operating profitability under pressure despite the modest increase in revenue.
NMDC Steel reported a sequentially weaker quarter, with revenue declining around 6% quarter-on-quarter to ₹3,660 crore and EBITDA falling around 50% to ₹390 crore. The subsidiary's profit after tax remained positive at ₹50.5 crore but declined from ₹390 crore in the previous quarter, reflecting seasonal weakness and a higher cost base. Borrowings at NMDC Steel increased to around ₹5,050 crore from ₹4,600 crore in the fourth quarter of FY26. As of June 30, 2026, trade receivables from Rashtriya Ispat Nigam Ltd (RINL) stood at ₹4,712.47 crore, mainly towards supplies of iron ore and pellets.
NMDC CMD Amitava Mukherjee stated that the company has begun FY27 on a strong footing, with higher production and improved profitability reflecting the resilience of operations and strategy discipline. The company is working towards its target of producing 60 million tonnes in the current financial year and scaling up production to 100 million tonnes by 2030. On the proposed 3 MTPA steel project in Karnataka through its arm, NMDC paid an advance of ₹639.61 crore to the Karnataka Industrial Area Development Board towards the cost of 2,857.54 acres of land allotted to its wholly-owned subsidiary Karnataka Vijayanagar Steel Ltd (KVSL). The land has been allotted for setting up a 3 MTPA integrated steel plant and is currently in KVSL's possession, though the lease agreement is yet to be executed. JM Financial said NMDC's June quarter results were in line with its estimates, with consolidated EBITDA at ₹2,460 crore and EBITDA per tonne at ₹2,100, though marginally lower by ₹45 per tonne year-on-year as lower raw material costs were offset by higher royalty and staff costs. The brokerage maintained a 'Reduce' rating on the stock.
NMDC shares settled more than 1% higher on Monday, closing at ₹85.44 per share on the NSE, up 1.23% following the earnings announcement. The PSU's stock performance has shown recovery momentum after initial market concerns. JM Financial noted that NMDC's June quarter results were in line with its estimates, with the brokerage maintaining a 'Reduce' rating on the stock while acknowledging the company's strong operational performance. Volume growth and execution of capital expenditure remain key factors to monitor, with NMDC targeting 60 million tonnes of production in FY27 and 100 million tonnes by 2030. NMDC touched a 52-week high of ₹97.49 on June 3, 2026, on the NSE, while its 52-week low stands at ₹68.19, recorded on August 29, 2025.
