NMDC Steel (NSL) rose 1.29% to ₹40.08 following the announcement that Crisil Ratings has upgraded its rating on the company's long-term bank facilities to 'Crisil A/Stable' from 'Crisil BBB+/Stable'. According to reports from Business Standard, the upgrade reflects an improvement in NSL's business risk profile and financial risk profile, driven by stabilisation and ramp-up of its 3.0 million tonne per annum (MTPA) integrated steel plant at Nagarnar (Chhattisgarh).
The company's operating performance has shown significant improvement during fiscal 2026, supported by capacity utilisation rising to 80% from 50% in fiscal 2025. As reported by Business Standard, this improvement reflects successful stabilisation of operations and resolution of initial bottlenecks. The enhanced capacity utilisation, combined with better operating efficiency and healthy domestic steel demand, has led to 60% growth in operating income in fiscal 2026. The operating profit before depreciation, interest and tax (OPBDIT) stood at around 11% in fiscal 2026, compared to operating losses in the previous two fiscals.
The company maintains a strong financial position with cash and equivalents of nearly ₹800 crore as on 31 March 2026. According to Business Standard, the adjusted interest coverage ratio improved to around 3.1 times during fiscal 2026, compared to negative during fiscal 2025, and is expected to reach 34 times in the medium term. The company's average fund-based bank limit utilisation stood at approximately 75% during the 12 months ending 30 April 2026.
In Q1 FY27, NMDC Steel reported net profit of ₹50.51 crore, representing a 97.61% increase compared to the same period in the previous year. As reported by Business Standard, revenue increased by 8.81% to ₹3,661.84 crore in Q1 FY27 compared to Q1 FY26. The company's net profit growth was supported by higher capacity utilisation and improved operational efficiency.
The rating continues to factor in support NSL receives as a Government of India entity through NMDC, with the Ministry of Steel mandating NMDC to provide necessary support until divestment. According to Business Standard, the operating performance is expected to remain healthy over the medium term, supported by continued focus on improvement in operating efficiencies and product mix, as well as healthy plant utilisation levels amid steady domestic steel demand growth.
