NMDC shares rose 0.10% to ₹95.44 on the BSE following the company's announcement of price increases for iron ore products. The state-run miner has raised the price of Baila lump ore by ₹200 per tonne to ₹5,700 per tonne, while iron ore fines have been increased by ₹150 per tonne to ₹4,850 per tonne. These prices are effective from June 3, 2026, as per the latest company announcement. The move comes as a surprise to the market, particularly as it precedes the monsoon season, a period that typically impacts mining activity and demand dynamics. The pricing action is also noteworthy given the recent softness in international iron ore prices, suggesting that domestic demand conditions remain resilient enough to support higher realizations despite weakness in global benchmarks.
NMDC shares surged 0.10% to ₹95.44 on the BSE after reporting robust financial performance in Q4 FY26. The Navratna public sector company delivered exceptional results with standalone net profit jumping 35.03% to ₹2,020.13 crore compared to the previous year, while revenue from operations surged 60.69% to ₹11,173.14 crore in Q4 FY26 over Q4 FY25. The strong performance reflects the company's operational efficiency and market positioning in the iron ore sector. The company's diversified business model, which includes exploration and production of iron ore, diamond production, sale of sponge iron, and generation and sale of wind power, continues to support its financial growth trajectory.
Chhattisgarh division led the growth with production increasing to 3.99 MT from 3.06 MT in the previous year, while sales in the state rose to 3.34 MT compared to 3 MT recorded in May 2025. However, the Karnataka division reported a 3.65% YoY decline in production to 1.32 MT, with sales falling 47.76% YoY to 0.70 MT. Despite the production increase, iron ore sales declined 6.91% YoY to 4.04 MT in May 2026, compared with 4.34 MT in May 2025. On a cumulative basis for April and May, production rose 18.15% YoY to 9.96 MT while sales fell 2.77% YoY to 7.72 MT.
NMDC Steel shares surged 18% to ₹52.62, hitting a fresh 52-week high after reporting a historic first-ever net profit since listing. The company posted a consolidated net profit of ₹391.9 crore in Q4FY26 against a net loss of ₹473.4 crore in the corresponding quarter last year. Revenue from operations during the quarter rose 36.7% year-on-year to ₹3,879 crore from ₹2,838 crore, while total income increased to ₹3,905 crore. At the operating level, profit before tax stood at ₹486.1 crore compared to a loss of ₹664.3 crore in Q4FY25, reflecting a significant improvement in profitability.
Motilal Oswal Financial Services retained its 'Buy' rating on NMDC, with a target price of ₹106, implying an upside of over 15% from the current market price. The brokerage noted that NMDC reported strong earnings during the quarter, supported by healthy volumes. Management has guided for production volume to increase to 60 MT in FY27, fueled by an increasing environmental clearance limit and a new mine under a joint venture. Motilal Oswal expects volumes and prices to remain elevated, in line with strong demand from steel makers, while the company has planned a strong capex pipeline over various evacuation and capacity enhancement projects aimed at improving the product mix and increasing production capacity to 100 MT by FY30.
The company is expected to venture into business diversification through coking and non-coking coal mines, critical minerals, and rare earth elements, which will serve as the catalyst for incremental revenue and EBITDA in the long term. For FY27, the company has set capex guidance at approximately ₹60 billion, while annual capex could rise to ₹70-100 billion over the next few years. The company has achieved a dramatic shift from an operational cash-drainer into a self-sustaining corporate entity through strategic financial restructuring, including the total liquidation of Non-Convertible Debentures worth ₹523.80 crore. Additionally, NMDC's board recommended a final dividend of ₹1 per equity share for FY26, subject to shareholder approval at the upcoming Annual General Meeting.
