Shares of NMDC Steel surged nearly 15% in Monday's morning trade after the company reported a sharp turnaround in profitability for the March quarter and the full financial year FY26. The stock rose 14.88% to ₹51.27 on the NSE at 10:17 am on June 1 as investors cheered the results that showed the transition from losses to profitability. As per multiple reports, the positive market response reflects strong investor confidence in the company's diversification strategy and operational improvements.
For the quarter ended March 31, 2026, NMDC Steel reported a net profit of ₹391.91 crore, compared with a net loss of ₹473.39 crore in the corresponding period last year. Revenue from operations increased 36.67% year-on-year to ₹3,879 crore from ₹2,838.25 crore. The company also returned to profitability on a sequential basis, moving from a net loss of ₹243.97 crore in Q3 FY26. Profit before tax stood at ₹486.10 crore during the quarter against a loss before tax of ₹664.31 crore a year earlier, reflecting a significant improvement in operating performance. The company's integrated steel plant (NSL) has achieved EBITDA breakeven and is now scaling profitable production, removing a significant financial drag from NMDC's balance sheet.
For the full year FY26, the company posted a net profit of ₹58.72 crore, reversing a net loss of ₹2,373.78 crore reported in FY25. Revenue from operations surged 60.43% to ₹13,641.81 crore from ₹8,503.05 crore in the previous financial year. At the operating level, total income for the March quarter rose to ₹3,905.1 crore from ₹2,857.5 crore a year ago, while total expenses declined to ₹3,419 crore from ₹3,521.8 crore, supporting the return to profitability. The consolidated financial health improvement is particularly significant as NMDC Steel moves from being a drag to a profit contributor. Net cash generated from operating activities stood at ₹1,795.50 crore in FY26 compared with ₹1,965.98 crore in FY25, demonstrating strong cash generation capabilities.
On the cost front, NMDC Steel demonstrated strong cost management with total expenditure declining 2.92% year-on-year to ₹3,419.04 crore. Raw material costs rose 23.20% to ₹2,297.62 crore, while employee expenses increased 50.28% to ₹40.71 crore. Finance costs fell significantly by 44.10% to ₹96.42 crore, and depreciation and amortisation expenses rose 13.09% to ₹249.37 crore. This efficient cost management contributed to the company's improved profitability and operational performance.
The company is diversifying into coal production with an ambitious Q2 FY27 target of 0.75 to 1 million tons from its captive mines, marking a major strategic shift. NMDC expects a capital expenditure of ₹6,000 crore (₹60 billion) for FY27 to expand its mining and infrastructure capabilities, representing a significant acceleration from historical averages. This diversification into coal reduces reliance on volatile iron ore prices and provides a cost-shield for integrated steel operations. The company achieved a record 53 MT iron ore output for FY26 and maintains its 100 MT production target by 2030, aligning with the National Steel Policy's goals. For FY26, the company paid a total dividend of ₹3.5 per share, with the board recommending a final dividend of ₹1 per share on May 29, 2026.
