NMDC Ltd (NMDC)

Metals & Mining · Mining & Mineral products · NSE · Updated 1 September 2026
By StockFin Research Team AI-Assisted Analysis Source: BSE/NSE Filings
₹86.5 ↑ 25.75% (1Y)

🎯 Key Takeaways

  • NMDC Ltd is in a phase of sustained operational expansion with stable profitability and strong government-backed demand in India's steel sector. The company is leveraging record iron ore production and pricing resilience to drive consistent earnings growth, supported by its dominant position in domestic mining and vertical integration.
  • Revenue declined 40.1% QoQ to ₹6,795 in Q1FY27.
  • ⚠️ Overreliance on domestic steel demand makes NMDC vulnerable to cyclical downturns in India's construction and infrastructure sectors.
Market Cap
₹76,049
P/E Ratio
10.2
P/B Ratio
2.56
ROE
25.1%
ROCE
30.8%
Debt/Equity
0.13
Div Yield
4.05%
Promoter
60.8%

📖 The Story

NMDC Ltd is in a phase of sustained operational expansion with stable profitability and strong government-backed demand in India's steel sector. The company is leveraging record iron ore production and pricing resilience to drive consistent earnings growth, supported by its dominant position in domestic mining and vertical integration. Its financial health remains robust, with high ROCE and low leverage, positioning it as a key infrastructure player in national industrial development.

📰 What's Happening

In Q1 FY27 (August 14, 2026 filing), NMDC reported record iron ore production of 151.17 LT, up 26% YoY, and revenue of ₹2,817 crores, up 2% YoY, with PAT at ₹2,692 crores. The company achieved its best-ever quarterly production and sales volumes, driven by higher domestic realization of ₹2,007 per tonne, up 4%. This operational momentum was highlighted in the August 14, 2026 financial results filing as the foundation of near-term earnings stability. Additionally, on August 27, 2026, the government appointed a new Government Director, replacing Ashish Chatterjee, though this change is administrative and does not impact operations. The board also announced a final dividend of ₹1 per share with a record date of October 5, 2026, pending AGM approval on September 28, 2026.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

MetricJun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Revenue6,7396,3787,61111,3436,795
Operating Profit2,3701,8832,0372,4922,365
OPM %35.2%29.5%26.8%22.0%34.8%
Net Profit1,9671,6831,7472,0182,006
EPS₹2.24₹1.93₹2.00₹2.31₹2.25

NMDC's quarterly revenue has shown volatility but remains anchored in strong top-line performance, with ₹11,343 crores in Mar 2026 followed by a dip to ₹6,795 crores in Jun 2026, likely due to seasonal or inventory factors. However, operating performance remains resilient, with OPM holding at 34.8% in Jun 2026 and PAT growing steadily from ₹1,683 crores in Sep 2025 to ₹2,006 crores in Jun 2026. Despite margin pressure in Mar 2026 (OPM 22%), the company maintained profitability through volume growth and pricing stability, as noted in the investor takeaways from the August 14 filing. The consistent rise in domestic realization and record production volumes suggest that earnings are scaling with demand, even amid macro fluctuations.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance on production or pricing in the available filings, but the investor takeaways from the August 14, 2026 results explicitly cite 'strong operational performance underpins near-term earnings stability' and highlight 'sustained demand and pricing stability' as key drivers. The emphasis on record production and improved domestic realization indicates expectations of continued volume growth and margin resilience in the near term, particularly with ongoing infrastructure push and domestic steel demand. No guidance on future margins or capex was disclosed in the cited filings.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

ItemMar 2025Mar 2025Mar 2026Mar 2026
Equity Capital293879879879
Reserves28,07628,81731,57833,183
Borrowings4,1583,7703,6406,407
Total Liabilities39,92041,00742,47748,320
Fixed Assets4,1915,0384,2364,902
Investments9649781,2031,372
Total Assets39,92041,00742,47748,320

The balance sheet shows a steady increase in total assets from ₹41,007 crores in Mar 2025 to ₹48,320 crores in Mar 2026, driven by growth in reserves and assets, while borrowings remain low and stable at ₹6,407 crores. Equity and reserves have expanded, reflecting retained earnings and capital accumulation without significant debt escalation. This suggests a conservative capital structure and prudent leverage management, with no aggressive reinvestment or deleveraging signals. The company appears to be financing growth internally, consistent with its role as a public infrastructure asset.

💰 Cash Flow Statement (₹ Cr)

ItemMar 2025
Operating+1,894
Investing+306
Financing-2,225
Net Cash Flow-25

👥 Shareholding Pattern

CategoryQ2FY26Q3FY26Q4FY26Q1FY27
Promoters60.8%60.8%60.8%60.8%
FII13.0%13.5%13.6%13.6%
DII14.4%14.1%13.8%13.8%
Public10.0%10.0%10.1%10.0%
# Shareholders11,20,44411,15,69711,30,91411,29,202

Promoter holding remains stable at 60.79% across all recent quarters, indicating continued government control and long-term commitment. FII and DII holdings have shown modest growth and stability, with FII increasing from 13.04% in Q2FY26 to 13.59% in Q1FY27, and DII rising from 13.47% to 13.81% over the same period. Public shareholding has slightly increased, suggesting growing institutional interest. No significant selling or pledging activity is evident, and the shareholder base remains stable with over 11 million accounts.

⚖️ Peer Comparison — Mining & Mineral products

Company MCap (₹ Cr) P/E ROCE ROE D/E
COALINDIA 2.48 L Cr 7.9 40.0% 31.5% 0.09
LLOYDSME 1.01 L Cr 20.3 22.3% 35.5% 1.47
NMDC 76,049 10.2 30.8% 25.1% 0.13
KIOCL 23,164 586.4 2.9% 2.3% 0.00
GMDCLTD 17,880 18.7 19.6% 14.9% 0.02
BHARATCOAL 15,736 -0.3% -2.0% 0.35
SANDUMA 9,834 13.7 25.5% 22.1% 0.31
ASHAPURMIN 5,402 13.3 23.3% 33.1% 0.93
526570 5,293 -4.1% -12.7% 1.19
MOIL 5,047 79.5 3.7% 2.7% 0.00

🔗 Peer Stock Analyses

⚠️ Risk Factors

1. Overreliance on domestic steel demand makes NMDC vulnerable to cyclical downturns in India's construction and infrastructure sectors. 2. Government discretion in mining allocations and royalty structures poses regulatory risk, as seen in periodic policy shifts. 3. Margin compression could emerge if domestic realization declines or input costs rise, despite current pricing stability. 4. Environmental and sustainability pressures may lead to stricter mining regulations, potentially affecting expansion capabilities.

📋 Recent Filings

🧠 Analyst's Read

NMDC is positioned as a structurally sound, government-backed mining entity with strong operational momentum and improving profitability, but its near-term outlook is tied to domestic steel demand and policy continuity. Investors should monitor quarterly production trends, domestic realization, and any shifts in government mining policy or royalty structures as key catalysts.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-01.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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