NMDC Ltd (NMDC)
🎯 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.
📖 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)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 6,739 | 6,378 | 7,611 | 11,343 | 6,795 |
| Operating Profit | 2,370 | 1,883 | 2,037 | 2,492 | 2,365 |
| OPM % | 35.2% | 29.5% | 26.8% | 22.0% | 34.8% |
| Net Profit | 1,967 | 1,683 | 1,747 | 2,018 | 2,006 |
| 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)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 293 | 879 | 879 | 879 |
| Reserves | 28,076 | 28,817 | 31,578 | 33,183 |
| Borrowings | 4,158 | 3,770 | 3,640 | 6,407 |
| Total Liabilities | 39,920 | 41,007 | 42,477 | 48,320 |
| Fixed Assets | 4,191 | 5,038 | 4,236 | 4,902 |
| Investments | 964 | 978 | 1,203 | 1,372 |
| Total Assets | 39,920 | 41,007 | 42,477 | 48,320 |
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)
| Item | Mar 2025 |
|---|---|
| Operating | +1,894 |
| Investing | +306 |
| Financing | -2,225 |
| Net Cash Flow | -25 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 60.8% | 60.8% | 60.8% | 60.8% |
| FII | 13.0% | 13.5% | 13.6% | 13.6% |
| DII | 14.4% | 14.1% | 13.8% | 13.8% |
| Public | 10.0% | 10.0% | 10.1% | 10.0% |
| # Shareholders | 11,20,444 | 11,15,697 | 11,30,914 | 11,29,202 |
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
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🟡 Board Meeting 27 August 2026NMDC announced the cessation of Shri Ashish Chatterjee as Government Director effective 24 August 2026, following Ministry of Steel's Office Memorandu...
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🔴 Corporate Action 24 August 2026NMDC Limited announced the record date of October 5, 2026 for its final dividend of ₹1 per share, to be paid after approval at the AGM scheduled for S...
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🔴 annual report 24 August 2026NMDC announced its 68th Annual General Meeting will be held on 28 September 2026 at 11:30 A.M. IST via video conference, with a record date of 5 Octob...
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🔴 Financial Results 14 August 2026NMDC reported record Q1 FY27 iron ore production at 151.17 LT, up 26% YoY, and revenue of ₹2,817 crores, up 2% YoY. The company achieved its best-ever...
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Announcement 8 August 2026NMDC Limited announced revised iron ore prices effective 08.08.2026, setting lump ore at ₹5,250 per ton and fines at ₹4,500 per ton, exclusive of vari...
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Announcement 1 August 2026NMDC Limited reported provisional July 2026 iron ore production of 4.06 million tonnes and sales of 3.09 million tonnes, up from 3.40 million tonnes p...
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🟡 Board Meeting 31 July 2026No summary available
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🟡 Board Meeting 30 July 2026NMDC announced the resignation of Company Secretary Pravin Shekhar effective 30 July 2026 due to organizational changes, and appointed Aniket Kulshres...
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🟡 Board Meeting 18 July 2026NMDC announced the appointment of Shri Vivek Nishant Nath as Director (Commercial) effective 15 July 2026 for five years, following Ministry of Steel ...
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Announcement 15 July 2026NMDC Limited announced the Ministry of Steel's appointment of Shri Vivek Nishant Nath as Director (Commercial) for five years, effective from his char...
🧠 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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