NMDC shares jump 2% after 23% YoY revenue growth, despite marginal PAT dip

Synopsis

NMDC shares experienced a rise of 2.5% following the announcement of robust first-quarter results for fiscal year 2026. Revenue saw a significant increase, driven by higher iron ore production and sales. While profit dipped slightly, operational performance was strong. The company holds substantial investments in various subsidiaries and joint ventures, both domestically and internationally.

NMDC shares rose 2.5% to Rs 72.66 on the BSE on Wednesday after the state-owned miner posted a strong performance for the first quarter of FY26, driven by robust revenue growth. The company’s revenue from operations jumped 23% year-on-year (YoY) to Rs 6,634 crore in Q1 FY26 from Rs 5,378 crore in the same period last year, supported by higher iron ore production and sales.

However, profit after tax saw a marginal dip of 1% to Rs 1,969 crore compared to Rs 1,984 crore in Q1 FY25, reflecting increased expenses despite the higher topline.

EBITDA, meanwhile, stood at Rs 2,777 crore, up 2% from Rs 2,725 crore a year earlier, with margins improving slightly to 42%. Total income for the quarter came in at Rs 6,932 crore, marking a 21% increase from Rs 5,743 crore in the year-ago period.

Operationally, NMDC’s iron ore production rose 31% to 119.94 lakh tonnes (LT) in Q1 FY26 from 91.89 LT last year. Iron ore sales also registered a healthy growth of 14% to 115.17 LT compared to 100.73 LT in Q1 FY25, underscoring strong demand and efficient production ramp-up.

NMDC has significant investments in subsidiaries, joint ventures, and associate companies, amounting to a total of Rs 1,302.68 crore.

Domestically, the company holds a 95.86% stake in Jammu & Kashmir Mineral Development Corporation (JKMDC) and a 100% stake in both VSL, with an investment of Rs 0.10 crore, and NMDC CSR Foundation (NCF) at Rs 2 crore. It also owns majority stakes in NCL (51%) and BRPL (52%), with investments of Rs 285.69 crore and Rs 152.67 crore, respectively. Additionally, NMDC has a 6.40% stake in Krishnapatnam Railway Company Ltd, valued at Rs 40 crore.

Internationally, NMDC holds a 25.94% stake in ICVL, worth Rs 378.86 crore, and a 92.84% stake in Australia-based Legacy Iron Ore, valued at Rs 443.34 crore.

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