NMDC Shares Surge on Q1 FY26 Revenue Growth Despite PAT Dip

NMDC shares rose 2.5% to Rs 72.66 after a 23% YoY revenue growth to Rs 6,634 crore in Q1 FY26. Iron ore production increased 31% to 119.94 lakh tonnes, while sales grew 14% to 115.17 lakh tonnes. Profit after tax dipped 1% to Rs 1,969 crore, while EBITDA stood at Rs 2,777 crore, up 2% from a year ago. The company has significant investments in subsidiaries, joint ventures, and associate companies totaling Rs 1,302.68 crore.

NMDC Ltd, India's largest iron ore miner, saw a significant boost in its share price following the release of its first-quarter (Q1) financial results for fiscal year 2026 (FY26). The company's shares rose by 2.5% to Rs 72.66 on the BSE, driven by robust revenue growth and improved operational performance.

Revenue Growth and Production Numbers

NMDC reported a 23% year-on-year (YoY) increase in revenue, reaching Rs 6,634 crore in Q1 FY26 compared to Rs 5,378 crore in the same period last year [3]. This growth was primarily driven by a 31% increase in iron ore production to 119.94 lakh tonnes (LT) and a 14% increase in sales to 115.17 LT [3].

Profitability and Expenses

While the company's revenue surged, profit after tax (PAT) dipped slightly by 1% to Rs 1,969 crore compared to Rs 1,984 crore in Q1 FY25 [3]. This decrease can be attributed to increased expenses, with operational expenses rising by 45% to Rs 1,644 crore in Q1 FY26 [2]. Despite the dip in PAT, EBITDA stood at Rs 2,777 crore, up 2% from Rs 2,725 crore a year earlier, with margins improving slightly to 42% [3].

Investments and Subsidiaries

NMDC holds substantial investments in various subsidiaries and joint ventures, both domestically and internationally. The total value of these investments amounts to Rs 1,302.68 crore [3]. Domestically, the company holds stakes in Jammu & Kashmir Mineral Development Corporation (JKMDC), VSL, NCL, and BRPL, while internationally, it has stakes in ICVL and Australia-based Legacy Iron Ore [3].

Outlook

The Q1 FY26 results highlight NMDC's focus on scaling production capacity and meeting the increasing demand for iron ore domestically. The company aims to sustain growth momentum and play a pivotal role in India's ambitious steel production targets, underpinning national infrastructure and industrial development.

References

[1] https://www.cnbctv18.com/market/stocks/nmdc-share-price-q1fy26-results-net-profit-revenue-ebitda-margins-beats-the-street-19652847.htm
[2] https://www.newsip.in/nmdcs-financial-evolution-in-q1-fy26
[3] https://m.economictimes.com/markets/stocks/news/nmdc-shares-jump-2-after-23-yoy-revenue-growth-despite-marginal-pat-dip/articleshow/123274158.cms