New Delhi: NMDC Limited, India’s largest iron ore mining company, reported a steady financial performance for the first quarter of FY 2026-27, with standalone profit after tax (PAT) rising 2% year-on-year to ₹2,007.27 crore. Revenue from operations increased 2.4% to ₹6,795.25 crore from ₹6,634.16 crore in Q1 FY26.
The company’s financial results were approved by the Board of Directors at its meeting held on August 14, 2026. While operational performance remained stable, the financial statements highlighted contingent liabilities and significant outstanding receivables that investors may track.
NMDC Q1 FY27 Financial Performance
NMDC Limited reported a standalone profit after tax (PAT) of ₹2,007.27 crore for Q1 FY2026-27, up 2% from ₹1,968.62 crore in the corresponding quarter last year.
Revenue from operations increased 2.4% year-on-year to ₹6,795.25 crore, compared with ₹6,634.16 crore in Q1 FY2025-26.
Key financial figures include:
- Revenue from Operations: ₹6,795.25 crore, up 2.4%.
- Total Income: ₹7,141.96 crore, up 3%.
- Profit Before Tax: ₹2,692.65 crore, up 1.8%.
- Profit After Tax: ₹2,007.27 crore, up 2%.
- EPS: ₹2.28, compared with ₹2.24.
- Total Expenses: ₹4,449.31 crore, up 3.8%.
- Paid-up Equity Capital: ₹879.18 crore.
- Face Value per Share: ₹1.
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Higher Royalty and Employee Costs Increase Expenses
NMDC’s total expenses rose 3.8% year-on-year to ₹4,449.31 crore.
The increase was mainly driven by higher royalty and other levies, which rose 30% to ₹3,495.03 crore from ₹2,680.22 crore a year earlier.
Employee benefits expense also increased to ₹487.10 crore from ₹410.13 crore.
However, finance costs declined to ₹21.61 crore from ₹27.15 crore in Q1 FY26.
Iron Ore Segment Remains Key Revenue Driver
The iron ore business continued to be NMDC’s main revenue contributor during the quarter.
Segment-wise performance was as follows:
- Iron Ore: Revenue of ₹6,802.12 crore; segment result of ₹2,630.63 crore.
- Pellet & Others: Revenue of ₹287.75 crore; segment result of ₹28.75 crore.
- HR Coil & Sheets: Recorded a negligible loss of ₹0.06 crore.
- Total Segment Revenue: ₹7,089.87 crore.
- Total Segment Result: ₹2,659.32 crore.
- Total Capital Employed: ₹35,820.99 crore.
The HR Coil & Sheets segment has been discontinued following the demerger. Unallocated assets and liabilities mainly represent corporate-level items that are not assigned to individual business segments.
NMDC Contingent Liabilities Stand at ₹30,829.69 Crore
The statutory auditors highlighted several significant contingent liabilities in NMDC’s financial statements. The combined value of the disclosed matters stood at ₹30,829.69 crore.
Major items include:
- Karnataka Tax Bill: ₹15,785.72 crore — awaiting Presidential assent.
- NSL Receivables: ₹6,447.95 crore — repayment schedule provided.
- RINL Receivables: ₹4,712.47 crore — revival plan approved.
- Common Cause Demand: ₹1,623.44 crore — sub-judice.
- RTP Penalty: ₹1,620.50 crore — next hearing scheduled for September 30, 2026.
- Land Advance (KVSL): ₹639.61 crore — lease pending.
Karnataka Tax Bill
The largest contingent exposure relates to the Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill, 2024, which involves approximately ₹15,785.72 crore.
The bill, passed by the Karnataka Legislature in December 2024, is awaiting Presidential assent. NMDC said that if enacted in its current form, the company may become liable for the amount.
However, the company has contractual provisions to recover applicable statutory duties from customers under its Long-Term Agreements and Auction Notices. NMDC has also cited legal opinions regarding the status of the bill before Presidential assent.
NMDC Has ₹6,447.95 Crore Receivables from NSL
Following the demerger of NMDC Iron & Steel Plant into NMDC Steel Limited (NSL), NMDC has significant outstanding receivables.
The amount includes:
- Demerger Receivable: ₹1,601.39 crore.
- Trade Receivables from Iron Ore: ₹4,499.20 crore.
- Employee Services: ₹167.53 crore.
- Advance for HR Products: ₹179.83 crore.
- Total Receivables: ₹6,447.95 crore.
- Expected Credit Loss: ₹136.19 crore.
NSL provided a repayment schedule during the quarter. NMDC’s management remains confident of recovery, citing the expected increase in NSL’s capacity and operations.
The company has recognised an expected credit loss of ₹136.19 crore, reflecting the time value of money.
RINL Outstanding Dues at ₹4,712.47 Crore
NMDC reported trade receivables of ₹4,712.47 crore from Rashtriya Ispat Nigam Limited (RINL) as of June 30, 2026.
The dues primarily relate to supplies of iron ore and pellets.
- Trade Receivables: ₹4,712.47 crore.
- Expected Credit Loss: ₹298.48 crore.
- RINL Revival Package: ₹11,440 crore.
The Cabinet Committee on Economic Affairs approved a ₹11,440-crore revival package for RINL on January 17, 2025. NMDC’s management remains confident of recovering the outstanding amount and has recognised an expected credit loss of ₹298.48 crore.
Consolidated Q1 FY27 Results
On a consolidated basis, NMDC reported a PAT of ₹2,005.71 crore, compared with ₹1,967.46 crore in Q1 FY26.
The consolidated financial performance was:
- Revenue: ₹6,795.25 crore, compared with ₹6,738.86 crore.
- Total Income: ₹7,142.54 crore, compared with ₹7,038.97 crore.
- PAT: ₹2,005.71 crore, compared with ₹1,967.46 crore.
- Basic EPS: ₹2.25, compared with ₹2.24.
The consolidated results include subsidiaries, joint ventures and associates accounted for using the equity method. NMDC’s share of loss from associates and joint ventures stood at ₹29.48 crore during the quarter.
Subsidiaries, Joint Ventures and Associates
NMDC has interests across several subsidiaries, joint ventures and associate entities.
Key disclosures include:
- Legacy Iron Ore Limited: Subsidiary with a carrying value of ₹443.34 crore.
- Karnataka Vijayanagar Steel Limited: ₹639.61 crore advance.
- NMDC-CMDC Limited: Joint venture with an investment of ₹402.99 crore.
- Bastar Railway Private Limited: Joint venture with an investment of ₹152.67 crore.
- J&K Minerals: Subsidiary.
- Jharkhand NMDC Limited: Joint venture.
- International Coal Ventures: Associate.
- Krishnapatnam Railway Company: Associate.
NMDC’s Australian subsidiary, Legacy Iron Ore Limited, has a carrying value of ₹443.34 crore against a market value of ₹295.29 crore. An independent assessment concluded that its recoverable value exceeds its carrying value, so no impairment was recognised.
NMDC-CMDC Limited has also commenced initial mining activities at Deposit-4 and Deposit-13 after obtaining the required statutory approvals.
Key Disclosures and Important Dates
NMDC reported that there was no outstanding default on loans and debt securities.
Other key disclosures include:
- No statement of deviation was required for public issue proceeds.
- No related-party transactions were reported for the half-yearly filing.
- No audit qualification requiring a statement on its impact was reported.
- Board Meeting: August 14, 2026.
- RTP Penalty Hearing: September 30, 2026.
- Karnataka Tax Bill: Presidential assent awaited.
About NMDC
NMDC Limited is a Government of India public sector enterprise under the Ministry of Steel and one of India’s leading iron ore producers. The company is engaged in mineral exploration and mining and has expanded its presence across iron ore and other mineral-related businesses.
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