Mumbai: NMDC Limited (BSE: 526371, NSE: NMDC), India’s largest iron ore producer and a Navratna PSU under the Ministry of Steel, announced its unaudited financial results for the third quarter and nine months ended 31 December 2025 (Q3 FY26). The Board also approved a first interim dividend of ₹2.50 per share and sanctioned the formation of a new wholly-owned subsidiary (WOS) focused on critical minerals, reflecting the company’s strategic diversification plans.
Standalone Q3 FY26 Performance
NMDC’s Q3 FY26 standalone revenue from operations rose 14.6% YoY to ₹7,486 crore, driven primarily by the iron ore segment, which contributed ₹6,023 crore (80.5% of total revenue) and a segment profit of ₹2,168 crore.
- Profit Before Tax (PBT): ₹2,366 crore, down 10.1% YoY
- Net Profit After Tax (PAT): ₹1,738 crore, down 10.6% YoY
- Earnings Per Share (EPS): ₹1.98
- Interim Dividend: ₹2.50 per share (Record Date: 13 February 2026)
The decline in profitability despite revenue growth points to rising costs and pricing pressures impacting margins in the quarter.
On a consolidated basis, revenue increased 15.9% YoY to ₹7,611 crore, with consolidated PAT attributable to owners at ₹1,757 crore, down 6.7% YoY, and consolidated EPS at ₹2.00.
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Nine-Month FY26 Performance
NMDC’s nine-month standalone performance shows a healthier picture:
- Revenue: ₹20,381 crore, up 21.9% YoY
- PAT: ₹5,401 crore, up 3.9% YoY
- EPS: ₹6.14, up from ₹5.94 YoY
Consolidated nine-month PAT grew 7.1% YoY to ₹5,423 crore, reflecting steady operational performance over a longer period.
Board Approvals and Strategic Initiatives
The Board of Directors approved:
- Interim Dividend: ₹2.50 per equity share, payable to shareholders as of 13 February 2026.
- Critical Minerals Wholly-Owned Subsidiary (WOS): A new entity to focus on acquisition, exploration, and production of critical minerals, subject to regulatory approvals from the Ministry of Steel and DIPAM.
These moves indicate NMDC’s intent to diversify beyond iron ore and tap into high-growth strategic minerals, enhancing long-term value creation.
Contingent Liabilities and Recoverables
The statutory auditors’ limited review report highlighted several critical items:
- Karnataka Tax Bill: Potential liability of ~₹15,165 crore, related to the pending Mineral Rights and Mineral Bearing Land Tax Bill, 2024. NMDC expects contractual recovery from customers if levied.
- Receivables from NMDC Steel Ltd (NSL): ₹6,790 crore, including amounts from demerger and trade receivables.
- Receivables from Rashtriya Ispat Nigam Limited (RINL): ₹4,105 crore, with an expected credit loss provision of ₹31 crore.
- Other Legal Contingencies: ₹1,623 crore from Common Cause Judgment and ₹1,621 crore Railway Transit Pass penalty, with ₹600 crore deposited under protest.
These financial overhangs pose short-term risks, though management remains confident in recoverability.
Management Outlook
NMDC’s results reflect strong revenue growth tempered by rising costs, highlighting the need for close monitoring of operational efficiencies. The new critical minerals subsidiary signals a long-term strategic focus, but its financial impact is expected to be gradual.
The company continues to maintain a robust balance sheet with no defaults on loans or debt securities, and total standalone assets of ₹45,965 crore as of 31 December 2025.
About NMDC Limited
NMDC Limited is India’s largest producer of iron ore and a Navratna PSU under the Ministry of Steel. The company is engaged in mining, beneficiation, and exploration of iron ore and other minerals, supplying key raw materials to steel producers and contributing significantly to India’s infrastructure and industrial growth.
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