New Delhi: NMDC Steel Limited has reported a sharp financial turnaround in Q4 FY26, posting a net profit of ₹392 crore compared to a loss of ₹473 crore in the same quarter last year. The company also moved into full-year profitability in FY26, supported by stronger revenues, higher production, and improved cost efficiency.
Q4 FY26 Performance Highlights
NMDC Steel delivered a strong operational quarter with broad-based improvements:
- Net profit stood at ₹392 crore vs loss of ₹473 crore YoY
- Revenue from operations jumped 37% to ₹3,879 crore
- Turnover surged 61% to ₹11,173 crore
- Profit Before Tax (PBT) improved to ₹486 crore, compared to a loss of ₹664 crore last year
- EBITDA rose to ₹3,072 crore, reflecting stronger operating leverage
- Earnings Per Share (EPS) improved to ₹1.34 from a loss of ₹1.62
Margins also improved significantly, with operating margin at 21.45% and net profit margin at 10.10%, marking a strong recovery from negative levels in Q4 FY25.
Read also: NMDC Increases Iron Ore Prices by Rs 200 Per Tonne, Revises Lump and Fines Rates
Full-Year FY26 Performance: Return to Profitability
For FY26, NMDC Steel achieved a key milestone by turning profitable:
- Net profit: ₹59 crore (vs ₹2,374 crore loss in FY25)
- Revenue: ₹13,642 crore (up 60% YoY)
- PBT: ₹76 crore (vs ₹3,322 crore loss in FY25)
- EBITDA: ₹10,737 crore (up 9%)
- Highest-ever turnover: ₹31,554 crore (up 33%)
The performance reflects steady operational scaling and improved cost absorption across the value chain.
Strong Operational Growth in Iron Ore Production & Sales
The company delivered record operational output during FY26:
- Iron ore production: 53.16 million tonnes (up 21%)
- Iron ore sales: 50.24 million tonnes (up 13%)
- Q4 production growth: 22% YoY to 16.27 million tonnes
- Q4 sales growth: 21% YoY to 15.30 million tonnes
This production expansion significantly supported revenue growth and margin recovery.
Debt Reduction and Improved Financial Stability
NMDC Steel strengthened its balance sheet during the year:
- Total borrowings reduced to ₹4,602 crore from ₹5,898 crore
- Finance cost down 25% to ₹487 crore
- Debt-equity ratio improved to 0.35 from 0.45
- NCDs worth ₹523.80 crore fully repaid
- ₹1,187 crore term loan repaid to SBI
These steps led to better credit metrics and reduced interest burden, improving overall financial flexibility.
Key Financial Ratios Show Sharp Recovery
- Interest Service Coverage Ratio (ISCR): 6.04 (vs -2.85 YoY)
- Debt Service Coverage Ratio (DSCR): 0.40 (vs -0.03 YoY)
- Operating performance turned positive across key profitability indicators
Dividend Announcement
The board has recommended a final dividend of ₹1 per share, subject to shareholder approval. Combined with the interim dividend of ₹2.5 per share, total dividend payout for FY26 stands at ₹3,077 crore.
Auditor Observation
Statutory auditor Sharad & Associates issued an unmodified audit opinion but highlighted non-compliance regarding the required number of independent directors on the board under the Companies Act and listing regulations. The management stated that appointments are pending from the Central Government.
Stock Market Impact and Outlook
The strong turnaround, combined with debt reduction and record production, is expected to support positive investor sentiment toward NMDC Steel Limited. Going forward, key focus areas include sustaining profitability, improving margins, and expanding capacity efficiently.
About NMDC
NMDC Ltd is India’s largest iron ore mining company and a major public sector enterprise. It plays a critical role in supplying raw material to the steel industry and has been expanding into steel production through its demerged subsidiary NMDC Steel Limited, strengthening its presence across the value chain from mining to steel manufacturing.
Read also: NMDC Wins Industry Award for Excellence, Innovation and Operational Efficiency at Industry 5.0 Forum
