NMDC's Q1 FY 2025-26 Quarterly Results

Result Summary

• NMDC Ltd reported a 1.9% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 21.8%.
• Its expenses for the quarter were down by 2.7% QoQ and up 38.6% YoY.
• The net profit increased 39.6% QoQ and decreased 0.1% YoY.
• The earnings per share (EPS) of NMDC Ltd stood at 2.2 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

NMDC Ltd is a prominent public sector enterprise in India, primarily engaged in the exploration and production of iron ore, which is its mainstay product. It operates under the Ministry of Steel and is one of the largest producers of iron ore in the country. NMDC Ltd also has interests in other minerals, including copper, rock phosphate, limestone, and magnesite, among others. The company has a significant footprint in the mining industry, both domestically and internationally. Recent developments include diversification into steel production and the acquisition of assets to bolster their mineral portfolio. NMDC Ltd's strategic initiatives are often aligned with national priorities, given its public sector status and its role in contributing to India's infrastructure development.

Revenue

In Q1FY26, NMDC Ltd reported a total income of ₹7038.97 crores, which represents a 1.9% increase from the previous quarter (Q4FY25) where the total income was ₹6908.37 crores. Compared to the same quarter in the previous year (Q1FY25), the total income shows a substantial year-over-year increase of 21.8% from ₹5779.07 crores. This data reflects the company's growth in revenue generation over the past year, supported by its operational scale and market conditions. The increase in revenue can be attributed to strong demand for its core products, as well as possible improvements in production capacity or efficiency.

Profitability

The profit before tax (PBT) for NMDC Ltd in Q1FY26 was ₹2642.83 crores, showing a significant quarter-over-quarter growth of 12.0% from ₹2358.88 crores in Q4FY25. On a year-over-year basis, this marks a modest increase of 1.3% from ₹2607.95 crores in Q1FY25. The tax expenses for the current quarter were notably lower at ₹675.31 crores compared to the prior quarter's ₹943.00 crores, reflecting a 28.4% decrease. The profit after tax (PAT) for Q1FY26 was ₹1967.69 crores, which is a 39.6% increase from the previous quarter's ₹1409.78 crores but slightly down by 0.1% from ₹1969.02 crores in Q1FY25. Earnings per Share (EPS) dropped significantly to ₹2.20 in Q1FY26 from ₹4.80 in Q4FY25 and ₹6.70 in Q1FY25, reflecting a decline of 54.2% and 67.2% quarter-over-quarter and year-over-year, respectively.

Operating Metrics

The total expenses for NMDC Ltd in Q1FY26 were ₹4396.14 crores, showing a decrease of 2.7% compared to ₹4519.64 crores in Q4FY25. However, these expenses were significantly higher by 38.6% year-over-year, rising from ₹3171.12 crores in Q1FY25. This increase in expenses year-over-year suggests higher operational costs, which may be due to expanded operations or increased input costs. The company’s profitability, despite the increase in total expenses, highlights efficient management of costs relative to revenue growth. The operating performance metrics indicate the ability to maintain steady profit margins, contingent on effective cost control and revenue optimization strategies.