NMDC Limited reported its Q4 2026 financial results, revealing a mixed performance with earnings per share (EPS) at INR 2.28, missing the forecast of INR 2.60. Revenue also fell short at INR 88.63 billion compared to the expected INR 88.94 billion. Despite these shortfalls, NMDC’s stock price rose by 3.38% to INR 90.96, reflecting investor optimism driven by strategic expansions and future growth potential. The company trades at a P/E ratio of 10.61, suggesting an attractive valuation relative to earnings.
NMDC Limited demonstrated resilience in its core iron ore business, maintaining a stable EBITDA margin of 42% despite temporary impacts from its steel trading business. The company achieved a production milestone, exceeding 50 million tons for the first time, and reported an 11% year-over-year growth in profit after tax.
NMDC reported an EPS of INR 2.28, falling short of the forecasted INR 2.60, resulting in a negative surprise of 12.31%. Revenue also missed expectations by 0.35%. This marks a deviation from previous quarters where NMDC consistently met or exceeded forecasts.
Despite missing earnings forecasts, NMDC’s stock price rose by 3.38% to INR 90.96. This positive movement contrasts with the broader market trend and suggests investor confidence in NMDC’s strategic initiatives and future growth potential. According to InvestingPro data, the stock is trading near its 52-week high and offers an attractive dividend yield of 6.59%. The platform’s analysis indicates NMDC is currently slightly overvalued compared to its Fair Value estimate. Investors seeking deeper insights can access 13 additional InvestingPro Tips, along with comprehensive financial health scores and advanced metrics.
NMDC is focused on expanding its production capacity with new mine openings and infrastructure projects. The company projects a production target of 60 million tons for FY 2027, supported by new initiatives such as branded iron ore production, which is expected to command a market premium. With a market capitalization of $8.4 billion and an InvestingPro Financial Health Score rated as "GREAT," NMDC appears well-positioned for expansion. For investors seeking comprehensive analysis, NMDC is among the 1,400+ companies covered by Pro Research Reports, which transform complex data into clear, actionable intelligence.
Executives highlighted the significance of achieving Maharatna status and emphasized the company’s strong cash generation capabilities. They noted, "Our core iron ore business remains robust, and we are strategically positioned for future growth."
Analysts inquired about the impact of the steel trading business on margins and the timeline for new mine openings. Executives assured that the steel trading was a one-time measure and emphasized the strategic importance of upcoming projects to drive long-term growth.
Operator/Moderator, PhillipCapital: Ladies and gentlemen, good day. Welcome to NMDC Limited Q4 and FY 2026 earnings conference call hosted by PhillipCapital. I now hand the conference over to Mr. Suman Kumar from PhillipCapital. Thank you, and over to you, sir.
Suman Kumar, Analyst/Host, PhillipCapital: Thank you, operator, and welcome everyone to the call. I first thank NMDC for giving PhillipCapital the opportunity to host today’s call. We have with us from the management today Shri Amitava Mukherjee, the Chairman-cum-Managing Director, joined along with Mr. Anurag Kapil, Director of Finance, NMDC. Without further ado, I would like to hand over the conference to Amitava, sir, for his opening remarks. After this, we can open the floor for Q&A. Over to you, sir.
Amitava Mukherjee, Chairman-cum-Managing Director, NMDC Limited: Well, good morning, everybody, and thank you for joining. As you know that NMDC’s performance in FY 2026 has been rather encouraging. We have touched 53 million tons of production. We have crossed that. Our sales revenue has grown to INR 31,000. We are all now ready for the Maharatna status of this company because now we fulfill all the requirements of a Maharatna company. Despite slightly sluggish prices, we’ve been able to achieve an 11% growth in PAT, and all our financial indices and operating indices have been rather encouraging. I believe that this sets the foundation for us to achieve 100 million ton by the end of this decade. In that journey, I think this year we will be targeting 60 million tons, which we hope to achieve.
The good news is that, the more encouraging thing is that we’ve been able to open a coal mine in Jharkhand, which gives us a new mineral as well as a new geography. After 50 years, we have been able to open a iron ore mine that is Deposit 4 in Bailadila. That is, of course, under the NCL banner, NMDC-CMDC banner, where we have 51% stake. Very soon, we hope that this financial year, we hope to open the other iron ore mine, which is in Deposit 13, and also the Rohne coal block in Jharkhand, which is a coking coal block. There’s a lot of action that is happening and obviously, we are also pursuing assets abroad. A few of them are in very advanced stages of acquisition. Obviously, we cannot disclose the details because of confidentiality agreements.
This year we hope to acquire a couple of assets abroad as well. The CapEx this year has been around INR 3,300 crores, which is an all-time high CapEx, if you leave out the land acquisition this time, we hope that this year we’ll be able to substantially increase our CapEx, almost double the CapEx now, because all our expansion plans right now are on the ground. We have to award a couple of them. Rest of them are already under execution. We are well on our way to get to 100 million tons by the end of the decade. My colleague, Mr. Anurag Kapil, Director of Finance, is also here. He might like to add something to what I’ve said. Anurag, please.
Anurag Kapil, Director of Finance, NMDC Limited: Good morning to you all. This is a tremendous performance which NMDC has given in the previous financial year. As CMD sir has just mentioned, we have surpassed all the expectations and crossed the magical figure of the production, which is 50 million ton. The growth of around 20%-30% in various parameters is really a pathway, which will be making it possible to achieve 100 million ton by 2030. The more important part is, the diversification path of NMDC, which is like, as CMD sir just mentioned, regarding coal and other minerals. Also, the acquisitions of various minerals abroad.
Amitava Mukherjee, Chairman-cum-Managing Director, NMDC Limited: Subsidiary for rare earths.
Anurag Kapil, Director of Finance, NMDC Limited: We have also opened a subsidiary.
Amitava Mukherjee, Chairman-cum-Managing Director, NMDC Limited: Rare earths.
Anurag Kapil, Director of Finance, NMDC Limited: For rare earths, which will be.
Amitava Mukherjee, Chairman-cum-Managing Director, NMDC Limited: Critical minerals. We have actually also opened a subsidiary which is now completely dedicated to rare earths and other critical minerals. We are taking those critical requirements of the country very seriously, and we hope to achieve breakthrough in that as well very soon. We can take questions now, if that’s okay.
Operator/Moderator, PhillipCapital: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. First question is from the line of Mr. Amit Dixit from Goldman Sachs. Please go ahead.
Amit Dixit, Analyst, Goldman Sachs: Thanks for the opportunity. First of all, congratulations for great performance, sir, particularly on operational front, achieving above 50 million tons of production and sales. A couple of questions. The first one is, NMDC Steel, if it’s possible to mention the volumes. Since now it’s going to be a substantial portion of our revenue, so would appreciate if we can give the quantity sold by us in the presentation. For this quarter, if you can let us know the quantity that we sold. Also, what are the basic terms for this? Because this number appears in cost as well as revenue. Just wanted to get little bit of more clarity on this for projection purpose.
Amitava Mukherjee, Chairman-cum-Managing Director, NMDC Limited: This was essentially an arrangement made for a very specific requirement of NMDC Steel, where they were facing cash flow. We stepped in and we were doing trading business with the HR coils of NMDC Steel. In Q1, there’s not going to be any trading right now. That is essentially a special mechanism, as and when, if there’s a cash flow issue at NMDC Steel, and we generally tend to step in and buy HR coil and then sell it in the market. However, because at that time NMDC Steel was, as you know, is under the same management, and at that time the marketing was being done by sale, and there was a lag in realization of material sold. At that time we had to step in. I don’t think that would be triggered right now.
Because that was a very low volume business. If you see our EBITDA, it has come down from 42% to 33%, essentially because of steel business. If we take this iron ore business standalone, our EBITDA is still at 42%. Because of the steel business in the last quarters that we had to do, which was essentially trading, the EBITDA has come down. That was a one-time measure. I do not think that this quarter it definitely is not required. Maybe this financial year it will be very rarely used, if at all, if it is required. Yes, Amit.
Amit Dixit, Analyst, Goldman Sachs: Okay, sir. Got it, sir. The second question is essentially. Congratulations for opening Deposit 4. I think after a long time finally we see it getting.
Amitava Mukherjee, Chairman-cum-Managing Director, NMDC Limited: Two y