NMDC Steel shares jump 17%, logs best day in 18 months as it swings to profit in Q1

From Rs 547 crore loss to Rs 26 crore profit: NMDC Steel’s Q1 turnaround

Shares of NMDC Steel jumped 17 percent to Rs 41 apiece on August 13 after the company swung to a profit in the June quarter (Q1 FY26), marking its sharpest single-day rise since January 2024.

For the first time, NMDC Steel turned profitable in a quarter, posting a net profit of Rs 26 crore compared to a net loss of Rs 547 crore in the same period last year.

Revenue from operations rose 66 percent year-on-year to Rs 3,365 crore in Q1 FY26. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) came in at Rs 408 crore, sharply reversing from a loss of Rs 401 crore in Q1 FY25. The EBITDA margin for the quarter stood at 12 percent.

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The company’s performance was aided by higher steel prices, a ramp-up in production capacities, and increased operating leverage, which together boosted profitability.

NMDC Steel has now operationalised its 3 million tonnes per annum (MTPA) integrated steel plant at Nagarnar in Chhattisgarh — a key milestone in its execution journey.

On the policy side, reports last month suggested that the government is unlikely to go ahead with the disinvestment of NMDC Steel in the current financial year.

The process is reportedly facing multiple roadblocks, with officials indicating that the stake sale will not be pushed aggressively for now. Once the pending issues are resolved, the disinvestment plan is expected to be fast-tracked.

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