State-owned miner NMDC plans to scale iron ore production to 60 million tonnes in FY27, up from the 50 MT milestone achieved in FY26. To support this growth, the company is building mining infrastructure and seeking regulatory approvals while pushing into coal. Investors will likely track the firm's ability to navigate environmental clearances and project execution timelines.
NMDC has announced an ambitious production target of 60 million tonnes (MT) of iron ore for FY27. This represents a growth of roughly 20% over the 50 MT production milestone the company crossed in FY26. The move aligns with the broader push to supply domestic steelmakers as India continues to expand its national steelmaking capacity.
The company is scaling up operations across its existing mining complexes, including the key mechanised facilities in the Bailadila region of Chhattisgarh and Donimalai in Karnataka. To achieve the 60 MT target, NMDC is investing in upgrading mine infrastructure, such as new conveyor systems, crushers, and breakers, which are critical for handling higher volumes.
Revenue performance has shown resilience, with the company reporting a revenue of ₹31,554 crore for FY26, a 33% increase from ₹23,668 crore in FY25. This stronger financial base is supporting the current capital spending on mine development. Looking further ahead, the company aims to reach a production capacity of 100 million tonnes by FY31, a strategy designed to support the National Steel Policy 2017 target of 300 million tonnes of installed domestic steel capacity.
While the expansion plans are significant, they carry inherent execution risks. The mining industry in India is sensitive to regulatory processes. NMDC is currently seeking environmental clearances from the Ministry of Environment, Forest and Climate Change for additional deposits. Delays in securing these approvals, or challenges in project execution at mining sites, could impact the timeline for reaching the 60 MT goal. Furthermore, as a commodity producer, the company’s profit margins are directly tied to global and domestic iron ore pricing cycles, which can be volatile.
In a strategic shift to reduce its total dependence on iron ore, NMDC is diversifying its revenue streams. The company expects to begin commercial thermal coal production in the third quarter of FY27, with an initial sales target of 1 million tonnes. Additionally, development for a coking coal mine is slated to begin in FY27, with production expected by FY28. The long-term objective is to have at least 20% of revenue coming from non-iron ore minerals by 2030.
Investors will likely monitor several specific factors in the coming quarters. These include the pace of environmental approvals for new deposits, the actual timeline for coal mine development, and whether the company can maintain cost efficiencies while scaling up infrastructure. The success of the coal diversification strategy will also be a key long-term indicator for the company's revenue mix.