NMDC Steel Limited reported a 97.6% jump in June quarter profit to ₹50.51 crore. While revenue grew, margins faced pressure due to rising material costs. Investors are closely tracking the government's ongoing plan to sell its 50.79% controlling stake in the company.
NMDC Steel Limited has reported a strong start to the new financial year, with net profit rising significantly to ₹50.51 crore for the quarter ended June 2026. This marks a 97.6% increase compared to the same period last year, when the company posted a profit of ₹25.56 crore. The company’s revenue from operations also showed healthy growth, climbing 8.8% to ₹3,661.84 crore from ₹3,365.22 crore in the corresponding period of the previous fiscal year.
Despite the growth in top-line revenue, the company faced some pressure on its profit margins. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) dipped slightly by 2% to ₹399.56 crore. As a result, the EBITDA margin, which reflects core operational efficiency, contracted to 10.9% from 12.1% in the year-ago quarter. This indicates that while sales volume or pricing improved, the cost of doing business—specifically rising material costs—also increased, impacting the company's ability to keep more of every rupee earned as profit.
Financial health indicators remain a key focus for stakeholders as the company operates the large-scale Nagarnar Steel Plant. As of June 30, 2026, the company’s net worth stood at ₹13,228.35 crore with a debt-equity ratio of 0.38. The company is managing a significant term loan, with an outstanding balance of approximately ₹3,177.27 crore as per its latest disclosures.
For investors, the most critical development remains the Government of India’s active process to divest its 50.79% stake in the entity. This move involves transferring management control to a strategic buyer, a transition that is expected to define the company's future operational and financial structure. The government has also indicated plans to offer a 10% stake to the parent entity, NMDC Limited, once the strategic buyer is selected.
Looking ahead, several factors could influence the company’s performance. The steel sector is currently sensitive to fluctuations in raw material prices, such as coking coal imports, which directly impact production costs and margins. Additionally, the outcome of the strategic disinvestment process will be a major monitorable. Delays in this timeline or volatility in domestic steel demand could impact investor sentiment. Shareholders may want to track updates regarding the disinvestment progress, as well as the company’s ability to manage its material costs in the coming quarters to stabilize profit margins.