NMDC Reports Robust 30.5% YoY Jump in Iron Ore Production for Q1 FY26; June Sales Remain Steady

Hyderabad, July 2: NMDC Limited (NSE: NMDC, BSE: 526371), India’s largest iron ore producer, has reported a strong 30.5% year-on-year (YoY) increase in cumulative iron ore production for the first quarter of fiscal year 2026 (Q1 FY26), reaching 11.99 million tonnes (MT). The provisional data, disclosed under Regulation 30 of the SEBI (LODR) Regulations, highlights significant operational momentum in both its Chhattisgarh and Karnataka mining regions.

Iron Ore Production and Sales Snapshot

Key Highlights:

• Production Growth: NMDC recorded a significant 30.5% YoY increase in cumulative production, rising from 9.19 MT in Q1 FY25 to 11.99 MT during the April–June 2025 period.
• Sales Volume: Cumulative sales also saw a healthy rise of 14.3% YoY, from 10.07 MT to 11.51 MT.
• June Performance: While June 2025 production improved by 5.9% YoY to 3.57 MT, sales for the month remained nearly flat compared to June 2024, at 3.58 MT.
• The overall performance improvement in Q1 FY26 is largely driven by enhanced output from the Chhattisgarh mines, where Q1 production surged by nearly 40% YoY.

Strategic Context

This positive update aligns with NMDC’s ongoing initiatives to boost mining efficiency and expand capacity utilisation across its key iron ore belts. The consistent ramp-up in the Karnataka region also indicates improved logistics and a recovery in demand from downstream steel manufacturers.

The increased production comes at a crucial time for the Indian steel industry, which is experiencing robust growth driven by government infrastructure spending and rising consumption. Higher domestic iron ore availability can help stabilise raw material costs for steel producers and reduce reliance on imports. NMDC’s focus on enhancing output from its existing mines, coupled with efforts to demerge its Nagarnar Steel Plant, aims to streamline its core iron ore business and unlock shareholder value. The demerger of the steel plant is a strategic move to allow both entities to pursue their independent growth trajectories.

Share Price Performance

As of 10:00 a.m., the shares of NMdc were trading at ₹67.49, down by 0.68% or ₹0.46. It remains to be seen at what price the shares close at the end of today’s market session.

Next Steps

NMDC’s strong Q1 FY26 production and sales figures signal operational efficiency and healthy demand from steelmakers, particularly in a rising capex environment. With monsoon season setting in, maintaining output momentum will be key. The upcoming quarters will also reflect the strategic impact of its ongoing demerger and investment in mechanisation. Investors will closely track realisations, steel demand trends, and mining volume consistency amid seasonal disruptions.

About the Company

NMDC Limited, a Navratna PSU under the Ministry of Steel, is listed on the NSE, BSE, and Calcutta Stock Exchange. The company is engaged in the exploration and production of iron ore and other minerals. It remains India’s largest iron ore producer by volume and operates major mining facilities in Chhattisgarh and Karnataka.

REF: https://nsearchives.nseindia.com/corporate/NMDC_01072025173513_20250701_SEA2025023IRONOREPROSALES.pdf

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