NMDC Shares Rise Almost 3% on Q2 FY26 Profit Growth of 40.8% YoY

Hyderabad, October 29, 2025 – NMDC Limited shares (NSE: NMDC, BSE: 526371) surged almost 3% after it posted a strong 40.8% year-on-year growth in consolidated net profit at ₹1,698.86 crore for the September 30, 2025 quarter, as compared to ₹1,211.57 crore for the same quarter of last year. Stronger operating revenue and enhanced cost efficiency drove the sharp upturn.

Revenue and Profit Performance

Topline increased 28.1% YoY to ₹6,761.43 crore, led by a 29.7% increase in revenue from operations to ₹6,378.11 crore. Quarterly, revenue fell 5.4% on account of seasonally reduced production during the monsoon quarter. Profit before tax increased 39.9% YoY to ₹2,258.96 crore, as net profit margins increased even as expenses were marginally higher.

Cost Management and Operational Efficiency

Employee expenses continued to be flat at ₹402.77 crore compared to ₹418.84 crore during the previous year. Depreciation and amortisation came down to ₹116.05 crore from ₹145.75 crore, reflecting improved asset usage. Overall expenses rose 22.8% to ₹4,502.47 crore, mainly on account of increased royalty and freight expenses, reflecting scaling up of operations and logistics costs.

Half-Yearly Financial Highlights

For the first half of FY26, total income of NMDC increased 24.7% year-on-year to ₹13,800.40 crore. Net profit over the same period increased 15.2% to ₹3,666.60 crore, with consistent profitability supported by a soft quarter-on-quarter comparison.

Market Reaction and Valuation Snapshot

The shares of NMDC closed at ₹76.65, up 2.71%, with the day’s high of ₹77.60 and low of ₹74.67. The market capitalisation of the company was at ₹68,004.71 crore with a P/E of 10.01. The stock continues near its 52-week high of ₹82.83 on December 10, 2024, and comfortably above the 52-week low of ₹59.53 on April 9, 2025.

NMDC Limited, which is a Navratna company of the Ministry of Steel, is India’s largest iron ore producer with significant mining activities in Chhattisgarh and Karnataka. The firm, which is a constituent of the Nifty Midcap 50 index, earned a consolidated net profit of ₹6,541.98 crore in FY25 on the back of total income of ₹25,498.84 crore.

REF: https://nsearchives.nseindia.com/corporate/NMDC_29102025140445_20251029SEA2025052Q2RESULTS.pdf

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