NMDC Limited Earnings Summary — Q1 FY2027
NMDC Reports Steady Q1 Growth with Higher Sales Volumes and Progress on Strategic Mine Openings
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 40.1% sequentially in Q1 FY2027.
- Revenue of ₹6,795 Cr is 0.8% higher year-on-year.
- Revenue has compounded at 2.1% annualised over the last 10 quarters.
- Net profit of ₹1,976 Cr is 0.4% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 16.1% annualised across the period.
- Operating margin stands at 36.3% in Q1 FY2027.
- Operating margin compressed by 45 bps year-on-year.
- Over the last two years operating margin has contracted by 689 bps.
- PBT margin is 39.6%.
- Expenses grew 1.6% against revenue growth of 0.8%.
- Operating profit of ₹2,468 Cr is 0.4% lower year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 62/100 (Healthy) on the latest 10 quarters.
- Business momentum is broadly stable quarter to quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 6,795 | 11,343 | 7,611 | 6,378 | 6,739 | 7,005 | 6,568 | 4,919 | 5,414 | 6,489 |
| Expenses | Improving | 4,327 | 8,700 | 5,467 | 4,385 | 4,260 | 4,953 | 4,196 | 3,533 | 3,074 | 4,388 |
| Operating Profit | Improving | 2,468 | 2,644 | 2,144 | 1,993 | 2,478 | 2,051 | 2,372 | 1,386 | 2,340 | 2,102 |
| Operating Margin | Improving | 36.3% | 23.3% | 28.2% | 31.3% | 36.8% | 29.3% | 36.1% | 28.2% | 43.2% | 32.4% |
| Other Income | Stable | 347 | 432 | 372 | 383 | 300 | 492 | 375 | 361 | 365 | 389 |
| Interest | Volatile | 22 | 51 | 35 | 8 | 27 | 65 | 61 | 29 | 23 | 21 |
| Depreciation | Improving | 103 | 152 | 107 | 110 | 109 | 141 | 103 | 103 | 74 | 111 |
| Profit Before Tax | Improving | 2,691 | 2,873 | 2,375 | 2,259 | 2,643 | 2,338 | 2,584 | 1,614 | 2,608 | 2,359 |
| Tax | Stable | 685 | 855 | 628 | 576 | 675 | 855 | 687 | 418 | 644 | 943 |
| Net Profit | Improving | 1,976 | 2,027 | 1,757 | 1,699 | 1,968 | 1,478 | 1,882 | 1,212 | 1,971 | 1,413 |
| Net Margin | Improving | 29.1% | 17.9% | 23.1% | 26.6% | 29.2% | 21.1% | 28.6% | 24.6% | 36.4% | 21.8% |
Key Takeaways
- NMDC reported a standalone net profit of ₹2,007.27 crore for Q1 FY27, showing resilience despite a sharp sequential revenue drop from the previous quarter's high.
- Iron ore segment remains the dominant contributor with segment revenue of ₹6,802.12 crore, while the steel trading activities seen in Q4 FY26 have ceased as planned.
- The company successfully operationalized Deposit 4 in Bailadila and the Tokisud North coal mine, marking a significant entry into the coal sector and new geographies.
- A major contingent liability of ₹15,785.72 crore is disclosed regarding the Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill, 2024, pending Presidential assent.
- Management highlighted the pursuit of 'Maharatna' status following the achievement of 53 million tonnes production in the preceding full fiscal year.
- Receivables from NMDC Steel Limited (NSL) and RINL remain high at ₹6,447.95 crore and ₹4,712.47 crore respectively, though management maintains confidence in recovery.
- Capex plans are focused on the Vizag land parcel (₹3,000 crore for a blending yard) and infrastructure to support a target of 100 million tonnes by 2030.
Management Guidance
Management is targeting 60 million tonnes of iron ore production for the full year. Deposit 4 is expected to contribute 1 million tonne this year, ramping to 7 million tonnes in the future. Tokisud coal mine is guided to produce 0.75-1.0 million tonnes in FY27. Management expects to clear the outstanding dues from NMDC Steel within 18 months and is aggressively pursuing lithium and rare earth assets both in India and abroad.
Sentiment Shift
Improving
Operational milestones, including the opening of the first iron ore mine in 50 years and entry into coal, offset concerns regarding high receivables and pending tax legislation in Karnataka.
Outlook
The outlook is bolstered by the imminent completion of the railway doubling project by December 2026, which will expand evacuation capacity to 40 million tonnes from the current 30. Strategic shifts toward branded iron ore and value-added facilities at the Vizag land parcel provide long-term growth levers.
From the Annual Report (Key Quotes)
“We are all now ready for the Maharatna status of this company because now we fulfill all the requirements.”
“After 50 years, we've been able to open an iron ore mine, that is Deposit 4 in Bailadila.”
“NMDC's future expansion plan is dependent completely on the Vizag land parcel. We have big plans.”
“We plan to ramp it [Deposit 13] up to 20 to 21 million ton in 4 years to 5 year’s time.”
Official Quarterly Documents
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This summary is AI-generated from NMDC Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.