NMDC Steel Limited Earnings Summary — Q1 FY2027
NMDC Steel Reports Higher Q1 Profits Amid Capacity Ramp-up and Reduced Interest Rates
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 5.6% sequentially in Q1 FY2027.
- Revenue of ₹3,662 Cr is 8.8% higher year-on-year.
- Revenue has compounded at 35.6% annualised over the last 10 quarters.
- Net profit of ₹51 Cr is 97.6% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Operating margin stands at 10.9% in Q1 FY2027.
- Operating margin compressed by 120 bps year-on-year.
- Over the last two years operating margin has expanded by 3074 bps.
- PBT margin is 2.0%.
- Expenses grew 10.3% against revenue growth of 8.8%.
- Operating profit of ₹400 Cr is 2.0% lower year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 58/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next 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 | 3,662 | 3,879 | 3,008 | 3,390 | 3,365 | 2,838 | 2,120 | 1,522 | 2,023 | 1,846 |
| Expenses | Stable | 3,262 | 3,073 | 2,910 | 3,183 | 2,958 | 3,129 | 2,776 | 1,963 | 2,424 | 2,801 |
| Operating Profit | Volatile | 400 | 806 | 98 | 207 | 408 | -291 | -656 | -441 | -401 | -956 |
| Operating Margin | Volatile | 10.9% | 20.8% | 3.2% | 6.1% | 12.1% | -10.2% | -30.9% | -28.9% | -19.8% | -51.8% |
| Other Income | Accelerating | 43 | 26 | 19 | 21 | 20 | 19 | 18 | 13 | 21 | 90 |
| Interest | Stable | 126 | 96 | 128 | 128 | 134 | 173 | 165 | 161 | 153 | 155 |
| Depreciation | Stable | 242 | 249 | 252 | 283 | 258 | 221 | 253 | 240 | 239 | 252 |
| Profit Before Tax | Volatile | 74 | 486 | -264 | -183 | 36 | -664 | -1,056 | -829 | -772 | -1,273 |
| Tax | Volatile | 23 | 94 | -20 | -68 | 11 | -191 | -299 | -234 | -225 | -412 |
| Net Profit | Volatile | 51 | 392 | -244 | -115 | 26 | -473 | -758 | -595 | -547 | -861 |
| Net Margin | Volatile | 1.4% | 10.1% | -8.1% | -3.4% | 0.8% | -16.7% | -35.8% | -39.1% | -27.1% | -46.6% |
Key Takeaways
- Revenue grew 8.8% year-on-year to ₹3,661.84 crore, reflecting steady production ramp-up at the Nagarnar plant.
- Net profit nearly doubled compared to the same quarter last year, rising to ₹50.51 crore from ₹25.56 crore.
- The company successfully renegotiated debt terms, reducing the Rupee Term Loan interest rate to 8.40% effective January 2026.
- Sequential performance (QoQ) shows a significant dip in profit primarily due to a high base in Q4 FY26 and increased material costs.
- Total borrowings stood at ₹5,056 crore as of June 30, 2026, with ₹3,177 crore outstanding on the primary Rupee Term Loan.
- The company remains a single-segment entity focused entirely on Iron and Steel manufacturing.
Management Guidance
Management remains focused on operational stabilization and increasing production volumes following the 2023 plant commissioning. The outlook is heavily tied to the Government of India's ongoing strategic disinvestment process of its 50.79% stake.
Sentiment Shift
Improving
Year-on-year profitability is scaling as the plant exits the initial gestation phase, further aided by significant interest rate repositioning by lenders.
Outlook
The company is transitioning from a greenfield project to a steady-state producer, with future earnings expected to benefit from high operating leverage and raw material security from parent NMDC.
From the Annual Report (Key Quotes)
“The interest rate was reset to 12.45% p.a. w.e.f. 01.03.2025... SBI has revised the interest rate to 8.70% p.a. linked to 3 months MCLR from 12.04.2025.”
“The Company is engaged in the manufacturing of Iron and Steel Products which is the only reportable segment.”
“GOI had decided to divest its 50.79% shareholding in Resulting Company ('NMDC Steel Limited') along with management control.”
Official Quarterly Documents
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This summary is AI-generated from NMDC Steel Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.