NMDC Q2 FY26 Results — Steady Volumes, Stable Margins
NMDC Limited, India’s largest iron ore producer, posted a steady Q2 FY26 performance backed by strong domestic demand and higher production volumes. The company maintained stable margins despite cost escalations, aided by strategic pricing and efficient logistics management.
Financial Highlights — Q2 FY26
| Metric | Q2 FY26 | Q1 FY26 | YoY Change |
|---|---|---|---|
| Revenue | ₹15,890 Cr | ₹14,720 Cr | +8.0% |
| EBITDA | ₹6,040 Cr | ₹5,860 Cr | +3.1% |
| PAT | ₹3,950 Cr | ₹3,770 Cr | +4.8% |
NMDC’s topline growth was driven by higher volumes and improved pricing. Operational efficiency and steady demand from the steel sector supported profitability. The company continues to focus on its Nagarnar steel plant and iron ore expansion plans to strengthen value creation.
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Peer Comparison
Compared to peers such as SAIL and JSW Steel, NMDC’s performance remained consistent due to its integrated mining structure and focus on cost efficiency. The company’s stable production profile gives it an edge in volatile steel cycles.
Strengths & Weaknesses
✅ Strong mining infrastructure with consistent ore production and low leverage.
⚠️ Profitability remains linked to cyclical steel demand and international ore prices.
NMDC’s diversified ore base and forward integration through Nagarnar Steel provide operational resilience amid commodity price volatility.
Opportunities & Threats
💡 Rising infrastructure and housing demand in India support long-term ore offtake stability.
📉 Regulatory changes and global steel downturns could impact realisations and exports.
With stable financials and a focus on sustainable mining, NMDC remains a reliable PSU play for investors seeking steady returns.
Valuation & Investment View
At approximately 7x FY26E P/E and a dividend yield above 5%, NMDC offers attractive value in the metals space. Its low debt, strong cash position, and expansion in the steel segment enhance long-term visibility.
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- Short-term: Stable with mild upward bias
- Medium-term: Accumulate on dips
- Long-term: Strong hold for dividend and growth
Investor Takeaway
Derivatives and Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Registered Investment Adviser, observes that while NMDC faces a short-term margin drag, its long-term sustainability strategy and global positioning remain intact. A patient investor approach is key to capitalizing on its recovery phase.
Related Queries on NMDC Results
NMDC Q2 FY26, Iron Ore Production, PSU Metal Stocks, Dividend Yield, Nagarnar Steel, Mining Sector Outlook, F&O Strategy
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
