Production: Achieved 53 million tons, crossing the 50 million ton mark.
Sales Revenue: Grew to INR 31,000 crore.
Profit After Tax (PAT): Recorded an 11% Year-on-Year (YoY) growth.
EBITDA Margin: Standalone iron ore business EBITDA margin remained strong at 42%. The consolidated margin was reported at 33%, impacted temporarily by the steel trading business.
Capital Expenditure (Capex): Capex for FY26 was approximately INR 3,300 crore, described as an all-time high excluding land acquisition costs.
Strategic Updates & Future Guidance
Production Target (FY27): The company is targeting a production of 60 million tons in the current financial year (FY27).
Long-Term Vision (2030): The management reiterated its goal to achieve a production capacity of 100 million tons by the end of the decade.
Capex Guidance (FY27): Capital expenditure for FY27 is projected to be approximately INR 6,000 crore. For the subsequent 2-3 years, annual capex is expected to be in the range of INR 7,000 - 10,000 crore to support the expansion to 100 million tons.
Maharatna Status: The company stated it now fulfills all requirements for granting Maharatna status.
Mine-wise Production Breakdown and Expansion Plans
Deposit 4 (Bailadila): The new iron ore mine was opened (first in 50 years for NMDC) under NMDC-CMDC Ltd (NCL) where NMDC holds a 51% stake. Commercial mining is expected to commence in Q2 FY27. Guidance is 1 million ton in FY27, ramping to 2 million tons in FY28, and eventually to its peak rated capacity of 7 million tons.
Deposit 13: Clearances are awaited with mining expected to start in Q2 FY27. Guidance is 0.5 million tons in FY27 and 2 million tons in FY28. The peak rated capacity is initially 10 million tons, with plans to expand it to 20-21 million tons in 4-5 years.
Existing Mines (FY27 Guidance): Incremental production of 10 million tons for FY27 will come from:
Deposit 14: +1 million ton
Deposit NMZ: +1 million ton
Kumaraswamy: +1.3 million ton (aiming for peak capacity of 10 million tons)
Deposit 5: +2 million ton (targeting 12 million tons)
Kirandul Complex: Target to increase production from 21 million tons to 30 million tons by 2030.
Bacheli Complex: Target to increase production from 18-19 million tons to 35 million tons by 2030.
Karnataka Sector: Expected to stabilize at 17 million tons due to regulatory constraints.
Diversification & New Business Verticals
Coal Mining:
Tokisud Block (Jharkhand): A thermal coal mine (G10 grade) is operational and expected to hit the coal seam in Q2 FY27. FY27 production guidance is 0.75 - 1 million ton. Peak rated capacity is 2.3 million tons. Expected revenue for 1 million ton is approx. INR 500-600 crore with an estimated EBITDA margin of 30-40%.
Rohne Block (Jharkhand): A coking coal mine is planned to open in Q3 FY27. No production is envisaged in FY27 due to overburden removal. Peak rated capacity is 8 million tons.
Critical Minerals & Rare Earths: A new subsidiary has been formed dedicated to rare earths and critical materials. An MoU is in place with Gujarat Mineral Development Corporation (GMDC) to jointly develop a rare earth mine in Gujarat. The primary focus for critical minerals is on acquiring assets abroad, with several in advanced stages. A capex of INR 2,000 - 3,000 crore is estimated for foreign acquisitions in FY27.
Branded Iron Ore & Blending Yard (Vizag): The board has sanctioned an investment of INR 3,000 crore to create a blending yard at the Vizag land parcel. This facility aims to produce consistent, branded iron ore, a first for India, expected to be a market game-changer. Output is expected in 2.5 years. The land parcel (1,100 acres) is also reserved for a future pellet plant, lithium refinery, or other critical mineral processing.
Pellet Plants:
The 3 million ton slurry pipeline from Bacheli to Nagarnar and the pellet plant at Nagarnar are in pre-commissioning trials, with mechanical completion achieved. Commissioning is expected by end-June or mid-July 2026.
Efforts are ongoing at KIOCL to produce Direct Reduction (DR)-grade pellets (67% Fe). The company achieved 66.5% Fe content and expects clarity on DR-grade capability by Q2 FY27. FY27 production target from KIOCL is 3.3 million tons.
A pellet plant at Vizag is at the ideation stage, pending finalization of the slurry pipeline route.
Logistics & Infrastructure
Railway Doubling (Kirandul-Bacheli line): Out of 131 km, only two sections remain. One section is expected to be completed in June 2026, and the final section (Bhansi-Bacheli) is expected in December 2026. This will enhance evacuation capacity from the current 28-30 million tons to 40 million tons immediately, and potentially to 60 million tons later.
Current Dispatch: The company is currently dispatching an average of over 20 rakes per day, with peaks of 23-26 rakes.
Receivables & Customer Updates
NMDC Steel Limited (NSL): The outstanding receivable has reduced from INR 2,500 crore to INR 1,800 crore. NSL is now profitable. The management expects full liquidation of outstanding amounts in 16-18 months at the current rate of INR 100 crore per month.
Rashtriya Ispat Nigam Limited (RINL): Supplies continue under a bill discounting arrangement with a 45-day payment lag. RINL has honored 100% of its discounted bills. The company consumes 7-8 million tons of NMDC's product and is considered a strategically important customer. No immediate recovery timeline was provided, but no risk is perceived as it is a government-owned company.
Demand Outlook: Demand from key customers (JSW, AMNS, JSPL, NSL, RINL) is strong due to their significant expansion plans. The low phosphorus content of NMDC's ore ensures its necessity as a blend, making the 100 million ton sales target achievable.
International Operations (Legacy Mine, Australia)
Operations broke even in the last two years. Production has been curtailed to focus on exploration and proving additional resources in adjoining leases.
Future plans include setting up a small refinery to improve profitability, contingent on proving large-volume resources.
Other Financials
Debt: No immediate plans to leverage the balance sheet. Current capex and acquisition plans are expected to be serviced through internal resources. Debt may be considered only for large, fructifying international acquisitions.
Employee Cost: Provisions for higher wages due to government pay revisions (effective 1st January 2026 for non-executives) are already accounted for. The impact from executive pay revision (effective 1st January 2027) is expected to be marginal and offset by operational efficiency gains.
Cost Efficiency: Production cost in Bailadila reduced from approx. INR 1,000/ton to INR 800/ton, with further reductions targeted.
Price Realization Outlook
Iron ore prices are expected to remain range-bound in the near term (Q1 FY27). The pricing decision considers multiple factors like international prices, competitor activity, and demand, not just steel prices. A slight lag effect exists but is not considered a primary driver.
The company aims to maintain its standalone iron ore EBITDA margin at 42-43% for FY27.
