Company Overview

NMDC Steel Limited (NSL) | Scrip Code: 543768 (BSE), NSLNISP (NSE), 74920 (CSE) | Document Date: September 6, 2026

Financial Performance FY 2025-26

NMDC Steel achieved a significant turnaround with a standalone net profit of ₹58.72 crore for FY26, reversing from a loss of ₹2,373.78 crore in FY25. Revenue from operations grew 60% to ₹13,641.81 crore from ₹8,503.05 crore. EBITDA turned positive at ₹1,604.44 crore compared to negative ₹1,716.89 crore in the previous year. The company reduced total borrowings by ₹1,296 crore to ₹4,601.94 crore while maintaining a negative working capital position of ₹5,736.26 crore.

Operational Performance

Hot rolled coil production increased 62% to 2.33 million tonnes, with sales reaching 2.45 million tonnes valued at ₹11,608.58 crore. Specific energy consumption improved 11% to 6.21 Gcal/tcs. The company achieved multiple ISO certifications including ISO 29001:2020 for oil/gas industry supplies and CE certification for European market access. Environmental initiatives included 90% water recycling through closed-loop systems and 141 hectares of green belt development.

Audit Qualifications and Compliance Issues

The statutory auditor's report (Sharad & Associates) included qualifications on:

  • Non-provisioning for expected credit losses on trade receivables of ₹179.05 crore
  • Non-recognition of ₹9.60 crore liability for land transfer charges payable to CSIDC
  • Incorrect classification of foreign exchange loss of ₹37.64 crore in cash flow statement

Secretarial audit (B.R. Agrawal & Associates) noted SEBI LODR non-compliances resulting in stock exchange fines of ₹57.05 lakh, primarily due to delayed appointments of independent directors by the Ministry of Steel. The company lacked statutory committees due to absence of independent directors on the board.

Corporate Governance and AGM Details

The 11th AGM is scheduled for September 28, 2026 via video conference, with e-voting available from September 24-27. Key agenda items include adoption of financial statements, re-appointment of directors retiring by rotation, and appointment of new functional directors. The board comprised 7 directors (5 functional including CMD, 2 government nominee) with no independent directors as of March 31, 2026.

Related Party Transactions and Contingencies

Significant related-party transactions with NMDC Limited included iron ore supply worth ₹4,074.86 crore on deferred payment basis and product sales arrangements up to ₹8,000 crore. Contingent liabilities stood at ₹3,823.17 crore, primarily comprising disputed contractor claims under arbitration (₹2,805.36 crore) and other claims not acknowledged as debts (₹1,001.76 crore).

Future Outlook and Strategic Position

The company focuses on expanding its HR coil product portfolio with high-strength low-alloy and automotive grades, leveraging raw material linkage with NMDC's Bailadila mines. Strategic location near Visakhapatnam seaport and ongoing digitalization initiatives support operational efficiency. The government's strategic disinvestment process for NMDC Steel Limited remains ongoing.