NMDC's Profit Holds Steady Despite Sharp Revenue Drop in Q1
India's largest iron ore miner saw profit dip only slightly from last quarter, even as revenue fell sharply, protecting its net profit margin.
NMDC's Q1 FY27 earnings show a marginal year-on-year profit increase. While revenue fell sharply from the previous quarter, profit remained resilient, supporting a strong net profit margin.
NMDC, India's leading iron ore producer, delivered a quarter of stable profitability despite a significant sequential drop in revenue. While sales fell sharply from the previous quarter, profit showed remarkable resilience, indicating effective cost management in a volatile commodity environment.
Year-on-year, the performance was essentially flat. Revenue for the quarter ended June 2026 inched up 0.8% to ₹6,795 crore, while profit after tax (PAT) grew a marginal 0.4% to ₹1,976 crore. The more dramatic story is the quarter-on-quarter comparison, where revenue plunged 40.1% from the March quarter's ₹11,343 crore. However, profit declined by a much smaller 2.5%, showcasing the company's ability to protect its bottom line.
This resilience is reflected in the net profit margin, which held firm at 29.1%—virtually unchanged from the 29.2% seen in the same quarter last year. The trailing twelve-month (TTM) net profit margin stands at 23.2%, with TTM profit at ₹7,459 crore.
A look at the last five quarters reveals the volatile nature of the business and the recent margin recovery.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period Ended | June 2026 | March 2026 | June 2025 |
| Revenue (₹ Cr) | 6,795.25YoY +0.8% | 11,343.13 | 6,738.86 |
| Profit (₹ Cr) | 1,976.23YoY +0.4% | 2,027.17 | 1,967.69 |
| Net Profit Margin (%) | 29.1YoY -0.3% | 17.9 | 29.2 |
Key Points
- The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.13 and a high interest coverage ratio of 52.5.
- Return on Equity (ROE) remains healthy at 23.6%.
- The stock has delivered strong returns, gaining 21.6% over the past year and 113.3% over three years.
Despite the flat quarterly earnings, NMDC trades at a price-to-earnings (P/E) ratio of 9.3, which is at a slight discount to its industry average of 10.4. The company's ability to maintain profitability through a sharp revenue contraction suggests underlying operational strength as it navigates the cyclical mining landscape.
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· NMDC
(BSE)
ISIN: INE584A01023
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