NMDC's Q4 Revenue Surge Masks a Persistent Profitability Squeeze
India's top iron ore miner posted a 62% jump in quarterly revenue, but its net profit margin fell sharply from the previous quarter.
NMDC's March quarter revenue surged 62% year-on-year, yet profitability weakened as profit growth lagged and net margins contracted significantly.
NMDC's fourth quarter delivered a powerful surge in revenue, but a sharp contraction in profitability signals a mixed picture for the state-owned miner. While sales jumped 62% year-on-year to over ₹11,300 crore, profit growth of 37% failed to keep pace, leading to a notable squeeze on net profit margins.
The quarter's performance highlights a clear trajectory: revenue has been climbing steadily through FY26, but profitability has been under pressure. The net profit margin for Q4 stood at 17.9%, a significant drop from 23.1% in Q3 and well below the trailing twelve-month average of 23.2%. This suggests costs are rising faster than sales, even as the company benefits from higher iron ore volumes or prices.
Revenue (₹ Cr.)
Profit (₹ Cr.)
Net Profit Margin (%)
| Metric | CurrentQ4 FY26 | PreviousQ3 FY26 | Same quarter LYQ4 FY25 |
|---|---|---|---|
| Revenue (₹ Cr.) | 11,343.13YoY +62% | 7,610.79 | 7,004.59 |
| Profit (₹ Cr.) | 2,027.17YoY +37% | 1,757.29 | 1,476.71 |
| Net Profit Margin (%) | 17.9YoY -15% | 23.1 | 21.1 |
Key Points
- Full-Year Performance: For the full fiscal year FY25, revenue grew 12.2% and profit grew 17.3%, showing a healthier margin trend on an annual basis.
- Long-Term Context: Over a five-year horizon, both revenue and profit have contracted, with a -2.7% and -11.5% CAGR respectively, reflecting the cyclical nature of the commodity business.
- Strong Financial Health: The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.13 and a high return on equity of 23.63%.
- Shareholder Returns: The stock has delivered strong returns, up 30.5% over the past year and 156.9% over three years, and trades at a slight discount to its industry peers with a P/E of 9.3.
Overall, NMDC's latest quarter shows it can generate powerful top-line growth in a favorable market, but managing costs to protect margins will be the critical challenge in the coming quarters.
Live Chart
· NMDC
(BSE)
ISIN: INE584A01023
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