NMDC profit falls 2% despite higher September-quarter revenue

NMDC Limited reported standalone profit of Rs 1,666.67 crore for the quarter ended September 30, 2026, down 2% year on year, because a Rs 653.12 crore increase in royalty and other levies and higher operating costs exceeded a 6% rise in revenue from operations to Rs 6,638.23 crore.

Why did NMDC's September-quarter profit fall?

NMDC's September-quarter profit fell because total expenses increased by more than total income on a year-on-year basis. Profit for the period was Rs 1,666.67 crore, compared with Rs 1,694.42 crore in the quarter ended September 30, 2025, while revenue from operations rose by Rs 377.38 crore to Rs 6,638.23 crore.

Total expenses rose by Rs 500 crore to Rs 4,871.19 crore in the September 2026 quarter, exceeding the Rs 489.84 crore increase in total income to Rs 7,131.76 crore. Profit before tax declined by Rs 10.16 crore to Rs 2,260.57 crore, and tax expense increased by Rs 17.81 crore to Rs 593.84 crore.

NMDC also reported a lower sequential result in the quarter ended September 30, 2026. Profit for the period declined from Rs 2,007.27 crore in the quarter ended June 30, 2026, as revenue from operations fell by Rs 157.02 crore and total expenses rose by Rs 421.88 crore.

Which costs rose most for NMDC in Q2?

Royalty and other levies recorded the largest year-on-year increase among NMDC's expense lines, rising 30% to Rs 2,830.14 crore in the September 2026 quarter. The cost was Rs 653.12 crore higher than the Rs 2,177.02 crore reported a year earlier and remained NMDC's largest reported expense line.

Other expenses rose by Rs 403.12 crore to Rs 973.46 crore, while employee benefits expense increased by Rs 94.07 crore to Rs 496.14 crore. Raw-material consumption rose by Rs 97.20 crore to Rs 415.77 crore, and stores and spares consumption increased by Rs 41.33 crore to Rs 181.67 crore.

Depreciation, amortisation and impairment expense increased to Rs 150.22 crore from Rs 106.73 crore, and finance costs rose to Rs 25.26 crore from Rs 7.68 crore. These increases were partly offset by a Rs 335.86 crore credit from changes in inventories, compared with a Rs 100.77 crore expense in the September 2025 quarter.

For the half year ended September 30, 2026, royalty and other levies rose by Rs 1,467.93 crore to Rs 6,325.17 crore. Total expenses increased by Rs 661.25 crore to Rs 9,320.50 crore, compared with a Rs 538.47 crore increase in revenue from operations to Rs 13,433.48 crore.

How dependent was NMDC on iron ore in Q2?

Iron ore remained NMDC's principal source of segment revenue and segment result in the September 2026 quarter. The segment generated revenue of Rs 5,956.52 crore and a segment result before tax and interest of Rs 2,161.86 crore, against total segment revenue of Rs 6,841.22 crore and total segment result of Rs 2,213.84 crore.

Iron ore revenue increased by Rs 619.61 crore from Rs 5,336.91 crore in the September 2025 quarter, while its segment result rose by Rs 137.22 crore from Rs 2,024.64 crore. However, the iron ore segment result was lower than Rs 2,630.63 crore in the preceding June 2026 quarter.

Pellet, other minerals, products, services and others reported segment revenue of Rs 884.70 crore, up from Rs 631.78 crore a year earlier, but its segment result declined to Rs 52.05 crore from Rs 81.28 crore. HR Coil & Sheets reported no revenue and a Rs 0.07 crore segment loss in the September 2026 quarter.

NMDC said there were no HR Coil & Sheets transactions during the half year ended September 30, 2026 pending necessary approvals. HR Coils had been included within pellet, other minerals, products, services and others through the quarter and half year ended September 30, 2025 because the activity was below the separate disclosure threshold.

What did NMDC report for the first half?

NMDC's profit for the half year ended September 30, 2026 was broadly unchanged from a year earlier despite higher revenue. Profit for the period increased by Rs 10.90 crore to Rs 3,673.94 crore, while profit before tax increased by Rs 38.50 crore to Rs 4,953.22 crore.

Revenue from operations rose to Rs 13,433.48 crore from Rs 12,895.01 crore in the half year ended September 30, 2025. Other income increased by Rs 161.28 crore to Rs 840.24 crore, while total tax expense rose by Rs 27.75 crore to Rs 1,279.09 crore.

Iron ore generated half-year revenue of Rs 12,758.64 crore, an increase of Rs 1,222.58 crore from the prior-year period. Its segment result rose by Rs 170.82 crore to Rs 4,792.49 crore, whereas the result from pellet, other minerals, products, services and others fell by Rs 14.94 crore to Rs 80.80 crore.

NMDC recorded profit from continuing operations of Rs 3,674.13 crore for the six months, while discontinued operations produced a Rs 0.19 crore loss after tax. Total comprehensive income was Rs 3,635.34 crore, compared with Rs 3,606.60 crore in the comparable 2025 half year.

What changed in NMDC's cash flow and financial position?

NMDC's operating cash flow declined in the first half as working-capital requirements increased. Net cash flow from operating activities was Rs 2,705.99 crore in the half year ended September 30, 2026, compared with Rs 3,014.64 crore a year earlier, while cash generated from operations fell to Rs 3,793.37 crore from Rs 4,529 crore.

Trade receivables increased by Rs 878.61 crore and inventories increased by Rs 1,533.74 crore during the six-month period. Capital expenditure on tangible and intangible assets and capital work in progress was Rs 932.60 crore, lower than Rs 1,285.91 crore in the half year ended September 30, 2025.

Total assets stood at Rs 52,528.09 crore on September 30, 2026, up from Rs 48,019.14 crore on March 31, 2026. Equity increased to Rs 36,591.79 crore, total liabilities rose to Rs 15,936.30 crore, and current borrowings increased to Rs 6,758.95 crore from Rs 5,874.10 crore at the preceding year end.

Cash and cash equivalents were Rs 86.43 crore on September 30, 2026, compared with Rs 124.21 crore on March 31, 2026, while bank balances other than cash equivalents were Rs 14,830.83 crore. Trade receivables stood at Rs 9,510.13 crore and inventories at Rs 4,056.06 crore at the September reporting date.

Conclusion

NMDC's September-quarter outcome shows that higher standalone revenue did not translate into higher profit as royalty and other levies, other expenses, employee costs and raw-material consumption increased. Iron ore remained the central earnings contributor, generating Rs 2,161.86 crore of the Rs 2,213.84 crore total segment result before tax and interest.

The next material matters include the Karnataka (Mineral Rights and Mineral Bearing Land) Tax Bill, 2024, for which NMDC disclosed a contingent liability of about Rs 16,188.56 crore while Presidential assent and related conditions remain pending. NMDC also said recommendations from Metallurgical & Engineering Consultants on potential projects for Karnataka Vijayanagar Steel Limited land were awaited as of September 30, 2026.