NMDC Steel Share Price in Focus as Stock Surges 16% on Strong Q1 FY26 Results

Shares of NMDC Steel Ltd surged as much as 16% in Wednesday’s trade to ₹41.70 after the company reported a net profit of ₹26 crore for the quarter ended June 2025, a dramatic turnaround from a net loss of ₹547 crore in the same period last year. This is the first time the steelmaker, a demerged entity of state-run NMDC Ltd., has posted a profit.

Revenue Jumps 66% as Pricing, Production Boost Margins

Revenue during the quarter rose 66% yearon year to ₹3,365 crore, driven by higher steel prices and increased production. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹408 crore, compared to a loss of ₹401 crore a year ago, translating into an EBITDA margin of 12%.

Management attributed the improved performance to stronger pricing, capacity ramp up, and better operating leverage.

NMDC Shareholding Snapshot (as of June 2025)

• Promoters: 60.79%
• LIC: 14%
• Foreign Portfolio Investors (FPIs): over 4%
• Retail shareholders (up to ₹2 lakh capital): 10.5% (around 7.69 lakh shareholders)
• Mutual Funds: Insignificant holding

NMDC Share Price Performance

As of midday on August 13, NMDC Steel shares were up 16.3% at ₹41.70, their sharpest single day rise since listing. Despite the rally, the stock remains down about 8% year to date.

Read More:Best Metal Stocks in August 2025: NALCO, Vedanta and More - Based on 5-Yr CAGR.

Conclusion

NMDC Steel’s first ever profit is a major milestone, signalling a turnaround in its operations after years of losses. With capacity utilisation improving and market prices supportive. However, sustaining profitability will require maintaining cost efficiency and navigating price volatility in the steel market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.