NMDC Steel Q1 FY27 Results: Revenue Rises, Profit Improves YoY but Margins Remain Under Pressure
NMDC Steel Limited has announced its unaudited financial results for the quarter ended June 30, 2026, with revenue and profit showing improvement compared with the year-ago quarter.
However, the company continues to face pressure from higher expenses and finance costs, while profitability remains relatively modest compared with the size of its revenue.
The results were approved by the Board of Directors on August 14, 2026, and were subject to a limited review by the statutory auditors.
NMDC Steel Q1 FY27 Revenue
NMDC Steel reported revenue from operations of ₹3,661.84 crore in Q1 FY27.
This compares with:
- ₹3,365.22 crore in Q1 FY26
- ₹3,879.00 crore in Q4 FY26
On a year-on-year basis, revenue from operations increased by approximately 8.8%.
However, revenue declined sequentially from the March 2026 quarter.
Other income increased to ₹42.89 crore, compared with ₹20 crore in the year-ago quarter.
As a result, total income stood at ₹3,704.73 crore, compared with ₹3,385.22 crore in Q1 FY26.
Profit Improves 98% YoY
NMDC Steel’s profit after tax (PAT) stood at ₹50.51 crore in Q1 FY27.
This compares with:
- ₹25.56 crore in Q1 FY26
- ₹391.91 crore in Q4 FY26
On a year-on-year basis, net profit nearly doubled, increasing by approximately 98%.
However, the sequential comparison looks significantly weaker because Q4 FY26 included a much higher profit.
Profit Before Tax
Profit before tax stood at ₹73.95 crore in Q1 FY27, compared with:
- ₹36.14 crore in Q1 FY26
- ₹486.10 crore in Q4 FY26
The company did not report any exceptional items during the quarter.
Expenses Increase
Total expenses increased to ₹3,630.78 crore in Q1 FY27 from ₹3,349.08 crore in Q1 FY26.
The biggest expense remained the cost of materials consumed.
Cost of Materials
Material consumption increased to ₹2,509.37 crore, compared with ₹2,045.57 crore in Q1 FY26.
This represents a significant increase and contributed to pressure on profitability.
Finance Cost
Finance costs stood at ₹126.38 crore during the quarter.
This was lower than ₹133.68 crore in Q1 FY26 but significantly higher than ₹96.42 crore in Q4 FY26.
The company’s borrowing position and interest costs therefore remain important factors for investors to monitor.
Inventory Movement Provides Some Support
NMDC Steel reported a negative ₹121.36 crore under changes in inventories of finished goods and work-in-progress.
This compares with a positive ₹102.38 crore in Q1 FY26.
The negative figure represents an adjustment that reduced the overall expense burden during the quarter.
EPS Stands at ₹0.19
The company’s basic and diluted EPS stood at ₹0.19 for Q1 FY27.
This compares with:
- ₹0.09 in Q1 FY26
- ₹1.34 in Q4 FY26
The year-on-year improvement reflects the increase in profitability, although the sequential decline is substantial.
Borrowings Increase
NMDC Steel’s borrowings stood at ₹5,056.15 crore as of June 30, 2026.
This compares with:
- ₹4,601.94 crore as of March 31, 2026
- ₹5,709.82 crore as of June 30, 2025
Borrowings therefore increased sequentially but remained below the year-ago level.
The company’s net worth stood at ₹13,228.35 crore, compared with ₹13,173.20 crore at March-end.
Debt-Equity Ratio
The company’s debt-equity ratio was 0.38 at the end of June 2026.
This compares with:
- 0.35 at March 31, 2026
- 0.43 at June 30, 2025
The ratio has therefore increased sequentially but remains below the year-ago level.
Interest Coverage Remains an Important Metric
NMDC Steel reported an Interest Service Coverage Ratio (ISCR) of 1.59 for Q1 FY27.
This compares with:
- 1.27 in Q1 FY26
- 6.04 in Q4 FY26
Although the ratio improved year-on-year, the sharp sequential decline highlights the importance of monitoring the company’s operating profitability relative to its financing costs.
Important Update on the Company’s SBI Loan
One of the notable disclosures in the results relates to NMDC Steel’s rupee term loan from State Bank of India.
The company has a sanctioned rupee term loan of ₹4,476.20 crore, of which ₹4,475.81 crore had been drawn.
The loan was initially linked to six-month MCLR and subsequently underwent changes in pricing.
The company disclosed that SBI revised the interest rate to 8.70% per annum, linked to three-month MCLR, from April 12, 2025.
The latest applicable interest rate is 8.40% per annum, effective from January 12, 2026, based on three-month MCLR.
The outstanding rupee term loan stood at ₹3,177.27 crore as of June 30, 2026, after repayment of ₹1,298.54 crore.
Importantly, the company stated that there was no default in repayment of borrowings or interest as of the reporting date.
Working Capital Borrowings
NMDC Steel has a sanctioned working capital limit of ₹4,100 crore, comprising:
- Fund-based limit: ₹2,600 crore
- Non-fund-based limit: ₹1,500 crore
As of June 30, 2026, utilisation stood at:
- ₹1,870.73 crore of fund-based limits
- ₹1,005.64 crore of non-fund-based limits
The applicable interest rate on working-capital borrowings was also 8.40% per annum, effective January 12, 2026, based on three-month MCLR.
Strategic Disinvestment Remains an Important Factor
NMDC Steel’s results also reiterate the background of the government’s proposed strategic disinvestment.
The Government of India has previously approved the strategic disinvestment of NMDC Steel and plans to divest its 50.79% stake along with management control to a strategic buyer.
The government had also proposed offering a 10% stake in NMDC Steel to NMDC Limited after identification of the strategic buyer through the bidding process.
This remains an important corporate development for investors to track.
Steel Remains the Company’s Only Reportable Segment
NMDC Steel is engaged in the manufacturing of iron and steel products.
The company generates revenue primarily from its iron and steel operations, which constitute its only reportable segment.
Therefore, segment-wise reporting is not applicable under Ind AS 108.
No Subsidiaries, Joint Ventures or Associates
The company disclosed that it had no subsidiaries, joint ventures or associates as of June 30, 2026.
Important Point to Consider
NMDC Steel delivered ₹3,661.84 crore of revenue and ₹50.51 crore of net profit in Q1 FY27, with both figures improving on a year-on-year basis.
However, the sequential performance was weaker, with profit falling sharply from ₹391.91 crore in Q4 FY26.
For investors, the key factors to monitor going forward are steel realisations, raw-material costs, production and sales volumes, debt levels, interest costs and the government’s strategic disinvestment process.
The company’s latest disclosure that its applicable term-loan interest rate is 8.40%, along with the absence of any borrowing default, is also relevant when assessing its financial position.
Source: NMDC Steel Limited, Q1 FY27 unaudited financial results and limited review report dated August 14, 2026.
Disclaimer: This article is for informational and educational purposes only and should not be considered investment advice. Investors should conduct their own research and consult a qualified financial adviser before making investment decisions.