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NMDC Steel Q1 Profit Drops 87% Amid Margin Squeeze

By ThePip DeskNMDC Steel Q1 Profit Drops 87% Amid Margin Squeeze

NMDC Steel’s Q1 FY27 net profit plunges 87.1% to Rs 50.5 crore due to a 50.4% EBITDA drop and significant margin contraction.

NMDC Steel Ltd. recorded a substantial sequential decline in its profitability for the quarter ending June 2026. The company’s net profit plummeted by 87.1%, settling at Rs 50.5 crore.

This significant drop occurred as revenue decreased by 5.6% quarter-on-quarter, reaching Rs 3,662 crore. The preceding quarter had reported a net profit of Rs 392 crore and revenue of Rs 3,879 crore.

Operating Performance Weakens

  • EBITDA fell by 50.4% sequentially, from Rs 806 crore to Rs 400 crore.
  • EBITDA margin contracted from 20.8% to 10.9%.

This weakening operating performance, characterized by the sharp fall in both operating profit and margins, directly impacted the company’s net profit. Revenue showed relatively modest resilience despite the overall decline.

NMDC Steel, a subsidiary of the state-run mining major NMDC, operates an integrated steel plant located in Nagarnar, Chhattisgarh. This facility boasts a production capacity of 3 million tonnes per annum.

Investors are expected to closely monitor key metrics, including steel realisations, production and sales volumes, input costs, and capacity utilisation in upcoming quarters for any indications of improved operating performance.

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