The NMDC Q3 Results tell a clear story of mixed signals. Strong revenue growth came in, but rising costs quietly ate into profits. For India’s largest iron ore producer, the December quarter was about holding ground in a tough operating environment—higher expenses on one side, supportive diversification on the other.
Let’s break it down, clearly and simply.
Market Performance Snapshot
NMDC reported its Q3FY26 financial results on February 3, highlighting how cost pressure shaped earnings despite better topline growth.
- Net Profit: ₹1,747 crore
- Year-on-Year Change: Down 8% from ₹1,896 crore
- Key Pressure Point: Higher operating expenses
Revenue growth offered support, but margins tightened as costs rose faster than income.
NMDC Q3 Results: Key Financial Numbers
The NMDC Q3 results reflect a quarter where revenue momentum didn’t fully translate into profit growth.
Revenue Performance
- Revenue from Operations: ₹7,610 crore
- YoY Growth: Up 16% from ₹6,567 crore
Higher realisations and contributions from non-core segments helped push revenues higher compared to last year.
Operating Profit (EBITDA)
- EBITDA: ₹2,144.3 crore
- YoY Change: Down 9.6% from ₹2,372 crore
EBITDA Margins
- EBITDA Margin: 28.2%
- Margin Contraction: 790 basis points YoY
The margin compression clearly shows how higher costs weighed on operating profitability during the quarter.
Costs Rise, Profits Feel the Heat
The key drag in the NMDC Q3 results came from expenses.
- Operating Expenses: ₹5,608.54 crore
- Previous Year (Q3FY25): ₹4,359 crore
This sharp increase in costs directly impacted both EBITDA and net profit, limiting the benefit of higher revenues.
Segment-Wise Revenue Picture
NMDC’s revenue mix shifted during the quarter, showing contrasting trends across segments.
Iron Ore Segment
- Revenue: ₹6,022.83 crore
- YoY Change: Down from ₹6,434 crore
Pellets, Other Minerals & Services
- Revenue: ₹1,662 crore
- YoY Growth: Nearly 900% jump from ₹169 crore
While iron ore revenues softened, strong growth from pellets and other segments played a crucial role in supporting overall revenue.
Interim Dividend Announcement
Alongside the NMDC Q3 results, the company announced a shareholder payout.
- Interim Dividend: ₹2.50 per share
- Face Value: ₹1 per share
- Record Date: Friday, February 13, FY26
This marks NMDC’s first interim dividend for the financial year 2025–26.
Strategic Move into Critical Minerals
NMDC also shared an important strategic update during its Q3 announcement.
The company has approved a proposal to set up a wholly owned subsidiary (WOS) to focus on:
- Acquisition of critical minerals
- Exploration activities
- Production and allied operations
The move is subject to approvals from:
- Ministry of Steel
- DIPAM
- Other relevant authorities
This signals NMDC’s intent to expand beyond traditional mining operations into future-focused mineral segments.
Summary: What the NMDC Q3 Results Show?
The NMDC Q3 results paint a balanced picture:
- Revenue growth remained strong at 16% YoY
- Net profit declined 8% due to rising costs
- EBITDA margins narrowed sharply
- Non-iron ore segments provided meaningful revenue support
- An interim dividend and critical minerals plan added strategic context
Overall, the quarter highlights how cost pressures can weigh on profitability, even when revenue growth stays intact. The numbers tell a grounded, realistic story—one of resilience, adjustment, and careful expansion in a changing operating landscape.
Source: Livemint
Easy & quick
Leave A Comment?