Could NMDC's 33% Q2 Profit Surge at Rs 1,694 Crore Signal Growth?
Click to start listening
Synopsis
In an impressive display of financial strength, NMDC has reported a remarkable 33% increase in net profit for Q2, reaching Rs 1,694 crore. This surge is attributed to strong domestic steel demand and effective operations, positioning NMDC as a key player in India's mining sector.
Key Takeaways
- Net profit surged 33% to Rs 1,694 crore.
- Turnover increased by 30% to Rs 6,261 crore.
- Record production of 10.21 million tonnes.
- Strategic expansion plans with a CAPEX of Rs 3,707 crore.
- Focus on sustainability and net-zero emissions.
New Delhi, Oct 30 (NationPress) The public sector mining giant NMDC has reported an impressive 33 percent rise in net profit, reaching Rs 1,694 crore for the second quarter (July-September) of the financial year, driven by strong domestic demand for steel and effective mining operations, as stated in an official announcement on Thursday.
In the second quarter, the company’s revenue soared by 30 percent to Rs 6,261 crore, while profit before tax climbed by 35 percent to Rs 2,271 crore. Additionally, NMDC achieved a remarkable 32 percent increase in its EBITDA (earnings before interest, tax, depreciation, and amortisation), totaling Rs 2,385 crore during this period.
During Q2 FY26, the company attained record production and sales volumes, with total output reaching 10.21 million tonnes, a 23 percent increase compared to the same quarter last year. Iron ore sales also rose to 10.72 million tonnes, marking a 10 percent improvement over Q2 FY25, according to the statement.
Amitava Mukherjee, Chairman and MD of NMDC, remarked, “The record production and sales, along with substantial financial growth this quarter, reflect our historical reliability. Our commitment to high-quality ore supply, ambitious expansion strategies, and alignment with national policy goals continues to position NMDC as a vital contributor to India’s industrial ambitions. Moving forward, we aim to achieve self-sufficiency in steelmaking raw materials while also pursuing net-zero emissions.”
NMDC is involved in the exploration and extraction of iron ore, diamond production, sponge iron sales, and wind power generation and sales.
In FY 2024-25, the mining leader set a new standard, achieving total production of 44.04 million tonnes and sales of 44.4 million tonnes. The company also recorded its highest-ever Q4 sales, reaching 12.66 million tonnes, the best since its establishment.
To bolster its growth initiatives, NMDC achieved a record standalone capital expenditure (CAPEX) of Rs 3,707 crore in FY25, emphasizing its commitment to capacity building and infrastructure development.
Point of View
It is critical to recognize NMDC's impressive financial performance as reflective of both the company's operational excellence and the growing demands of India's steel sector. Their strategic initiatives and commitment to sustainability underscore their pivotal role in advancing national industrial goals.
NationPress
03/11/2025
Frequently Asked Questions
What factors contributed to NMDC's profit increase?
Strong domestic steel demand and resilient mining operations have significantly contributed to NMDC's profit increase.
What was NMDC's net profit for Q2?
NMDC's net profit for Q2 reached Rs 1,694 crore, marking a 33% increase.
What are NMDC's future plans?
NMDC aims to achieve self-sufficiency in steelmaking raw materials while striving for net-zero emissions.
How much did NMDC invest in CAPEX?
NMDC registered a record standalone capital expenditure of Rs 3,707 crore in FY25.
What was the production volume for NMDC in Q2 FY26?
NMDC achieved a production volume of 10.21 million tonnes in Q2 FY26.
