NMDC Reports Quarterly Results; Net Profit Stands at INR 2,005.71 Crores

NMDC Reports Quarterly Results; Net Profit Stands at INR 2,005.71 Crores​

NMDC Limited, a Government of India Enterprise, has announced its unaudited consolidated financial results for the quarter ended June 30, 2026. The company reported a net profit of INR 2,005.71 crores and a total comprehensive income of INR 1,981.81 crores.

The Board of Directors reviewed and approved these results at its meeting held on August 14, 2026.

Financial Performance Overview​

NMDC's consolidated performance reflects significant revenue from operations alongside various financial commitments across the business units.

The company’s profitability figures for the quarter ended June 30, 2026, along with previous periods, are detailed below:

Major Business Initiatives and Asset Status​

The company’s operational updates highlight key developments across its diverse portfolio, including recovery efforts from subsidiaries and progression in long-term projects.

Restructuring and Receivables:

• NMDC is confident of the ultimate recovery of dues amounting to INR 1,601.39 crores from NMDC Steel Limited (NSL), which relates to trade and other receivables arising from the demerger scheme. Additional outstanding balances due from NSL include INR 4,499.20 crores for iron ore sales, INR 167.53 crores for employee services, and INR 179.83 crores as an advance paid for HR products.
• Trade receivables from Rashtriya Ispat Nigam Limited (RINL) stand at INR 4,712.47 crores. The management has recognized an expected credit loss reflecting the time value of money amounting to INR 298.48 crores, based on the understanding of government support for RINL's recovery.
• The investment in Legacy Iron Ore Limited (LIOL), a subsidiary focused on exploration in Western Australia, stands at INR 443.34 crores. The management confirmed that no impairment was noted during the assessment, and the investment is carried at cost.

Project Development:

• Regarding the land allotted to its subsidiary, Karnataka Vijayanagar Steel Limited (KVSL), NMDC advanced INR 639.61 crores towards the land cost for setting up a 3 MTPA integrated steel plant. The company has classified an amount equivalent to ~95.94 crores, or 15% of the advance, as Contingent Liabilities in view of pending decisions from the Government of Karnataka and KIADB.
• The investment in Bastar Railway Private Limited (BRPL), established for a rail corridor project, totals INR 152.67 crores. The Ministry of Railways granted in-principle approval for taking over the BRPL project.

Contingent Liabilities and Market Risk Assessment​

The results carry several significant contingent liabilities related to regulatory and legal proceedings:

• Karnataka Tax Bill: A potential retrospective levy of taxes on mineral rights and land, proposed by the Karnataka Legislature and pending Presidential assent, has been quantified at approximately INR 15,785.72 crores and is considered a contingent liability.
• Compensation Demands: Two major demands remain sub-judice: a demand from South Bastar, Dantewada, totaling INR 7,241.35 crores based on the Supreme Court’s Common Cause judgment; subsequently revised to a demand of INR 1,623.44 crores. Furthermore, a penalty demand related to mineral dispatches without timely Railway Transit Passes (RTP), set at ~INR 1,620.50 crores, is considered a contingent liability.

The company's investments in various joint ventures and associates, including NMDC-CMDC Limited and Bastar Railway Private Limited, were carried at cost following the completion of their respective legal and regulatory milestones for project operationalization.

NMDC Stock Price Movement​

On Friday, NMDC Limited saw its shares slip by 0.71%, closing the trading session at ₹84.40.
The stock traded through a volume of 18.59 million shares during the session.