Mumbai: In Q3 FY26, NMDC Steel Limited posted standalone revenue from operations of Rupees 3,007.69 crore, up from Rupees 2,119.54 crore in Q3 FY25—a 41.8 percent surge. On a sequential basis, revenue dipped from Rupees 3,389.90 crore in Q2, impacted by softer volumes and product realisations. Net loss narrowed significantly on a YoY basis to Rupees 243.97 crore versus Rupees 757.78 crore a year ago. Q1 FY26 had seen a loss of Rupees(125.44) crore, indicating a volatile earnings pattern. This performance was aided by operating leverage despite cost pressures.
Sequential growth moderates
Total expenses for Q3 came in at Rupees 3,290.23 crore, a marginal decline from Rupees 3,593.68 crore in Q2. Notable line-item changes include a drop in depreciation to Rupees 251.95 crore (from Rupees 282.62 crore) and inventory-related relief of Rupees (149.20) crore, swinging from a build-up in Q2. Employee benefit expense rose sharply to Rupees 51.95 crore from Rupees 22.04 crore, largely due to Rupees 17.80 crore provisioning on account of new labour code-related gratuity and leave adjustments. The finance cost stood stable at Rupees 128.11 crore. Despite the easing cost structure, the company reported a wider QoQ loss due to lower revenue absorption.
Nine-Month View and Outlook
For the nine months ended December 2025, NMDC Steel posted revenue of Rupees 9,762.81 crore, up 72.4 percent from Rupees 5,664.80 crore a year ago. Net loss narrowed sharply to Rupees 333.19 crore from Rupees 1,900.40 crore in 9M FY25—a reduction of over 82 percent. The company's EBITDA margin also turned positive during this period, underlining an improving operational profile. With term loans reset to more favourable interest rates and stabilization of operating parameters, the company’s forward trajectory appears more resilient.
Disclaimer: This report is based on publicly disclosed financial results by NMDC Steel. It is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell.
