NMDC Steel Q4 Results: Profit Surges to ₹392 Cr, Full Year Turns Profitable
NEW DELHI: NMDC Steel Limited (NSL), the demerged steel unit of state-owned NMDC Ltd, on Friday reported a stunning turnaround in the fourth quarter of FY26, posting a net profit of ₹392 crore against a loss of ₹473 crore in the same quarter last year.
For the full financial year 2025-26, the company turned profitable with a net profit of ₹59 crore, compared to a massive loss of ₹2,374 crore in FY25.
Q4FY26 Performance Highlights
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Revenue from operations jumped 37 percent to ₹3,879 crore in Q4FY26, up from ₹2,838 crore in Q4FY25.
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For the full year, revenue surged 60 percent to ₹13,642 crore, compared to ₹8,503 crore in FY25.
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Profit Before Tax (PBT) stood at ₹486 crore in Q4, against a loss of ₹664 crore a year ago.
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Full-year PBT turned positive at ₹76 crore, versus a loss of ₹3,322 crore in FY25.
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Earnings Per Share (EPS) for Q4 came in at ₹1.34, compared to a loss of ₹1.62 per share in Q4FY25.
Debt Reduction & Interest Cost Savings
NSL significantly reduced its borrowing burden during the year:
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Total borrowings fell to ₹4,602 crore as of March 31, 2026, down from ₹5,898 crore a year earlier.
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Finance costs dropped 25 percent to ₹487 crore in FY26 from ₹652 crore in FY25, reflecting lower debt and better interest terms.
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The Debt-Equity ratio improved to 0.35 from 0.45 in the previous year.
Key Operational Ratios
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Operating margin turned positive at 21.45 percent in Q4FY26, against negative 9.57 percent in Q4FY25.
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Net profit margin for Q4 stood at 10.10 percent, a sharp recovery from negative 16.68 percent a year ago.
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Interest Service Coverage Ratio (ISCR) improved dramatically to 6.04 in Q4, compared to negative 2.85 in Q4FY25.
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Debt Service Coverage Ratio (DSCR) turned positive at 0.40 in Q4, up from negative 0.03.
Debt Repayment & NCD Redemption
During the year, the company fully repaid its outstanding Non-Convertible Debentures (NCDs) of ₹523.80 crore on the due date of August 28, 2025, along with accrued interest of ₹42.98 crore.
The company also repaid ₹1,187 crore of its rupee term loan from State Bank of India, reducing the outstanding to ₹3,289 crore as of March 31, 2026.
Auditor's Observation
Statutory auditor Sharad & Associates issued an unmodified opinion but noted that the company does not have the required number of independent directors on its board as per Section 149 of the Companies Act and Regulation 17 of Listing Regulations. Consequently, the audit committee composition is also non-compliant. The management stated that appointments are pending from the Central Government.
Stock Impact
The strong operational turnaround and debt reduction are likely to boost investor sentiment in NSL. The company's ability to sustain profitability and further reduce interest costs will be key monitorables going forward.