Mumbai: NMDC Limited (BSE: 526371, NSE: NMDC), India’s largest iron ore producer and a Navratna PSU under the Ministry of Steel, announced its unaudited standalone and consolidated financial results for the third quarter and nine months ended 31 December 2025 (Q3 FY26). The Board of Directors has approved a first interim dividend of ₹2.50 per equity share and given the green light to form a new wholly-owned subsidiary dedicated to the acquisition, exploration, and production of critical minerals.
Standalone Financial Snapshot: Q3 FY26 (Quarter Ended Dec 2025)
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Revenue from Operations: ₹7,486 crore
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Profit Before Tax (PBT): ₹2,366 crore
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Net Profit After Tax (PAT): ₹1,738 crore
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Earnings Per Share (EPS): ₹1.98 (not annualized)
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Interim Dividend: ₹2.50 per share (Record Date: 13 February 2026)
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Segment Driver: Iron Ore contributed ₹6,023 crore (80.5% of revenue) with a segment profit of ₹2,168 crore.
Key Board Announcements
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Interim Dividend: The Board declared the first interim dividend of ₹2.50 per share for FY26. The record date for determining shareholder eligibility is 13 February 2026.
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New Wholly-Owned Subsidiary (WOS): In a strategic move to diversify its mineral portfolio, the Board approved the incorporation of a new WOS focused on critical minerals. This initiative is subject to necessary approvals from the Ministry of Steel and DIPAM.
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Financial Prudence: The company reported no defaults on any loans or debt securities, highlighting a strong balance sheet.
Segment-Wise Performance & Financial Position
The company’s performance was anchored by its core iron ore business, with the Pellet & Other Minerals segment also showing a positive turnaround. On a consolidated basis, NMDC reported a net profit of ₹1,757 crore for Q3 FY26.
The financial statements note a healthy capital employed of ₹34,026 crore (standalone) and total assets of ₹45,965 crore as of 31 December 2025.
Emphasis on Contingent Liabilities and Recoverables
The statutory auditor’s report drew attention to several significant contingent liabilities and recoverable dues, which management is actively addressing:
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Karnataka Tax Bill: A potential liability of ~₹15,165 crore related to a pending state bill (awaiting Presidential assent). The company believes any such levy is contractually recoverable from customers.
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Dues from NMDC Steel Ltd (NSL): Outstanding recoverables total ₹6,790 crore, including amounts from the demerger and trade receivables. Management is confident of recovery.
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Dues from RINL: Trade receivables of ₹4,105 crore. The company has factored in an expected credit loss provision of ₹31 crore based on recovery estimates amid RINL's revival plan.
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Other Contingencies: Includes demands related to a Common Cause Judgment (₹1,623 crore) and a Railway Transit Pass penalty (₹1,621 crore), both under legal challenge.
Management Outlook and Audit Review
The results were reviewed by the Audit Committee and approved by the Board of Directors. The unaudited financials have been subjected to a limited review by the statutory auditors, M/s. Varma & Varma, who issued an unmodified conclusion.
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About NMDC Limited
NMDC is a Navratna Public Sector Enterprise and India’s largest producer of iron ore, playing a pivotal role in serving the domestic steel industry. The proposed foray into critical minerals marks a strategic expansion into resources essential for modern technology and clean energy.