NMDC Steel Swings to ₹61 Crore Q2 Net Profit as Operating Margins Double to 12.3%

The red ink vanished.

State-run NMDC Steel Ltd swung to a net profit of ₹61 crore in the second quarter, clawing its way back from a net loss of ₹115 crore in the identical period last year. Revenue advanced 11% year-on-year to ₹3,764.4 crore from ₹3,390 crore, according to regulatory filings submitted to stock exchanges on Thursday.

Operational leverage delivered the turnaround. Earnings before interest, tax, depreciation, and amortisation (EBITDA) more than doubled, vaulting to ₹462.2 crore in the September quarter against ₹207.4 crore twelve months earlier. Operating profitability surged in tandem—EBITDA margins widened by 620 basis points to hit 12.3%, up from 6.1% in the year-ago quarter.

Turnaround at the Operating Level

The bottom-line recovery trickled down through every operational layer. Profit before tax reached ₹102.72 crore, reversing a pre-tax loss of ₹182.65 crore recorded during the same three months last year. The regulatory disclosures confirmed zero exceptional items on the ledger for both comparative quarters, leaving the headline jump entirely unclouded by one-off accounting adjustments.

Other income scaled higher, climbing to ₹28.51 crore from ₹21.13 crore. That carried total income across the line to ₹3,792.88 crore, compared to ₹3,411.03 crore a year prior.

Demerger Mandate and Trading Reaction

NMDC Steel operates exclusively in the manufacturing of primary iron and steel products. The company was carved out of its state-backed parent, mining giant NMDC Limited, structured as an independent public entity designed to run the Nagarnar plant while the central government seeks an external buyer to offload its equity stake.

Trading desks took the numbers in stride.

Shares of NMDC Steel Ltd finished Thursday's session virtually unchanged on the BSE, slipping ₹0.030 or 0.074% to settle at ₹40.68. The muted price action followed prior volatile quarters where trading swings tracked operational hiccups—including an earlier 9% drop after Q1 operating numbers cooled, offset by occasional relief rallies.

Market Context: NMDC Steel's swing to positive territory marks a critical milestone for state-run manufacturing divestment candidates. Doubling operating margins to 12.3% establishes proof of independent plant viability as prospective strategic bidders evaluate the asset's standalone cash generation profile.

Market participants now await institutional updates on output ramp-up schedules and official timelines regarding the central government's strategic stake divestment.