State-run mining giant NMDC Ltd. delivered an uneven operational scorecard for the second quarter, delivering top-line expansion that failed to shield core profitability from cost pressure.
Revenue surged past consensus targets to touch ₹6,683 crore for the quarter ended September, outpacing Street expectations of ₹6,180 crore by more than 8%. But operating efficiency lagged. Earnings before interest, tax, depreciation, and amortisation (EBITDA) dropped to ₹1,940 crore, trailing market projections of ₹2,075 crore. The operational miss was sharp. EBITDA margin contracted to 29.2%—a steep 440-basis-point deficit against the 33.6% forecast by equity analysts—reflecting rising expenditure across production lines.
Net profit settled at ₹1,669 crore, coming in marginally below the projected ₹1,706 crore.
Physical shipments showed parallel fatigue. NMDC shipped 10.48 million tonnes during the quarter, down 2.2% from the 10.72 million tonnes logged during the corresponding period last fiscal year. The volume drop capped realisation gains, leaving bottom-line conversion subdued despite strong headline turnover.
| Metric | Q2 FY27 Actual | Market Estimate | Variance / YoY Status |
|---|---|---|---|
| Revenue | ₹6,683 crore | ₹6,180 crore | +8.1% vs Estimate |
| EBITDA | ₹1,940 crore | ₹2,075 crore | -6.5% vs Estimate |
| EBITDA Margin | 29.2% | 33.6% | -440 bps vs Estimate |
| Net Profit | ₹1,669 crore | ₹1,706 crore | -2.2% vs Estimate |
| Sales Volumes | 10.48 MT | — |
Market Context: The margin erosion arrives at a fragile juncture for the state-owned miner. The stock drifted 0.88% lower to settle at ₹71.07 on Thursday, extending an ugly year-to-date drawdown that has wiped approximately 22% off NMDC’s market capitalisation.
The shares face immediate downside pressure as trade resumes on Friday, November 13, with institutional desks recalibrating valuation multiples around sub-30% operational margins.
| -2.2% YoY (vs 10.72 MT) |