NMDC Q1 FY27 Results (NSE: NMDC)
Signal: Growth decelerated
The read
The quarter shows a sharp deceleration in underlying revenue momentum to +2.43% YoY from +24.5% in Q1FY26, while PAT still grew 1.96%; the key trajectory issue is royalty intensity rising to 51.43% of revenue from 40.39%, alongside unresolved contingent liabilities and recoverability of ₹4,499.20 crore from NSL and ₹4,712.47 crore from RINL.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6,795.25 Cr | +2.43% | -39.15% |
| Net profit | ₹2,007.27 Cr | +1.96% | |
| EPS | ₹2.28 | +1.79% |
P&L walk
Standalone revenue rose only 2.43% YoY to ₹6,795.25 crore as Iron Ore segment revenue increased 9.73%, but royalty and other levies rose 30.40% YoY to ₹3,495.03 crore, limiting PBT growth to 1.84% and PAT growth to 1.96%.
Segments
Iron Ore remained the earnings engine at ₹2,630.63 crore of segment result, up 1.29% YoY despite revenue rising 9.73%; HR Coil & Sheets slipped to a ₹0.06 crore loss from a ₹0.17 crore profit, while Pellets, Other Minerals, Products, Services & Others turned around to ₹28.75 crore from a ₹14.46 crore profit after a ₹102.39 crore loss in the preceding quarter.
Key positives
- Iron Ore segment revenue increased 9.73% YoY to ₹6,802.12 crore and segment result increased 1.29% YoY to ₹2,630.63 crore.
- Finance costs declined 20.44% YoY to ₹21.61 crore, while PAT grew 1.96% YoY to ₹2,007.27 crore.
- EPS rose 1.79% YoY to ₹2.28, broadly tracking PAT and providing no material dilution warning.
- Pellet, Other Minerals, Products, Services & Others reported ₹28.75 crore of segment profit versus a ₹102.39 crore loss in the preceding quarter.
Key concerns
- Revenue growth slowed to 2.43% YoY from 24.5% in Q1FY26, while total expenses grew 3.76% YoY.
- Royalty and other levies increased 30.40% YoY to ₹3,495.03 crore and rose to 51.43% of revenue from 40.39%, absorbing much of the operating benefit from higher Iron Ore revenue.
- Receivables from NSL total ₹6,448.75 crore including ₹1,601.39 crore arising from demerger, while RINL receivables total ₹4,712.47 crore; expected-credit-loss charges of ₹136.19 crore and ₹298.48 crore respectively have been recognised.
- Depreciation declined 2.49% YoY to ₹102.83 crore despite segment assets rising 21.84% YoY to ₹49,354.25 crore.
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