State-owned mining major NMDC has reported a consolidated profit after tax of ₹2,007 crore for the first quarter of fiscal year 2027, marking a 2% rise compared to the previous year. This growth was primarily fueled by a substantial 26% jump in iron ore production.
During the April-June quarter, NMDC produced 15.12 million tonnes (MT) of iron ore, a significant increase from 11.99 MT recorded in the same period last year. The company attributed this robust production growth to enhanced capacity utilisation and more efficient operational processes.
Financial Performance Overview
NMDC's turnover for Q1 FY27 also saw a 2% increase, reaching ₹6,795 crore, up from ₹6,634 crore in the year-ago quarter. Profit before tax climbed to ₹2,692 crore from ₹2,644 crore, while EBITDA improved by 1% to ₹2,817 crore from ₹2,777 crore.
Despite the strong production figures, sales of iron ore rose by a more modest 2% to 11.73 MT, compared to 11.52 MT in the previous year. This disparity highlights the importance of inventory management and sales off-take strategies for the remainder of the fiscal year.
Ambitious Production Targets
Amitava Mukherjee, Chairman and Managing Director of NMDC, expressed satisfaction with the company's start to FY27, noting improved profitability and higher production. "NMDC has begun FY27 on a strong footing, with higher production and improved profitability reflecting the resilience of our operations and the discipline of our strategy," Mukherjee stated.
Looking ahead, NMDC has set an ambitious target of producing 60 MT of iron ore in FY27. The company further aims to scale up its production capacity to 100 MT by the year 2030. Achieving the 60 MT target will necessitate maintaining a high production pace throughout the upcoming three quarters.
Mukherjee emphasized the company's focus on "scaling volumes, improving productivity and unlocking greater value from our mineral resources." As a crucial supplier of iron ore to India's steel industry, NMDC's expansion plans align with the government's broader objective of achieving greater self-reliance in raw materials.