The NMDC shares surged over 5% to the day’s high of Rs 97.24 on the NSE after its production increased by nearly 20% to 5.31 million tonnes (MT) in May. The Navratna public sector company’s production stood at 4.43 MT in May 2025, as per the provisional data of NMDC. NMDC is India’s largest producer of iron ore.

ALSO READ

However, the company’s sales during May declined by 6.9% to 4.04 MT, from 4.34 MT in the year-ago period.

In Q4FY26, the company’s revenue from the iron ore segment rose to Rs 7,455.8 crore, compared with Rs 6,350.5 crore a year ago.

In Chhattisgarh, the production increased to 3.99 MT from 3.06 MT. Sales in the state rose to 3.34 MT as compared to 3 MT recorded in the year-ago period.

Motilal Oswal on NMDC

Motilal Oswal Financial Services retained its ‘Buy’ rating on NMDC, with a target price of Rs 106, implying an upside of over 15% from the current market price. NMDC reported strong earnings during the quarter, supported by healthy volumes. 

Management has guided for production volume to increase to 60 MT in FY27, fueled by an increasing environmental clearance limit and a new mine under a joint venture. 

“We largely maintain our estimates for FY27 and FY28 and expect volumes and prices to remain elevated, in line with strong demand from steel makers,” said Motilal Oswal.

NMDC has planned a strong capex pipeline over various evacuation and capacity enhancement projects, aimed at improving the product mix and increasing production capacity to 100 MT by FY30.

Going forward, the company is expected to venture into business diversification through coking and non-coking coal mines, critical minerals, and rare earth elements, which will serve as the catalyst for incremental revenue and EBITDA in the long term.

NMDC’s share price performance

The share price of NMDC has risen 3.7% in the last five trading sessions. The stock has surged 6.65% in the last one month and 25% in the past six months. NMDC’s stock price has increased by over 34% in the previous 12 months. 

ALSO READ

NMDC Q4FY26

The company’s net profit for the quarter came in at Rs 2,017.6 crore, compared with Rs 1,483.2 crore in the corresponding period a year back. Its revenue from operations jumped 62% year-on-year to Rs 11,343.1 crore for the quarter, from Rs 7,004.6 crore a year ago.

On the operating front, the EBITDA rose 29% YoY to Rs 2,643.5 crore in Q4FY26 from Rs 2,051.1 crore in the same quarter a year ago. However, EBITDA margin narrowed to 23.3% from 29.3% a year ago.