What’s Next for NMDC After a Strong FY25? Full Report Here

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NMDC’s FY25 & Q4 Highlights: Growth, Strategy, and What’s Ahead

NMDC Limited, India’s leading iron ore producer, shared its Q4 and full-year FY25 performance. The numbers show a strong year despite a few challenges. With bold plans for FY26 and beyond, NMDC is gearing up for significant growth. Here’s a breakdown in plain, simple language.

Strong Profit Growth in FY25

Higher Earnings Despite Production Dip

In FY25, NMDC’s net profit went up by 19% compared to the previous year. Profit before tax (after adjusting for one-time items) also grew by 16%. This happened even though there was a slight drop in total iron ore production—around 1 million tonnes less than the previous year.

Sales picked up near the end of the year, which helped boost profits. NMDC aims to produce and sell about 55.4 million tonnes in FY26, which would use its full approved environmental capacity.

Big Plans for Capital Investment

Record Spending in FY25

NMDC spent ₹3,700 crore in FY25—the highest ever. This investment went into mining infrastructure, expansion, and new projects.

Even Bigger Investment in FY26

The company plans to spend ₹4,000 to ₹4,200 crore in FY26. And it’s not stopping there. For FY27 and FY28, NMDC is getting ready to spend more than ₹10,000 crore each year.

Project Pipeline

So far, projects worth ₹43,000 crore have already been approved. On top of that, another ₹31,000–32,000 crore worth of projects are under review. These investments are aimed at making NMDC more competitive in the long run.

NMDC’s Global Push

New Office in Dubai

NMDC has opened an office in Dubai to explore global opportunities. The company is looking at assets in Africa, focusing on materials like copper, lithium, and coking coal. This is part of NMDC’s goal to diversify beyond iron ore.

Pellet Export Business Growing

NMDC exported 0.5 million tonnes of pellets in FY25. For FY26, it’s aiming to export between 2.5 to 3 million tonnes. The focus will be on high-quality pellets suitable for Direct Reduced Iron (DRI) processes. These pellets fetch a better price in the global market.

Nagarnar Steel Plant Update

Steady Output and Profitability

The Nagarnar Steel Plant (NSL), owned by NMDC, is ramping up its output. For FY26, NMDC expects to produce around 2.6 to 2.7 million tonnes of hot rolled (HR) coils.

The good news? The plant has been EBITDA-positive since March 2025, meaning it’s generating operating profits. This is a big step forward, as NSL has taken years of effort and investment to reach this point.

Smooth Material Transport

No Issues with Evacuation

NMDC has confirmed that moving iron ore from its mines to customers is not a problem right now. The company added new railway sidings, which allow 7 to 8 more rakes per day. This means it can ship an extra 9 to 10 million tonnes of material each year without delays.

KK Line Work Almost Done

The KK railway line, which helps transport ore from key mining areas, is being doubled. Only 20 kilometers of work is left. It’s expected to be finished by the end of FY26, which will make dispatches even faster.

Financials and Outstanding Payments

Receivables Still High

NMDC is still waiting to receive about ₹7,800 crore in payments. These are mainly from RINL (Rashtriya Ispat Nigam Ltd.) and its own steel plant, NSL. The company hopes to reduce this amount by the end of FY26.

Some Provisions Already Made

To be safe, NMDC has made a ₹50 crore provision under Expected Credit Loss (ECL). This is just a precaution and will be reversed once the payments come through.

New Pricing Strategy for Iron Ore

Market-Linked Pricing Being Tested

NMDC is working on a pricing system based on market indices. This method will help the company set prices that better match market trends, instead of sticking to fixed rates.

Pellet Prices Rising

In FY25, NMDC earned about $108 to $110 per tonne for its pellets. With the move to better quality DRI-grade pellets, it expects prices to rise to $140–150 per tonne in FY26.

What Management Is Saying

FY26 Will Be a Turning Point

The company sees FY26 as a key year. Management is confident it will be a major period of change. NMDC is putting a lot of focus on capex, global expansion, and making value-added products like pellets.

Challenges Are Being Addressed

While there are some short-term problems—mainly related to outstanding payments and small production gaps—management is working on fixing them quickly.

What’s Next for NMDC?

NMDC is at an important stage. The company has managed solid profits, even with small production setbacks. Now, it’s ready to grow faster by investing in new technology, better infrastructure, and overseas opportunities.

Here’s what we can expect:

  • Higher production and sales in FY26
  • More pellet exports with better prices
  • Larger capex spending in FY27 and FY28
  • Progress in international mining assets
  • Improved financial discipline and faster receivables collection

What’s Next for NMDC After a Strong FY25 Full Report Here

Key Takeaways

1. Profits Up

NMDC’s FY25 net profit rose by 19% despite a slight drop in production.

2. Record Capex

Highest-ever ₹3,700 crore capex in FY25; even more planned in coming years.

3. Pellet Focus

Pellet exports are set to rise sharply with a focus on high-quality DRI-grade pellets.

4. Global Vision

NMDC is expanding overseas with a Dubai office and asset studies in Africa.

5. Steel Plant Performing

Nagarnar Steel Plant is now EBITDA-positive and expected to grow further.

6. Transport Upgrades

New rakes and railway doubling will help dispatch more material smoothly.

7. Better Pricing

Shift to index-based pricing and premium pellet grades will improve revenue.

FAQs About NMDC’s FY25 Performance

What was NMDC’s net profit growth in FY25?

The company posted a 19% increase in net profit compared to FY24.

How much iron ore did NMDC produce in FY25?

There was a small drop in production, around 1 million tonnes less than the previous year.

What’s the production target for FY26?

NMDC aims to produce and sell 55.4 million tonnes in FY26.

What is the capex plan for FY26?

Between ₹4,000–4,200 crore, with higher spending planned for the next two years.

Is the Nagarnar Steel Plant profitable now?

Yes, it has been EBITDA-positive since March 2025.

What are NMDC’s global expansion plans?

The company opened a Dubai office and is exploring mining assets in Africa.

NMDC is entering a new phase of growth. With more focus on value-added products, better pricing strategies, and global assets, the company is preparing for the future. FY26 could be the year NMDC takes a big leap forward, backed by strong planning, focused execution, and a clear roadmap.

The next few years will be important for NMDC as it aims to maintain its leadership in the mining sector while expanding its presence globally.

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