NMDC margin rebounds to 36.33% as costs fall faster than revenue
The consolidated margin recovered from Q4FY26, but annual profit growth remained limited as expenses outpaced revenue and other income supported pre-tax profit.
Filed 15 Aug 2026, 01:56 IST · after market close · NMDC Ltd (NMDC)
Key takeaways
- Consolidated operating margin recovered 13.02 percentage points sequentially to 36.33% as expenses fell 50.26%, faster than revenue.
- Year on year, revenue grew 0.84% but expenses rose 1.56%, narrowing operating margin by 0.45 percentage points.
- Other income contributed 11.94% of pre-tax profit, while net profit grew only 0.44% year on year.
Price around the results
Sequential margin rebound masks a sharp revenue decline
NMDC's consolidated revenue fell 40.09% sequentially, while expenses declined 50.26%, allowing operating margin to expand by 13.02 percentage points to 36.33%. Operating profit still fell 6.62% sequentially, and net profit declined 2.51% to Rs 1,976.33 cr. The quarter was filed after market close, so there is no post-result market reaction to assess yet.
Annual growth was absorbed by faster cost growth
Year on year, revenue increased 0.84% but expenses grew 1.56%, which reduced operating margin by 0.45 percentage points. Lower interest expense, down 20.41%, partly offset the operating pressure, while the tax rate rose 0.19 percentage points. Other income was 11.94% of pre-tax profit, so reported earnings received a meaningful non-operating contribution.
Margin trend turns after four-quarter deterioration
Operating margin had declined from 36.78% in Q1FY26 to 23.31% in Q4FY26 before recovering to 36.33% in Q1FY27. The latest margin was 18.17 percentage points above the 18.16% median for 81 Commodities peers that had reported the quarter. This places NMDC above most of the reported peer set, with its rank from the bottom at 77.
Past result reactions have usually been positive but modest
Across eight prior result reactions, the stock rose five times and fell three times, with a median absolute move of 2.58%. The current filing was after market close, so its response is not yet available. The historical pattern points to more positive than negative reactions, but not to a consistent direction.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹6,795 cr | ₹11,343 cr | -40.09% | +0.84% |
| Other income | ₹318 cr | ₹442 cr | -28.08% | +5.83% |
| Expenses | ₹4,327 cr | ₹8,700 cr | -50.26% | +1.56% |
| Operating profit | ₹2,468 cr | ₹2,644 cr | -6.62% | -0.41% |
| Operating margin (%) | 36.33% | 23.31% | — | — |
| Interest | ₹22 cr | ₹51 cr | -57.97% | -20.41% |
| Depreciation | ₹103 cr | ₹152 cr | -32.05% | -5.16% |
| Profit before tax | ₹2,662 cr | ₹2,883 cr | -7.66% | +0.70% |
| Tax | ₹685 cr | ₹855 cr | -19.86% | +1.47% |
| Net profit | ₹1,976 cr | ₹2,027 cr | -2.51% | +0.44% |
| EPS (₹) | ₹2.25 | ₹2.31 | -2.60% | +0.45% |
Operating margin of 36.33% compares with a Commodities sector median of 18.16% across 81 peers that have reported Q1FY27.
What to watch
- Whether consolidated operating margin holds above 36.33% after the sequential rebound.
- Whether expenses remain below revenue growth after rising 1.56% year on year against 0.84% revenue growth.
- Whether other income stays near or below its 11.94% share of pre-tax profit.