NMDC margin falls 7.10 points as expenses rise despite weaker revenue
Consolidated net profit fell 15.58% sequentially, while other income supplied 22.01% of pre-tax profit; results were filed after market close.
Filed 12 Nov 2026, 20:08 IST · after market close · NMDC Ltd (NMDC)
Key takeaways
- In consolidated Q2FY27, operating margin fell 7.10 percentage points sequentially to 29.23% as expenses grew 8.58% while revenue declined 2.31%.
- Net profit declined 15.58% sequentially and 1.79% year on year, even as other income contributed 22.01% of pre-tax profit.
- NMDC's 29.23% operating margin remained 16.83 percentage points above the 12.40% median for 149 reported Commodities peers.
Price around the results
Q2 margin reset after the Q1FY27 rebound
NMDC's consolidated operating profit fell 21.41% sequentially because revenue declined 2.31% while expenses rose 8.58%, narrowing operating margin by 7.10 percentage points. Year on year, expenses also grew faster than revenue—7.15% versus 4.08%—leading to a 2.02 percentage-point margin decline.
Other income cushioned profit as financing costs rose
Other income rose 56.62% sequentially and accounted for 22.01% of pre-tax profit, making reported earnings less dependent on operating profit. Interest expense increased 16.89% sequentially and 228.91% year on year, while the tax rate rose 0.51 percentage points sequentially and 0.93 percentage points year on year.
Margin remains above peers despite a volatile trend
Operating margin had declined from 36.78% in Q1FY26 to 23.31% in Q4FY26 before rebounding to 36.33% in Q1FY27; Q2FY27 reversed part of that rebound at 29.23%. The margin was still 16.83 percentage points above the 12.40% median among 149 reported Commodities peers.
No immediate market reaction after the late filing
The results were filed after market close, so there is no post-result market reaction to assess yet. Across eight recent result reactions, the stock rose six times and fell twice, with a median absolute move of 2.58%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹6,638 cr | ₹6,795 cr | -2.31% | +4.08% |
| Other income | ₹498 cr | ₹318 cr | +56.62% | +24.62% |
| Expenses | ₹4,698 cr | ₹4,327 cr | +8.58% | +7.15% |
| Operating profit | ₹1,940 cr | ₹2,468 cr | -21.41% | -2.67% |
| Operating margin (%) | 29.23% | 36.33% | — | — |
| Interest | ₹25 cr | ₹22 cr | +16.89% | +228.91% |
| Depreciation | ₹150 cr | ₹103 cr | +45.99% | +36.71% |
| Profit before tax | ₹2,262 cr | ₹2,662 cr | -15.01% | -0.57% |
| Tax | ₹594 cr | ₹685 cr | -13.34% | +3.09% |
| Net profit | ₹1,668 cr | ₹1,976 cr | -15.58% | -1.79% |
| EPS (₹) | ₹1.90 | ₹2.25 | -15.56% | -1.55% |
Operating margin of 29.23% compares with a Commodities sector median of 12.40% across 149 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 29.23% after the 7.10-point sequential decline.
- Whether expenses continue to grow faster than revenue after rising 8.58% against a 2.31% revenue decline sequentially.
- Whether other income's 22.01% share of pre-tax profit narrows.