NMDC revenue jumps, but costs drive a fourth straight margin decline
Filed 30 May 2026, 10:43 IST · after market close · NMDC Ltd (NMDC)
Key takeaways
- Consolidated revenue grew +49.04% qoq, but expenses grew +59.14%, cutting operating margin by 4.86 percentage points to 23.31%.
- Net profit rose only +15.41% qoq as the tax rate increased 3.34 percentage points and other income contributed 15.33% of pre-tax profit.
- The stock gained +4.98% in the first session after the results, above the 2.35% median absolute move following its past eight results.
Price around the results
Revenue rebound did not convert proportionately
NMDC’s consolidated revenue rose +49.04% qoq, but operating profit increased only +23.29%, showing weaker operating conversion in Q4FY26. Net profit growth was further limited to +15.41% as tax and financing costs rose faster than profit.
Costs drove the fourth straight margin step-down
Expenses grew +59.14% qoq against revenue growth of +49.04%, narrowing operating margin by 4.86 percentage points to 23.31%. This was the fourth consecutive quarterly decline in operating margin, from 36.78% in Q1FY26 to 23.31% in Q4FY26. Interest expense also increased +47.05%, adding to the pressure below operating profit.
Margin remains above the commodity-sector median
NMDC’s operating margin was 4.54 percentage points above the 18.77% median among 51 commodity-sector peers that had reported the quarter. Profit quality was less clean: other income accounted for 15.33% of pre-tax profit, while the tax rate rose 3.34 percentage points qoq to 29.66%.
Initial market reaction was unusually positive
The stock rose +4.98% in the first session after the results and was up +8.32% after one session, before the gain narrowed to +1.82% after five sessions and turned to -3.41% after 30 sessions. The initial move was larger than the 2.35% median absolute reaction across the past eight results, when the stock rose four times and fell four times.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹11,343 cr | ₹7,611 cr | +49.04% |
| Other income | ₹442 cr | ₹382 cr | +15.66% |
| Expenses | ₹8,700 cr | ₹5,467 cr | +59.14% |
| Operating profit | ₹2,644 cr | ₹2,144 cr | +23.29% |
| Operating margin (%) | 23.31% | 28.17% | — |
| Interest | ₹51 cr | ₹35 cr | +47.05% |
| Depreciation | ₹152 cr | ₹107 cr | +41.74% |
| Profit before tax | ₹2,883 cr | ₹2,384 cr | +20.89% |
| Tax | ₹855 cr | ₹628 cr | +36.23% |
| Net profit | ₹2,027 cr | ₹1,757 cr | +15.41% |
| EPS (₹) | ₹2.31 | ₹2.00 | +15.50% |
Operating margin of 23.31% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.98% | +5.68% |
| Next session | +8.32% | — |
| 5 sessions | +1.82% | +3.62% |
| 15 sessions | +0.23% | — |
| 30 sessions | -3.41% | — |
Volume on the results session was 3.54× its 20-day average.
What to watch
- Whether operating margin holds above 23.31% after four consecutive quarterly declines.
- Whether expense growth moderates from +59.14% qoq relative to revenue growth of +49.04%.
- Whether other income remains below its 15.33% share of pre-tax profit.