NMDC Steel's margin trails commodities peers by 7.25 percentage points
The standalone quarter produced Rs 50.51 cr of net profit, while interest and depreciation sharply reduced operating-profit conversion.
Filed 15 Aug 2026, 01:38 IST · after market close · NMDC Steel Ltd (NSLNISP)
Key takeaways
- Standalone operating profit of Rs 399.56 cr was reduced by Rs 126.38 cr of interest and Rs 242.12 cr of depreciation before tax.
- NMDC Steel's 10.91% operating margin was 7.25 percentage points below the 18.16% median for 81 reporting commodities peers.
- Other income of Rs 42.89 cr was material against standalone profit before tax of Rs 73.95 cr.
Price around the results
Operating profit was heavily absorbed below the operating line
NMDC Steel reported standalone operating profit of Rs 399.56 cr, but interest of Rs 126.38 cr and depreciation of Rs 242.12 cr left profit before tax at Rs 73.95 cr. Other income of Rs 42.89 cr was material relative to pre-tax profit, while net profit was Rs 50.51 cr. The results were filed after market close on 15 Aug 2026.
Operating margin sits well below the commodities peer median
The company's 10.91% operating margin was 7.25 percentage points below the 18.16% median among 81 commodities companies that had reported the quarter. NMDC Steel ranked 13th from the bottom on this measure, placing its margin in the weaker end of the reported peer set.
Quarterly direction and market response are not yet established
The reported quarter provides a standalone Q1FY27 baseline, with operating margin at 10.91% and EPS at Rs 0.19. The filing came after market close, so there is no results-day market response to assess in this note.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹3,662 cr |
| Other income | ₹43 cr |
| Expenses | ₹3,262 cr |
| Operating profit | ₹400 cr |
| Operating margin (%) | 10.91% |
| Interest | ₹126 cr |
| Depreciation | ₹242 cr |
| Profit before tax | ₹74 cr |
| Tax | ₹23 cr |
| Net profit | ₹51 cr |
| EPS (₹) | ₹0.19 |
Operating margin of 10.91% compares with a Commodities sector median of 18.16% across 81 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 10.91% in the next reported quarter.
- Whether depreciation of Rs 242.12 cr and interest of Rs 126.38 cr continue to weigh on profit conversion.
- How closely future pre-tax profit tracks other income of Rs 42.89 cr.