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
- NMDC Steel's standalone operating margin was 10.91%, 7.25 percentage points below the 18.16% median for 81 reported commodity peers.
- After interest of Rs 126.38 cr and depreciation of Rs 242.12 cr, profit before tax was Rs 73.95 cr, with Rs 42.89 cr of other income also contributing.
- The stock fell 6.16% on the first trading day and 9.98% over five sessions after the result.
Price around the results
Operating margin lagged the commodity peer set
NMDC Steel reported a standalone operating margin of 10.91%, well below the 18.16% median across 81 commodity companies that had reported. The 7.25-percentage-point gap places the company among the 13 lowest-ranked companies in that comparison.
Interest and depreciation compressed earnings
The Rs 399.56 cr operating profit was reduced by Rs 126.38 cr of interest and Rs 242.12 cr of depreciation before reaching profit before tax of Rs 73.95 cr. Other income of Rs 42.89 cr was also a sizeable contributor to pre-tax earnings. A 31.7% tax rate then reduced net profit to Rs 50.51 cr, or EPS of Rs 0.19.
The initial market response was sharply negative
After the result filing, the stock fell 6.16% on the first trading day, including a 3.37% opening gap down, and was down 9.01% by the next session. It remained 9.98% lower after five sessions, with first-day volume at 5.64 times the reference level.
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.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -6.16% | -5.84% |
| Next session | -9.01% | — |
| 5 sessions | -9.98% | -9.37% |
| 15 sessions | +3.08% | — |
Volume on the results session was 5.64× its 20-day average.
What to watch
- Operating margin in the next reported quarter versus 10.91%.
- Other income relative to Rs 73.95 cr of profit before tax.
- The next five-session stock reaction compared with the current -9.98% move.