NMDC Steel Limited (NSE:NSLNISP) disclosed its unaudited financial results for the quarter ended 30 June 2026 at a board meeting held on 14 August 2026. The company reported a standalone net profit of Rs 50.51 crore for Q1 FY27, nearly doubling the Rs 25.56 crore posted in the same quarter of the prior year.
Key Highlights
- Revenue from operations for Q1 FY27 stood at Rs 3,661.84 crore, compared with Rs 3,365.22 crore in Q1 FY26, reflecting an increase of approximately 8.8% year-on-year.
- Profit before tax rose to Rs 73.95 crore in Q1 FY27 from Rs 36.14 crore in Q1 FY26, with total tax expense of Rs 23.44 crore comprising deferred tax only.
- Total borrowings as at 30 June 2026 were Rs 5,056.15 crore, with the outstanding rupee term loan from SBI standing at Rs 3,177.27 crore after cumulative repayments of Rs 1,298.54 crore.
- The statutory auditors, Sharad and Associates, issued a limited review report with an unmodified conclusion under Regulation 33 of SEBI LODR Regulations, 2015.
About the Company
NMDC Steel Limited (NSE:NSLNISP) is a public sector steel manufacturer headquartered at Nagarnar, Bastar district, Chhattisgarh. The company operates the NMDC Iron and Steel Plant, an integrated steelworks facility. It was demerged from NMDC Limited and is listed on BSE (scrip code 543768) and NSE. The Government of India holds a majority stake and has separately announced its intention to pursue strategic disinvestment of the company.
Announcement in Detail
The Board of Directors convened on 14 August 2026, commencing at 16:45 IST and concluding at 17:25 IST, and approved integrated unaudited financial results for Q1 FY27 in accordance with SEBI Circular SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated 31 December 2024. Total income for the quarter was Rs 3,704.73 crore, against Rs 3,385.22 crore in Q1 FY26. Total expenses rose to Rs 3,630.78 crore, driven partly by higher material costs of Rs 2,509.37 crore.
Net worth as at 30 June 2026 was Rs 13,228.35 crore. The debt-equity ratio stood at 0.38, compared with 0.43 a year earlier. Basic and diluted EPS for Q1 FY27 was Rs 0.19, against Rs 0.09 in Q1 FY26. The interest rate on the SBI rupee term loan is currently 8.40% per annum, linked to the three-month MCLR effective from 12 January 2026, and the filing confirms no default in repayment as at the reporting date.
Impact on Investors
The filing shows the company's debt service coverage ratio (DSCR) stood at 0.17 for Q1 FY27, down from 0.40 in the immediately preceding quarter ended 31 March 2026. Investors will note that a DSCR below 1.0 indicates that operating cash generation in the quarter did not fully cover scheduled debt service obligations, which is a factor to monitor given total borrowings of Rs 5,056.15 crore.
The disclosed terms also indicate that the equitable mortgage of land required under the SBI loan sanction terms remains to be formalised as at the reporting date. Shareholders will observe that a GST dispute amounting to Rs 56.40 crore remains pending before the Chhattisgarh High Court at Bilaspur, with a further Rs 0.35 crore under separate appeal, both relating to the pre-demerger period.
Sector / Market Context
India's steel sector operates under the National Steel Policy, which targets a domestic steelmaking capacity of 300 million tonnes per annum by 2030. According to the Ministry of Steel, India was the world's second-largest steel producer in 2023. Integrated steelworks such as the NMDC Iron and Steel Plant at Nagarnar form part of the government's push to develop steel capacity in mineral-rich central Indian states, where raw material proximity can support cost competitiveness over the long term.