NMDC Ltd.'s stock opened 3% lower at Rs 81.80 on the NSE on Monday, after posting muted growth in its first quarter which failed to enthuse traders.
As of 9:30 a.m., the shares extended losses to trade 3.16% lower at Rs 81.69. The scrip went as low as 3.66% to Rs 81.80.
The company posted a 1.9% rise in its net profit to Rs 2,006 crore in the quarter from Rs 1,968 crore in the corresponding period last year.
Revenue remained nearly flat at Rs 6,795 crore, while EBITDA declined 0.4% to Rs 2,468 crore from Rs. 2,478 crore, and margin contracted to 36.3% from 36.8%.
The company posted an iron ore sales volume of 117.30 lakh tonnes in the quarter, aggregating up to Rs 6,508 crore. The sales were 6% higher than the year-ago period.
Despite the higher volumes and sales, Citi has maintained a 'sell' call on the stock and cut TP to Rs 80 from Rs 85, as it noted higher costs offset volume and realisation gains.
Seperately, the shares of NMDC Steel Ltd. also took a big hit and plunged 8% in early trade to Rs 40.90. As of 9:27 a.m. the shares pared some losses to trade 7.4% lower at Rs 41.23.
The company reported a sharp sequential decline in profitability for the quarter ended June 2026, with net profit plunging 87.1% to Rs 50.5 crore from Rs 392 crore in the previous quarter.
The steelmaker's revenue also declined 5.6% quarter-on-quarter to Rs 3,662 crore, compared with Rs 3,879 crore in the preceding quarter, according to the company's earnings data.
ALSO READ: Citi Cuts NMDC's Target Price As Higher Costs Offset Q1 Volume Gains; Sees Iron Ore Headwinds Ahead
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
