NMDC Steel Ltd 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.
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Operating performance weakened significantly during the quarter. EBITDA fell 50.4% sequentially to ₹Rs 400 crore from Rs 806 crore in the previous quarter, while the EBITDA margin contracted to 10.9% from 20.8%.
The sharp decline in operating profit and margins weighed on the company's bottom line despite revenue remaining relatively resilient.
The sequential contraction points to pressure on operating profitability, with lower earnings before interest, taxes, depreciation and amortisation translating into a steep fall in net profit.
NMDC Steel, a subsidiary of state-run mining major NMDC, operates the integrated steel plant at Nagarnar in Chhattisgarh. The plant has a capacity of 3 million tonnes per annum.
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For the June quarter, the company's key financial metrics indicate a substantial moderation in profitability from the March quarter, when stronger EBITDA and margins had supported a significantly higher net profit.
Investors will likely track steel realisations, production and sales volumes, input costs and capacity utilisation for signs of improvement in operating performance in the coming quarters.
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