NMDC shares tumble over 3% as company lowers iron ore prices by 9%; check details

NMDC's share price declined nearly 3.5% to an intraday low of ₹67.57 apiece on Tuesday, July 1, after the state-run firm cut its iron ore prices, effective from July 1.

The price of Baila Lump ore has been trimmed to ₹5,700 per tonne from ₹6,300 per tonne in June, making it a cut of 9.5%. Similarly, Baila Fines saw a significant 9.3% reduction in prices at ₹4,850 per tonne, down from ₹5,350 per tonne.

In FY25, the average price for Baila Lump and Baila Fines was at ₹6,094 per tonne and ₹4,611 per tonne, respectively.

CMD Amitava Mukherjee had earlier said that the firm aims to increase iron ore production by 22% to 55 million tonnes in FY26, as part of its aggressive 100 million tonnes expansion plan by 2030.

The company had produced 45 million tonnes of iron ore in the financial year ended March 31, 2025.

NMDC had reported a 5% growth in consolidated net profit to ₹1,483.18 crore for the March quarter of the fiscal year 2024-25 (Q4 FY25), driven by higher iron ore and pellet sales revenue. It had posted a net profit of ₹1,415.62 crore in the fourth quarter of 2023-24.

Its total income rose by around 9% to ₹7,497.17 crore in the last quarter of FY25 from ₹6,908.37 crore in Q4 FY24. Iron ore sales were at ₹6,350.49 crore, while pellets, along with other minerals, contributed ₹662.07 crore.

For the full FY25 fiscal year, the net profit increased by over 17% to ₹6,538.82 crore from ₹5,571.25 crore logged in FY24.

Total income rose to ₹25,498.84 crore from ₹22,678.73 crore registered in the corresponding fiscal.

NMDC is a Navratna public sector enterprise under the Ministry of Steel, Government of India. It is the largest producer of iron ore in India and operates both iron ore and diamond mines.